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!