IFC GLOBAL LOGISTICSIFC GLOBAL LOGISTICSCordially welcomes

Students and StaffStudents and Staffof the RMIT Universityof the RMIT University

Agenda10:00am Opening

10:10am Introduction Alex Allen, Director Commercial

Strategic Supply Chain Management Dr. Peter O'Neill

10:20am 10 Commandments of SCM Dr. Annibal Scavarda

10:30am 3 Presentations Dr. Fang Zhao

10:40am Business Overview Alex Allen

10:50am FSC – A Key Driver for IFC’s Competitive Advantage

Joe Dumas, IT Specialist

11:20am Customer Service Andre Turner, Mgr Customer Service

11:35am Operations Monika Sharp, Mgr Operations

11:50am 3PL and 4PL Logistics Brett Armitage, National Logistics Mgr

12:10pm Q & A

12:30pm Lunch

1:00pm Site Tours

1:45pm FSC Demonstration Joe Dumas

2:30pm Q & A

3:00pm Close

New 15,000 M2 Altona Site

International Supply Chain Management Specialists

Respected Company in Transport Logistics Managing sea freight, air freight, customs clearance,

domestic freight, warehousing and distribution Established in 1991 International Coverage

incl. USA, Canada, Europe, UK and, considerable coverage of Asia / Pacific region

Long-term Partnerships in every major Trade Lane to and from Australia Servicing a wide portfolio of clients ranging in size

About Us

Our Mission

Our Values

Worldwide Trust

“We commit to exceeding our customers' expectations for quality, responsiveness, and professional excellence while delivering within the agreed price and schedule.”- IFC Group of Companies Mission Statement

Quality Assured to AS/NZS ISO9001:2000 Won a number of awards for excellence

National 2007 Information Management Excellence Award BRW – Top 100 Fastest Growing Private Company

(Awarded 5 times in the last 10 years) Finalist - Shipping Transport Award Finalist - Ernst & Young Entrepreneur of the Year

Constantly invest in improving systems & people Clients have access to best practice advice Servicing clients’ total end-to-end needs

Our Commitment

ISO Certification

BRW Award

Membership

Also:

• Storage• Inventory Management• Cross Dock• Pick & Pack• Distribution• Reworking

IFC Warehousing& Distribution Centre

InternationalCarriers• Sea• Air

Customers• Importers• End Users

Suppliers• Manufacturers

OverseasConsolidators

• Load • Unload

Inbound CargoTerminals

• Coordinated by IFC Cartage• Pickup from Ports• Delivery to Warehouse

or Direct to Client• Delivery to IFC WH&D Centre

IFC Logistics Service Providers

IFC’s Integrated End-to-End Supply Chain Execution

Customs Clearance

• Sea• Air

Integrated Solution

Supply Chain Management

“Supply Chain Management is the integration of key business processes from

end user through original suppliers that provides products, services and information

that add customer value and other stakeholders.”

Global Supply Chain Forum 1998

Freight Supply Chain (FSC)

A Key Driver for IFC’s A Key Driver for IFC’s

Competitive AdvantageCompetitive Advantage

Outdated Processes in Importing

Inappropriate Applications / Incompatible Systems

SUPPLY

POLICIES

NO STRATEGY AND MISINFORMATION

Financial Settlements

FORECASTDEMAND

BUYINGSTOCK

DISTRIBUTION

marketin

g

and sales

STORES

forwarding

Determine Stock Requirements

Evidence of Forrester’s Bullwhip Effect *

Little JIT information to forecast demands Replenishment lead times guesstimates No real time information sharing No order synchronization No order visibility

* Industrial Dynamics (1961)

…the amplification of demand variability as you move from downstream (customer) to upstream (supplier) sites along a supply chain.

