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IFC GLOBAL LOGISTICSIFC GLOBAL LOGISTICSCordially welcomes
Students and StaffStudents and Staffof the RMIT Universityof the RMIT University
Agenda10:00am Opening
10:10am Introduction Alex Allen, Director Commercial
Strategic Supply Chain Management Dr. Peter O'Neill
10:20am 10 Commandments of SCM Dr. Annibal Scavarda
10:30am 3 Presentations Dr. Fang Zhao
10:40am Business Overview Alex Allen
10:50am FSC – A Key Driver for IFC’s Competitive Advantage
Joe Dumas, IT Specialist
11:20am Customer Service Andre Turner, Mgr Customer Service
11:35am Operations Monika Sharp, Mgr Operations
11:50am 3PL and 4PL Logistics Brett Armitage, National Logistics Mgr
12:10pm Q & A
12:30pm Lunch
1:00pm Site Tours
1:45pm FSC Demonstration Joe Dumas
2:30pm Q & A
3:00pm Close
New 15,000 M2 Altona Site
International Supply Chain Management Specialists
Respected Company in Transport Logistics Managing sea freight, air freight, customs clearance,
domestic freight, warehousing and distribution Established in 1991 International Coverage
incl. USA, Canada, Europe, UK and, considerable coverage of Asia / Pacific region
Long-term Partnerships in every major Trade Lane to and from Australia Servicing a wide portfolio of clients ranging in size
About Us
Our Mission
Our Values
Worldwide Trust
“We commit to exceeding our customers' expectations for quality, responsiveness, and professional excellence while delivering within the agreed price and schedule.”- IFC Group of Companies Mission Statement
Quality Assured to AS/NZS ISO9001:2000 Won a number of awards for excellence
National 2007 Information Management Excellence Award BRW – Top 100 Fastest Growing Private Company
(Awarded 5 times in the last 10 years) Finalist - Shipping Transport Award Finalist - Ernst & Young Entrepreneur of the Year
Constantly invest in improving systems & people Clients have access to best practice advice Servicing clients’ total end-to-end needs
Our Commitment
ISO Certification
BRW Award
Membership
Also:
• Storage• Inventory Management• Cross Dock• Pick & Pack• Distribution• Reworking
IFC Warehousing& Distribution Centre
InternationalCarriers• Sea• Air
Customers• Importers• End Users
Suppliers• Manufacturers
OverseasConsolidators
• Load • Unload
Inbound CargoTerminals
• Coordinated by IFC Cartage• Pickup from Ports• Delivery to Warehouse
or Direct to Client• Delivery to IFC WH&D Centre
IFC Logistics Service Providers
IFC’s Integrated End-to-End Supply Chain Execution
Customs Clearance
• Sea• Air
Integrated Solution
Supply Chain Management
“Supply Chain Management is the integration of key business processes from
end user through original suppliers that provides products, services and information
that add customer value and other stakeholders.”
Global Supply Chain Forum 1998
Freight Supply Chain (FSC)
A Key Driver for IFC’s A Key Driver for IFC’s
Competitive AdvantageCompetitive Advantage
Outdated Processes in Importing
Inappropriate Applications / Incompatible Systems
SUPPLY
POLICIES
NO STRATEGY AND MISINFORMATION
Financial Settlements
FORECASTDEMAND
BUYINGSTOCK
DISTRIBUTION
marketin
g
and sales
STORES
forwarding
Determine Stock Requirements
Evidence of Forrester’s Bullwhip Effect *
Little JIT information to forecast demands Replenishment lead times guesstimates No real time information sharing No order synchronization No order visibility
* Industrial Dynamics (1961)
…the amplification of demand variability as you move from downstream (customer) to upstream (supplier) sites along a supply chain.
