Brief logistics profile of Vietnam Shipping _VNSVNS logistics solution for textile & garment Scopes of service and pricing
Our background & challengesOur missionOur total logistics solution
Our background &challenges LOGISTICS VIETNAM, as third party logistics service provider, is adivision of Viet Nam Shipping Services Corporation. For more informationabout Viet Nam Shipping Services Corporation, please visit our website atwww.vietnam-ship.com Vietnam market is getting more and more competitive and will be animportant hub for high value products which demands professional logisticsservice provider who can offer solution for the conflicting concept of “lowercost with higher satisfaction” to customer. Can it be true ? In the vanguard of this new trend and concept, We will build up a“logistics home” for our customer and together with logistics partner we canmake it happen! We aim to offer a value-added service of differentiation to ensure that weare the company you can be proud to support
Our mission Companies are increasingly focusing on their core business. That is whythere are more and more companies who are outsourcing their logisticsservices. As a non-asset based logistics service provider and together withcustomer, we create and manage tailor-made logistics solutions for themost effective & efficiency movement of materials from supplier toconsumer. We strive for leanness, agility, and integration to keep our customer‟slogistics system improving. That is our contribution to your success.
Procurement logistics Distribution logisticsSuppliers Customers Operation • Transportation( by sea, land, air…) • Transportation( by sea, land, air…) • Inventory • Inventory • Order processing • Order processing • Purchasing • Distribution • Packaging • Packaging • Warehousing • Warehousing/ DC • Materials handling • Materials handling • Information system • Information system “Right goods/services, in the right quantity, to the right place, at the right time and with the right price” Total logistics system
ProcurementLogistics purchasing order management; cargo consolidation fromWe provide thedifferent suppliers in Vietnam and stored into our local warehouse includingvalue added services (price tagging, bar-coding…), quality control Inventorymanagement, customs clearance…and shipping to customers nominateddestinations Our upstream logistics management SUPPLIERS CUSTOMERS CONSUMERS
Distribution LogisticsWe provide the services of cargo consolidation from different countries intoVietnam, customs clearance, stored into our local warehouse including value addedservices (price tagging, bar-coding…), quality control inventory management andnational-wide transportation to nominated retailers, consumers… SUPPLIERS CUSTOMERS CONSUMERSOur downstream logistics management
Using warehouse to reduce transport cost: consolidation
What VNS logistics solution aims to ? 1-Customers requirements Customer Satisfaction 2-Efficient, Effective More profit by reduced cost of materials, inventory and freight The application of logistics enables a greater efficiency of movements with anappropriate choice of modes, terminals, routes and scheduling. The impliedpurpose of logistics is to make available goods, raw materials and commodities,fulfilling four major requirements: Order fulfillment: Implies that the transaction between the supplier and the customer is being satisfied with the specified product provided in the agreed quantity Delivery fulfillment: The order must also be delivered at the right location and at the right time. Both involve the scheduling of transportation and freight distribution activities. Quality fulfillment: The order must be provided intact (in good condition), implying that any form of damage must be avoided during transport and delivery. This is particularly important for products that are fragile, perishable or sensitive to temperature fluctuations. Cost fulfillment: The final costs of the order, including manufacturing and distribution costs, must be competitive. Otherwise, other options will be considered.
Costs Order Processing Minimize Costs of Received Attaining Logistics Processed Objectives Shipped VNS Transportation Rail, Logistics Functions WarehousingTruck, Water, Pipeline, Air, Storage Intermodal Distribution Automated Inventory When to order How much to order Just-in-time
How VNS adds values into customers’ supply chain VNS aims to add a multidimensional value- added activities into ourcustomers’ supply chain including production, location, time and controlof elements of the supply chain for the effective & efficient logistics: Production. Derived from the improved efficiency of manufacturing with appropriate shipment size, packaging and inventory levels. Thus, logistics contributes to the reduction of production costs by streamlining the supply chain. Location. Derived from taking better advantage of various locations, implying expanded markets and lower distribution costs. Time. Derived from having goods and services available when required along the supply chain with better inventory and transportation management, and the strategic location of goods and services. Control. Derived from controlling most, if not all, the stages along the supply chain, from production to distribution. This enables better marketing and demand response, thus anticipating flows and allocating distribution resources accordingly.