FSC Solution Synchronicity of the Exchange of Information in the Supply Chain

Operational: Ordering products on-line Organising and tracking shipments in real-time

Strategic: Information sharing among link partners - seamlessly Visibility of demand in supply chain Transparency of order processes Leveraging speed of information to provide

competitive differentiation & flexibility Heightened customer service offerings Reduced operating cost

Benefits to Customers

IT as enabler and differentiator

Forefront as e-SCM service provider Deliver virtual supply chain to clients Apply tools & techniques to increase our

operational effectiveness (internal & external)

Sustainable competitive advantage FSC is an intangible asset – difficult to copy FSC cannot be divorced from IFC FSC builds a trusting relationship amongst

stakeholders FSC makes other assets (e.g. people) more productive FSC does not depreciate – funded out of cash flow

Benefits to IFC

Options and freedom how we deploy our business strategy

FSC Software Overview

Tracks order from order creation to delivery via web Real-time tracking of SKU, container & vessel movements,

and part-shipments Rapid notification of changes & events in supply chain Documents available in digital form & on demand Early availability of warehouse delivery scheduling Transactions encrypted Open platform Local support

FSC Key Features

Visibility – thus improving decision making capabilities Early access to critical performance indicators Status alerts / arrival forecasts delivered to key personnel Accessible by stakeholders anytime, anywhere Transfers data at low cost – value to minor business

partners Data secured and accessible to authorised users Evolved from the bottom up Delights clients – low cost of implementation

FSC Key Benefits

Purchasing

Tracking

Clearance & Delivery

Demurrage start date

First day of availability

Pick up from port

Notification to DC (or WH)

Delivery to DC

Received by DC

Empty container returns

Product Pipeline Visibility

Key Benefits To Importer: Visibility of supplier’s process Status and location of product ETA of product into warehouse Schedule order receipt workflow &

fulfilment Know the cost to land each unit Leaner inventories

ProductLevel

Reporting

Unit LandedCosting

ETAInto

Warehouse

Confirmedon

Board

CargoReady

ProductTracking

Key Benefits To End-User: Product availability Final delivery date

Product TrackingFunctional Relationship

Customer Service

Overview of Customer Service Main point of contact between the Customer and IFC

Global Logistics Provides updates on freight service and rates to the

customer Advises best method of shipment, transit time, rates,

LCL, FCL or Air Freight Assists the Customer’s staff in understanding the

shipping process The go between with the Customer and other IFC

Departments Tracks the Customers’ orders door to door

Door to Door Chain

Airfreight Shipment

Order ready?

Pick up of cargo by truck

Delivery to Airport Depot

Export Document Process

Delivery from Depot to Airport

Door to Door Chain

Airfreight Shipment

Loading the Aircraft Transit Stops Arrival in Australia Import Document Process Delivery to Customer

Tracking of Shipment

Customer places order in FSC

Order transferred to Supplier

Order transferred to IFC o/s office

Monitored by IFC Customer Service Team

Order close to ready date

FSC reminds IFC o/s office to follow-up

IFC o/s office updates FSC with ready date

or delay

Tracking of Shipment

Booking by Supplier – O/s office updates

FSC and books shipment with Airline /

Shipping Line – Pick up arranged

Documents scanned into FSC for all parties

to view and use

Vessel journey tracked – transhipment,

offload or port delays

Confirmed ETA details entered into FSC

Tracking of Shipment

Projected ETA into warehouse and delivery

Confirm ATA – Vessel, Warehouse and Delivery

Products shipped entered against order

Part shipped orders – reordered

Landed Costing completed in FSC

Loaded on Board – details of cargo, vessel, departure date and arrival date confirmed in FSC

Operations

Business Groups

Overview of Operations

Import Operations Prepare import documentation for reporting to Australian Customs. Liaising with carriers and overseas agents to process payment and invoicing client. Ensuring all delivery paperwork is available prior to cargo arrival.

Compile Collate all required and correct import clearance documents and compile

information in our database for customs entries

Cartage Coordinators Ensure shipments have a clear status for delivery

Check AQIS impediments and organize delivery to clients according to their instructions / requirements.

Customs Brokers Report cargo to Customs & AQIS as per Australian Customs requirements. Classify

new products and advise clients on duty & GST rates as well as Customs and Quarantine impediments. Attend to any misc Customs and AQIS queries.

Mission Statement (Operations) Commit to exceeding our customers’ expectations for quality,

responsiveness, and professional excellence while delivering within the agreed price and schedule

Pursue Cost effective alternatives to increase value for our customers in all areas from which we offer service.

Foster a working environment that encourages the furthering of technical knowledge, professional and financial growth, and competitive excellence.

