March 1, 2010 Long Beach March 1, 2010 10 th Anniversary TPM Bill Rooney: President, Hanjin Shipping...
-
Upload
eleanore-farmer -
Category
Documents
-
view
219 -
download
0
Transcript of March 1, 2010 Long Beach March 1, 2010 10 th Anniversary TPM Bill Rooney: President, Hanjin Shipping...
March 1, 2010
Long Beach March 1, 2010
10th Anniversary TPM
Bill Rooney: President, Hanjin Shipping America
“Shipper – Carrier Dialog”
March 1, 2010
“Now is the winter of our discontent
Made glorious summer by this sun of….
rebalanced supply and demand”
•Play: Richard III - Act 1, Scene 1
•Lead Character: Richard, Duke of Gloucester
Some famous dialog to kick things off:
March 1, 2010
Shippers have many choices among carriers
Shippers are the customers and to succeed carriers must meet their needs
The carrier industry is capital intensive, high fixed cost, cyclical & holds no inventory
Truths that underlie service contract dialog
Energy costs play an unpredictable & critical role
There is “value” being left on the table
March 1, 2010
We’re all in this to get the most for our companies
Truths that underlie service contract dialog
Many shippers want to ship peak volumes from the same ports at the same time
Carriers & shippers are subject to the laws of business & economics
Carriers provide good service at fair rates & are an indispensible part of supply chains
March 1, 2010
Focus on “value” rather than the lowest rate
Look beyond simple rate/volume agreements
Explore service guarantees with penalties
Use premiums & discounts for varying levels of capacity, service and performance
Ideas to improve service contract dialog:
Place a $ value on consistency & predictability
March 1, 2010
Bonuses for accurate forecasting
Greater use of score cards
Longer contract duration
Booking no-show penalties
Indexed rates
Ideas to improve service contract dialog: