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Connect sep 13_final_version1

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Connect sep 13_final_version1

  1. 1. This year has seen the launch of a new membership package that is available to both the 45,000 plus suppliers who are registered with ShipServ and any new suppliers who would like to join. If a supplier now becomes a ShipServ Member, they receive access to ALL our core products This includes a Premium Profile with the ability to add online catalogues, unlimited order management, E-invoicing, a new RFQ Filter that allows suppliers to choose to receive RFQs that are only relevant to them and the ability to control their brand through their own brand verification page, which means it is easier for maritime buyers to find authorized distributors.  ShipServ wants to bring more value and ultimately more business to its members so we have combined  all of our core prod- ucts into one complete Membership pack- age for suppliers, so that they get the best opportunity to raise brand awareness, gen- erate new leads and handle orders from all ShipServ  buyers in the most efficient way.  As part of this move, we are introducing a new pricing set-up that will be linked di- rectly to the value ShipServ brings a sup- plier – so that they  are only charged for business as and when they receive it – mak- ing it easy for them to see and measure the exact value they get as a ShipServ Member. Suppliers that are not members will still be able to trade for free with all our buyers through our StartSupplier solution.   If one of your suppliers has any questions about ShipServ Membership they can con- tact our Membership hotline on +44 203 111 9700 CONNECT ShipServ September 2013 Issue 5 ShipServ is delighted to announce the release of ShipServ Onboard 2013 including the print edition, formerly known as Mariner’s Annual, and the Digital CD version that now includes electronic supplier catalogs in its brand new catalog viewer. The combination of the Print Edition and CD allows crew onboard to source and specify the exact part required, create a requisition and send ashore. The ShipServ Onboard print edition is now in its 56th edition and includes ap- proximately 500 manufacturers, distribu- tors, chandlers and service providers list- ed in over 1300 pages of information. The CD version now contains the Ship- Cat Catalog Viewer, which allows crew to instantly access over 40 electronic sup- plier catalogs provided additionally by print edition advertisers with the ability to drill down by product or to carry out text searches on all catalogs simultaneously. For the first time, the IMPA Marine Stores Guide 6th Edition is also included on the CD and this can be accessed by any company with a valid IMPA Data Li- cense. “We have now increased exposure for our advertisers who formerly viewed us as primarily a print publication with the Catalog function on the CD.  We expect the number of electronic catalogs to ex- pand dramatically in the 2014 edition,” said Don Staffin, Senior Vice President of ShipServ.  All the sponsored content and advertis- ing from the 2013 edition is also available on ShipServ Pages and an iPad or iPhone version of the print edition is also now available at www.shipserv.com/help/sso Latest news and exclusive features for our shipowners, shipyards and shipmanagers New Membership package for suppliers ShipServ Onboard 2013 released
  2. 2. ShipServ is continuing to work with Eye-share to allow shipowners and shipmanagers, who use ShipServ TradeNet, the ability to receive, process and approve invoices and ultimately to save both time and money. With the ShipServ e-Invoicing service, in- voices are sent from suppliers through the TradeNet platform and can be processed directly into the Eye-share Invoice solution to speed up the workflow and approval process. ShipServ and Eye-share will be hosting two seminars in the Netherlands on the 8th and 10th of October seminar in Rotterdam and Groningen to provide further informa- tion about the latest developments in the purchase-to-pay process. A number of shipowners and managers are using the e-Invoicingsolution from ShipServ to receive invoices in their eye- share Invoice solution including Seatrans, Utkilen and Wilson Shipmanagement and the advantages of using both ShipServ and Eye-share Invoice in tandem include: Eye-share Invoice lets you access and ap- prove invoices from anywhere, work tasks are easier and faster to complete. Save time by reducing manual work and automate repeated task with seamless inte- gration between ShipServ and Eye-Share Invoice Distribution, collection routines, remind- ers and matching invoices to purchase orders are all automated tasks within eye- share Invoice. Better traceability with the electronic ar- chive and invoice activity log The ShipServ e-invoicing solution is now used by ten shipowners and shipmanagers with thousands of invoices sent monthly through ShipServ TradeNet over 25 signed up suppliers. To find out more about the ShipServ e-invoicing solution visit: http://www. shipserv.com/info/save-time-and-money- with-tradenet/e-invoicing-for-buyers/. If you are interested in attending the seminar in the Netherlands contact afos- seng@shipserv.com September 2013 2 C an you answer the following questions? 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 ex- tent? How are we doing compared to the• rest of the industry? ShipServ has been making available the data that answers questions like this for the last 11 years.  