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Vns fashion logistics


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Your partner in fashion logistics

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Vns fashion logistics

  1. 1. Vietnam export of textile & garment overview <ul><li>Vietnam/USA export volume for 1st & 2nd quarter in 2011 </li></ul><ul><li>Vietnam/USA export for garment & textile_2008 => 2011 </li></ul><ul><li>2008 top Asian countries ex garment & textile to USA </li></ul><ul><li>2009 top Asian countries ex garment & textile to USA </li></ul><ul><li>2010 top Asian countries ex garment & textile to USA </li></ul><ul><li>2008-2010 top Asian countries-Vietnam ex garment & textile to USA </li></ul><ul><li>Attached USA buyers for garment & textile in Vietnam </li></ul><ul><li>Attached of Vietnam suppliers for garment & textile </li></ul>The Vietnam National Textile And Garment Group VITAS Vietnam Textile & Apparel Association
  2. 2. (Source: Unit: in million SME Total volume of the first 06 months in 2011: 1,547 million SME Vietnam/USA export volume for 1st & 2nd quarter in 2011
  3. 3. (Source: Unit: in million SME Vietnam/USA export for garment & textile_2008 =>2011
  4. 4. (Source: 2008 top Asian countries ex garment & textile to USA
  5. 5. (Source: 2009 top Asian countries ex garment & textile to USA
  6. 6. (Source: 2010 top Asian countries ex garment & textile to USA
  7. 7. (Source: 2008-2010 top Asian countries-Vietnam ex garment & textile to USA
  8. 8. VNS logistics solution for textile & garment <ul><li>VNS business model </li></ul><ul><li>VNS total logistics solution </li></ul><ul><li>VNS logistics functions </li></ul><ul><li>VNS warehouse solution </li></ul><ul><li>VNS transport solution </li></ul>
  9. 9. Supplier Relationship Management Customer Relationship Management VNS Customers SRM CRM VNS Suppliers VNS Strategy VNS Executive Team HRM VNS Production VNS Internal Supply Chain Inputs Transformation Outputs
  10. 11. VNS Logistics Functions
  11. 12. What VNS logistics solution aims to ? <ul><li>1- Customers' requirements </li></ul><ul><ul><li>Customer Satisfaction </li></ul></ul><ul><li>2-Efficient, Effective </li></ul><ul><ul><li>More profit by reduced cost of materials, inventory and freight </li></ul></ul><ul><li>The application of logistics enables a greater efficiency of movements with an appropriate choice of modes, terminals, routes and scheduling. The implied purpose of logistics is to make available goods, raw materials and commodities, fulfilling four major requirements: </li></ul><ul><ul><li>Order fulfillment : Implies that the transaction between the supplier and the customer is being satisfied with the specified product provided in the agreed quantity </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>Cost fulfillment : The final costs of the order, including manufacturing and distribution costs, must be competitive. Otherwise, other options will be considered. </li></ul></ul>
  12. 13. Inventory When to order How much to order Just-in-time Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Automated Order Processing Received Processed Shipped VNS Logistics Functions Transportation Rail, Truck, Water, Pipeline, Air, Intermodal
  13. 14. How VNS adds values into customers’ supply chain <ul><li>VNS aims to add a multidimensional value- added activities into our customers’ supply chain including production, location, time and control of elements of the supply chain for the effective & efficient logistics: </li></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>Location . Derived from taking better advantage of various locations, implying expanded markets and lower distribution costs. </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul>
  14. 15. Our customers supply chain
  15. 16. VNS Warehouse Operations <ul><li>Warehouse operations </li></ul><ul><li>Warehouse capacity </li></ul><ul><li>Warehouse Import/Export SOP </li></ul>