Profitability Quick Turnaround High Level of Customer Service Lower Costs Improve Productivity

Objectives

Electronic Data Interface

OVERSEAS AGENT 1 - STOP

ediENTERPRISE

CMR / ICS(Cargo

Management Reporting / Integrated

Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight Supply

Chain Managements)

Electronically sending information to Enterprise

Reducing Double handling of data Improved information flow to Australian

Customs, Quarantine and Clients

OVERSEAS AGENT

1 - STOP

ediENTERPRISE

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain Managements)

OVERSEAS AGENT

Vessel Schedule and Container Event information for Australian Ports.

Live information, keeping our system up to date with any delays, vessel adjustments and container movements.

Up to date information availability to IFC Staff and clients at any given time.

1 - STOP

1 - STOP

ediENTERPRISE

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain Managements)

OVERSEAS AGENT

Electronic communication of data between the Customs Broker, Australian Customs & Australian Quarantine

Data which is processed: Shipment details, values of goods, classification of goods, customs clearance status, border processing requirements, etc.

CMR / ICS(Cargo Management Reporting / Integrated Customs Services)

1 - STOP

ediENTERPRISE

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain Managements)

OVERSEAS AGENT

Reporting electronically, through assessment to Quarantine

Developed for non commodity and some commodity concerns

AQIS – AEP(Australian Electronic Processing)

1 - STOP

ediENTERPRISE

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain Managements)

OVERSEAS AGENT

Updated by Information gathered in Enterprise from our Agents, 1-Stop, CMR / ICS, and AQIS

Live information on all current, upcoming and old shipments Availability of Documentation, i.e. Commercial invoices,

Packing Lists, Customs Entries, Invoices, Electronic Delivery orders

Allows clients and their Distribution Centers, Warehouses, Depots, and Transport Contractors to access documentation at any given time

FSC(Freight Supply Chain Managements)

1 - STOP

ediENTERPRISE

CMR / ICS(Cargo

Management Reporting / Integrated Customs Services)

AQIS – AEP(Australian Electronic

Processing)

FSC(Freight

Supply Chain Managements)

OVERSEAS AGENT

3PL and 4PL Logistics

Measuring Supply Chain Measuring Supply Chain PerformancePerformance

Defining the Supply Chain and Logistics

The importance of knowing Warehousing

and Distribution costs

Measuring the cost of Warehousing and Distribution

What are the Objectives?

Supply Chain Management

“Supply Chain Management is the integration of key business processes from

end user through original suppliers that provides products, services and information

that add customer value and other stakeholders.”

Global Supply Chain Forum 1998

Logistics/Supply Chain

Important features:

Customer Orientation

Global Approach

Total Cost NOT Individual Price

Strategic Partnerships and Alliances

Business Logistics

PETER DRUCKER - 1961

“ Almost 50 Cents of each dollar the American spends for goods goes for activities that occur after the goods are made, that is, after they have come in finished form. Economically, distribution is the process by which physical properties of matter are converted into economic value: it brings the customer to the product. ”

Logistic Strategy Planning

Logistic Strategy Depends On:

SALES VOLUME PLAN MARKETING PLAN CUSTOMER SERVICE PLAN FINANCIAL PLAN SOURCING/MANUFACTURING PLAN

Focus On Company Profit & ROI

Management

Moving From:

FUNCTIONAL MANAGEMENT

To:

PROCESS MANAGEMENT

Logistic Plan Trade Offs

Inventory carrying costs Production/sourcing costs Information processing costs Warehouse operations costs Transport costs - in & out

Customer focus - competitive

Customer ServiceCustomer service levels are set by

Company Executives

They are expressed as operational standards:Examples: Daily deliveries to all customers 24 hour cross dock operation Customer queries answered within 24 hours 98% stock availability Warehouse costs below 1.5% of sales Loss/damage less than 0.2% of throughput Warehouse inventory less than 10% of company

inventory

IFC Warehousing IFC Warehousing & Distribution Centre& Distribution Centre

IFC Warehousing & DistributionCapacities include:

