ShipServ: 5 ways to save your way out of the economic downturn. John Watton, VP Marketing, ShipServ IMPA ’09, 16-17 September, 2009.

ShipServ is the leading maritime e-marketplace, helping the buyers and sellers of ship supplies to reduce the costs associated with doing business together.

$1 Billion in trade 140 shipping companies 30,000 Suppliers 35,000 Users 4,700 Ships

How we help you save money Drive down costs and prices in sourcing. Use ShipServ Pages to: Look for more competitive suppliers Source parts for old or obsolete equipment Find suppliers in unfamiliar ports Source equipment repair services Buyers have told us they saved up to 40% on contracts with new suppliers found through Pages. Regular savings of 10-25% are routine . Some suppliers offer an added 3% discount for orders sourced through Pages. 1

Drive down costs and prices in sourcing. Use ShipServ Pages to:

Look for more competitive suppliers

Source parts for old or obsolete equipment

Find suppliers in unfamiliar ports

Source equipment repair services

Buyers have told us they saved up to 40% on contracts with new suppliers found through Pages. Regular savings of 10-25% are routine .

Some suppliers offer an added 3% discount for orders sourced through Pages.

How we help you save money Direct Savings from TradeNet Reduced administrative overheads One member reported processing 53% more orders without adding any staff. Faster ordering cycles Our members always report improvements over 20%. One told us their req-to-order-cycle went from 11 to 6 days, a 45% saving . That’s not unusual. 2 “ Buyers are now also able to process requests for quotations (RFQs) in half the time and can process purchase orders in a third of the time.” – Tidewater Marine

Direct Savings from TradeNet

Reduced administrative overheads

One member reported processing 53% more orders without adding any staff.

Faster ordering cycles

Our members always report improvements over 20%. One told us their req-to-order-cycle went from 11 to 6 days, a 45% saving . That’s not unusual.

How we help you save money Indirect savings from using TradeNet Fewer off-hire days Purchasing errors can lead to downtime Minimal dry dock over-runs Same idea: fail to get the right supplies delivered and your ships are out of use Fewer hand carries Another expensive waste that better, more efficient purchasing can and does avoid. More consolidated orders So you save on shipments and by aggregating prices. Lower expediting costs Fewer rush orders means lower logistics spend. 3 “ Instead of chartering a plane to move parts, the team ships parts to the vessels instead, resulting in massive cost savings.” – Holland America Line

Indirect savings from using TradeNet

Fewer off-hire days

Purchasing errors can lead to downtime

Minimal dry dock over-runs

Same idea: fail to get the right supplies delivered and your ships are out of use

Fewer hand carries

Another expensive waste that better, more efficient purchasing can and does avoid.

More consolidated orders

So you save on shipments and by aggregating prices.

Lower expediting costs

Fewer rush orders means lower logistics spend.

How we help you save money Better Insight into Supplier Relationship Management Our KPI dashboard lets you answer questions like: How many suppliers respond to our RFQs and how long does it take them? Are we always delivering spares and stores on time during port calls? Do we ask for at least three quotes per PO? Do we receive enough quotes on our RFQ’s to make sure we are able to source in a timely manner? Are our suppliers responding in a timely fashion or are we creating problems by asking for too rapid a response to RFQs? Are we using the right suppliers? Do they respond at all? Do we take advantage of the latest tools in our supply process – are we using e-commerce and to what extent? How are we doing compared to the rest of the industry? 4 “ Occasionally a long-standing supplier will come to me and ask why we aren’t doing so much business with them anymore. Now I have solid data that tells me that either they weren’t responding quickly enough to RFQs or that their pricing’s too high. ” - Totem Ocean Trailer Express

Better Insight into Supplier Relationship Management

Our KPI dashboard lets you answer questions like:

How many suppliers respond to our RFQs and how long does it take them?

Are we always delivering spares and stores on time during port calls?

Do we ask for at least three quotes per PO?

Do we receive enough quotes on our RFQ’s to make sure we are able to source in a timely manner?

Are our suppliers responding in a timely fashion or are we creating problems by asking for too rapid a response to RFQs?

Are we using the right suppliers? Do they respond at all?

Do we take advantage of the latest tools in our supply process – are we using e-commerce and to what extent?