  16. 17. <ul><li>Receiving </li></ul><ul><li>Schedule carrier </li></ul><ul><li>Unload vehicle </li></ul><ul><li>Inspect for damage </li></ul><ul><li>Compare to P/O </li></ul><ul><li>Put-away </li></ul><ul><ul><ul><li>Identify product </li></ul></ul></ul><ul><ul><ul><li>Identify storage location </li></ul></ul></ul><ul><ul><ul><li>Update records </li></ul></ul></ul><ul><li>Storage </li></ul><ul><ul><ul><li>Equipment </li></ul></ul></ul><ul><ul><ul><li>Stock location </li></ul></ul></ul><ul><li>Order picking </li></ul><ul><ul><ul><li>Information (pick slip) </li></ul></ul></ul><ul><ul><ul><li>Walk & pick </li></ul></ul></ul><ul><ul><ul><li>Batch picking </li></ul></ul></ul><ul><li>Pre-shipping </li></ul><ul><ul><ul><li>Packaging </li></ul></ul></ul><ul><ul><ul><li>Labeling </li></ul></ul></ul><ul><ul><ul><li>staging </li></ul></ul></ul><ul><li>Shipping </li></ul><ul><ul><ul><li>Schedule carrier </li></ul></ul></ul><ul><ul><ul><li>Load vehicle </li></ul></ul></ul><ul><ul><ul><li>Bill of lading </li></ul></ul></ul><ul><ul><ul><li>Record update </li></ul></ul></ul>INPUT OUTPUT Warehouse Inbound Process Warehouse Outbound Process VNS Warehouse Operation process
  17. 19. Road to VNS_TBS warehouse HCM city
  18. 26. VNS Transport Solution <ul><li>Transport role in the logistics system </li></ul><ul><li>VNS transport performance </li></ul><ul><ul><li>VNS 2011 total volume </li></ul></ul><ul><ul><li>VNS 2008-2009-2010 total sea transport performance </li></ul></ul><ul><ul><li>VNS 2008-2009-2010 sea transport for garment & textile </li></ul></ul><ul><ul><li>VNS 2008-2009-2010 total air transport performance </li></ul></ul><ul><ul><li>VNS 2008-2009-2010 air transport for garment & textile </li></ul></ul><ul><ul><li>VNS some customers for textile & garment </li></ul></ul><ul><li>VNS consolidation solution </li></ul><ul><li>VNS Sea-Air solution </li></ul><ul><li>VNS GOH handling </li></ul>
  19. 27. ? <ul><li>Transportation serves as a ‘bridge’ over the buyer-seller gap and plays an most important role in the total logistics costs in most of supply chain due to: </li></ul><ul><ul><li>It absorbs, on average, about 40% to 50% of the organization's overall logistics costs. </li></ul></ul><ul><ul><li>Transportation is the physical link connecting a company's customers, raw materials suppliers, plants, warehouses and distribution channel. </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>Therefore, the effective management of this component of logistics is an extremely important one to reduce logistics cost for our customers </li></ul></ul><ul><li>VNS can bring benefits to customers for the “economies of scale” due to: </li></ul><ul><ul><li>Our advantage of leveraged buying power </li></ul></ul><ul><ul><li>Single point of contact to different top-class preferred carriers with ample routing sailing schedule </li></ul></ul><ul><ul><li>Qualified staff with effective & efficient standard operation procedures </li></ul></ul><ul><ul><li>Different transport solution such as consolidation, break-bulk, sea-air, multi-model … </li></ul></ul>Transport role in the logistics system
  20. 28. VNS transport solution In the SC
  21. 29. ? <ul><li>We offer LCL consolidation services to consolidate cargo from different suppliers when your cargo is not enough for a FCL_full container load to make sure your shipment is moved without delay and getting other benefists: </li></ul><ul><ul><li>Direct or maximum-one-stop routings to ensure reliable, fast shipments </li></ul></ul><ul><ul><li>Minimisation of cargo-damage risk through reduced trans-loading </li></ul></ul><ul><ul><li>Single point of contact for all your global LCL needs </li></ul></ul><ul><ul><li>Improve overall service while keeping costs contained </li></ul></ul>VNS Consolidation solution Scenario 1: The firms performs their own logistics functions Scenario 2: VNS as a 3PL takes care of both suppliers’ logistics functions Supplier 1 Supplier 2 Supplier 1 Supplier 2 2 warehouses 2 separate distribution networks 1 warehouse 1 distribution network VNS as 3PL
  22. 30. Seafreight consolidation model at the loading port LCL shipper LCL shipper LCL shipper LCL shipper LCL shipper VNS as NVOCC Bill of lading Less than container load (LCL) shipments Full container
  23. 31. VNS as NVOCC… Consignee Consignee Consignee Consignee Consignee Less than container load (LCL) shipments Full container Bill of lading
