Monday, July 18, 2011

Damco Win Marks and Spencer Logistics Contract for China

Shift in Line With New Policy
Shipping News Feature

CHINA – Damco, the logistics subsidiary of shipping giant Maersk, has won the tender from supermarket Marks & Spencers to operate the retailer’s logistics hub in China. An iconic name in the UK, M&S has been expanding its presence in China in recognition of the increased demand for high quality consumer goods and foodstuffs in the country, with around five million items a year from vendors all over South East Asia now passing through the facility.

The hub, previously located in Hong Kong, was moved to mainland China to better support the growth of M&S’ retail business in China and to take advantage of cost and space efficiencies. Diverting cargo away from their UK network and via international hubs is a core part of the company’s sustainability strategy, Plan A.

Damco claim that since they began operating the facility on behalf of M&S in April productivity gains have already been identified and implemented, with record high shipments to stores.

Richard Morgan, Chief Commercial Officer in Damco UK and Ireland said that:

"We were delighted to win the tender to create and manage this International Hub for Marks & Spencer. Their international business is a key growth area for Marks and Spencer and this hub operation will provide them with a strong supply chain platform to support that growth along with a competitive supply cost.

“To win this business on top of our existing Asia - UK Supply Chain Management contract with Marks & Spencer is a fantastic indicator of how well our two companies have been working together."