We call it our Key Performance Indicator (KPI) dashboard and you should receive your KPIs by email every quarter: Used properly it can be really help to improve any company’s ship supply op- erations, as well as relationships with your supplier partners. The table to the right is a snapshot of the ShipServ KPI Dashboard, which shows several important data elements: E-Enablement Status: this figure is the percentage of POs the company sent through TradeNet compare with the esti- mated total no. of PO per vessel per year as reported by the shipowner/manager.  Useful in seeing progress on getting elec- tronic trading going with your suppliers. Supplier Response Rate: this figure is the percentage of supplier responses to all RFQs divided by the number of RFQs themselves.  The number may be below 100% because Invited suppliers may not stock the items requested or supply the requested ports. The RFQs have too short a response time due toinsufficient information, or the fact that the RFQ was sent over weekend, or the supplier is simply too busy etc. RFQ to PO Ratio: Shows the ratio of the RFQs issued in the period compared to the number of POs issued in the period. Ship owners will need to drill into the data to find the balance between on-contract and off-contract transactions. This will en- sure sufficient RFQs are sent out. Run Rate: The annualized number of POs per vessel sent via TradeNet. This number is the annual projection of your current POs sent over TradeNet Line Items per PO: As with the re- Ensuring you get the most out of KPIs E-invoicing partners to hold Dutch seminars
  3. 3. sponse percentages, the absolute number for this KPI is less important than the im- provement over time.  However, this can have as large an impact as unit prices for the lower value items because each PO car- ries a fixed overhead cost (including han- dling the invoice), believed to be between $50 and $150 for each PO. B e n c h m a r k i n g KPIs are very helpful, but they have an im- portant limitation – they operate in a vacu- um. Benchmarking compares the perform- ance of a company (i.e., its KPIs) against those of similar organizations or internally between business units. It’s a useful tool that can help make a com- pany more competitive while providing an objective picture of the business’ strengths and weaknesses. In the table above right we have expanded the KPI Dashboard to include industry av- erages (using example data only).  What we can see from this data is: - FleetCo is at a high level of e-enable- ment, but there’s still room for improve- ment. Why are the remaining 24% of sup- plier still not trading electronically? - The supplier response rate is close to the average, but still way below what is achiev- able by best in class. - The percentage of one day turnaround for quotes is just below the average, but again way below best in class. -The RFQ to PO rate is slightly below the average. -The number of Line items per PO is fairly low leading to the issue of more POs than average. The data for this type of benchmarking is based on transactions from almost 8,000 vessels in the period. KPIs and benchmark statistics like these help identify and correct weaknesses in critical business processes before they are noticed. Over the next few issues of Connect, we’re going to be investigating several different aspects of our KPI and benchmarking data to show how they can improve business processes and overall performance. In our next column, we’re going to spend some time analysing the importance of understanding RFQ response rates, but be- fore then here are some questions for you to think about: Do you know how many responses• you get to your RFQs compared to the number of RFQs you issue? Is it a low response rate or a high one? How do you establish what is low/• high? If you think your response rate is• low, why is it? Are you sending your RFQs to the right suppliers, ones who can provide the equipment you need in the places you need it? Are you truly being “fair”? – i.e. do• not actually favour certain suppliers despite the results of the quote phase (and, btw,  if  that’s the case why not enter a contract and stop RFQ’ing!). Are your deadlines for quote sub-• mission reasonable? Or are they too short? Is the data you provide on your RFQ• insufficient or inaccurate such that it prevents a supplier from responding appropriately? By knowing your RFQ response rate, you will be in a much better position to improve the rate because you’ll be able to analyze exactly where the problem lies. And better rates of response hold out the prospect of better prices. September 2013 3 Improvements to WebReporter and Transaction Monitor Over the last few months ShipServ has improved the usability and features of its two business intelligence tools – Transaction Monitor and WebReporter to ensure you can access your key data in a user friendly format. Our new WebReporter interface pro- vides you with key business intelligence on all your transactions through ShipServ As in the previous version you will be able to run seven standard reports: Purchase Orders by Supplier, Purchase Orders by Vessel, Transactions by Sup- plier, Transactions by Vessel, Supplier Analysis, All RFQs, All POs. We have also improved the user inter- face of Transaction Monitor and we are delighted to unveil a new filter that now allows you to search by Buyer Contact Name. We have also improved the efficiency of Transaction Monitor by archiving transactions that are older than two years old. These can now be found under the Transaction Monitor tab but are only available as read-only. If you have any questions about WebReporter or Transaction Monitor, contact us on support@shipserv.com.