8,000M2 with capacity for over 8,000 pallets 2,000M2 front cross-dock processing area 6 covered docks with hydraulic dock

levellers Extending by additional 6,000M2

Radio Frequency (RF) scanners Automatic stock put-away zoning Receipts, flexible stock allocation,

put-away, cross-dock or staging 3PL communication

& network support system Pick n pack, rework processing,

bill of materials

IFC Warehousing & Distribution

Provides leading supply chain practices such as: Customer driven planning – for effective on-demand,

order-to-delivery and distribution management

Efficient customer order fulfilment – through real-time order

processing via web portal

Improved product lifecycle management – through product

visibility and information transparency within the supply chain

Enabling technologies (Manhattan WMS) – for core

performance data, efficiency, accessibility and integration to own ERP system

IFC Warehousing & Distribution

Purchase order raised in FSC

Client Packing lists scanned into FSC/Excel import

Packing list interfaced from FSC/Excel directly into ILS

Manhattan

Containers opened stock scanned from Delivery into IFC

Warehouse

Manhattan receipts stock in against Packing list/auto

Exception reporting to Client

IFC Warehousing & Distribution

Client has access via IFC Web site to view Stock

records

Internet Portal access 24/7 Globally

Client can access status of Stock

Direct Access of Orders in progress

Client can create orders via Internet Portal

Direct Access to Reporting

IFC Warehousing & Distribution

Key features of Warehouse Management System (Manhattan Associates – Integrated Logistics Solutions)

Multi-lingual application on Microsoft Platform User Web Portal

Create & view orders, order status and cyclic count status View inventory levels and shipped inventory

Off-shore generation of Advanced Shipping Notices (ASN) and unit labelling

Comprehensive inventory management and order fulfilment system

IFC Warehousing & Distribution

Time for your questions…

CASE STUDY “A”

FSC Services Web-based Order Management Accessible by all stakeholders Configured to support Co.X’s business

flows, monitoring & reporting requirements

Full product, documentation and shipment visibility

Collaborative management of container movements & container costs

Early access to critical performance indicators and costing

Key Efficiency Gains All Co.X Departments now use common

product code for ordering Ordering and multi-supplier consolidation

now done on-line & in real-time Now manages track & trace by exception Container deliveries coordinated and

monitored on-line Promotional start-date monitored Early downloads of landed costing

information Direct Container Buy ordering directly

interfaced with FSC

COMPANY “X”(Large Retail Hardware)

Key Savings From 3.5 Full-time Equivalent down to

0.9 FTE in peak season 0.4 off-peak, whilst volume has

doubled in past 2 years

CASE STUDY “B”

FSC Services Web-based Shipment Tracking Shipment data accessible by all internal

Departments, but via own ERP system Configured to support Co.Y’s ordering

practices & business flows Early access to shipping documentation Early access to critical performance

indicators

Key Efficiency Gains Buyer behaviour monitored Purchase orders transferred to FSC and

shipment data returned to Client, daily via FTP

Effective management of shipment consolidations

Shipping documentation faster at hand Now Client enjoys full track & trace

visibility, by product line Container demurrages better managed Deliveries coordinated and monitored

on-line

COMPANY “Y”(Large Textile/Homewares)

Key Savings From 3 Full-time Equivalent down to 2.5 Container storage bill from $350,000 to

$6,000 p.a.

Excellence AwardExcellence Award

“…unambiguously the most prestigious and influential award in the industry.”

- Supply Chain & Logistics Association of Australia (SCLAA)

IFC Wins National 2007 Information Management Excellence Award National recognition as a significant achiever in supply chain and

logistics information management Granted by largest association of logistics professionals for significant

achievement in the use of:

Communications

Information management

Technology

e-business

…with particular regard to the added value produced by the achievement

Excellence AwardExcellence Award

“… unambiguously the most prestigious and influential award in the industry.”

- Supply Chain & Logistics Association of Australia (SCLAA)

“ Freight Supply Chain (FSC), is a quality product…developed to manage and distribute up to the minute information to all stakeholders in the supply chain. FSC was recognized as a powerful strategic tool that leverages real-time information to improve everyone’s time to value. “

…an integral part of our pursuit to: streamline supply chain processes improve response times to clients improve accuracy of information reduce clients’ costs and overheads, and improve product time to market

…essentially, allowing our customers and their clients to do, and get a lot more, for less.“

Time for your questions…