LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENT FOR THE FUTURE ?

(La Logistica per i Progetti EPC: quali sviluppi futuri ?)

Franco Concari Project Management Systems Presidente Vicario IPMA Italy Giovanni Del Serrone Procurement Dept.Director

VI CONVEGNO NAZIONALE Sezione Logistica, Trasporti e Spedizioni

Procurement for Construction

Project Management

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Jobsite

Supplier Supplier

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Supplier

SPOOLS

PREFABRICATION

YARD

The EPC Project: is managed by the EPC Contractor

Procurement for Construction: the Transportation Project is the driving belt

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End Customer

Job Site

Cargo Hauler

Warehouse

Departure Port / Airport

Arrival Port / Airport

Air/ Sea

solutions

Transport

Transport

Warehouse

Supplier/Customer

The Transportation Project: actuated by the Forwarding Agent

The Transportation Project exploits the most effective logistic solutions.

• SYNERGIES & PARTNERSHIPS

• BUSINESS VOLUME LEVERAGE

• IN-HOUSE SPECIFIC EXPERTISE

• OPERATIVE RESOURCES

• CONTACTS & RELATIONSHIP

Need of a Forwarding Agent

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TPIT Expectations

TIMELY, UPDATED & CONTINUOUS

INFORMATION FLOW

ENHANCE PROJECT KNOWLEDGE

COUNTRY OF DESTINATION:

- Local Staff

- Expatriates

TEAM STRENGTH IMPROVEMENT

To become also

DRIVER IN THE DEVELOPMENT OF THE OVERALL TRASPORT SYSTEM

FAIR AND STEADY PARTNER IN THE PROACTIVE SUPPORT FOR PROJECT EXECUTION

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C O

M M

I T

M E

N T

to P

roje

ct

Re

su

lt

P L A Y E R S

E F F E C T I V E P A R T N E R S H I P

USUAL

CUSTOMER /

SUPPLIER

RELATIONSHIP

TPIT Expectations

100%

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DOCUMENTS MONITORING

EPC CONTRACTOR Commitment

SHIPPING STRATEGY IMPLEMENTATION

FULL COST MANAGEMENT

PROJECT SCHEDULE SECURING

Create a solid frame for the execution of the TRANSPORTATION PROJECT

Based on Technip experience and management model

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TRANSPORTATION PROJECT Proposal Stage

DIMENSIONS

(LXWXH)

WEIGHTS

QUANTITIES

ORIGINS

SHIPPING

STRATEGY

TYPOLOGY

DELIVERY

TERMS

COST OUTCOME

LAND

FREIGHT

EXW / FCA EU

REFORWARDING

LOCAL

CONVENTIONAL

CONTAINER

AIR

Define the shipping strategy for the Proposal to be competitive for the award of the specific Project Get the Project !

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SHIPPING PP/PTC

PREPARATION

PP607 PTC 604 PP604

SHIPPING SURVEY ML 602

SR 6720 DATA

COLLECTION

ITB

BID LIST

NEGOTIATION

FA SELECTION

SERVICE ORDER

NM 603

NM 604

CBT AFTER

CBT BEFORE

PRELIMINARY PL’s

DATA BALANCE

MR 6720

INQUIRY PACKAGE

PREPARATION OF

MR FOR ORDER

TRANSPORTATION PROJECT Early Project Stage

XXXX- PP 607

XXXX- PTC 604

XXXX- PP 604

“Prescription for Preparation of

Documentation Packages

(D1001/2/3) for transport

services”

“Addendum A to 1000 GTC

603 and 1000 GTC 604”

“Shipping documents

compilation and

distribution requirements”

Define the reference coordination frame for the execution of the Transportation Project Each Stakeholder has a role !

Frame to supply transport information by SUPPLIER with relevant Support Forms specific for the Project

Responsibility Matrix in the compilation of Shipping Documents by CLIENT, CONTRACTOR, FA

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SHIPPING PP/PTC

PREPARATION

PP607 PTC 604 PP604

SHIPPING SURVEY ML 602

SR 6720 DATA

COLLECTION

ITB

BID LIST

NEGOTIATION

FA SELECTION

SERVICE ORDER

NM 603

NM 604

CBT AFTER

CBT BEFORE

PRELIMINARY PL’s

DATA BALANCE

MR 6720

INQUIRY PACKAGE

PREPARATION OF

MR FOR ORDER

INFRASTRUCTURES (roads, ports, railways, etc)

LOCAL AUTHORITIES & REGULATIONS

CARRIERS LOCAL MARKET

TRANSPORTATION PROJECT Shipping Survey (whenever needed)

Define and solve the critical and risk issues of the Transportation Project No surprise in Project execution !