  4. 4. MLC (2006): What you really need to know? September 2013 4 The MLC is now in force and we are being asked lots of more and more detailed questions by operators and flag states. Obviously, different operators will have differing challenges and MLC compliance will be different on a cruise ship to a bulk carrier. But, overall, the new convention neces- sitates a huge culture change in how we manage people and look after their needs in our industry. Here are some things that need to be looked at and taken into account by opera- tors: Food Preparation / Galley Cleanliness This is a huge area of concern, and in my opinion the Masters / Superintendents still do not take this seriously enough. This is a high risk area both from the health perspective and PSC problems yet it is, if not simple, fairly low cost to ensure compliance. The cooks are often not trained properly even to the very basic standards. A com- pany approached Lloyd’s Register the other day to see if we wished to work together (not sure that we can) but they are perfectly correct that there is a big issue in this area.  I expect that they will be very busy in the next 6 months when vessels get detained. You may remember that when a vessel gets detained for Fire/Safety issues they often must go through training before the de- tention lifted, well this is where these guys hope to cash in through training crew from detained vessels. Purchasing Food This is another area that is often poorly overseen on board. It is often not easy to return goods (or so the chandler will tell you) but as can be seen from the lat- est issues with refrigerated containers, the claims are spiralling due to lack of control through the full supply chain. Food delivered to vessels is often too ripe to last the voyage - frozen food espe- cially; meat is well below the temperature allowed; and the ordering is not controlled properly usually due to the poor on board stock control including regard for “use by” dates. Cooks must be trained in creating effective menus and think about food for more than one day at a time. Poor ordering either creates excess cost to the company or a poor standard of food on board. Managing Agents keeping the allot- ments / pay remittance for excessive time Whilst non-payment of wages is not a big issue, late payment by manning agents after the Owners have deposited the cash is a problem. Just think, a large manning agent may have 1000 – 2000 seafarers on vessels at any time, if we take an average allot- ment of US$500 per month then this is US$500,000 to US$1,000,000 sent each month by the Owners. If the manning agent delays the payment 2 weeks then just think of the interest they gain…..   Hours of work and rest A lot has been written about this but it is still a big issue. The whole area of work and rest creates difficulties – balancing ad- equate rest with compliance to ensure that shipboard management can control this area. This may require the industry chang- ing its whole approach to people manage- ment and working culture. Internet on board for crew use The interesting point has been made by the crew themselves is that whilst they want internet on board so that they can contact their families they are not sure that “full internet access” at all times is a good idea. They have seen on the few ships that have this that there is then no personal contact between the seafarers as they are all in their cabins and always on the com- puter (sounds much like William my teen- age son!). Officer / Crew Certificates Someone should develop a good system and sell to the Flags to get everything in the same format, probably a “pipe dream” but it would bring this area into the 20th century (I know we are in the 21st Century but shipping is that far behind in some ar- eas!). Tony is Lloyd’s Register’s Marine BusinessManagerSEEurope&EMEA Regional Marine Consultancy Manag- er – based in Piraeus he is also Lloyd’s Register’s lead manager on MLC relat- ed services and global delivery. Lloyd’s Register has now completed more than 1,000 MLC related inspections for the international shipping industry. With the MLC (2006) Convention now in force and vessels actively being detained, Capt. Tony Field, Lloyd’s Register, looks at some key areas requiring attention for purchasing managers and technical superintendents. Galley cleanliness is a big area of concern for owners