FSC Solution Synchronicity of the Exchange of Information in the Supply Chain
Operational: Ordering products on-line Organising and tracking shipments in real-time
Strategic: Information sharing among link partners - seamlessly Visibility of demand in supply chain Transparency of order processes Leveraging speed of information to provide
competitive differentiation & flexibility Heightened customer service offerings Reduced operating cost
Benefits to Customers
IT as enabler and differentiator
Forefront as e-SCM service provider Deliver virtual supply chain to clients Apply tools & techniques to increase our
operational effectiveness (internal & external)
Sustainable competitive advantage FSC is an intangible asset – difficult to copy FSC cannot be divorced from IFC FSC builds a trusting relationship amongst
stakeholders FSC makes other assets (e.g. people) more productive FSC does not depreciate – funded out of cash flow
Benefits to IFC
Options and freedom how we deploy our business strategy
FSC Software Overview
Tracks order from order creation to delivery via web Real-time tracking of SKU, container & vessel movements,
and part-shipments Rapid notification of changes & events in supply chain Documents available in digital form & on demand Early availability of warehouse delivery scheduling Transactions encrypted Open platform Local support
FSC Key Features
Visibility – thus improving decision making capabilities Early access to critical performance indicators Status alerts / arrival forecasts delivered to key personnel Accessible by stakeholders anytime, anywhere Transfers data at low cost – value to minor business
partners Data secured and accessible to authorised users Evolved from the bottom up Delights clients – low cost of implementation
FSC Key Benefits
Purchasing
Tracking
Clearance & Delivery
Demurrage start date
First day of availability
Pick up from port
Notification to DC (or WH)
Delivery to DC
Received by DC
Empty container returns
Product Pipeline Visibility
Key Benefits To Importer: Visibility of supplier’s process Status and location of product ETA of product into warehouse Schedule order receipt workflow &
fulfilment Know the cost to land each unit Leaner inventories
ProductLevel
Reporting
Unit LandedCosting
ETAInto
Warehouse
Confirmedon
Board
CargoReady
ProductTracking
Key Benefits To End-User: Product availability Final delivery date
Product TrackingFunctional Relationship
Customer Service
Overview of Customer Service Main point of contact between the Customer and IFC
Global Logistics Provides updates on freight service and rates to the
customer Advises best method of shipment, transit time, rates,
LCL, FCL or Air Freight Assists the Customer’s staff in understanding the
shipping process The go between with the Customer and other IFC
Departments Tracks the Customers’ orders door to door
Door to Door Chain
Airfreight Shipment
Order ready?
Pick up of cargo by truck
Delivery to Airport Depot
Export Document Process
Delivery from Depot to Airport
Door to Door Chain
Airfreight Shipment
Loading the Aircraft Transit Stops Arrival in Australia Import Document Process Delivery to Customer
Tracking of Shipment
Customer places order in FSC
Order transferred to Supplier
Order transferred to IFC o/s office
Monitored by IFC Customer Service Team
Order close to ready date
FSC reminds IFC o/s office to follow-up
IFC o/s office updates FSC with ready date
or delay
Tracking of Shipment
Booking by Supplier – O/s office updates
FSC and books shipment with Airline /
Shipping Line – Pick up arranged
Documents scanned into FSC for all parties
to view and use
Vessel journey tracked – transhipment,
offload or port delays
Confirmed ETA details entered into FSC
Tracking of Shipment
Projected ETA into warehouse and delivery
Confirm ATA – Vessel, Warehouse and Delivery
Products shipped entered against order
Part shipped orders – reordered
Landed Costing completed in FSC
Loaded on Board – details of cargo, vessel, departure date and arrival date confirmed in FSC
Operations
Business Groups
Overview of Operations
Import Operations Prepare import documentation for reporting to Australian Customs. Liaising with carriers and overseas agents to process payment and invoicing client. Ensuring all delivery paperwork is available prior to cargo arrival.
Compile Collate all required and correct import clearance documents and compile
information in our database for customs entries
Cartage Coordinators Ensure shipments have a clear status for delivery
Check AQIS impediments and organize delivery to clients according to their instructions / requirements.
Customs Brokers Report cargo to Customs & AQIS as per Australian Customs requirements. Classify
new products and advise clients on duty & GST rates as well as Customs and Quarantine impediments. Attend to any misc Customs and AQIS queries.
Mission Statement (Operations) Commit to exceeding our customers’ expectations for quality,
responsiveness, and professional excellence while delivering within the agreed price and schedule
Pursue Cost effective alternatives to increase value for our customers in all areas from which we offer service.
Foster a working environment that encourages the furthering of technical knowledge, professional and financial growth, and competitive excellence.
