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Confidential and Proprietary Information

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Presentation on theme: "Confidential and Proprietary Information"— Presentation transcript:

1 Confidential and Proprietary Information
Introduction to APL Logistics Confidential and Proprietary Information

2 Company Overview APL: Containerised Transport & Terminals
Top 10 container shipping line: 100+ vessel fleet 411,000+ containers 8 terminals US$5.96 billion in revenue (FY’05) 159 years of continuous operation Industry leader in innovation, reliability and service quality Global network serves 25,000 locations in 140 countries on 6 continents APL: Containerised Transport & Terminals NOL at a Glance US$7.27 billion (FY’05) global transportation & logistics company Largest shipping / transport company listed on Singapore Stock Exchange Core business in Liner & Logistics Strategic focus on integrated supply chain solutions Global top 25 3PL US$1.29 billion in revenue (FY’05) 5,000 employees 260+ locations in 53 countries on 6 continents Leading provider of origin cargo management services in Asia 2.2 million m2 of logistics facilities globally (among largest in North America) Managing US$600+ million of purchased transport APL Logistics: Logistics & Supply Chain Services

3 Representative Customers
Over 800 customers worldwide

4 Global Network and Principal Locations
United States of America Mexico Guatemala Dominican Republic Jamaica El Salvador Nicaragua Costa Rica Columbia Peru Chile Argentina UK & Ireland Japan South Africa Madagascar Mauritius Australia Egypt Bahrain UAE Thailand Sri Lanka Indonesia Malaysia Singapore Philippines Taiwan Hong Kong Korea China Pakistan India Saipan Italy France Turkey Benelux Germany Brazil Norway Spain Sweden Finland Russia Poland Czech Republic Austria Romania Hungary Bulgaria Greece Portugal Canada Estonia Denmark

5 Europe Region Capabilities Overview Consolidation Services
International Freight Management: Ocean FCL and LCL Customs Brokerage Intra-European Trucking and Intermodal Transportation Supply Chain Solutions Contract Logistics / Warehousing: Dedicated & multi-user facilities Manufacturing & distribution support

6 Asia/Middle East/Africa
Capabilities Overview Origin Warehousing Services Consolidation Services (one of the largest consolidators of product from Asia) Vendor Management Services International Freight Management Rail Network: JV with Concor to build and operate a CFS and CY in North India Customs Brokerage Services

7 North America Capabilities Overview Consolidation Services
International Freight Management Customs Brokerage Warehousing and Contract Logistics: Dedicated & multi-user facilities Manufacturing & distribution support VMI, merge in-transit, kitting, sequencing, light assembly: Value added services Dedicated contract carriage Freight management Automotive Logistics: Inbound to manufacturing Finished vehicle distribution

8 Latin America Capabilities Overview Deconsolidation & Distribution
International Freight Management Warehousing & Distribution: Market leader in Chile Operations in Mexico, and Venezuela (JV), and Brazil (primary and agent) Cross-border Intermodal Services (NAFTA)

9 Challenges in Operating Global Supply Chains
Distribution Network Challenges Asset intensive and increasingly expensive to operate Increasing complexity and more demanding customers Sourcing Network Challenges Dispersed vendors Varying levels of infrastructure, education, and technology Few standardised processes Difficulties of managing compliance Impact of natural/political events International Transportation Challenges Efficient routing and modal selection Managing lead times In-transit inventory visibility and manageability Freight and equipment optimization

10 Global Supply Chain Management Solutions
International Freight Management Origin Cargo Management Destination Services Origin Services Consolidation Services Vendor Management Services Ocean & Air Freight Land Transportation Customs Brokerage Documentation Management Warehousing Services Transport Services Information Management Supply Chain Design and Programme Management

11 Leader in Origin Cargo Management Services Across Asia
Year-on-Year Increases in Consolidation Volumes Strong process discipline through our Service Integrity programme Award winning operations High customer satisfaction measures IT innovation and expertise First with PO tracking First with EDI ASN’s Certified factory scanning and PO management solutions Leading web-based supply chain management tools Year Volume (000 CBMs)