Transport role in the logistics system VNS transport performance VNS 2011 total volume VNS 2009-2010-2011 total sea transport performance VNS 2009-2010-2011 sea transport for garment & textile VNS 2009-2010-2011 total air transport performance VNS 2009-2010-2011 air transport for garment & textile VNS some customers for textile & garment VNS consolidation solution VNS Sea-Air solution VNS GOH handling
Transport role in the logistics system Transportation serves as a „bridge‟ over the buyer-seller gap and plays an mostimportant role in the total logistics costs in most of supply chain due to: ? It absorbs, on average, about 40% to 50% of the organizations overall logistics costs. Transportation is the physical link connecting a companys customers, raw materials suppliers, plants, warehouses and distribution channel. Transportation system is physically composed of the networks over which freight is moved and of the equipment used to transport freight. The system includes vehicles, terminals, pipes, highways, waterways, airways, railroad tracks, etc Therefore, the effective management of this component of logistics is an extremely important one to reduce logistics cost for our customers VNS can bring benefits to customers for the “economies of scale” due to: Our advantage of leveraged buying power Single point of contact to different top-class preferred carriers with ample routing sailing schedule Qualified staff with effective & efficient standard operation procedures Different transport solution such as consolidation, break-bulk, sea-air, multi-model …
VNS 2011 export performance to USA by commodities (From January to June 2011)
VNS total sea export performance_2009-2010-2011
VNS sea performance of garment & textile to USA (2009-2010-2011)Unit: teus
VNS total air export performance_2009-2010-2011
VNS air performance of garment & textile to USA (2009-2010-2011)Unit: kg
Some of VNS’ customer for garment & textile to USA
VNS Consolidation solution We offer LCL consolidation services to consolidate cargo from different supplierswhen your cargo is not enough for a FCL_full container load to make sure your ?shipment is moved without delay and getting other benefists: Direct or maximum-one-stop routings to ensure reliable, fast shipments Minimisation of cargo-damage risk through reduced trans-loading Single point of contact for all your global LCL needs Improve overall service while keeping costs contained Scenario 1: The firms performs their own logistics functions Supplier 1 2 warehouses Supplier 2 2 separate distribution networks Scenario 2: VNS as a 3PL takes care of both suppliers’ logistics functions Supplier 1 1 warehouse Supplier 2 VNS as 3PL 1 distribution network
Seafreight consolidation model at the loading portLCL shipper LCL shipper LCL shipper LCL shipper LCL shipper VNS as NVOCC Less than container load (LCL) shipments Full container Bill of lading
VNS as NVOCC…Consignee Consignee Consignee Consignee Consignee Less than container load Full container Bill of lading (LCL) shipments
VNS Sea-and-Air solution VNS Sea-Air solution helps to answer our customer question for cargo fromVietnam to USA that airfreight is too expensive but seafreight is too slow andwhat is the solution? Especially, It is sensitive to fashion logistics in a peakseason! If our customers are finding their airfreight rates too high for long-haulshipments, but need faster transport than seafreight alone, consider a carefulblend of the two. Sea-Air traffic combines the economy of the sea with the speed of the air togive you a cost-effective solution. This fusion of transport modes enables you tosend goods from Asia to Europe, North and South America, or Africa within 2-3weeks. We strongly recommend this sea-air transport model to our customer in casetheir goods are cost-sensitive but not absolutely urgent, then this could be a rightsolution as we make sure the fashion goods will be arrived at the right shop inthe right time and at the right cost !
Example of VNS Sea-Air model via Dubai (Vietnam to USA)
Sea-Air service, a combined Sea and Air transport when properly handled isa preferable multi-modal transport that offers cost effective and time sensitivesolutions, which brings two of the best advantages of air and sea freighttogether in one service: SAVINGS & SPEED Sea-Air is usually presented as alternative solution between ocean and airin the logistics pipeline. It is more cost-effective than pure airfreight by 30-40%and quicker than ocean alone by approximately 40% in transit time. There are many instances when Sea-Air can provide advantages as analternative to the classic ocean or air transport mode: When ocean is not an option any more due to the tight delivery in term of timeframe. When looking for a greater flexibility in the transport process to ensure the cost vs. lead-time ratio is optimal at all times (Just-in-time) When airfreight is viewed as the immediate choice, yet may not always be needed and becomes a “comfort” solution When product value does not support to cost of airfreight When Garment on Hanger (GoH) is carried via airfreight When looking for a solution to reduce inventory carrying cost When capacity becomes constrained from a specific origin or region, especially in a peak season
Sea-Air solution should be created on the followings requirements: Total control over the Sea-Air operations from origin through the trans-shipment point and ultimately to the final destination. Up-to-date information and excellent handling at trans-shipment hub is very important. Single HAWB : combined transport document Single rate per Kilo : through transport cost quoted from port of origin to airport of destination without hidden cost of handling at the gateway (trans-shipment hub) Carrier selection : ocean carrier selected based on their experience in handling the sea-air shipment at the trans-shipment hub such as hot stowage, early delivery order, space commitment, direct sailing. Air carrier is carefully selected subject to the final destination Some Sea-Air hubs: Asia/India via Dubai to Europe,Africa and USA/Canada North Asia (China) to Seoul to Europe and USA/Canada Asia/India to North America to Latin America
Cost comparision between Sea, Sea-Air, Air Sea Sea-Air Air
VNS GOH handling Our staff are well-training for Garment On Hanger_GOH. We strictly follow ?vendor/buyer instruction as well as proper shipping instruction for GOH. The beloware brief SOP: 1-Received GOH booking order and GOH instruction from supplier/customer 2-Get booking GOH container/ULD and space from shipping line/Airline 3-Checking the GOH container/ULD to make sure it is in good condition for garment stuffing 4-Perform GOH container/ULD installation in accordance with the customer’s requirement 5-Supervisation and quality control, photo taken and stick the PTI sheet into the GOH container/ULD 6-GOH labeling outside the GOH container/ULD at the right door of the container as “warning” for next step proper handling during loading, transportation… 7-Fastening the security seal once hanging installation is done and hand over to respective terminal 8-Inform customer/supplier as GOH is ready for shipping for next step on related documentation.