  24. 32. <ul><li>VNS Sea-Air solution helps to answer our customer question for cargo from Vietnam to USA that airfreight is too expensive but seafreight is too slow and what is the solution? Especially, It is sensitive to fashion logistics in a peak season! </li></ul><ul><li>If our customers are finding their airfreight rates too high for long-haul shipments, but need faster transport than seafreight alone, consider a careful blend of the two. </li></ul><ul><li>Sea-Air traffic combines the economy of the sea with the speed of the air to give you a cost-effective solution. This fusion of transport modes enables you to send goods from Asia to Europe, North and South America, or Africa within 2-3 weeks. </li></ul><ul><li>We strongly recommend this sea-air transport model to our customer in case their goods are cost-sensitive but not absolutely urgent, then this could be a right solution as we make sure the fashion goods will be arrived at the right shop in the right time and at the right cost ! </li></ul>VNS Sea-and-Air solution
  25. 33. Example of VNS Sea-Air model via Dubai (Vietnam to USA)
  26. 34. <ul><li>Sea-Air service, a combined Sea and Air transport when properly handled is a preferable multi-modal transport that offers cost effective and time sensitive solutions, which brings two of the best advantages of air and sea freight together in one service: SAVINGS & SPEED </li></ul><ul><li>Sea-Air is usually presented as alternative solution between ocean and air in 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. </li></ul><ul><li>There are many instances when Sea-Air can provide advantages as an alternative to the classic ocean or air transport mode: </li></ul><ul><ul><li>When ocean is not an option any more due to the tight delivery in term of timeframe. </li></ul></ul><ul><ul><li>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) </li></ul></ul><ul><ul><li>When airfreight is viewed as the immediate choice, yet may not always be needed and becomes a “comfort” solution </li></ul></ul><ul><ul><li>When product value does not support to cost of airfreight </li></ul></ul><ul><ul><li>When Garment on Hanger (GoH) is carried via airfreight </li></ul></ul><ul><ul><li>When looking for a solution to reduce inventory carrying cost </li></ul></ul><ul><ul><li>When capacity becomes constrained from a specific origin or region, especially in a peak season </li></ul></ul>
  27. 35. <ul><li>Sea-Air solution should be created on the followings requirements: </li></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>Single HAWB : combined transport document </li></ul></ul><ul><ul><li>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) </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><li>Some Sea-Air hubs: </li></ul><ul><ul><li>Asia/India via Dubai to Europe,Africa and USA/Canada </li></ul></ul><ul><ul><li>North Asia (China) to Seoul to Europe and USA/Canada </li></ul></ul><ul><ul><li>Asia/India to North America to Latin America </li></ul></ul>
  28. 37. ? <ul><li>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 below are brief SOP: </li></ul><ul><ul><li>1-Received GOH booking order and GOH instruction from supplier/customer </li></ul></ul><ul><ul><li>2-Get booking GOH container/ULD and space from shipping line/Airline </li></ul></ul><ul><ul><li>3-Checking the GOH container/ULD to make sure it is in good condition for garment stuffing </li></ul></ul><ul><ul><li>4-Perform GOH container/ULD installation in accordance with the customer’s requirement </li></ul></ul><ul><ul><li>5-Supervisation and quality control, photo taken and stick the PTI sheet into the GOH container/ULD </li></ul></ul><ul><ul><li>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… </li></ul></ul><ul><ul><li>7-Fastening the security seal once hanging installation is done and hand over to respective terminal </li></ul></ul><ul><ul><li>8-Inform customer/supplier as GOH is ready for shipping for next step on related documentation. </li></ul></ul>VNS GOH handling
  29. 38. ? VNS GOH handling…
  30. 39. ? VNS GOH handling…
  31. 40. VNS Warehouse Handling Charges
  32. 41. Thank you for your attention!