The 'One Damco' transformation program was carried out in 2013-2014 with the overall task of improving profitability and making Damco a more agile and competitive player in the logistics market. The program consisted of five overall projects spanning across implementation of a global IT platform, setting up a lean company structure, improving operational excellence, outsourcing finance and conducting a global launch of new sales offices. Roll-out was carried out in all +80 countries where Damco is present and affected 11,000 employees.
The role of Maersk Management Consulting included establishing and running the global program management office, improving the product catalogue and selecting locations for the new sales offices.
What we did
Setting up and running the program management office was a central and critical criteria for the success of the transformation as the program involved more than 100 stakeholders and affected the entire organisation.
The first step was to establish the governance structure, making sure that all information was cascaded down the organisation, and that progress and interim results were communicated to the management. After establishing a proper governance setup, we formed the business case and built the project plan.
Outcome and feedback
Due to the widespread effects across all layers of the organisation, the 'One Damco' transformation program had a significant impact on the way Damco does their business. The most substantial changes included:
- Centralising operations: The 'One Damco' project transformed and centralised ~300 sales and operations offices into ~50 centralised Customer Service Offices and ~250 sales offices.
- One global IT system: The 'One Damco' project replaced ~100 local IT systems with one global IT system catering the entire base of freight forwarding customers.
After project termination, all stakeholders ranked the implementation and project execution as good or excellent.