Lean Management Achieving operational excellence in logistics is a continuous journey – not a destination
Lean Management Achieving operational excellence in logistics is a continuous journey – not a destination

Over the past years, the rules of the game have changed for many Damco customers, be they large Western retailers or manufacturing companies with facilities in Asia or Africa. Many players are expanding globally these days to leverage their brand value. When doing so, optimizing the sales channel strategy across multiple markets – and aligning the underlying logistics infrastructure to support this strategy – can be a complex task. Logistics service providers need to support these expansions with a consistent and ever-improving level of logistics services around the globe.

 

Robust global services

Damco recognizes that customers increasingly need globally aligned agile, demand-driven and robust supply chain services. We are doing a number of things to help our customers to face these global logistics needs.

Our ongoing Operational Excellence programme is one of those measures. Initiated a couple of years ago, it gathers customer insights and uses these to optimize our processes, so helping us to provide fast and high-quality customer service.

The programme is based on the Lean Management methodology, which was pioneered in manufacturing by Toyota and has been accepted widely as an effective optimisation and continuous improvement approach.

 

At Damco, the programme focuses on five key areas:

 

1. Voice of the Customer

Based on an in-depth understanding of customer expectations, we continuously strive to design our operations and our customer service in such a way that we deliver the most value to our customers.

2. Process Efficiency & Effectiveness

Customer needs are fulfilled via continuously optimized processes and lead times. To assure robust services, we standardize key global processes where possible, while allowing room for flexibility and tailored adjustments.

3. Performance Management

By measuring and monitoring our performance on multiple dimensions, we are able to identify opportunities for continuous improvement. Damco’s Key Performance Indicators for Operational Excellence are developed around four dimensions:

  • Customer Satisfaction
  • Quality
  • Employee Satisfaction
  • Process Effectiveness
From these four dimensions, we derive measures and targets to create significant and sustainable impact.

4. Organisation & Skills

A high degree of cross-functional expertise and flexibility within our teams enables Damco to respond swiftly and effectively to changes in customer demand.

5. Mindset & Behaviour
Our customers and our people are put at the centre of our business.

 
Operational Excellence at Damco
 
Overall, our efforts in these five areas let us better serve Damco customers by being proactive and flexible, making sure we have the right people focusing on the right issues, and are designing our processes around customer requirements – rather than internal policies.

The goal of the Lean Management methodology for Damco is to provide ongoing optimised service levels for our customers. Our ever increasing Net Promoter Scores suggest that customers notice and appreciate our continuous improvement.

Providing top-quality customer service levels is a never-ending journey for Damco. With our efforts around Lean Management and Operational Excellence we aim to achieve our ambitious corporate vision to become the most recommended logistics company in the world!