Logistics, transport and packaging related to subcontracting

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Logistics, transport and packaging
related to subcont
racting

Martin Bitter

Expro 85 Motion Control

November 2009


Europe and the speed of business


General logistics trends


Purchasing trends


Packaging


Global transport

Content op presentation
:

Content op presentation
:

Customers need short delivery times:



business moves at a higher speed


product life cycle, time to market


customers have limited understanding of the supply chain


R&D and engineering consume most of the time


“I need it yesterday”, suppliers are always to late


Europe and the speed of business

Companies focus more on reducing stock level


cost and cash flow


risk of obsolete stock


Lower stock levels require a more reliable planning


forecasting and demand management


ERP systems require reliable data


suppliers delivery times


suppliers reliability on quality and on time delivery


Stock reduction and importance of planning

Supply chain management



complexity continues to increase


focus on core competence and outsourcing the rest


make or buy decisions


focus on demand within the supply chain (forecast)


more pull than push


from MRP (I & II) to ERP systems


JIT, lean thinking and lean manufacturing


more frequent ordering of smaller series

General trends


globalisation, but Identifying and managing suppliers on
far distance is a challenge


companies show more interest for purchasing


higher education level of buyers


reduction of number of suppliers


shorter delivery times and reliability has become more
important


vendor rating based on suppliers performance


framework contract for reduction purchasing cost
(automatic ordering)



e
-
procurement


Purchasing trends


quote a realistic and achievable delivery time


keep your promises and commitments


deliver the right quality and quantity on time


inform your customer about any delay in advance


give a solution for the supply problem


who is going to pay for the extra cost (airfreight?)


reply quick on customers e
-
mails (same day)


contact customers frequently about forecast (by phone)


address a planner to each of your customers










Suppliers need to focus on customer satisfaction,

simple, but why only few act accordantly?

Overseas supplies are often a concern for buyers:



will I get the right quality, quantity on time?


what is happening at the supplier on far distance?


what delay can I expect on transport lead
-
time?


Buyers concern?

Packaging does not always get enough attention:



damaged shipments by poor quality of packaging


handling problems as result of packaging design


packaging is parts of your promotion and reflects the
image of your company and product quality

Packaging as part of your image


damaged products by using carton boxes for heavy parts


high efforts by customer for removing packaging


stainless parts greased causing high effort on cleaning


no wooden sheet between layers in case of heavy parts


Internal free space causes


products

bouncing against


each other


forklift spoons damage the


packaging by rough handling


using carton box on pallets


instead of wooden crate


(see picture)

Final delivery, will the customer be satisfied?

Some examples from practice:

How all your efforts can turn into
disappointments:


Basic design of crate packaging

Example of a good packaging


Strengthening crate by using metal strips

Air freight:


Weight


lead time

rough cost indication


< 100 Kg:

2


3 days

4,00


5,00 Euro/kg

(small parcels)

100
-

500 Kg:

5


7 days

4,00
-

2,50 Euro/kg


Ocean freight:


LCL


5
-
6 weeks

500 + 100 Euro/1000Kg

CL 20
-
40 feet

5
-
6 weeks

2000
-

3000 Euro





Average lead times from Asia to Western Europe:

door to door


Cost item

cost

currency

remark

Origin charges







Pick up

190,00

USD

per shipment

Custom Clearance

190,00

USD

per shipment

Bill of Lading

25,00

USD

per shipment

CFS receiving charges

23,00

USD

per M3

Service Tax

12,36%



over origin charges

Sea Freight







Ocean freight

62,00

USD

W/M

Destination charges







Unloading charges

60,00

Euro

per ton, min 60,00

T.H.C.

14,00

Euro

W/M, min. 14,00

Import fee (China India ME)

12,50

Euro

W/M, min. 50,00

Forwarding Fee

75,00

Euro

per shipment

Custom Clearance

52,50

Euro

shipment (1 HS code)

Additional items (HS code)

8,25

Euro

per extra item line

Delivery charges (trucking)

75,00

Euro

1
-

500 Kg



81,00

Euro

501
-

1000 Kg



102,00

Euro

1001
-

2000 Kg



117,00

Euro

2001
-

3000 Kg



133,00

Euro

3001
-

4000 Kg



167,00

Euro

4001
-

5000 Kg

Fuel surcharge (variable)

8,00%



over trucking cost

Advance Fee

3,00%



import duty+ocean freight

Transport cost door to door: Ocean freight

Transport modes


There is more than the standard
20 ft container




Logistics and your quotation


Case!





Download the supplier logistics requirements
from Inalfa from
www.cbi.eu/ecpengineering

INALFA Sun Roofs


Inalfa is the world’s 2nd largest car sun
roof manufacturers


You are an injection moulding plastic
parts supplier from Skopje


Macedonia
in Central Europe


Study the requirements in your group
and make an overview how they
influence your quotation to this
company