DSV India Consolidation DSV’s Consolidation Concept

DSV India Consolidation

DSV’s Consolidation Concept


Definition of DSV’s Buyers Consolidation Concept in Asia

“Loading a container with multiple shipments from various suppliers for direct delivery to a single buyer overseas”


Traditional Shipping Concept from India

Order purchase per container basis Insufficient supplier communication Poor timing of order arrivals Poor match between supply & demand Expensive cargo flow

Risk for leftovers Container utilization not optimized Higher number of containers than necessary Overflow shipped as LCLToo many resources

Common Challenges


DSV’s Buyers Consolidation Concept

Optimized container utilization Faster delivery at destination Visibility though DSV P.O. Management Reduced risk for damage and delay Reduced customs inspections Bonded and non-bonded CFS solution in Asia

Order purchase per stock basis Better supplier control through DSV in Asia Significant transport cost savings Eliminate number of LCL shipments Multiple suppliers / one consignee Lower distribution costs at destination


DSV’s Buyer’s Consolidation concept

Scenario:• A company is acting as a central purchase organization for several different

brands.• Logistically they have various warehouses in Europe• Currently 80 suppliers from India are shipping their shipments into to one of the

EU warehouses. Upon arrival in EU, the warehouse will split up and distribute the cargo to various warehouses depending on end user location

Benefits: Cost savings Better container utilization Lower Warehouse cost in China No/less distribution costs in Europe Supplier control Minimize cargo handling

DSV Proposal:• All suppliers send their cargo into DSV Warehouse in India. • DSV monitor and arrange the shipments depending on end user location.• DSV plan according to total CBM to load FCL to the dedicated warehouse

for the end user. • DSV offer the client full visibility from the time cargo is received at our

warehouse till it’s delivered at destination


Optimized loading procedure

Breakeven program

< 27 CBM = Direct loading at the supplier with a 20‘dc 32 – 55 CBM = Move to DSV’s Consolidation Centre at

origin > 55 CBM = Direct loading at the supplier with a 40‘dc

or 40‘hc

Prioritize equipment

40‘hc as 1st priority 40‘dc as 2nd priority 20‘dc as 3rd priority LCL as the last option (through DSV own FAK Consolidation service)


The Milestones

GOODS DELIVERED INTO

DSV CONSOLIDATION

CENTER AND LOADED INTO

THE CONTAINER (FCL)

EXPORT CUSTOMS

CLEARANCE ARRANGED

BY DSV

IMPORT CUSTOMS

CLEARANCE ARRANGED BY

DSV

OCEAN TRANSPORT ARRANGED

BY DSV

FULL CONTAINER DELIVERY AT DESTINATION ARRANGED BY

DSVGOODS PICK UP FROM ALL THE

SUPPLIERS ARRANGED BY

DSV


Full control of the supply chain with DSV’s Buyer’s Consolidation Program

Vendor Management DSV to perform as consignee’s representative at origin Vendor education to ensure good compliance

PO Management Ensure shipment to be moved out within shipping window Exception alert/management

Reduce LCL ratio More cost effective Less cargo damage

Full Visibility to Buyer Information flow Physical flow

Container Utilization Improvement Reduce overall cost on supply chain


Value Added Services at DSV’s CFS in India

Quality Control

Palletization

Shrink wrapping

Slip sheeting

Pick and pack (down to item level)

Repackaging

Labeling

Bar code printing and scanning

Kitting

Garment on Hangers (GOH)


Contact Us at DSV IndiaDSV Air & Sea Pvt. Ltd.The QubeB-201, B-204, M.V. Road,Off International Airport Approach Road,Marol, Andheri East,Mumbai – 400059India +91 22 71 99 90 00 Tel.+91 22 71 99 90 01 Fax

www.dsv.com/in

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DSV India Consolidation DSV’s Consolidation Concept