DAMCO.

COM

Case study

National Foods Ltd consolidates and

streamlines supply chain
A best-in-class supply chain solution supports strategic goals

When National Foods Ltd (NFL) wanted to re-engineer its

supply chain model, it looked to Damco. A SupplyChain
HealthCheck analysis uncovered potential savings
of USD 500,000. Damco is now NFLs global logistics
partner and is helping consolidate and streamline the
companys supply chain.
The challenge
NFLs supply chain challenges included:
Lack of visibility and performance measurement
Overlapping export supply chains due to production facility
locations
Complex relationships with shipping lines and freight
forwarders
Lack of unified procedures across product groups
Paying carrier premiums to obtain shorter transit times for
chilled products
Difficulty obtaining fixed and reliable reefer services.

The solution
The solution has two stages:
Achieve a stable export operating platform
Build up an innovative, international supply chain with a
stable operating platform.
To achieve this, the solution involves:
Volume consolidation through Damco
Streamlining operations through standard operating
procedures, elimination of original bill of ladings, and letters
of credit
Implementing our award-winning visibility system,
myDamco
Improving carrier portfolio by balancing ocean freight with
transit time, selecting carriers with reliable services, and
implementing carrier performance measurements
Detailed analysis of FOB terms, demand variability and
inventory patterns.

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The result

The customer

During the first three months of implementation of the new

supply chain model, we handled over 120 TEU (primarily
reefer containers) for NFL with impressive results:

National Foods Ltd (NFL)

was established in 1991
following the merger of
several dairy and foodrelated businesses. NFL is
a wholly-owned subsidiary
of Kirin Holdings Company,
Limited.

NFL and Damco have dedicated operational teams who

cooperate effectively on a daily basis
MyDamco is well integrated with NFLs everyday operations. More sophisticated reporting is gradually being
implemented
Carriers have been carefully selected for major trade lanes
based on three criteria: fast transit time, reliable service and
reasonable price.

The company employs more than 3,500 people at over 27

sites in Australasia and is the only milk and juice company
servicing the entire Australian market.

National Foods has built a stable and innovative platform

to operate our exports from. And looking to the future, that
solid platform will allow National Foods to substantially grow
its exports and imports above and beyond anything the old
system would have been capable of.
Ian Sullivan, Supply Chain Manager International,
National Foods Ltd

About Damco
Damco is one of the worlds leading third party logistics providers specialising in customised freight forwarding and supply chain management
services. For more than 100 years, we have been providing our customers with transportation and logistics solutions, wherever they are in the
world. Our strategic approach and hands-on services are extensive and tailored to meet our customers every need; whether its a competitive
rate for an urgent shipment or a strategic partner who can identify and create short-term efficiencies and build up long-term competitiveness.
For further information, please visit us at www.damco.com/keyfacts.
SupplyChain HealthCheck
The SupplyChain HealthCheck is our proven, fact-based, and practical approach to supply chain analysis and development. We will commit
the time and expertise necessary to truly understand your supply chain and develop value driven solutions to meet your business goals.

209-2 / Oktober 2011 / Damco International A/S