Boeing, Damco join hands in logistics
Boeing [NYSE: BA] and Danish logistics company Damco, part of the AP 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 the two companies to improve efficiency and effectiveness in the multi-billion dollar supply chain optimization market. The two companies will explore opportunities to use the Boeing-developed Joint Logistics Command and Control Environment (JLC2E) modeling and simulation tool to expand into commercial markets and incorporate Damco’s expertise in supply chain management.
“We look forward to working with Damco and integrating their optimization capabilities into our own experimentation environment,” said Torbjorn Sjogren, VP of Boeing International Support Systems. “We will quickly seek out opportunities to deliver more effective outcomes within both defense 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. “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 US through future freight forwarding opportunities. Boeing shipped more than $350 million in aerospace goods and services globally in 2008.