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VNS transport solutions for garment and textile export to USA
1. Vietnam/USA export volume for 1st & 2nd quarter in 2011
Vietnam/USA export for garment & textile_2008 => 2011
2008 top Asian countries ex garment & textile to USA
2009 top Asian countries ex garment & textile to USA
2010 top Asian countries ex garment & textile to USA
2008-2010 top Asian countries-Vietnam ex garment & textile to USA
Attached USA buyers for garment & textile in Vietnam
Attached of Vietnam suppliers for garment & textile
The Vietnam National Textile And
VITAS Vietnam Textile & Apparel
Garment Group
Association
http://www.vinatex.com.vn
http://www.vietnamtextile.org
2. 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 1
Total volume of the first 06 months in 2011: 1,547 million SME
Unit: in million SME
(Source: http:/ / www.vietnamtextile.org)
3. Vie m S e rt fo g rmnt & te _2 0 = 2 1
tna /U A xpo r a e xtile 0 8 > 0 1
Unit: in million SME
(Source: http:/ / www.vietnamtextile.org)
4. 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)
5. 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)
6. 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)
7. 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)
8. VNS business model
VNS total logistics solution
VNS logistics functions
VNS warehouse solution
VNS transport solution
9. 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
10.
11.
12. 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 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:
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.
13. Costs Order Processing
Minimize Costs of Received
Attaining Logistics Processed
Objectives Shipped
VNS
Transportation Rail, Logistics Functions Warehousing
Truck, Water, Pipeline, Air,
Storage
Intermodal
Distribution
Automated
Inventory
When to order
How much to order
Just-in-time
14. 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 our
customers’ supply chain including production, location, time and control
of 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.
26. Transport role in the logistics system
VNS 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 & garment
VNS consolidation solution
VNS Sea-Air solution
VNS GOH handling
27. 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 most
important role in the total logistics costs in most of supply chain due to:
It absorbs, on average, about 40% to 50% of the organization's overall logistics costs.
Transportation is the physical link connecting a company's 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 …
29. VNSC ns lida n s lutio
o o tio o n
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:
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
30. Se a fr e igh t con solida t ion m ode l a t t h e loa din g por t
LCL shipper LCL shipper LCL shipper LCL shipper LCL shipper
VNS as NVOCC
Less than container load
(LCL) shipments Full container Bill of lading
31. VNS as NVOCC…
Consignee Consignee Consignee Consignee Consignee
Less than container load Full container Bill of lading
(LCL) shipments
32. VNSSaa -Air s lutio
e - nd o n
nd-
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!
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.
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.
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 !
33. Example of VNS Sea- Air model via Dubai
(Vietnam to USA)
34. 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
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.
There are many instances when Sea-Air can provide advantages as an
alternative 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
35. 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
37. VNSG H ha
O ndling
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:
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.