Damco expands Hub-In-Transit in Malaysia

Damco, the global third party logistics provider, has expanded its Hub-in-Transit programme by establishing new hubs in Malaysia, United Arab Emirates and Morocco.

Damco’s Hub-in-Transit programme allows companies to postpone their decisions on the final delivery date and final destination, by using container trans-shipment hubs as decoupling points in the supply chain.

Anthony Elwine, Damco’s Global Head of Chemical & Industrial, explains: “Damco customers have used our Hub-in-Transit solution successfully to improve service to their customers while decreasing costs. We have now developed three additional hub locations to help them serve even more markets, and reap similar benefits.

“Chemical sector clients have been early users of the programme, but the service is also suitable for other products, such as steels and textiles, or FMCG/CPG.”

The service is especially of interest to companies with limited on-site storage capacity where production operations are large-scale, continuous processes. Those companies may be forced to ship their products based on assumptions about the best place and time of delivery.

Hub-in-Transit enables the companies to make full use of carrier free-time by using strategically located trans-shipment hubs as virtual warehouses for goods.

By doing so, the companies will be able to lower their costs-to-serve whilst increasing logistics flexibility towards their end-customers.

Damco’s Hub-In-Transit programme:  The benefits

• Use carrier free-time at strategically located trans-shipment hubs as a virtual warehouse for your goods
• Increase flexibility to respond to changing customer demand by postponing your decisions on the final destination and delivery date of shipments
• De-consolidate shipments if needed
• Respond faster to your customers and increase your speed-to-market
• Increase service levels as a result of more reliable point-of-destination deliveries
• Reduce costs by eliminating the need for storage at origin or destination
• Keep full end-to-end visibility and control of your cargo from the place of manufacturing to your end customer