VNS logistics solution 2012
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Transcript of VNS logistics solution 2012
Brief logistics profile of Vietnam Shipping _VNSVNS logistics solution for textile & garment Scopes of service and pricing
Our background & challengesOur missionOur total logistics solution
Our background & challenges LOGISTICS VIETNAM, as third party logistics service provider, is a
division of Viet Nam Shipping Services Corporation. For more information about Viet Nam Shipping Services Corporation, please visit our website at www.vietnam-ship.com
Vietnam market is getting more and more competitive and will be an important hub for high value products which demands professional logistics service provider who can offer solution for the conflicting concept of “lower cost with higher satisfaction” to customer. Can it be true ?
In the vanguard of this new trend and concept, We will build up a “logistics home” for our customer and together with logistics partner we can make it happen!
We aim to offer a value-added service of differentiation to ensure that we are the company you can be proud to support
Our mission Companies are increasingly focusing on their core business. That is why
there are more and more companies who are outsourcing their logistics services.
As a non-asset based logistics service provider and together with customer, we create and manage tailor-made logistics solutions for the most effective & efficiency movement of materials from supplier to consumer.
We strive for leanness, agility, and integration to keep our customer’s logistics system improving. That is our contribution to your success.
The logistics house
“Right goods/services, in the right quantity, to the right place, at the right time and with the right price”
Distribution logisticsProcurement logistics
SuppliersOperation Customers
• Transportation( by sea, land, air…)• Inventory • Order processing• Purchasing• Packaging• Warehousing• Materials handling• Information system
• Transportation( by sea, land, air…)• Inventory• Order processing• Distribution• Packaging• Warehousing/ DC• Materials handling• Information system
Total logistics system
Procurement LogisticsWe provide the purchasing order management; cargo consolidation from different suppliers in Vietnam and stored into our local warehouse including value added services (price tagging, bar-coding…), quality control Inventory management, customs clearance…and shipping to customers nominated destinations
SUPPLIERS CUSTOMERS CONSUMERS
Our upstream logistics management
Warehouse
Pallet Storage
Receive Putaway Store Pick ShipReceive
Warehouse
Pallet Storage
Receive Putaway Store Pick ShipReceive(1)
Receiving (2)
Put-away (3) Storage
(4) Order Picking
(5) Shipping
VNS WAREHOUSE
Warehouse operation
? 1-Receiving Transport scheduling Unloading vehicle Inspection for damage Comparing with P/O
2-Put-away Identify different items Identify location for storage Monitoring product Updating record into software
3-StorageEquipmentStock location
Warehouse operation…
? 4-Order picking Pick slip Walk & pick Batch picking
5-Shipping Pre-shipping
Packing Labeling Staging
ShippingShipping schedulingLoading vehicleBill of ladingUpdating record
Warehouse operation…
Distribution Logistics
We provide the services of cargo consolidation from different countries into Vietnam, customs clearance, stored into our local warehouse including value added services (price tagging, bar-coding…), quality control inventory management and national-wide transportation to nominated retailers, consumers…
CONSUMERSCUSTOMERSSUPPLIERS
Our downstream logistics management
Using warehouse to reduce transport cost: consolidation & break-bulk
Using warehouse to reduce logistics cost in transactions
National Distribution Network Services
VNS business model VNS total logistics solution VNS logistics functions VNS warehouse solution VNS transport solution
VNSCustomersSRM CRM
VNSSuppliers
VNS Strategy
VNSExecutive Team
HRM
VNS Production
VNS Internal Supply Chain
Supplier Relationship Management Customer Relationship Management
What VNS logistics solution aims to ?
1-Customers' requirements Customer Satisfaction
2-Efficient, Effective More profit by reduced cost of materials, inventory and freight
The application of logistics enables a greater efficiency of movements with an appropriate choice of modes, terminals, routes and scheduling. The implied purpose of logistics is to make available goods, raw materials and commodities, fulfilling four major requirements: Order fulfillment: Implies that the transaction between the supplier and the customer is
being satisfied with the specified product provided in the agreed quantity Delivery fulfillment: The order must also be delivered at the right location and at the
right time. Both involve the scheduling of transportation and freight distribution activities. Quality fulfillment: The order must be provided intact (in good condition), implying that
any form of damage must be avoided during transport and delivery. This is particularly important for products that are fragile, perishable or sensitive to temperature fluctuations.
Cost fulfillment: The final costs of the order, including manufacturing and distribution costs, must be competitive. Otherwise, other options will be considered.