12 Consolidation Services
Single Country Consolidation Available at any APL Logistics warehouse location In conjunction with any ocean carrier and charged at FCL box rate Reduces amount of handling Cost savings vs LCL, 20ft and fully-laden 40ft containers Improved Transit Time vs LCL services Single Master Bill of Lading Reduced Documentation and Customs entries Fewer deliveries to distribution centres Mixing Hubs Mixing hubs in Singapore and Kaohsiung Benefits similar to Single Country Consolidation Can eliminate LCL/20’s from smaller origins Cost effective handling in Mixing Hubs Transits comparable to FCL services Mixing hub free time can provide delay in transit options

13 Vendor Management Services
Vendor Management Services ensure that products are delivered: To the right specification In the right quantities At the right time Improves supply chain efficiency and reduces costs APL Logistics works with customers to significantly improve the management and control of their vendors, and communication between all links in the supply chain

14 Vendor Management Vendor Education Programmes
APL Logistics meets with all vendors to quickly establish a clear understanding of logistics processes and procedures Promote a spirit of teamwork between all parties and creates open and seamless communications Between 1994 and 2005, APL Logistics conducted over 350 Vendor Education Programmes at all origins for over 20,000 vendors Vendor Performance Reporting APL Logistics offers customers a comprehensive range of vendor performance reports based on agreed key performance indicators Specific deliverables measured can include: Timeliness of meeting shipment requests Container utilisation Delivery quantity deviations Accuracy of shipment advice reports

15 International Freight Management
A ‘one-stop-shop’ of International Freight Management services delivering speed and flexibility, whatever the shipment size Services include: Ocean Freight First and/or second tier carriers, depending on the customer’s requirements Airfreight Priority access to major international carriers Consolidated billing, door/airport collections and time definite services

16 International Freight Management (cont’d…)
Land Transportation LTL (less than full truck load), FTL (full truck load), intermodal, barge and freight operations throughout Europe Customs Brokerage Import and export customs management services Combined with other services, delivers gains in flexibility, reduced costs and improved cycle times Documentation Management Including documentation scanning

17 Destination Services Warehousing Services, including: Site selection
Deconsolidation Inbound order management, including cross-docking and barcode scanning Bonded warehousing in many countries Value-added services, including pick and pack, kitting, sub-assembly, merge-in-transit order fulfilment and returns management Transport Services, including: Full and part load distribution services Intermodal road/rail/barge container and swapbody transportation Parcel and small package services Secondary distribution and delivery to point of sale

18 Warehouse Management Services
Contract Warehousing, including: Dedicated and multi-user facilities Facility design and site selection Public Warehousing Manufacturing Support, including: VMI Kitting Sequencing Merge-in-transit Light assembly JIT delivery Dedicated contract carriage Distribution Support, including: Inspections and configuration Order fulfillment Delivery optimization Packaging and labeling

19 Multi-Carrier Visibility
Supply Chain Visibility with See Change See Change – Global end-to-end supply chain visibility from origin to destination Web-based Any shipment mode (ocean, air, land) Any delivery mode (CY, CFS, SDD) Any carrier (ocean, rail, truck, air) Single application and global data repository Customised searches and reports Multi-Mode, Multi-Carrier Visibility Provides an automatic way to monitor what should happen against what is happening Standard and user-defined alert notification Notification methods include web-based “dashboards”, and paging Exception Detection

20 Why See Change? Solutions with Visibility For example, will alert:
Order Data ERP, store, vendor, purchasing Solutions with Visibility For example, will alert: That the order of 600 products only booked 450 Logistics Analyst when a shipment has not cleared customs Warehouse Manager the status of standing inventories, customer orders and deliveries Shipment Data Ocean, air, rail, truck Solutions without Visibility Silos of information Manual tracking processes Missed delivery dates and dissatisfied customers Inventory Data In-transit, store, warehouse, distribution centre

