ontario international transport and logistics chapter 1 - logistics

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Ontario Ontario International Transport and logistics Chapter 1 - Logistics

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Page 1: Ontario International Transport and logistics Chapter 1 - Logistics

Ontario

Ontario

International Transport and logistics

Chapter 1 - Logistics

Page 2: Ontario International Transport and logistics Chapter 1 - Logistics

BACKGROUND…Sylvain G. Pelchat, B. Sc. Graduated UQAM in Teaching, 1986 Experience – high level positions

Sales Manager – District of Quebec – ECOLAB `97 Distribution Manager, Eastern Canada – ECOLAB ‘99 Director of Operations, Quebec City hub – EMERY ’00 Business Development Manager – FRITZ STARBER ‘01 Global Account Manager – UPS SCS ’02 Partner Think Big Management International – Since 2003 (now

merged into NOVAERA CAPITAL GROUP Inc.)– Solutions and training to Canadian companies to take control and ease

their logistics chain.

Page 3: Ontario International Transport and logistics Chapter 1 - Logistics

…BACKGROUND…

Keynote speaker and/or trainer on Incoterms2010 + C-TPAT + and/or Maximizing your logistics chain: AgriFood, DEL, SODIL, Quebec C of C, CCEM, C of C West

Island, Export Chaudière Appalaches, Abitibi, Recomex, etc. ITTC: Lecturer on webinar training since 2009 Speaker CANADIAN EMBASSY in Paris, France, Nov ’07 C-TPAT UQAM ‘07-’08-’09 and 2013: Lecturer to senior students on

international Transport and Logistics

Page 4: Ontario International Transport and logistics Chapter 1 - Logistics

C-TPAT book: Author of ‘C-TPAT, plus qu’une question de sécurité’ by Quebec Economic board, 2003

Wrote logistics section of ‘Le Commerce International’, by I.Limoges and K Miville De Chêne, Chenelière education, 2010

Lecturer: CEGEP Marie-Victorin (since 2009) / TAV College (2013):

International Transport and Logistics course in the AEC multicultural program.

…BACKGROUND

Page 5: Ontario International Transport and logistics Chapter 1 - Logistics

A) AT NOVAERA CAPITAL GROUP

C-TPAT / PIP / AEO implementation of security controls and procedures:– Over 400 companies certified since 2003

MAXIMIZING the logistics chain: – Over 20 companies since fall 2010

NETWORKING with experts:– Freight forwarding, Dangerous goods, Canadian and

US customs compliance, Patents and trademark protection, international fiscal support, cargo insurance, warehousing, pick and pack, WMS, ERP for logistics chain control, etc.

Page 6: Ontario International Transport and logistics Chapter 1 - Logistics

GOALS OF THIS COURSE

1. Knowledge of the international transportation industry, the language, the tools and where to find the info;

2. Recognize the sequences in a logistics chain;3. The motivation to stay involved in your business

international knowledge.Sometimes with the perspective of: An employee in manufacturing / distribution; A freight forwarder; An importer and/or exporter

Page 7: Ontario International Transport and logistics Chapter 1 - Logistics

THE PROGRAM

Chapter 1 : A definition of logisticsChapter 2 : Strategies and choice

of transportationChapter 3 : The actors of the

logistics chainChapter 4 : Ocean transportationChapter 5 : Ait transportationChapter 6 : Road transportationChapter 7 : Rail transportation

and intermodal

Chapter 7 : Rail transportation and intermodal

Chapter 8 : Incoterms®2010 and cargo insurance

Chapter 9 : Packaging, marking, labellingChapter 10 : Dangerous goods (Haz Mat)Chapter 11: Supply chain

security programs: C-TPAT and PIPChapter 12 : Import sequenceChapter 13: Export sequenceChapter 14 : Action!

Page 8: Ontario International Transport and logistics Chapter 1 - Logistics

Who are you?

Who are you?

Your company

Your position

Why this program?

Page 9: Ontario International Transport and logistics Chapter 1 - Logistics

What is logistics?