How are we doing compared to the rest of the industry?

How we help you save money Better intelligence for decision-making and negotiations Renegotiate contracts based on fact, not gut feel. Have more time to spend on sourcing & negotiations. Purchasers tell us they easily shave 5-10% off unit costs (depending on the category) if THEY HAD THE TIME 5 “ Our buyers can now point to a vendor’s performance with regard to response times and prices – this definitely helps them negotiate discounts in contracts. It’s been a big boon.” - Crowley Petroleum Services

Better intelligence for decision-making and negotiations

Renegotiate contracts based on fact, not gut feel.

Have more time to spend on sourcing & negotiations.

Purchasers tell us they easily shave 5-10% off unit costs (depending on the category) if THEY HAD THE TIME

ShipServ – Helping you drive down your costs Speed up processes, reduce errors Save money in negotiations Add a few off-hire days that you avoided. Add the fully-loaded costs of not having to hire an extra purchaser or two. Add the savings on that contract you renewed Add the process improvements and keener contracts. Suppliers love it too!

Speed up processes, reduce errors

Save money in negotiations

Add a few off-hire days that you avoided.

Add the fully-loaded costs of not having to hire an extra purchaser or two.

Add the savings on that contract you renewed

Add the process improvements and keener contracts.

The Supplier Perspective Gianfranco Mercandino, Mercandino Srl

About Mercandino Operating in the marine field for more than 40 years. We provide a wide range of services to our customers including: Provisions: We can supply fresh, dry, frozen and tinned provisions to cruise ship, containers ship, tankers, ferry boat, etc. Technical stores: Wide range of items in stock, always available 365 days a year. Cabin, deck, engine, stationery supplies. Possibility to require prices through ISS, IMPA, Mariner’s Annual and Beco Marin catalogues. Any other references are accepted; Bonded stores and slopchest: Supplies to duty free shops and boutiques on board. Interesting prices for beverages, cigarettes and slopchest stores; Italian Spare Parts: experience and know-how developed during last 10 years in spare parts supplies of Italian manufacturers. (Engines, compressors, pantry equipment, electrical, tools, pumps, etc.). Direct contact with producers; Strategic Alliance with Ged Transport srl Air Freight Road Transport Sea Freight Warehousing On board delivery & collecting services in ALL Italian Ports.

Operating in the marine field for more than 40 years.

We provide a wide range of services to our customers including:

Provisions: We can supply fresh, dry, frozen and tinned provisions to cruise ship, containers ship, tankers, ferry boat, etc.

Technical stores: Wide range of items in stock, always available 365 days a year. Cabin, deck, engine, stationery supplies. Possibility to require prices through ISS, IMPA, Mariner’s Annual and Beco Marin catalogues. Any other references are accepted;

Bonded stores and slopchest: Supplies to duty free shops and boutiques on board. Interesting prices for beverages, cigarettes and slopchest stores;

Italian Spare Parts: experience and know-how developed during last 10 years in spare parts supplies of Italian manufacturers. (Engines, compressors, pantry equipment, electrical, tools, pumps, etc.). Direct contact with producers;

Strategic Alliance with Ged Transport srl

Air Freight

Road Transport

Sea Freight

Warehousing

On board delivery & collecting services in ALL Italian Ports.

Ports served Mercandino can supply stores in all the Italian ports and South France ports with competitive prices. Tirrenian ports: Imperia, Savona, Vado , Genoa, La Spezia, Carrara, Leighorn, Piombino, Civitavecchia, Fiumicino, Naples, Sorrento Adriatic ports: Trieste, Venice, Marghera, Ravenna, Ancona, Bari, Taranto South France: Monaco, Marseille, Fos, Port Vendre

Mercandino can supply stores in all the Italian ports and South France ports with competitive prices.

Tirrenian ports: Imperia, Savona, Vado , Genoa, La Spezia, Carrara, Leighorn, Piombino, Civitavecchia, Fiumicino, Naples, Sorrento

Adriatic ports: Trieste, Venice, Marghera, Ravenna, Ancona, Bari, Taranto

South France: Monaco, Marseille, Fos, Port Vendre

Why did we choose ShipServ? Opportunity to reach the global shipping audience Better visibility for our company Opportunity to best represent ourselves, e.g. Comprehensive ability to show all categories of supplies Industry memberships Flexibility in promotional options Advertising, listing, sponsorship More sales!