21 ASN Toolkit An easy to use barcode and scanning solution that can be implemented at vendor’s factories or facilities Provides internet enabled PO management Increases supply chain visibility and ensures ASN (advanced shipping notification) compliance with accurate routing of POs, barcode information, electronic packing lists and label printing Multiple file formats

22 Innovation - RFID APL Logistics offer customers a suite of RFID solutions Solutions delivered via flexible delivery strategies to enable customers to comply with mandates Benefits of RFID include: Provision of real-time information Increased response times allowing companies to react more quickly to changes in demand Increased competitiveness Conclusion: APLL offers clear value for an RFID project: Minimize cost By moving labor to origin. By sharing cost across multiple customers at destination. Minimize Risk Allows customers to achieve compliance without investing in complex new technology that is continuing to change. Ease of Entry We have the experience to get your RFID project completed on time and with minimal impact to your ongoing operations.

23 eBooking Facilitates the better management of resources by replacing the need to fax booking requests to APL Logistics’ offices A secure, web-based application enabling vendors to add booking data directly into ACS123, our origin based operating system On receipt of the eBooking submission, a confirmation is automatically generated to confirm APL Logistics’ acceptance or rejection of the booking Improves data integrity by eliminating unnecessary re-entering of information and also provides data validation and system checks Reduces total booking response time

24 In December 2005 Christian Salvesen joined forces with APL Logistics to form Holistica Solutions Ltd on an equal joint venture basis Holistica was created in response to the growing market demand for end to end supply chain solutions through a single provider, and combines the extensive distribution network and capabilities of Christian Salvesen in Europe with the global reach and international freight services provided by APL Logistics Holistica dovetails these complimentary assets, skills and geographies by drawing on the resources of the parent businesses, whilst enabling its customers to operate a single contract that provides end-to-end logistics services and continual improvement in cost efficiency and end-user availability Through true end-to-end supply chain collaboration and optimisation, Holistica is able to provide benefits to customers that significantly exceed the sum of the two constituent parts provided by Christian Salvesen and APL Logistics respectively

25 Management and Account Development
integrates the complimentary assets and capabilities of its two principal organisations, and connects its knowledge and expertise for supply chain optimisation through one single source 50/50 Joint Venture Management and Account Development Turnover $1.3billion 5 ,000 employees 269 sites 53 countries worldwide More than 800 customers in four major vertical markets: Auto/Industrial, Consumer, Electronics and Retail Turnover $1.7 billion 13,000 employees 200 sites 6 countries in Europe Managing outsourced supply chain operations for Manufacturing and Retail customers in the Industrial, Consumer and Food sectors

26 Global Transportation Destination Services
Design, Operation and Continuous Improvement of End-to-End Supply Chain Performance Enabled by single systems connectivity that provides end to end visibility, event management, performance measurement and analytics for supply chain optimisation Vendor Management Origin Cargo Export Freight Management International Freight Import Handling & Port Clearance Inland Transportation Warehousing & Distribution Delivery Management Origin Services Purchase Order Management Vendor Compliance Quality Assurance Warehousing Vendor Managed Inventory Kitting/Packaging/Labeling Garments on Hangers Consolidation Multi Country Consolidation Local Drayage Terminal Handling Freight Management Export Documentation Courier Services Global Transportation Freight Forwarding Carrier Management Ocean, Air and Overland Full and Part Loads Intermodal Transport Deconsolidation Local Transportation Customs House Brokerage Freight Payment & Audit Destination Services DC Bypass Warehouse/DC Management Cross Dock Inspection/Configuration Packaging/Labeling VMI / Kitting Sequencing Light sub-assembly Storage/Pick/Pack/Despatch Final Delivery Fine Distribution JIT pickup/delivery Returns Management

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