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SHIPPING PP/PTC

PREPARATION

PP607 PTC 604 PP604

SHIPPING SURVEY ML 602

SR 6720 DATA

COLLECTION

ITB

BID LIST

NEGOTIATION

FA SELECTION

SERVICE ORDER

NM 603

NM 604

CBT AFTER

CBT BEFORE

PRELIMINARY PL’s

DATA BALANCE

MR 6720

INQUIRY PACKAGE

PREPARATION OF

MR FOR ORDER

TRANSPORTATION PROJECT Shipping Requisitioning

SP 6720

Transport

Service

Special

Conditions

SR 6720

EQUIPMENT

MATERIAL

LIST

1000 GTC 605

Transport

Service

General

Conditions

TECHNICAL DOCUMENTS

COMMERCIAL DOCUMENTS

PS 6720

Price List

Define the Shipping Strategy For the management of the Transportation Project !

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SHIPPING PP/PTC

PREPARATION

PP607 PTC 604 PP604

SHIPPING SURVEY ML 602

SR 6720 DATA

COLLECTION

ITB

BID LIST

NEGOTIATION

FA SELECTION

SERVICE ORDER

NM 603

NM 604

CBT AFTER

CBT BEFORE

PRELIMINARY PL’s

DATA BALANCE

MR 6720

INQUIRY PACKAGE

PREPARATION OF

MR FOR ORDER

TRANSPORTATION PROJECT Progressive and cumulative price construction

TECHNICAL & COMMERCIAL TABULATION

PS 6720

Price List

&

SHIPPING

STRATEGY How we plan to

move Project

material from

around the world

up to Job Site

Port

Handling

Operations

Export

Customs

Pick up complete

conveyance (bulk portion)

+ Pick up

exceptional items

+ +

Complete

Conveyance

+ exceptional items

Sea Freight Conventional

+

Port

Handling

Operations

Import

Customs +

Define the Transportation Contract For the management of the Transportation Project !

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TRANSPORTATION PROJECT Mutual obligation highlights

SHIPPING PP/PTC

PREPARATION

PP607 PTC 604 PP604

SHIPPING SURVEY ML 602

SR 6720 DATA

COLLECTION

ITB

BID LIST

NEGOTIATION

FA SELECTION

SERVICE ORDER

NM 603

NM 604

CBT AFTER

CBT BEFORE

PRELIMINARY PL’s

DATA BALANCE

MR 6720

INQUIRY PACKAGE

PREPARATION OF

MR FOR ORDER

PRIOR NOTICE BOOKING

CONFIRMATION TRANSIT TIME

Associated risks

VESSEL

UNAVALAIBILITY DEAD FREIGHT PENALTIES FOR

DELAY

What

Who

DEMURRAGE

Define clear obligations for all parties For the management of the Transportation Project !

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• Transport Services Agreement = Mandato senza rappresentanza (Agent acting in its name but on behalf of the Principal, except specific services)

FORWARDING AGENT

• Obligation to PERFORM

• No obligation to DELIVER

TRANSPORTATION PROJECT General Frame

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FOR TRANSIT TIME LIABILITY DELAY PENALTIES

FOUNDAMENTAL BREACH TERMINATION/DAMAGES

Liabilities are confined to the execution of relevant services

TRANSPORTATION PROJECT TPIT Forwarding Agent Liabilities

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IN ITS NAME BUT ON BEHALF OF ITS

CUSTOMER:

To enter into the transportation agreement

AND

To take over the commodities (from Vendor)

To take care of packing

To provide insurance coverage (no in TPIT case)

To carry out Custom Clearance operations

TRANSPORTATION PROJECT Forwarding Agent scope of work

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To coordinate/organize transport operations

To adopt adequate technical solutions in its transport design

To check loading, lashing and securing operations

To report to TPIT loading etc. non-conformities

To obtain the required transport authorizations

To promptly interact with Insurance company in case of claim

AND To comply with TPIT Code of Ethics

To comply with applicable laws and regulations

TRANSPORTATION PROJECT TPIT Forwarding Agent Obligations

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PROJECT EXECUTION General Frame

Project success is achieved

through an integrated effort

Exchange of information and communication

are essential for an integrated management 18

TRANSPORTATION PROJECT IT Tool integration: today evolution

2008 2007

FRAGMENTED

&

MANUAL HANDLING

FULLY INTEGRATED

MANAGEMENT

From manual handling of paper documents

towards IT Integration inside Contractor systems. 19

TRANSPORTATION PROJECT IT Tool integration: expectations for the future

A single Internet Portal to exchange information

and communications of the Transportation Projects

FORWARDING

AGENT

• ETD/ETA

• ATD/ATA

SUPPLIER

• READINESS

• SHIPPING DOCS

• SHIPPING SCHEDULE

Logistic Business for Contract Projects:

• Complex management environment

• Limited in business volume

• High value in the Project execution process

• Limited use of italian transportation Companies

• Limited use of integrated IT Systems

How to improve the situation in the future ?

