COMPASS 2014

Garrets International Ltd.

1. Introduction to Garrets International Limited

2. Garrets Supplier Relationship Framework

3. What do Garrets expect from Suppliers & Partners?

4. Summary

Agenda

• Independent company

• Established in 1991

• Offices in London and Singapore

• Specialising in outsourced marine catering management

• c. 1,000 vessels under management

• >20,000 seafarers

• c. 70 principals world-wide

• ISO 9001: 2008 certified

Introduction:

“Garrets International is a leading independent provider of outsourced marine catering management services, supporting regulatory compliance through a comprehensive service offering that encourages healthy eating, hygienic and cost-effective galley management, at a predictable cost.”

Customer Value Proposition

50+ customers and growing

Cost Optimization

Menu Planning.Use of Ethical Ingredients.Healthy & balanced diets.

Single point of contact for shore/sea personnel.Single vendor structure.Periodical reporting on KPIs.

Vessel visits by Catering Supts.Galley Inspections.HACCP compliance/awareness.MLC compliance.Inventory review.Crew Training.Fresh Pods.

Reduced cash spend.Reduced exposure to risk of theft.Guidance on welfare & hygiene standards.Training School.Catering Supts.

Predictable feeding rates.No upfront investment.Best value – Garrets independent & not a supplier.Improved galley economics through menu-planning.Reduced waste through optimised inventory management.

Standard Process

Value Added Services

Improved Governance

Crew Welfare

GARRETS SUPPLIER RELATIONSHIP FRAMEWORK

“a set of principles, processes and tools that can assist to maximize relationship value with

suppliers and minimise risk through the entire supplier relationship life cycle.”

Performance

Management

Evaluation

& Selection

Conti

nuou

s

Impr

ovem

ent

Market & Internal Data

Requirements DefinitionDo they meet our requirements?

Program DevelopmentWho Are Our Suppliers?

Performance RecognitionWhat can they do better?Incentives?

Performance MonitoringHow are they doing?

Innovation & Value AddLooking for mutual opportunities

Relationship M

anagement

1.

All suppliers are required to trade under Garrets T’s and C’s

5.

All approved suppliers are required to complete a Contact Matrix.

3.

Suppliers with whom Garrets spend <US$1m p.a are expected to complete an annual self-audit questionnaire.

(The Garrets Approved Supplier List is operated subject to these first 3 points)

2.

Suppliers with whom Garrets spend >US$1m p.a will receive an annual physical quality audit via a third party.

4.

All approved suppliers are required to sign a Letter of Appointment.

Process: Moving forward…

KEY T’s & C’s / LOA Considerations:

Management information

Business conduct

Sub-contracting & assignment

Anti-corruption

Product specifications

The quotation process

Purchase order

Delivery, risk and title

Pricing & Invoicing

Product rejection & product recall

Competitive trading

Confidentiality

Audit rights

I.P.

Liabilities & indemnities

Standard terms

Clear expectations

Appropriate content & size for

our business

What benefits do you get from dealing with Garrets?

1 contact / 1 contract for c.1000 vessels & 70 customers. Mutual Growth

& Mutual Gains

Professional Global representation

Fair & professional tendering (balanced scorecard).

High growth ambition = More vessels + More predictable volume + More buying power for all.

Enhancing relationships – focus on recognising and rewarding good supplier performance.

Ability to share MI data (market trends re food produce and should-costs from other regions).

Association in the market with Garrets’ Quality

Fair, independent representation by Garrets to customers.

Improved on-board Governance allows you to be selected, measured and communicated

with in the correct manner.

Loyalty – we are proud of our suppliers & challenge our customers to use our preferred partners.

We will challenge you to improve, stay ahead of the game and raise the bar in terms of Food Quality.

What do Garrets expect from our Suppliers & Partners?

What we expect from our suppliers and partners…

Pack

Ship Bill

OrderWhat do our customers want?

“Get the basics right.”

What we expect from our suppliers and partners…

• Respond in time – To return all quotations within 24 hours of receipt All quotes should only be sent to Garrets.

• Quote for the exact items requested – Correct quantities, alternatives clearly highlighted when requested items n/a. Quotes submitted in correct format.

• Include prices for seasonal & special offers in quotes.

• Healthier options – i.e Sunflower Oil, Free Range Eggs, Light Mayonnaise, etc are supplied as standard whenever available.

• Transport/launch costs – to be advised at earliest possible stage (ie quotation).

• Adhere to our T’s & C’s & LOA

Order

What we expect from our suppliers and partners…

• Alternatives / substitutes must be approved prior to delivery• Full order must be delivered to vessel, as per correct final order

• Garrets require prompt confirmation of receipt of order• Garrets PO numbers on all invoices

• Chandler is responsible for contacting port agents to arrange timely delivery. Any additional charges must be relayed to Garrets office on receipt of order confirmation / earliest opportunity.

• Delivery should be co-ordinated with port agents in good time prior to vessel departure.

• Out of courtesy we ask that you advise Master delivery date and time once known. Vessel should be updated with any changes or delays to delivery.

Receipt of final order

• All items supplied must be of the highest possible quality and show maximum shelf life dates (this is an important issue with the US and Canada area)

• All packaging needs to be (wherever possible) vessel friendly and easy to dispose of.

• Boxes need to be clearly labelled to make it easy for the cook to cross-check with the invoice and then store the items.

• We ask for a representative to accompany each delivery to ensure that all supplies are delivered with correct quantity, brand, and in good condition.

• If a rep is unable to attend delivery, please advise Garrets immediately.

Pack

What we expect from our suppliers and partners…

• Before Shipping, the products should have one final check to ensure the products conform to all our standards.

• Deliveries need to be made in a temperature controlled vehicle.

• A Repesentive needs to attend the delivery and not just the driver.

• Any issues raised by the Master needs to be dealt with while onboard.

• All issues that are raised need to be reported back to Garrets, so that all parties are happy with the solutions.

ShipShip

What we expect from our suppliers and partners…

• A full & final invoice should be left onboard the vessel for the Master and Cook’s reference (but this should not include any discounts).

• Prices are to reflect what was quoted - unless changes have been agreed prior to delivery.

• If possible, expiry dates of all items should be on the final invoice for the vessel’s reference.

• Any discount credit notes and rebates agreed with Garrets should be submitted on time.

BillBill

What we expect from our suppliers and partners…

Possible scenario’s / possible solutions:

SUMMARY

We would like to thank all of our suppliers here today for their hard work, dedication and support.

Customers should see Garrets and our suppliers as a single united team focused on quality & service.

We can all do better and together we should continually strive for improvement.

We are reliant on you for our success.

SUMMARY

Thank you!