vns fashion logistics [compatibility mode]
TRANSCRIPT
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Vietnam/USA export volume for 1st & 2nd quarter in 2011Vietnam/USA export for garment & textile_2008 => 20112008 top Asian countries ex garment & textile to USA2008 top Asian countries ex garment & textile to USA
2009 top Asian countries ex garment & textile to USA2010 top Asian countries ex garment & textile to USA2008-2010 top Asian countries-Vietnam ex garment & textile to USAAttached USA buyers for garment & textile in VietnamAttached of Vietnam suppliers for garment & textile
VITAS Vietnam Textile & Apparel Association
http://www.vietnamtextile.org
The Vietnam National Textile And Garment Group
http://www.vinatex.com.vn
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Vietnam/USA export volume for 1st & 2nd quarter in 2011
Unit: in million SME
Total volume of the first 06 months in 2011: 1,547 million SME
Vietnam/USA export volume for 1st & 2nd quarter in 2011
Unit: in million SME
(Source: http:/ /www.vietnamtextile.org)
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Vietnam/USA export for garment & textile_2008 =>2011
Unit: in million SME
Vietnam/USA export for garment & textile_2008 =>2011
Unit: in million SME
(Source: http:/ /www.vietnamtextile.org)
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2008 top Asian countries ex garment & textile to USA2008 top Asian countries ex garment & textile to USA
(Source: http:/ /www.vietnamtextile.org)
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2009 top Asian countries ex garment & textile to USA2009 top Asian countries ex garment & textile to USA
(Source: http:/ /www.vietnamtextile.org)
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2010 top Asian countries ex garment & textile to USA
PakistanKorea, South
3%
Canada3%
2010 top Asian countries ex garment & textile to USA
Mexico
Bangladesh4%
Pakistan6%
3% 3%
Indonesia4%
Mexico6%
China60%
India
4%
60%
VietNam7%
India7%
(Source: http:/ /www.vietnamtextile.org)
7%
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2008-2010 top Asian countries-Vietnam ex garment & textile to USA2008-2010 top Asian countries-Vietnam ex garment & textile to USA
(Source: http:/ /www.vietnamtextile.org)
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VNS business modelVNS total logistics solutionVNS total logistics solutionVNS logistics functionsVNS warehouse solutionVNS transport solution
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VNS Strategy
Supplier Relationship Management Customer Relationship Management
VNSCustomers
VNS
VNS Production
VNS CustomersSRM CRMVNS
SuppliersVNS
Internal Supply Chain
VNSExecutive TeamExecutive Team
HRM
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What VNS logistics solution aims to ?What VNS logistics solution aims to ?What VNS logistics solution aims to ?What VNS logistics solution aims to ?
1-Customers' requirementsCustomer SatisfactionCustomer Satisfaction
2-Efficient, EffectiveMore profit by reduced cost of materials, inventory and freight
The application of logistics enables a greater efficiency of movements with an 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 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 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 Cost fulfillment: The final costs of the order, including manufacturing and distribution costs, must be competitive. Otherwise, other options will be considered.
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Order ProcessingCostsMinimize Costs ofAttaining Logistics
Objectives
Order ProcessingReceivedProcessedShipped
Warehousing
VNSLogistics FunctionsTransportation Rail, Warehousing
StorageDistributionAutomated
Logistics FunctionsTransportation Rail, Truck, Water, Pipeline, Air,
Intermodal
InventoryWhen to order
How much to orderJust-in-timeJust-in-time
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How VNS adds values into customers’ supply chainHow VNS adds values into customers’ supply chain
VNS aims to add a multidimensional value- added activities into our VNS aims to add a multidimensional value- added activities into our customers’ supply chain including production, location, time and controlof elements of the supply chain for the effective & efficient logistics:
Production. Derived from the improved efficiency of manufacturing with appropriate shipm ent size, packaging and inventory levels. Thus, logist ics 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.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 Control. Derived from controlling most, if not all, the stages along the supply chain, from product ion to dist r ibut ion. This enables bet ter m arket ing and demand response, thus anticipating flows and allocating distribution resources accordingly.