LOGISTIC FOR CONTRACT PROJECTS:

Present environment

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FORWARDING AGENT KEY ROLE for the future

Knowledge of the global transportation market

Ability to manage its Partners to achieve the

objectives of the Transportation Project

Understanding of the ECP Project execution

issues

Ability in proposing solutions also for

Transportation Projects in extreme environments

Real time information on actual status of

Transportation Project

Driver in the innovation trend and stimulating

Partners towards innovation

DRIVER IN THE DEVELOPMENT OF THE OVERALL TRASPORT SYSTEM:

TO BE MORE COMPETITIVE IN THE INTERNATIONAL MARKET 22

EPC CONTRACTOR KEY ROLE for the future

Facilitate integration in Project Organization

Stimulate integration of information systems

Improve the timing and quality in supplying

information for the Transportation Project

And……………………….

…….other suggestions from F.A. ?

DRIVER AND INTEGRATOR IN PROJECT MANAGEMENT AND EXECUTION:

TO BE MORE COMPETITIVE IN THE INTERNATIONAL MARKET

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Custom

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Job

Site

Carg

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Haule

r

Wareh

ouse

Departur

e Port /

Airport

Arriva

l Port /

Airpor

t

Air/

Sea

soluti

ons Trans

port

Trans

port

Wareh

ouse

LOGISTIC FOR CONTRACT PROJECTS:

WHAT DEVELOPMENTS FOR THE FUTURE ?

Contribuire allo sviluppo della Filiera Italiana

Per il successo nel contesto internazionale 24

LOGISTIC FOR CONTRACT PROJECTS:

WHAT DEVELOPMENTS FOR THE FUTURE ?

Idee & proposte

• Sviluppare e consolidare i sistemi di relazioni (supply networks)

tra EPC Contractor e Forwarding Agent.

• Usare il Project Management come base culturale comune.

• Indirizzare le attività di network a migliorare i sistemi di

comunicazione e di gestione nei Transportation Projects.

• Migliorare l’integrazione dei sistemi informatici e le

telecomunicazioni fra questi stakeholders.

• Avviare Progetti comuni di innovazione, con la collaborazione

dell’Università.

ANIMP è il contesto in cui

sviluppare queste proposte.

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Azioni già fatte

• Seminario «Aumentare l’integrazione gestionale tra Logistica e

Committenza» (IPMA Italy + Sezione Logistica) svoltosi a Roma

il 16.4.2012: sono emerse idee ed è iniziato il networking.

• Corso di Project Management indirizzato alla Logistica

sviluppato in collaborazione tra IPMA Italy e Sezione Logistica:

«Logistic e Project Management nella Realizzazione di Grandi

Impianti» Milano 28-29-30 Novembre e 1 Dicembre 2012.

LOGISTIC FOR CONTRACT PROJECTS:

WHAT DEVELOPMENTS FOR THE FUTURE ?

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Altre possibili azioni

• Organizzare anche nel 2013 dei Seminari di confronto sul tema

della «Comunicazione nei Transportation Projects»

• Creare in ANIMP un Comitato misto finalizzato a definire

possibili innovazioni per integrare la gestione delle

informazioni. Possibili partecipanti: IPMA Italy, Logistica,

Componentisti, Informatica.

• Avviare uno studio, con la collaborazione dell’Università, che

analizzi quali miglioramenti gestionali si potrebbero ottenere

con sistemi di Automatic Identification and Data

Capture/Collection (AIDC), per indirizzare ed omogeneizzare

scelte innovative della filiera.

Le condividete …….?

e quali altre azioni suggerite ……. ?

LOGISTIC FOR CONTRACT PROJECTS:

WHAT DEVELOPMENTS FOR THE FUTURE ?

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LOGISTIC FOR CONTRACT PROJECTS:

WHAT DEVELOPMENTS FOR THE FUTURE ?

(*) da Seminario del 16.4.2012

Le parole chiave del messaggio sono (*):

“affidabilità, integrazione e fiducia”

Bisogna focalizzare l’attenzione sulle relazioni e sulla

comunicazione:

gestiamo il nostro futuro definendo obiettivi innovativi,

perseguiamoli con l’attenzione di un Project Manager.

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End

Custom

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Job

Site

Carg

o

Haule

r

Wareh

ouse

Departur

e Port /

Airport

Arriva

l Port /

Airpor

t

Air/

Sea

soluti

ons Trans

port

Trans

port

Wareh

ouse

LOGISTIC FOR CONTRACT PROJECTS:

WHAT DEVELOPMENTS FOR THE FUTURE ?

VI CONVEGNO NAZIONALE

Sezione Logistica, Trasporti e Spedizioni

Procurement for Construction

Domande ?

Suggerimenti e proposte ?

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