In the dictionary: From the Greek, LOGISTIKOS. Refers to what is logic.

MILITARY: Activities regarding supplying troops, maintenance, transport, lodging, food, evacuations, etc.

COMMERCE: Mainly after 2nd world war, material operations necessary to supply products to a selling point from is origin.

There is a link with ADMINISTRATION: P.O.A.C: Planning, organizing, action, control (feedback)

Page 10: Ontario International Transport and logistics Chapter 1 - Logistics

What is logistics?

Logistics is the management of the flow of goods (1), information (2) and other resources, including: Energy and people, between the point of origin and the

point of consumption in order to meet the requirements of consumers.

Page 11: Ontario International Transport and logistics Chapter 1 - Logistics

Logistics involves the integration of: Information Transportation Inventory Warehousing Material-handling and packaging Security Are the any challenges?...

What is logistics?

Page 12: Ontario International Transport and logistics Chapter 1 - Logistics

Road

Rail

Air

Pipeline

Vessel

There are still roads, oceans, mountains, deserts to cross...

Page 13: Ontario International Transport and logistics Chapter 1 - Logistics

THE LOGISTIC CHAIN

If your company manufactures a product from parts purchased from suppliers, and those products are sold to customers, then you have a logistic chain.

Some logistic chains are simple, while others are rather complicated.

The complexity of the logistics chain will vary with the size of the business and the intricacy and numbers of items that are manufactured.

Items

SUPPLIER 1

SUPPLIER 2

DO WE HAVE A LOGISTIC CHAIN?

Page 14: Ontario International Transport and logistics Chapter 1 - Logistics

SUPPLY CHAIN VS LOGISTICS CHAIN

Elements of the LOGISTICS Chain

Customer Planning

Purchasing

Inventory

Transportation

Page 15: Ontario International Transport and logistics Chapter 1 - Logistics

THE LOGISTIC CHAIN

Why managing it?To ensure that the logistics chain is operating as EFFICIENT as possible and generating the HIGHEST level of customer SATISFACTION at the lowest cost, companies have adopted logistics Chain Management processes and associated technology.

Logistics Chain Management has 3 levels of activities to focus on:

A. STRATEGIC: High level strategic decisions concerning the whole organization, i.e.size and location of sites, partnerships with suppliers, products to be manufactured and sales markets, etc.

The MANAGEMENT of the logistic Chain

(By the management of the company)

Page 16: Ontario International Transport and logistics Chapter 1 - Logistics

THE LOGISTICS CHAIN

B. TACTICAL:Decisions on measures that will produce cost benefits such as:. Implementing/using industry best practices;. Developing a purchasing strategy with favored suppliers;. Working with logistics companies to develop cost effective transportation and warehouse strategies to reduce the cost

Logistics Chain Management - 3 levels of activities

Page 17: Ontario International Transport and logistics Chapter 1 - Logistics

C. OPERATIONAL:Decisions taken each day in businesses that affect how the products move along the logistics chain.. Making schedule changes to production;. Purchasing agreements with suppliers;. Taking orders from customers;. Receive products;. Move products out;. Etc.

THE LOGISTICS CHAIN

Logistics Chain Management - 3 levels of activities

Page 18: Ontario International Transport and logistics Chapter 1 - Logistics

Why trying to maximize the log’ chain

Have a better control Know what is going on at every step to react

Save time Save money Respect deadlines Be more efficient Be more professional To become a better company, the one the customers can count on Be profitable and generate money for the shareholders, the

employees and the community

Page 19: Ontario International Transport and logistics Chapter 1 - Logistics

INTEGRATED LOGISTICS

Stocksmgmt

Integration of services and informations

Stocks mgmt

Allservices

CustomsMultimodal

VesselAirTruckRail

VesselAirtruckRail Multimodal Customs

Allservices

Supply chain management

Multimodal transportation

Single Transport

Integraters

Integrated logistics

Page 20: Ontario International Transport and logistics Chapter 1 - Logistics

Supply chain management technology

If a company expects to achieve benefits ($) from their supply chain management process, they will require some level of investment in technology. The backbone for many large companies has been the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP, Oracle, Dynacom, etc.