Profitability Quick Turnaround High Level of Customer Service Lower Costs Improve Productivity
Objectives
Electronic Data Interface
OVERSEAS AGENT 1 - STOP
ediENTERPRISE
CMR / ICS(Cargo
Management Reporting / Integrated
Customs Services)
AQIS – AEP(Australian Electronic
Processing)
FSC(Freight Supply
Chain Managements)
Electronically sending information to Enterprise
Reducing Double handling of data Improved information flow to Australian
Customs, Quarantine and Clients
OVERSEAS AGENT
1 - STOP
ediENTERPRISE
CMR / ICS(Cargo
Management Reporting / Integrated Customs Services)
AQIS – AEP(Australian Electronic
Processing)
FSC(Freight
Supply Chain Managements)
OVERSEAS AGENT
Vessel Schedule and Container Event information for Australian Ports.
Live information, keeping our system up to date with any delays, vessel adjustments and container movements.
Up to date information availability to IFC Staff and clients at any given time.
1 - STOP
1 - STOP
ediENTERPRISE
CMR / ICS(Cargo
Management Reporting / Integrated Customs Services)
AQIS – AEP(Australian Electronic
Processing)
FSC(Freight
Supply Chain Managements)
OVERSEAS AGENT
Electronic communication of data between the Customs Broker, Australian Customs & Australian Quarantine
Data which is processed: Shipment details, values of goods, classification of goods, customs clearance status, border processing requirements, etc.
CMR / ICS(Cargo Management Reporting / Integrated Customs Services)
1 - STOP
ediENTERPRISE
CMR / ICS(Cargo
Management Reporting / Integrated Customs Services)
AQIS – AEP(Australian Electronic
Processing)
FSC(Freight
Supply Chain Managements)
OVERSEAS AGENT
Reporting electronically, through assessment to Quarantine
Developed for non commodity and some commodity concerns
AQIS – AEP(Australian Electronic Processing)
1 - STOP
ediENTERPRISE
CMR / ICS(Cargo
Management Reporting / Integrated Customs Services)
AQIS – AEP(Australian Electronic
Processing)
FSC(Freight
Supply Chain Managements)
OVERSEAS AGENT
Updated by Information gathered in Enterprise from our Agents, 1-Stop, CMR / ICS, and AQIS
Live information on all current, upcoming and old shipments Availability of Documentation, i.e. Commercial invoices,
Packing Lists, Customs Entries, Invoices, Electronic Delivery orders
Allows clients and their Distribution Centers, Warehouses, Depots, and Transport Contractors to access documentation at any given time
FSC(Freight Supply Chain Managements)
1 - STOP
ediENTERPRISE
CMR / ICS(Cargo
Management Reporting / Integrated Customs Services)
AQIS – AEP(Australian Electronic
Processing)
FSC(Freight
Supply Chain Managements)
OVERSEAS AGENT
3PL and 4PL Logistics
Measuring Supply Chain Measuring Supply Chain PerformancePerformance
Defining the Supply Chain and Logistics
The importance of knowing Warehousing
and Distribution costs
Measuring the cost of Warehousing and Distribution
What are the Objectives?
Supply Chain Management
“Supply Chain Management is the integration of key business processes from
end user through original suppliers that provides products, services and information
that add customer value and other stakeholders.”
Global Supply Chain Forum 1998
Logistics/Supply Chain
Important features:
Customer Orientation
Global Approach
Total Cost NOT Individual Price
Strategic Partnerships and Alliances
Business Logistics
PETER DRUCKER - 1961
“ Almost 50 Cents of each dollar the American spends for goods goes for activities that occur after the goods are made, that is, after they have come in finished form. Economically, distribution is the process by which physical properties of matter are converted into economic value: it brings the customer to the product. ”
Logistic Strategy Planning
Logistic Strategy Depends On:
SALES VOLUME PLAN MARKETING PLAN CUSTOMER SERVICE PLAN FINANCIAL PLAN SOURCING/MANUFACTURING PLAN
Focus On Company Profit & ROI
Management
Moving From:
FUNCTIONAL MANAGEMENT
To:
PROCESS MANAGEMENT
Logistic Plan Trade Offs
Inventory carrying costs Production/sourcing costs Information processing costs Warehouse operations costs Transport costs - in & out
Customer focus - competitive
Customer ServiceCustomer service levels are set by
Company Executives
They are expressed as operational standards:Examples: Daily deliveries to all customers 24 hour cross dock operation Customer queries answered within 24 hours 98% stock availability Warehouse costs below 1.5% of sales Loss/damage less than 0.2% of throughput Warehouse inventory less than 10% of company
inventory
IFC Warehousing IFC Warehousing & Distribution Centre& Distribution Centre
IFC Warehousing & DistributionCapacities include:
8,000M2 with capacity for over 8,000 pallets 2,000M2 front cross-dock processing area 6 covered docks with hydraulic dock
levellers Extending by additional 6,000M2