InventoryWhen to order
How much to orderJust-in-time
InventoryWhen to order
How much to orderJust-in-time
CostsMinimize Costs ofAttaining Logistics
Objectives
CostsMinimize Costs ofAttaining Logistics
Objectives
WarehousingStorage
DistributionAutomated
WarehousingStorage
DistributionAutomated
Order ProcessingReceivedProcessedShipped
Order ProcessingReceivedProcessedShipped
VNSLogistics FunctionsTransportation Rail,
Truck, Water, Pipeline, Air, Intermodal
How VNS adds values into customers’ supply chain
VNS aims to add a multidimensional value- added activities into our customers’ supply chain including production, location, time and control of elements of the supply chain for the effective & efficient logistics:Production. Derived from the improved efficiency of manufacturing with
appropriate shipment size, packaging and inventory levels. Thus, logistics contributes to the reduction of production costs by streamlining the supply chain.
Location. Derived from taking better advantage of various locations, implying expanded markets and lower distribution costs.
Time. Derived from having goods and services available when required along the supply chain with better inventory and transportation management, and the strategic location of goods and services.
Control. Derived from controlling most, if not all, the stages along the supply chain, from production to distribution. This enables better marketing and demand response, thus anticipating flows and allocating distribution resources accordingly.
Our customers supply chain
Warehouse operations Warehouse capacity Warehouse Import/Export SOP
Receiving• Schedule carrier• Unload vehicle• Inspect for damage• Compare to P/O
Put-away
• Identify product
• Identify storage location
• Update records
Storage
• Equipment
• Stock location
Order picking
• Information (pick slip)
• Walk & pick
• Batch picking
Pre-shipping
• Packaging
• Labeling
• staging
Shipping
• Schedule carrier
• Load vehicle
• Bill of lading
• Record update
INPUT
OUTPUT
Wa
reh
ou
se
In
bo
un
d P
roc
es
sW
are
ho
us
e O
utb
ou
nd
P
roc
es
s
VNSWarehouseOperationprocess
Road to VNS_TBS warehouse
Road to VNS_TBS warehouse
HCM cityHCM city
Transport role in the logistics system VNS transport performance
VNS 2011 total volume VNS 2009-2010-2011 total sea transport performance VNS 2009-2010-2011 sea transport for garment & textile VNS 2009-2010-2011 total air transport performance VNS 2009-2010-2011 air transport for garment & textile VNS some customers for textile & garment
VNS consolidation solution VNS Sea-Air solution VNS GOH handling
? Transportation serves as a ‘bridge’ over the buyer-seller gap and plays an most
important role in the total logistics costs in most of supply chain due to: It absorbs, on average, about 40% to 50% of the organization's overall logistics costs. Transportation is the physical link connecting a company's customers, raw materials
suppliers, plants, warehouses and distribution channel. Transportation system is physically composed of the networks over which freight is
moved and of the equipment used to transport freight. The system includes vehicles, ' terminals, pipes, highways, waterways, airways, railroad tracks, etc
Therefore, the effective management of this component of logistics is an extremely important one to reduce logistics cost for our customers
VNS can bring benefits to customers for the “economies of scale” due to: Our advantage of leveraged buying power Single point of contact to different top-class preferred carriers with ample routing sailing
schedule Qualified staff with effective & efficient standard operation procedures Different transport solution such as consolidation, break-bulk, sea-air, multi-model …
Transport role in the logistics system
VNStransport solutionIn the
SC
VNStransport solutionIn the
SC
- Source: Adapted from P.O Roberts, Supply Chain Management: New Directions for Developing Economies, http://www.worldbank.org/html/fpd/transport/ports/trf_docs/new_dir.pdf- http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/worldlogisticscosts.html
Logistics Expenditures
VNS transport performance
VNS 2011 export performance to USA by commodities(From January to June 2011)
VNS total sea export performance_2009-2010-2011
Unit: teus
VNS sea performance of garment & textile to USA(2009-2010-2011)
VNS total air export performance_2009-2010-2011
Unit: kg
VNS air performance of garment & textile to USA(2009-2010-2011)
Some of VNS’ customer for garment & textile to USA
? We offer LCL consolidation services to consolidate cargo from different suppliers
when your cargo is not enough for a FCL_full container load to make sure your shipment is moved without delay and getting other benefists: Direct or maximum-one-stop routings to ensure reliable, fast shipments Minimisation of cargo-damage risk through reduced trans-loading Single point of contact for all your global LCL needs Improve overall service while keeping costs contained
VNS Consolidation solution
Scenario 1: The firms performs their own logistics functions
Scenario 2: VNS as a 3PL takes care of both suppliers’ logistics functions
Supplier 1
Supplier 2
Supplier 1
Supplier 2
2 warehouses2 separate distribution networks
1 warehouse1 distribution networkVNS as 3PL
LCL shipper LCL shipper LCL shipperLCL shipper LCL shipper
VNS as NVOCC
Bill of ladingLess than container load (LCL) shipments Full container
Seafreight consolidation model at the loading port
VNS as NVOCC…
Consignee Consignee ConsigneeConsignee Consignee
Less than container load (LCL) shipments
Full container Bill of lading
Consolidation &Break-bulk
VNS Sea-Air solution helps to answer our customer question for cargo from Vietnam to USA that airfreight is too expensive but seafreight is too slow and what is the solution? Especially, It is sensitive to fashion logistics in a peak season!