  5. 5. Social Media: Has Shipping missed the boat? Are you using two or more different purchasing systems, or same pur- chasing system but with more than one installation for your fleet? This situation can arise either as a result of acquisition of new ships or due to tran- sitioning from an old to a new purchasing system. ShipServ can help present a single interface to your suppliers with our User- Based Redirect (UBR) module. To implement UBR, multiple different installations of ShipServ MTMLink-FX communication software are set up on your network, each handling a different system but running under one TradeNet ID with different MTMLlink FX users. However, when the transaction reaches TradeNet, the supplier will only see a sin- gle TradeNet ID. Furthermore, supplier re- sponses will automatically be routed to the user who has initiated the transaction. This helps keep your changes transparent to both suppliers and us- ers and helps simplify their handling of your account. The diagram right il- lustrates a two system implementation for a shipping company. If you have any fur- ther questions, then please contact support @shipserv.com September 2013 5 Solve multiple system problems with UBR Does Social media really work in the shipping industry? Do Likes, Followers, Fans convert into real dollars? These were some of the most heard ques- tions around the bars, exhibition halls, and conference venues this year as sceptics maintained that social media held little value for a people-based industry such as Shipping. ShipServ’s 2012 Internet and Social Media Use in Shipping survey of leading shipping companies and major suppliers  showed a continued general trend of increased social media usage but there were still  doubts over its effectiveness from senior manage- ment. Leading Mar- ketingconsultan- cy Stark Moore Macmillan has now published a full blown report into the social media trends in Shipping and at first glance the sceptics look to have won the argument. Its “Missing the Boat? A Comprehensive Evaluation of Social Media for Maritime Businesses” report  investigates current trends in social media and just how mari- time companies can use it to their benefit. According to Stark Moore Macmillan the number of maritime organisations on so- cial platforms is still small with the majority being publishers, journalists and non-com- mercial entities. Maritime companies have to add the intri- cacies of the B2B maritime marketplace to the equation when using social media such as a far longer and more traditional sales cycle, more difficult higher-value purchases and the importance of reputation and ex- pertise within the industry. One of the key recommendations for maritime companies involves using social media not as a standalone tool that prom- ises to grow your sales, but as part of an integrated digital strategy that is closely linked to the company’s sales goals. As the report states: “It’s not fans, follow- ers or retweets, but opportunities, leads and sales conversions.” The report concludes that there are ad- vantages – both strategic and tactical -if implemented as part of broader marketing plan. At a strategic level, it is digital not social which is the trend with the most powerful influence within the maritime industry. Digital encompasses much more than so- cial and it offers more opportunities to the maritime industry. It includes everything from changes to navigation and communications, to crew retention and welfare as well as new oppor- tunities for suppliers. Social media is merely the ‘tip of the iceberg’. At a tactical level, social media can be a good channel for maritime professionals to research their customers, competitors as well as enhancing their company’s reputa- tion. After all, as the report says B2B is an area where reputation and developing relation- ships plays an essential role and this is even more evident in the maritime industry. To order a copy of the full report and get 50% off the price visit www.stark- mooremacmillan.com/shipserv/miss- ingthe-boat and use the discount code ‘shipserv2013′ in the order form.
