global logistics and planning

Global Logistics & Planning

Presented by:Lorraine LorenziniDirector, International Account Management

Claudia StephensonInternational Account Director

The Team

1. Your significance in the industry2. The approach--define3. Marketing for each approach4. The schedule--divide5. Which approach works where6. Currency fluctuations7. VAT8. Budgeting8. Driving efficiencies, cost savings, and on-site requests9. Will this year’s approach work next year?

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Types of Exhibits

Your Options

1. Shell scheme2. Build and burn/rental3. Kit--customized build for multiple uses

Shell Scheme

• International equivalent of USA 10’ x 10’ pipe and drape

• Hard walls that extend at full height to the aisle

• Best for regional shows, local budgets

Build and Burn

• Also called purpose-build, one-time use• Custom construction used one time and destroyed• Construction shortcuts can be taken, as it is not built for use at multiple

Build and Burn

• Large footprint• Deck was required for upstairs

meeting rooms• High-end, polished appearance• Did not wish to store, as show is

every two years

Build and Burn, Continued

• Maintain global branding in Singapore• Same stand used in United States and

Europe• Only one show this size in Asia• Did not wish to store

Build and Burn, Continued

Rental

• Typically used for only one show• Rental inventories overseas are not as extensive as they are in the

United States• Usually more cost-effective than build-and-burns• Differentiator: begin with a “system” that is available in local inventory

Rental

Rental, Continued

• High-end rental• Walls supported by rental system• Line that divides rental exhibits and

build and burns is hazy--based on the quantity of systems used and whether the exhibit will be returned to inventory or destroyed

• Product group had only one show of this size in Europe

• Budget was a concern• Height was required due to

nature of surrounding exhibitors

Rental, Continued

• Low budget in a very expensive show location

• One-time use• Used stock materials from

inventory

Rental, Continued

The “Kit”

• Customized builds for multi-use• Based on the USA model--crated and shipped from show to show for

several years• Solely based on having numerous shows within one region of the world

The Kit

• Can be used for multiple footprints• Stored and shipped throughout the

region• Shipping from country to country

must be “easy” and cost-effective

Considerations for Messaging/Graphics

Kit--Messaging Levels

Kit Examples

Tiered Messaging Corporate Consistency

Build and Burn/Rental

Show specific graphics--recruitment

Shell Scheme

Graphics applied to rental structures

Organizing Your Schedule

The Schedule--by Show Date

The Schedule--by Country

The Schedule by Show Date and Country

By show date• Immediate read as to the busiest

times of the year• June and October--4 shows each,

add in the show at the end of September, and that puts it at 5

By country• Sort by country to see if it

alleviates the busiest parts of the schedule

• June has 3 in Europe• End of September/October has 4• Takes one show out of the busiest

The Schedule--by Product

Step 1: The Schedule

• June--132 sq.m. of property required (40, 50, 42)

• September/October--136 sq.m. of property (100, 36)

• October--one show 165 sq.m.

• Based on these shows, the minimum kit should cover 165 sq.m. of floor space

• Make additional sets of common components to handle overlapping shows

Step 2--The Schedule

• November--100 sq.m. This can now be covered with the kit, as it will be available

• Two more shows in Europe--400 sq.m. in August in Spain and 360 sq.m. in Austria in September

• There is enough time between the shows to ship.

• Do we add another 235 sq.m. to the kit, or do we use build and burns or rentals?

The Schedule--Continued• Look at the schedule by

product

• 360 sq.m. is pink and black

• 400 sq.m. is white and black

• No other shows for white or black

• 165 sq.m. for pink in the Netherlands, which can be covered with the kit

The Schedule--Continued

• We would need another 235 sq.m. for the kit

• Looking at the product schedule gives us only one additional show (NL) where this material would be used

• Best to do rental--more cost effective than a build and burn

• If you were to do a build and burn, better off to spend the additional money and add to the kit

The Schedule--Europe

• Next year, if 165 sq.m. does not cover the shows in Europe, then would be a good time to consider adding to the kit.

• If you have been tracking usage of the components, coupled with those items that you have been renting most frequently, figuring out what should be added should be relatively easy.

The Schedule--Asia

• Now that Europe is handled, the rest should be easier

• April--50 sq.m in China

• June--only other show in Asia, 100 sq.m. in Singapore

• Both shows are the yellow product

The Schedule--Asia

• If you build an exhibit for 2x use, build in Singapore, ship 50 sq.m. to China on a temporary import, return to Singapore, destroy following show in Singapore.

• Singaporeans speak Chinese.

• Singaporeans work well with the Chinese.

• Exhibit could be installed in China with a supervisor from the Singapore shop.

• Shipping is possible, though not easy.

The Schedule--Asia

• We have not considered the cost of production.

• More cost-effective to build the 50 sq.m. in China than to ship from Singapore.

• Even though now building 150 sq.m. of properties rather than 100 sq.m.

• Need to understand how various cultures work together and the intricacies of shipping globally.

The Schedule--Africa

• EMEA--Europe/Mid-East/Africa are grouped together as a region.

• Parts of Brazil are closer to some parts of Africa than they are to Europe.

• South Africa should be thought of as its own region.

The Schedule--Africa

• Inexpensive labor, with only one show in the region, this show should be a build and burn.

• Due to difficulties with transport, each country in Africa should be thought of as a region.

• If you have shows in Johannesburg and Cape Town, South Africa, transport between the two cities is easy. You could use the same exhibit for both.

The Schedule--Latin America

• Based on the dates, we could ship between the two countries.

• Shipping between Latin American countries is difficult.

• Import duties are high.

• Using the same exhibit for both is not the best solution.

• Brazil should be a shell scheme.

• 65 sq.m. in Argentina should be a build and burn.

• Small rental inventories.

• Costs are more expensive than in Asia.

Exchange Rates, VAT, and Budgeting

Currency Fluctuations

Protect yourself against fluctuations

1. Have your supplier quote in U.S. dollars.2. Hedge.3. Have a Euro account.4. Add percentage points when determining your budget: use 1.37

conversion rather than 1.34.

VAT (Value-Added Tax)

• Choose where you build your exhibit--if you build in the same country where the convention is to be held, you will pay the VAT.

• If you build in one country, and the exhibit is installed in another country, you will not pay.

• Weigh VAT costs vs. transportation costs.• Show services will be charged VAT.• Check with your supplier--VAT WILL affect your budget.

Europe--19% NL, 19.6% France, 19% Germany, 20% Great BritainRefundable (though for U.S. companies, Spain, Italy, and Portugal are not)

Argentina – GST – 21%Not refundable

Asia – 5% Japan, 17% ChinaNot refundable

Sample Budget

Opportunity for Cost Savings

• Builder--local vs. not local• Consider engaging local suppliers for select services

• Reduce costs• Ensure availability for on-site changes

• Two biggest services for savings opportunity:• Graphics production• AV/computer rental

• Primarily applies to Europe

So, What’s Next?

1. Sort your schedule by show date, region, and product.2. Fill in all those shows that can be filled with kit properties.3. Proceed as you did this year.

Thank you!

global logistics and planning

customized build

highend rental walls

rental inventories

years approach

united states

multiple shows

regional shows

local budgets

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