Supply Chain & LogisticsSandi Siegel, M.E. Dey & Co., Inc.Managing Partner & Executive Vice PresidentLicensed Customs Broker & Certified Customs Specialist

David Wasserman, SGP, Inc.29 years experience in product development,

supply chain management, sales and marketing strategies,and business growth for the foodservice and retail industries

Ron Vincent, M.E. Dey & Co., Inc.Director of Logistics and Freight Forwarding DivisionsOver 30 years of industry experience in import and export forwarding, as well as in warehouse management and 3PL.

Supply Chain & LogisticsWhat’s New for Exporters & Importers??

• Regulatoryo ACE

o VGM

• Advice on preparing for change

What is ACE???

ACE RealityIMPORTER

• More integration of PGA• Quicker/electronic

release • Less original paperwork• Report more data and

details• Importer will need to

provide more details• Rail shipments impacted

EXPORTER

• AES Direct gone • Exporters get ACE portal

accounto https://www.cbp.gov/document/g

uides/ace-account-creation-exporter-accounts

• Reports availableo File AES through Portal o USPPIo Filer Reporto Audit your AES filings

WHY VGM???

What is VGM?• IMO SOLAS Verified Gross Mass (VGM)• Amended IMO Safety of Life at Sea (SOLAS) Convention• Adopted in 2014 to take effect July 1, 2016• Shipper responsible to obtain verified gross mass of the

packed container• Two acceptable methods:

o 1. After packing and sealing container the shipper weighs the container or arranges to have it weighed by forwarder/trucker.

o 2. Shipper weighs all cargo and packing materials and adds the tare weight of the container (as noted on container doors)

Shipper able to produce VGM?

Shipper sends VGM to FF

VGM provided to Ocean Carrier

Ask FF to weigh

VGM to Terminal Operator to Plan Vessel Stow

YES NO

Trucker takes to scale & provides certified weight

VGM to Vessel Operator for Approval

Shipper completes VGM

VGM: What you need to know

• Shipper is responsible for accurate VGM and any potential penalties• Preferred method of VGM to terminal is electronic, but not mandatory

yet • Cargo will not be LOADED without VGM

o Cut off likely to be same as document cut off• Terminal policies vary

o MOST won’t accept cargo without VGMo Some will weigh container at the terminal & give you details to

provide signed VGM. • Using container tare weights from the door acceptable• Estimating weight is not permitted, and the party packing the

container may not use weights provided by others; there is no exception for co-loaded containers.

• Be sure scales used by 3rd parties are certified scales

VGM Reality• Not all countries have identified governing authorities• 4 countries already prepared to issue penalties• Still some inconsistency in standards and guidelines• Differences in weighing tolerances

o Percentage vs. specific weight toleranceo Food and Ag products a major concern

RESOURCES:• IMO’s Guidelines on SOLAS. http://www.worldshipping.org/industry• LINKED IN -https://www.linkedin.com/pulse/solas-requirement-verify-

container-gross-mass-liz-lasater?forceNoSplash=true• http://www.worldshipping.org/ World Shipping Organization

Broker Forwarder Relationship

The Juggling Act:Security-Compliance-Cost-Inventory-Customer Service

• Broker/Forwarder should help you juggle

• Need to communicate all aspects of transaction

• Understand your responsibilitieso Never more compelling reason

to control your freight• Advantages working with one

provider

Supply Chain/Sourcing

• Need to seek out best source of supply

• Overcome geographic challenges

• Certifications, Audits, and other Regulatory Challenges

• Understand where to find and use key resources

Case Study Knife Block Sets

• Large selling item with multiple components from different sources

• Uses tremendous amount of internal resources

• How to reduce cost and increase efficiency

Strategies for Today’s Logistics Challenges

Holistic Approach

Inventory Demands

Cost

Time

Transportation Trends:Carriers battle to stay afloat

• Mergers/Acquisitions• Vessel sharing alliances • Slower/bigger boats

Impact: • Fewer service options• Degraded on time performance and canceled sailings• Less customer service

Transportation Congestion/Delaysa moving target……

• Varies by port

• Varies by terminal

• Peak seasons

• Carrier issues

• Labor issues

• Weather

US RAIL SERVICE

Chicago Rail Ramps

thank you!