  6. 6. As one of the first ship supply com- panies to sign up with ShipServ at the beginning of the last decade, the Wilwel Group, consisting of The Wil- liams & Wells Company & Alliance Supply Management, has always been an innovator and leader in the field. Its Houston subsidiary Alliance Supply Management   has been targeting the off- shore market since 2000 but the operation outgrew its current premises and moved to new facilities in the area in 2011. “Despite the  difficult  shipping markets since 2008 – we have still seen growth and we just outgrew our previous facility, so it made sense to move to a larger premises where we could process orders more effi- ciently, said Mark Pontiff, EVP and General Manager of Alliance Supply Management. The Wilwel group is a family-owned busi- ness that has been providing ship supplies to the marine industry since 1906 from its office in New Jersey. The group has eight offices around the world including Hong Kong. “The US Gulf is a great place to be for the shipping industry particularly with the explosion in the offshore/workboat market and our new facility allows us to be respon- sive to clients,” said Mr Pontiff. IT and technology have always played an integral part to the business- its in-house software was developed back in the 1990s to assist in the warehousing and logistics process of ship supply. “Clients have been impressed with  our  technology but  it’s important that  we always  try to  put into perspec- tive their exact supply needs.” With an emphasis on technology it was no surprise that the senior management of  the Wilwel Group were quick to pick up on e-commerce and signed up with ShipServ in 2002 and it has now been rolled out across the group including ASM.  “We saw an opportunity to process more RFQs & Orders and we have now fully in- tegrated ShipServ into our work flow and it has definitely improved our cycle times,”  said Mr Pontiff. E-commerce has helped us reduce processing time and saves us directly input- ting all quotes and order information into our system. Over the last ten years Wilwel and ASM have both seen buyers become more famil- iar with the benefits of e-commerce and in particular how they can  reduce transaction inefficiencies that come with manual typ- ing,   “Tracking and tracing of information flow is vitally important to both us and our clients so more and more buyers will look to use it. As users get more experienced in the benefits of ecommerce then hopefully issues such as data quality will be improved along the way,” said Mr Pontiff. Keeping ahead of the game Factfile: Company Name: Alliance Supply Management ShipServ Categories: Ship Chandlery, Mooring Ropes, Wires & Cables, Pneumatic tools and Safety Website: www.wilwel.com Trade with Alliance Supply Management TNID: 51545 Connect speaks to US Gulf ship supplier, Alliance Supply Management about their new facility in Houston and how they have been using technology for over ten years September 2013 6 ASM opened its new facility in Houston in 2011 to deal with increasing demand from the offshore market in the region. Tracking and tracing of informa- tion is vitally important to both us and our clients
  7. 7. Moving around a company shows a great deal of versatility and Eu- gene has now had three different roles in her seven years at ShipServ. As one of the first employees in the Ma- nila office when it opened in 2006, Eugene began life in the company as the first Cus- tomer Service Manager for the Customer Service Centre (SC) in Manila. But she was no stranger to the shipping business as she had previously worked for Aboitiz Jebsen, the Philippines-based Ship Manager including a period of time in the purchasing department. Eugene next spent time as Marketing Campaigns manager, running a number of different campaigns to both suppliers and buyers and overseeing the validation of suppliers on ShipServ Pages. Her current role which she took up in 2011 is that of a Senior Manager for the Service Delivery Centre where she leads and manages a team of 16 dedicated and committed Service Delivery Executives. “The Service Delivery Centre, provides first to second level of customer support to the ShipServ client base – both maritime buyers and suppliers,” said Eugene. As part of the Global Service Deliv- ery Team, her team are at the forefront of delivering quality service and support and most importantly, customer happi- ness throughout the life cycle of a client in ShipServ from pre-sales, implementation and post sales. “My favourite part of this role is being part of the solution (to a problem) and the never-ending learning process. We all learn something new with each new customer is- sue or concern raised.” Bill Gates (of Microsoft) was telling the truth when he said that “Your most un- happy customers are your greatest source of learning.” You ask anyone from the team, and I’m pretty sure that everyone from the Serv- ice Delivery Team can resonate with Bill Gates. Away from ShipsServ, Eugene is a mem- ber of Toastmasters International, where she enjoys delivering speeches and pres- entations. She also enjoys singing and ball- room dancing as well as doing yoga and tai chi. Major buyer clients to sign up to ShipServ this year include AET, BeltShip Management, Socatra, Hornbeck, Atlantic Towing, and APL with over 200 vessels in total. Major suppliers that have gone live with integrations include Rolls-Royce and Scandia September 2013 7 Under the Spotlight: Eugene Loreitzo Senior Manager, Global Service Delivery Welcome to our new clients Contact US AsiaPacific support@shipserv.com Phone: +852 2501 9222 Support hours: 0900-1800 Hong Kong 0100-1000 GMT Americas support@shipserv.com Phone: +1 732 738 6500 Support hours: 0830-1700 US East Coast 1230-2100 GMT Europe support@shipserv.com Phone: +45 33 32 31 20 Support hours: 0830-1700 CET(DK) If you have any questions about the issues covered in this newsletter, please do not hesitate to contact your Service Delivery Manager or our Customer Support Centre on the numbers above. We welcome suggestions for the next ShipServ Connect please email us at connect@shipserv.com. “ We each learn something new with each new customer issue or concern raised”

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