How dsm-firmenich Strategically Manages Its Ocean Freight Business
Optimizing process management and cutting inefficiencies with a control tower solution
Bringing two companies together required the dsm-firmenich logistics team to identify and leverage all strategic and technical synergies in a unified global supply chain. This case study illustrates how an innovative control tower solution, originally delivered to Royal DSM, and a full range of ocean contract management services provide significant benefits to the company today, including improved process efficiency, cost management, exception management, and full visibility.
Next-Level BCO With A Freight Forwarder
dsm-firmenich’s Challenge: A Changed Market and New Business Needs
Ten years ago, a transactional booking model for ocean freight was sufficient. But today, like many other companies, dsm-firmenich expects much more as the market has changed and so too have business needs.
In addition to negotiating its ocean freight rates directly with carriers – typically using a beneficial cargo owner (BCO) model for its Tier 1 locations – the company sought expert support from a freight forwarder to enhance execution of its standard operating procedures. Dave Coenen, Head of Network Strategy and Design, Global Logistics, dsm-firmenich explains “Booking agent was off the table! We wanted a strategic partnership!”
DHL Global Forwarding’s Solution: Ocean Contract Management (OCM)
DHL Global Forwarding collaborated closely with the company to develop the required Ocean Contract Management solution. This comprises access to a full suite of services – transport management, exception management, procurement services, allocation management, freight audit and pay, visibility and innovation, metrics and reporting, import and export, trade compliance, and customs brokerage – along with operation of a 24/7 data-driven Ocean Contract Management control tower.
The backbone of this solution is an enhanced operating system, supported by capabilities such as Smart ETA, allocation management, and a detention and demurrage tracking tool. These ensure exceptionally reliable data and state-of-the-art reporting.
Achieving Valuable Benefits
While this solution allows dsm-firmenich to continue negotiating ocean rates and capacity agreements directly with shipping lines, it also delivers the highest level of process automation, reducing manual work through electronic data exchange. Accessing a single data platform for all carriers, the company has detailed dashboard capabilities and analytics extending well beyond simply tracking physical locations.
Benefits for dsm-firmenich include optimized process management, which boosts efficiency and cost management; exception management, which helps identify and eliminate inefficiencies; and full physical and process visibility of the entire supply chain.
What dsm-firmenich Has to Say
About dsm-firmenich
2023
Merger of Royal DSM & Firmenich
~30,000
TEU per annum
~8 million
KG per annum
~250,000
Outbound shipments per annum
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