If our customers are finding their airfreight rates too high for long-haul shipments, but need faster transport than seafreight alone, consider a careful blend of the two.
Sea-Air traffic combines the economy of the sea with the speed of the air to give you a cost-effective solution. This fusion of transport modes enables you to send goods from Asia to Europe, North and South America, or Africa within 2-3 weeks.
We strongly recommend this sea-air transport model to our customer in case their goods are cost-sensitive but not absolutely urgent, then this could be a right solution as we make sure the fashion goods will be arrived at the right shop in the right time and at the right cost !
VNS Sea-and-Air solution
Example of VNS Sea-Air model via Dubai(Vietnam to USA)
Sea-Air service, a combined Sea and Air transport when properly handled is a preferable multi-modal transport that offers cost effective and time sensitive solutions, which brings two of the best advantages of air and sea freight together in one service: SAVINGS & SPEED
Sea-Air is usually presented as alternative solution between ocean and air in the logistics pipeline. It is more cost-effective than pure airfreight by 30-40% and quicker than ocean alone by approximately 40% in transit time.
There are many instances when Sea-Air can provide advantages as an alternative to the classic ocean or air transport mode: When ocean is not an option any more due to the tight delivery in term of
timeframe. When looking for a greater flexibility in the transport process to ensure the cost vs.
lead-time ratio is optimal at all times (Just-in-time) When airfreight is viewed as the immediate choice, yet may not always be needed
and becomes a “comfort” solution When product value does not support to cost of airfreight When Garment on Hanger (GoH) is carried via airfreight When looking for a solution to reduce inventory carrying cost When capacity becomes constrained from a specific origin or region, especially in a
peak season
Sea-Air solution should be created on the followings requirements: Total control over the Sea-Air operations from origin through the trans-shipment point
and ultimately to the final destination. Up-to-date information and excellent handling at trans-shipment hub is very important.
Single HAWB : combined transport document Single rate per Kilo : through transport cost quoted from port of origin to airport of
destination without hidden cost of handling at the gateway (trans-shipment hub) Carrier selection : ocean carrier selected based on their experience in handling the
sea-air shipment at the trans-shipment hub such as hot stowage, early delivery order, space commitment, direct sailing. Air carrier is carefully selected subject to the final destination
Some Sea-Air hubs: Asia/India via Dubai to Europe,Africa and USA/Canada North Asia (China) to Seoul to Europe and USA/Canada Asia/India to North America to Latin America
Cost comparision between Sea, Sea-Air, Air
SeaSea-AirAir
? Our staff are well-training for Garment On Hanger_GOH. We strictly follow
vendor/buyer instruction as well as proper shipping instruction for GOH. The below are brief SOP: 1-Received GOH booking order and GOH instruction from supplier/customer 2-Get booking GOH container/ULD and space from shipping line/Airline 3-Checking the GOH container/ULD to make sure it is in good condition for garment
stuffing 4-Perform GOH container/ULD installation in accordance with the customer’s requirement 5-Supervisation and quality control, photo taken and stick the PTI sheet into the GOH
container/ULD 6-GOH labeling outside the GOH container/ULD at the right door of the container as
“warning” for next step proper handling during loading, transportation… 7-Fastening the security seal once hanging installation is done and hand over to
respective terminal 8-Inform customer/supplier as GOH is ready for shipping for next step on related
documentation.
VNS GOH handling
?
VNS GOH handling…
?
VNS GOH handling…
VNS warehouse handling charge VNS export ocean & air freight VNS export local charge VNS export sea-freight flowchart VNS export air-freight flowchart
VNS Warehouse Handling Charges
VNS Export Local Charges