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Our customers supply chain
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Warehouse operationsWarehouse operationsWarehouse capacityWarehouse Import/Export SOP
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Receiving
• Schedule carrier
• Unload vehicle
• Inspect for damageINPUT
War
eho
use
Inb
ou
nd
Pro
cess
• Inspect for damage
• Compare to P/O
War
eho
use
Inb
ou
nd
Pro
cess
Put-away
•Identify product
•Identify storage location
•Update records
Storage
•Equipment
•Stock locationWar
eho
use
Inb
ou
nd
Pro
cess
VNS•Update records
Order picking
•Information (pick slip)
Pre-shipping
•Packaging
War
eho
use
Inb
ou
nd
Pro
cess
Wareh
ou
se Ou
tbo
un
d P
rocess
VNSWarehouseOperation
process
•Information (pick slip)
•Walk & pick
•Batch picking
•Packaging
•Labeling
•staging
Wareh
ou
se Ou
tbo
un
d P
rocess
Shipping
•Schedule carrier
Wareh
ou
se Ou
tbo
un
d P
rocess
•Load vehicle
•Bill of lading
•Record update
OUTPUT
Wareh
ou
se Ou
tbo
un
d P
rocess
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Road to VNS_TBS Road to VNS_TBS Road to VNS_TBS warehouse
Road to VNS_TBS warehouse
HCM cityHCM city
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Transport role in the logistics systemTransport role in the logistics systemVNS transport performance
VNS 2011 total volumeVNS 2008-2009-2010 total sea transport performanceVNS 2008-2009-2010 sea transport for garment & textile VNS 2008-2009-2010 sea transport for garment & textile VNS 2008-2009-2010 total air transport performanceVNS 2008-2009-2010 air transport for garment & textileVNS some customers for textile & garment
VNS consolidation solutionVNS consolidation solutionVNS Sea-Air solutionVNS GOH handling
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Transport role in the logistics systemTransport 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:
Transport role in the logistics systemTransport role in the logistics system
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 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 customersextremely 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 powerSingle point of contact to different top-class preferred carriers with ample routing
sailing schedulesailing scheduleQualified staff with effective & efficient standard operation proceduresDifferent transport solution such as consolidation, break-bulk, sea-air, multi-model …
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VNStransport solutionIn the
VNStransport solutionIn theIn the
SCIn the
SC
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VNS Consolidation solutionVNS 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
VNS Consolidation solutionVNS Consolidation solution
when your cargo is not enough for a FCL_full container load to make sure your shipment is moved without delay and getting other benefists:
Direct or maximum-one-stop routings to ensure reliable, fast shipmentsMinimisation of cargo-damage risk through reduced trans-loading Single point of contact for all your global LCL needsSingle point of contact for all your global LCL needsImprove overall service while keeping costs contained
Scenario 1: The firms performs their own logistics functions
Supplier 1
Supplier 22 warehouses2 separate distribution networks
Scenario 2: VNS as a 3PL takes care of both suppliers’ logistics functions
Supplier 1 1 warehouseSupplier 1
Supplier 2
1 warehouse1 distribution networkVNS as 3PL
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Seafreight consolidat ion m odel at the loading port
LCL shipper LCL shipper LCL shipperLCL shipper LCL shipper
Seafreight consolidat ion m odel at the loading port
LCL shipper LCL shipper LCL shipperLCL shipper LCL shipper
VNS as NVOCCVNS as NVOCC
Bill of ladingLess than container load (LCL) shipments Full container
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VNS as NVOCC…VNS as NVOCC…
Consignee Consignee ConsigneeConsignee ConsigneeConsignee Consignee ConsigneeConsignee Consignee
Less than container load (LCL) shipments
Full container Bill of lading
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VNS SeaVNS Sea--andand--Air solutionAir 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
VNS SeaVNS Sea--andand--Air solutionAir solution
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 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 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 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 !
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Example of VNS Sea-Air model via Dubai(Vietnam to USA)
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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 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.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.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” solutionneeded and becomes a “comfort” solution
When product value does not support to cost of airfreightWhen Garment on Hanger (GoH) is carried via airfreightWhen looking for a solution to reduce inventory carrying costWhen capacity becomes constrained from a specific origin or region, especially in When capacity becomes constrained from a specific origin or region, especially in
a peak season
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Sea-Air solution should be created on the followings requirements:Total control over the Sea-Air operations from origin through the trans-shipment 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 documentSingle rate per Kilo : through transport cost quoted from port of origin to airport of 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 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/CanadaNorth Asia (China) to Seoul to Europe and USA/CanadaNorth Asia (China) to Seoul to Europe and USA/CanadaAsia/India to North America to Latin America
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Cost com parision betw een Sea, Sea- Air, Air Sea, Sea- Air, Air
SeaSeaSea- AirAirAir
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VNS GOH handlingVNS GOH handling
Our staff are well-training for Garment On Hanger_GOH. We strictly follow
VNS GOH handlingVNS GOH handling
Our staff are well-training for Garment On Hanger_GOH. We strictly follow 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/customer2-Get booking GOH container/ULD and space from shipping line/Airline2-Get booking GOH container/ULD and space from shipping line/Airline3-Checking the GOH container/ULD to make sure it is in good condition for garment
stuffing4-Perform GOH container/ULD installation in accordance with the customer’s
requirementrequirement5-Supervisation and quality control, photo taken and stick the PTI sheet into the GOH
container/ULD6-GOH labeling outside the GOH container/ULD at the right door of the container as
“warning” for next step proper handling during loading, transportation…“warning” for next step proper handling during loading, transportation…7-Fastening the security seal once hanging installation is done and hand over to
respective terminal8-Inform customer/supplier as GOH is ready for shipping for next step on related
documentation.documentation.
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VNS GOH handling…VNS GOH handling…VNS GOH handling…VNS GOH handling…
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VNS GOH handling…VNS GOH handling…VNS GOH handling…VNS GOH handling…
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VNS Warehouse Handling ChargesVNS Warehouse Handling ChargesVNS Warehouse Handling ChargesVNS Warehouse Handling Charges
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