Opportunity to reach the global shipping audience

Better visibility for our company

Opportunity to best represent ourselves, e.g.

Comprehensive ability to show all categories of supplies

Industry memberships

Flexibility in promotional options

Advertising, listing, sponsorship

More sales!

Mercandino on ShipServ – Our Listing Premium Listing & Smart Supplier High TradeRank (history on TradeNet) IMPA/ISSA/TradeNet member

Mercandino on ShipServ – Our Advert

ShipServ Helps us on Google

Summary Mercandino is a growing company ShipServ helps us reach new customers We have won new business as a result of Pages Mercandino is committed to customer service We can quickly respond to orders as a result of TradeNet Ask me about our services after the presentation

Mercandino is a growing company

ShipServ helps us reach new customers

We have won new business as a result of Pages

Mercandino is committed to customer service

We can quickly respond to orders as a result of TradeNet

Ask me about our services after the presentation

Future Plans

ShipServ: the e-marketplace for supplies 4,700 ships 140 Buyers 30,000 suppliers $1bn in trading

Matching is key

The matching challenge Sourcing/locating certain types of suppliers is tough Even with Google, searching around is time consuming Finding a supplier based on product-specific questions is hard Finding a trusted supplier is even harder You waste too much time validating suppliers Even after finding a supplier you still waste time phoning around to peers to check if they know them For infrequent purchases, you have to do this all again the next time this happens

Sourcing/locating certain types of suppliers is tough

Even with Google, searching around is time consuming

Finding a supplier based on product-specific questions is hard

Finding a trusted supplier is even harder

You waste too much time validating suppliers

Even after finding a supplier you still waste time phoning around to peers to check if they know them

For infrequent purchases, you have to do this all again the next time this happens

Example: Finding a service agent of life saving equipment in Nigeria You want to know: Who are the suppliers? Which ports do they serve? Which brands do they service? Is the equipment SOLAS accredited? Does this supplier have the right certificates? Have any of my trusted friends used this supplier? What do other buyers think? You want answers delivered quickly, easily You want “the system” to learn your questions, so next time it presents back the right results for you You want to see if other companies (i.e. the community) have used this supplier

You want to know:

Who are the suppliers?

Which ports do they serve?

Which brands do they service?

Is the equipment SOLAS accredited?

Does this supplier have the right certificates?

Have any of my trusted friends used this supplier?

What do other buyers think?

You want answers delivered quickly, easily

You want “the system” to learn your questions, so next time it presents back the right results for you

You want to see if other companies (i.e. the community) have used this supplier

Our goal To provide the first online resource that lets you find what you want in the way you want it Combine 10 years of ShipServ experience with customer feedback on sourcing challenges Provide specific intelligence around critical product areas Create “zones” A dedicated set of pages that makes it easier to source hard-to-find suppliers Includes key suppliers, industry content, category-specific information

To provide the first online resource that lets you find what you want in the way you want it

Combine 10 years of ShipServ experience with customer feedback on sourcing challenges

Provide specific intelligence around critical product areas

Create “zones”

A dedicated set of pages that makes it easier to source hard-to-find suppliers

Includes key suppliers, industry content, category-specific information

Chandlery Life Saving Equipment Motor Rewinding Boiler Servicing Radio Equipment Cruise Sector

Coming soon to ShipServ Personalized. Define your preferences and profile to let the system only give you what you want. Choose how you search - multiple ways to search and browse. Map based-searching. Intelligent. Knows about maritime products. Popular products organized into “Zones”. What’s displayed changes based on what you’re looking for. Learns from your searching. Community-based. Learn from our community of buyers and suppliers e.g. See which other buyers have traded with that supplier.

Personalized.

Define your preferences and profile to let the system only give you what you want.

Choose how you search - multiple ways to search and browse. Map based-searching.

Intelligent.

Knows about maritime products.

Popular products organized into “Zones”.

What’s displayed changes based on what you’re looking for.

Learns from your searching.

Community-based.

Learn from our community of buyers and suppliers

e.g. See which other buyers have traded with that supplier.

Feedback needed!

Q&A