vietnam logistics solution 2012 www.vietnam-ship.com

1.  Brief logistics profile of Vietnam Shipping _VNS
VNS logistics solution for textile & garment
 Scopes of service and pricing

2. Our background & challenges
Our mission
Our total logistics solution

3. Our background &
challenges
 LOGISTICS VIETNAM, as third party logistics service provider, is a
division of Viet Nam Shipping Services Corporation. For more information
about Viet Nam Shipping Services Corporation, please visit our website at
www.vietnam-ship.com
 Vietnam market is getting more and more competitive and will be an
important hub for high value products which demands professional logistics
service provider who can offer solution for the conflicting concept of “lower
cost 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 can
make it happen!
 We aim to offer a value-added service of differentiation to ensure that we
are the company you can be proud to support

4. Our mission
 Companies are increasingly focusing on their core business. That is why
there are more and more companies who are outsourcing their logistics
services.
 As a non-asset based logistics service provider and together with
customer, we create and manage tailor-made logistics solutions for the
most effective & efficiency movement of materials from supplier to
consumer.
 We strive for leanness, agility, and integration to keep our customer‟s
logistics system improving. That is our contribution to your success.

5. The logistics house

6. Procurement logistics Distribution logistics
Suppliers 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

7. Procurement
Logistics purchasing order management; cargo consolidation from
We provide the
different suppliers in Vietnam and stored into our local warehouse including
value added services (price tagging, bar-coding…), quality control Inventory
management, customs clearance…and shipping to customers nominated
destinations
Our upstream logistics management
SUPPLIERS CUSTOMERS CONSUMERS

8. Pallet
Storage
VNS WAREHOUSE
Warehouse
(1) (2) (3) (4) (5)
Receive
Receive Putaway Store Pick Ship
Receiving Put-away Storage Order Picking Shipping
Warehouse operation

9. ?
 1-Receiving
Transport scheduling
 Unloading vehicle
 Inspection for damage
 Comparing with P/O
 2-Put-away
 Identify different items
 Identify location for storage
 Monitoring product
 Updating record into software
 3-Storage
Equipment
Stock location
Warehouse operation…

10.  4-Order picking
?
 Pick slip
 Walk & pick
 Batch picking
 5-Shipping
 Pre-shipping
 Packing
 Labeling
 Staging
 Shipping
 Shipping scheduling
 Loading vehicle
 Bill of lading
 Updating record
Warehouse operation…

11. Distribution
Logistics
We provide the services of cargo consolidation from different countries into
Vietnam, customs clearance, stored into our local warehouse including value added
services (price tagging, bar-coding…), quality control inventory management and
national-wide transportation to nominated retailers, consumers…
SUPPLIERS CUSTOMERS CONSUMERS
Our downstream logistics management

12. Using warehouse to reduce transport cost: consolidation

13. Using warehouse to reduce logistics cost in

14. National Distribution Network Services

15.  VNS business model
 VNS total logistics solution
 VNS logistics functions
 VNS warehouse solution
 VNS transport solution

17. Supplier Relationship Management VNS Customer Relationship Management
Strategy
VNS Production
VNS
VNS VNS
SRM CRM Customers
Suppliers Internal Supply Chain
VNS
Executive Team
HRM

21. 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 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.

22. 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

23. How VNS adds values into customers’ supply chain
 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 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.

24. Our customers supply chain

25.  Warehouse operations
 Warehouse capacity
 Warehouse Import/Export SOP

26. Receiving
Warehouse 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

30. Road to VNS_TBS
warehouse
HCM city

37.  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

38. Transport role in the logistics system
 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 …

39. VNS
transport
solution
In the
SC

40. Logistics Expenditures
- Source: Adapted from P.O Roberts, Supply Chain Management: New Directions for Developing Economies,
http://www.worldbank.org/html/fpd/transport/ports/trf_docs/new_dir.pdf
- http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/worldlogisticscosts.html

41. VNS transport performance

42. VNS 2011 export performance to USA by commodities
(From January to June 2011)

43. VNS total sea export performance_2009-2010-2011

44. VNS sea performance of garment & textile to USA
(2009-2010-2011)
Unit: teus

45. VNS total air export performance_2009-2010-2011

46. VNS air performance of garment & textile to USA
(2009-2010-2011)
Unit: kg

47. Some of VNS’ customer for garment & textile to USA

48. VNS Consolidation solution
 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
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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

49. Seafreight consolidation model at the loading port
LCL shipper LCL shipper LCL shipper LCL shipper LCL shipper
VNS as NVOCC
Less than container load
(LCL) shipments Full container Bill of lading

50. VNS as NVOCC…
Consignee Consignee Consignee Consignee Consignee
Less than container load Full container Bill of lading
(LCL) shipments

51. Consolidation &
Break-bulk

52. VNS Sea-and-Air solution
 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 !

53. Example of VNS Sea-Air model via Dubai
(Vietnam to USA)

54.  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

55.  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

56. Cost comparision between
Sea, Sea-Air, Air
Sea
Sea-Air
Air

57. VNS GOH handling
 Our staff are well-training for Garment On Hanger_GOH. We strictly follow
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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.

58. VNS GOH handling…
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59. VNS GOH handling…
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60.  VNS warehouse handling charge
 VNS export ocean & air freight
 VNS export local charge
 VNS export sea-freight flowchart
 VNS export air-freight flowchart

61. VNS Warehouse Handling Charges

62. VNS Export Local Charges