IFC GLOBAL LOGISTICSIFC GLOBAL LOGISTICS

Achieving Supply Chain Visibility Achieving Supply Chain Visibility and and ControlControl

Mr Renzo Bevinetto Managing Director

International Supply Chain Management Specialists – Since 1991

• Respected Company in transport logistics– managing sea freight, air freight, customs clearance,

domestic freight, warehousing and distribution

• International coverage – incl. USA, Canada, Europe, UK– and considerable coverage of Asia / Pacific region

• Formed long-term trade partnerships in every major trade lane to and from Australia

• Servicing end-to-end needs of wide portfolio of clients, ranging in size

About Us

• Quality Assured to AS/NZS ISO9001:2000

• Awarded for excellence– National 2007 Information Management Excellence Award

- Supply Chain & Logistics Assoc. of Aust

– BRW Top 100 Fastest Growing Private Company (Awarded 5 times in the last 10 years)

– Shipping Transport Award - Finalist

– Ernst & Young Entrepreneur of the Year - Finalist

• Constantly investing in improving systems & people

About UsInternational Supply Chain Management Specialists – Since 1991

Business Logistics

What is it?… a process of planning, implementing and controlling the efficient flow/storage of:

Warehousing& Distribution Centre

InternationalCarriers• Sea• Air

CustomersImporters

SuppliersManufacturers

OverseasConsolidators

Inbound CargoTerminals

• Pickup from Ports

• Delivery to Warehouse or Direct to Client

Logistics Service ProvidersCustoms Clearance

• Sea• Air

from point of origin to point of consumption, whilst conforming to customer requirements.

• End Users

Outdated Processes…

• Little just-in-time information to forecast demands

• Replenishment lead times guesstimates

• No real time information sharing

• No order synchronization

• No order visibility

… causing Demand Variability

… by synchronising of exchange of supply chain information through IT

Eliminating Supply Chain ‘black holes’

• Tracks order from creation to delivery, via web

• Real-time tracking of SKU, container & vessel movements, incl. part-shipments

• Rapid notification of changes & events

• Documents available in digital form & on demand

• Early availability of warehouse delivery scheduling

• Transactions encrypted

Leveraging on IT

Key Benefits

• Visibility – thus improving decision making capabilities

• Early access to critical performance indicators

• Status alerts / arrival forecasts delivered to key personnel

• Accessible by stakeholders anytime, anywhere

• Transfers data at low cost – value to small businesses

• Data secured and accessible to authorised users

• Best where system is evolved from the bottom up

• Clients are delighted by low cost of implementation

Ordering

Tracking

Clearance & Delivery

• Demurrage start date

• First day of availability

• Pick up from port

• Notification to DC (or WH)

• Delivery to DC

• Received by DC

• Empty container returns

Product Line Visibility

Key Benefits To Importer:

• Visibility of supplier’s process

• Status and location of product

• ETA of product into warehouse

• Schedule order receipt workflows

• Know the cost to land each unit

• Leaner inventories

Key Benefits To End-User:• Product availability

• Final delivery date

Product TrackingFunctional Relationship

OVERSEAS AGENT 1 - STOP

ERP System

CMR / ICS(Cargo

Management Reporting / Integrated

Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight Supply

Chain)

Electronic Data Transfers

• On forwards electronic information to our ERP system

• Significant reduction in keystrokes• Improved information flow to Australian Customs,

Quarantine and Clients

OVERSEAS AGENT

1 - STOP

ERP System

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain)

OVERSEAS AGENT

• Vessel Schedule and Container Event information for Australian Ports

• Latest information on delays, vessel adjustments and container movements

• Timely and critical information available to IFC Staff and clients

1 - STOP

1 - STOP

ERP System

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain)

OVERSEAS AGENT

• Electronic communication of data between the Customs Broker, Australian Customs & Australian Quarantine

• Data processed, e.g. shipment details, values of goods, classification of goods, customs clearance status & border processing requirements

CMR / ICS(Cargo Management Reporting / Integrated Customs Services)

1 - STOP

ERP System

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain)

OVERSEAS AGENT

• Reporting electronically, through assessment to Quarantine

• Developed for non commodity and some commodity concerns

AQIS – AEP(Australian Electronic Processing)

1 - STOP

ERP System

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain)

OVERSEAS AGENT

• Updated by information gathered in ERP system from Agents, 1-Stop, CMR / ICS, and AQIS

• Latest information on all current, upcoming and old shipments

• Availability of documentation, i.e. commercial invoices, packing lists, customs entries, invoices, electronic delivery orders

• Access to documentation at any given time and from anywhere by clients, their DCs, warehouses, depots, and transport contractors

FSC(Freight Supply Chain)

1 - STOP

ERP System

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain)

OVERSEAS AGENT

Operational:• Ordering products on-line• Organising and tracking shipments in real-time

Strategic:• Seamless information sharing among link partners• Visibility of demand in supply chain• Transparency of order processes• Leveraging speed of information to provide

competitive differentiation & flexibility• Heightened customer service offerings • Reduced operating cost

Benefits to Customers

IT as enabler and differentiator

Benefits to Logistics Provider

• Deliver virtual supply chain to clients• IT provides information trail that precedes &

follows product’s physical trail

• Applying many tools & techniques to increase operational effectiveness (both internal & external)

• Sustainable competitive advantage from homebred system (FSC):• intangible asset – difficult to copy• cannot be divorced from IFC• builds a trusting relationship amongst stakeholders• makes other assets (e.g. people) more productive• does not depreciate – funded out of cash flow

Options and freedom in deploying business strategy

FSC Services Web-based Order Management Accessible by all stakeholders Configured to support Co.X’s business

flows, monitoring & reporting requirements

Full product, documentation and shipment visibility

Collaborative management of container movements & container costs

Early access to critical performance indicators and costing

Key Efficiency Gains All Co.X Departments now use common

product code for ordering Ordering and multi-supplier consolidation

now done on-line & in real-time Now manages track & trace by exception Container deliveries coordinated and

monitored on-line Promotional start-date monitored Early downloads of landed costing

information Direct Container Buy ordering directly

interfaced with FSC

COMPANY “X”(Large Retail Hardware)

Key Savings From 3.5 Full-time Equivalent down to

0.9 FTE in peak season 0.4 off-peak, whilst volume has

doubled in past 2 years

CASE STUDY ‘A’

FSC Services Web-based Shipment Tracking Shipment data accessible by all internal

Departments, but via own ERP system Configured to support Co.Y’s ordering

practices & business flows Early access to shipping documentation Early access to critical performance

indicators

Key Efficiency Gains Buyer behaviour monitored Purchase orders transferred to FSC and

shipment data returned to Client, daily via FTP

Effective management of shipment consolidations

Shipping documentation faster at hand Now Client enjoys full track & trace

visibility, by product line Container demurrages better managed Deliveries coordinated and monitored

on-line

COMPANY “Y”(Large Textile/Homewares)

Key Savings From 3 Full-time Equivalent down to 2.5 Container storage bill from $350,000 to

$6,000 p.a.

CASE STUDY ‘B’

Logistics / Supply Chain

Important Considerations:

• Customer orientation

• Global approach

• Total cost NOT individual price

• Strategic partnerships and alliances

• Better cost control over supply chain activities

• Single and consistent view of supply chain

• Insight into trading partners’ performance

• Timely intervention to prevent inventory stock-outs

• Shorter lead times

• Opportunities for creativity and innovation

• Effective change management

• Useful information

• Customer satisfaction

Supply Chain Visibility Delivers

• when goods were ordered

• how many

• who for

• when will they arrive

..and powerfully answers these simple customer centric

questions

Thank you