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Vietnam/USA export volume for 1st & 2nd quarter in 2011Vietnam/USA export for garment & textile_2008 => 2011 2008 top Asian countries ex garment & textile to USA2009 top Asian countries ex garment & textile to USA2010 top Asian countries ex garment & textile to USA2008-2010 top Asian countries-Vietnam ex garment & textile to USAAttached USA buyers for garment & textile in VietnamAttached of Vietnam suppliers for garment & textile The Vietnam National Textile AndVITAS Vietnam Textile & Apparel Garment Group Association http://www.vinatex.com.vn http://www.vietnamtextile.org
Vie m S e rt vo efo 1 t & 2 q rte in 2 1 tna /U A xpo lum r s nd ua r 0 1Total volume of the first 06 months in 2011: 1,547 million SMEUnit: in million SME (Source: http:/ / www.vietnamtextile.org)
Vie m S e rt fo g rmnt & te _2 0 = 2 1 tna /U A xpo r a e xtile 0 8 > 0 1Unit: in million SME (Source: http:/ / www.vietnamtextile.org)
2 0 to As n c untrie e g rmnt & te to U A 0 8 p ia o s x a e xtile S (Source: http:/ / www.vietnamtextile.org)
2 0 to As n c untrie e g rmnt & te to U A 0 9 p ia o s x a e xtile S (Source: http:/ / www.vietnamtextile.org)
2 1 to As n c untrie e g rmnt & te to U A 0 0 p ia o s x a e xtile S Korea, South Canada Pakistan 3% 3% 6% Bangladesh 4% Mexico 6%Indonesia 4% India China 60% 7% VietNam 7% (Source: http:/ / www.vietnamtextile.org)
2 0 -2 1 to As n c untrie-Vie me g rmnt & te to U A 0 8 0 0 p ia o s tna x a e xtile S (Source: http:/ / www.vietnamtextile.org)
VNS business modelVNS total logistics solutionVNS logistics functionsVNS warehouse solutionVNS transport solution
Supplier Relationship Management VNS Customer Relationship Management Strategy VNS Production VNS VNS VNS SRM CRM Customers Suppliers Internal Supply Chain VNS Executive Team Executive Team HRM
W t VNSlo is ss lutio a sto ? ha g tic o n im 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
Ho VNSa va sinto c to e ’ s w dds lue us mrs upply c in ha 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 appropriat e shipm ent size, packaging and invent ory levels. Thus, logist ics inventory 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. 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 product ion t o dist ribut ion. This enables bet t er m arket ing and demand response, thus anticipating flows and allocating distribution resources accordingly.
ReceivingWarehouse Inbound Process • Schedule carrier INPUT • Unload vehicle • Inspect for damage • Compare to P/O Put-away Storage •Identify product •Equipment •Identify storage location •Stock location •Update records VNS Warehouse Operation Pre-shipping process Order picking Warehouse Outbound Process •Packaging •Information (pick slip) •Labeling •Walk & pick •staging •Batch picking Shipping •Schedule carrier •Load vehicle OUTPUT •Bill of lading •Record update
Road to VNS_TBS Roadto VNS_TBS warehouseHCM city
Transport role in the logistics systemVNS transport performance VNS 2011 total volume VNS 2008-2009-2010 total sea transport performance VNS 2008-2009-2010 sea transport for garment & textile VNS 2008-2009-2010 total air transport performance VNS 2008-2009-2010 air transport for garment & textile VNS some customers for textile & garmentVNS consolidation solutionVNS Sea-Air solutionVNS GOH handling
Tra po ro in thelo is ss te ns rt le g tic ys m 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 …
VNSC ns lida n s lutio o o tio o n 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 yourshipment 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
Se a fr e igh t con solida t ion m ode l a t t h e loa din g por tLCL 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
VNSSaa -Air s lutio e - nd o n nd- 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 destinationSome 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 com parision bet w een Sea, Sea- Air, Air Se a Se a - Air Air
VNSG H ha O ndling Our staff are well-training for Garment On Hanger_GOH. We strictly followvendor/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.