US aircraft manufacturer and defence company Boeing and Danish logistics company Damco, part of the A.P. Moller – Maersk Group, have signed a Memorandum of Understanding (MOU) to pursue the development of industrial and technological logistics tools for improving global supply chain management.
The MOU paves the way for Boeing and Damco to improve efficiency and effectiveness in the multibillion-dollar supply chain optimisation market. The two companies will explore opportunities to use the Boeing-developed Joint Logistics Command and Control Environment (JLC2E) modelling and simulation tool to expand into commercial markets and incorporate Damco’s expertise in supply chain management. Boeing’s JLC2E tool allows defence customers to experiment and evaluate supply chain tactics, processes and technologies to support current and future complex defence missions.
"We look forward to working with Damco and integrating their optimisation capabilities into our own experimentation environment," said Torbjorn Sjogren, vice president of Boeing International Support Systems. "We will quickly seek out opportunities to deliver more effective outcomes within both defence and commercial supply chains, and we see a complementary combination of strengths between Boeing and Damco."
"Leveraging the logistics capabilities of our two companies creates a powerful platform for mutual business opportunities and for developing optimal supply chain solutions for our customers," said Martin Thaysen, Damco chief commercial officer. "Damco is in the business of moving products, reducing costs and improving service levels. Working with Boeing’s supply chain experience and technology would allow us to develop new ways of reducing cost and freeing up cash for our customers – which is particularly important in these economically challenging times."
Beyond the development of supply chain logistics solutions, Damco could also benefit from Boeing’s status as the largest exporter in the United States through future freight forwarding opportunities. Boeing shipped more than $350 million in aerospace goods and services globally in 2008.
Damco is the new, combined brand of the A.P. Moller – Maersk Group’s logistics activities, previously known separately as Maersk Logistics and Damco. Damco offers a broad range of supply chain management and freight forwarding services to customers around the world, with 10,500 employees in 272 offices covering more than 93 countries throughout Africa, Asia, North America, Europe, the Middle East, and Latin America. In 2008, the company had a net turn-over of US$2.8 billion, managed more than 2.5 million twenty-foot units (TEU) and air freighted more than 60,000 tons. Damco is an independent business activity within the A.P. Moller – Maersk Group.
A unit of The Boeing Company, Boeing Integrated Defence Systems is one of the world’s largest space and defence businesses specialising in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Integrated Defence Systems is a $32 billion business with 70,000 employees worldwide.