Today, other open source technologies are available at less costs.

Page 21: Ontario International Transport and logistics Chapter 1 - Logistics

THE LOGISTIC CHAIN

Since the wide adoption of Internet technologies, all businesses can take advantage of Web-based software and Internet communications.Instant communications (real time) between vendors and customers allows for timely updates of information, which is key in management of the supply chain.

Since transportation is one part of the logistics chain, you will see that the technologies used in transportation, even if they are different or owned by another ‘actor’, are as well integrated in the logistic chain of a company.

REAL TIME COMMUNICATIONS

Page 22: Ontario International Transport and logistics Chapter 1 - Logistics

Logistics chain management Data infos from origin to destination

Serial#

Bar codes

Box Pallet

Container origin

Containerdestination

Pallet Box

Bar codes

Serial #

SN008294 SN0082

Traceability

Contain and protect

Identification / Technolgies /RFID

Preparation / inspection

Shipping

9S825442 9S825442

Production/distribution

Page 23: Ontario International Transport and logistics Chapter 1 - Logistics

SUPPLY CHAIN AND LOGISTICS ASSOCIATION OF CANADA (SCL)

Page 24: Ontario International Transport and logistics Chapter 1 - Logistics

INTERESTING ELECTRONIC SOURCES

Excellent online source in 3Pl environment and the different modes of transportation.

Page 25: Ontario International Transport and logistics Chapter 1 - Logistics

LOGISTICS MAGAZINES / WEB SITES

LOGISTICS MAGAZINE (English) http://www.ctl.ca/

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www.3plwire.com

Excellent online source in 3Pl environment and the different modes of transportation.

Page 27: Ontario International Transport and logistics Chapter 1 - Logistics

MAGAZINES LOGISTIQUES

MAGAZINE GESTION LOGISTIQUE (français):http://www.gestionlogistique.com/httpdocs/index.php

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WORLD TRADE ORGANIZATION (WTO)

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WHAT IS WTO ?

A. A set of rulesAt its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations. These documents provide the legal ground-rules for international commerce. They are essentially contracts, binding governments to keep their trade policies within agreed limits.

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WHAT IS WTO ?

B. To manage business relations between countries Liberalize trade: Help trade flow as freely as possible. But can maintain trade barriers: Can maintain trade barriers

— Ex. to protect consumers, prevent the spread of disease, dumping…

Rules, guidelines: Teach the trade rules are around the world and keep them respected.

Settle disputes: Settle differences on an agreed legal foundation.

Page 31: Ontario International Transport and logistics Chapter 1 - Logistics

INTERNATIONAL CHAMBER OF COMMERCE (ICC)

Page 32: Ontario International Transport and logistics Chapter 1 - Logistics

INTERNATIONAL CHAMBER OF COMMERCE (ICC)

What is ICC ? A. The voice of world business championing the global economy as a force for economic growth, job creation and prosperity. Lobbying: Lobby towards governments

worldwide. Role: Very large, arbitration, dispute resolution ,

open trade, business self-regulation, fighting corruption or commercial crime.

Influence: Direct access to national governments worldwide through national groups. Canadian headquarters in Ottawa, ON.

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What is ICC ? Credit: Uniform Customs and Practice (UCP 500) for banks. ICC Incoterms are standard international trade

definitions used every day in countless thousands of contracts.

ICC contracts making life easier for small companies

E-commerce: Business self-regulation of e-commerce. ICC codes on advertising and marketing are frequently reflected in national legislation and the codes of professional associations.

Medias, G8, Doha round, UN, meetings, Transport and logistics

INTERNATIONAL CHAMBER OF COMMERCE (ICC)

Page 34: Ontario International Transport and logistics Chapter 1 - Logistics

USEFULL WEB SITES

World Trade Organization (WTO):http://www.wto.org

International Chamber of commerce (ICC):http://www.iccwbo.org

World Customs Organization (WCO):http://www.wcoomd.org