Radio Frequency (RF) scanners Automatic stock put-away zoning Receipts, flexible stock allocation,
put-away, cross-dock or staging 3PL communication
& network support system Pick n pack, rework processing,
bill of materials
IFC Warehousing & Distribution
Provides leading supply chain practices such as: Customer driven planning – for effective on-demand,
order-to-delivery and distribution management
Efficient customer order fulfilment – through real-time order
processing via web portal
Improved product lifecycle management – through product
visibility and information transparency within the supply chain
Enabling technologies (Manhattan WMS) – for core
performance data, efficiency, accessibility and integration to own ERP system
IFC Warehousing & Distribution
Purchase order raised in FSC
Client Packing lists scanned into FSC/Excel import
Packing list interfaced from FSC/Excel directly into ILS
Manhattan
Containers opened stock scanned from Delivery into IFC
Warehouse
Manhattan receipts stock in against Packing list/auto
Exception reporting to Client
IFC Warehousing & Distribution
Client has access via IFC Web site to view Stock
records
Internet Portal access 24/7 Globally
Client can access status of Stock
Direct Access of Orders in progress
Client can create orders via Internet Portal
Direct Access to Reporting
IFC Warehousing & Distribution
Key features of Warehouse Management System (Manhattan Associates – Integrated Logistics Solutions)
Multi-lingual application on Microsoft Platform User Web Portal
Create & view orders, order status and cyclic count status View inventory levels and shipped inventory
Off-shore generation of Advanced Shipping Notices (ASN) and unit labelling
Comprehensive inventory management and order fulfilment system
IFC Warehousing & Distribution
Time for your questions…
CASE STUDY “A”
FSC Services Web-based Order Management Accessible by all stakeholders Configured to support Co.X’s business
flows, monitoring & reporting requirements
Full product, documentation and shipment visibility
Collaborative management of container movements & container costs
Early access to critical performance indicators and costing
Key Efficiency Gains All Co.X Departments now use common
product code for ordering Ordering and multi-supplier consolidation
now done on-line & in real-time Now manages track & trace by exception Container deliveries coordinated and
monitored on-line Promotional start-date monitored Early downloads of landed costing
information Direct Container Buy ordering directly
interfaced with FSC
COMPANY “X”(Large Retail Hardware)
Key Savings From 3.5 Full-time Equivalent down to
0.9 FTE in peak season 0.4 off-peak, whilst volume has
doubled in past 2 years
CASE STUDY “B”
FSC Services Web-based Shipment Tracking Shipment data accessible by all internal
Departments, but via own ERP system Configured to support Co.Y’s ordering
practices & business flows Early access to shipping documentation Early access to critical performance
indicators
Key Efficiency Gains Buyer behaviour monitored Purchase orders transferred to FSC and
shipment data returned to Client, daily via FTP
Effective management of shipment consolidations
Shipping documentation faster at hand Now Client enjoys full track & trace
visibility, by product line Container demurrages better managed Deliveries coordinated and monitored
on-line
COMPANY “Y”(Large Textile/Homewares)
Key Savings From 3 Full-time Equivalent down to 2.5 Container storage bill from $350,000 to
$6,000 p.a.
Excellence AwardExcellence Award
“…unambiguously the most prestigious and influential award in the industry.”
- Supply Chain & Logistics Association of Australia (SCLAA)
IFC Wins National 2007 Information Management Excellence Award National recognition as a significant achiever in supply chain and
logistics information management Granted by largest association of logistics professionals for significant
achievement in the use of:
Communications
Information management
Technology
e-business
…with particular regard to the added value produced by the achievement
Excellence AwardExcellence Award
“… unambiguously the most prestigious and influential award in the industry.”
- Supply Chain & Logistics Association of Australia (SCLAA)
“ Freight Supply Chain (FSC), is a quality product…developed to manage and distribute up to the minute information to all stakeholders in the supply chain. FSC was recognized as a powerful strategic tool that leverages real-time information to improve everyone’s time to value. “
…an integral part of our pursuit to: streamline supply chain processes improve response times to clients improve accuracy of information reduce clients’ costs and overheads, and improve product time to market
…essentially, allowing our customers and their clients to do, and get a lot more, for less.“
Time for your questions…