Aerospace giant Boeing and Danish logistics company Damco have signed a Memorandum of Understanding to pursue the development of industrial and technological logistics tools for improving global supply chain management. The two companies will explore opportunities to use the Boeing-developed Joint Logistics Command and Control Environment (JLC2E) modeling and simulation tool with the supply chain expertise of Damco, part of the A.P. Moller - Maersk Group, to expand into commercial markets.

Boeing's state-of-the-art JLC2E tool allows defense customers to experiment and evaluate supply chain tactics, processes and technologies to support current and future complex defense missions, according to Boeing. "We look forward to working with Damco and integrating their optimization capabilities into our own experimentation environment," said Torbjorn Sjogren, vice president 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 United States through future freight forwarding opportunities. Boeing shipped more than $350min aerospace goods and services globally in 2008.

Read Full Article