1. IFC GLOBAL LOGISTICS Students and Staff of the RMIT University
Cordially welcomes
Students and Staff
of the RMIT University

2. Agenda 10:00am Opening 10:10am Introduction
Alex Allen, Director Commercial
Strategic Supply Chain Management
Dr. Peter O'Neill
10:20am
10 Commandments of SCM
Dr. Annibal Scavarda
10:30am
3 Presentations
Dr. Fang Zhao
10:40am
Business Overview
Alex Allen
10:50am
FSC – A Key Driver for IFC’s Competitive Advantage
Joe Dumas, IT Specialist
11:20am
Customer Service
Andre Turner, Mgr Customer Service
11:35am
Operations
Monika Sharp, Mgr Operations
11:50am
3PL and 4PL Logistics
Brett Armitage, National Logistics Mgr
12:10pm
Q & A
12:30pm
Lunch
1:00pm
Site Tours
1:45pm
FSC Demonstration
Joe Dumas
2:30pm
3:00pm
Close

3. New 15,000 M2 Altona Site

4. International Supply Chain Management Specialists
About Us
International Supply Chain Management Specialists
Respected Company in Transport Logistics
Managing sea freight, air freight, customs clearance, domestic freight, warehousing and distribution
Established in 1991
International Coverage
incl. USA, Canada, Europe, UK
and, considerable coverage of Asia / Pacific region
Long-term Partnerships in every major Trade Lane to and from Australia
Servicing a wide portfolio of clients ranging in size

5. Our Mission

6. Our Values

7. Worldwide Trust

8. Our Commitment Quality Assured to AS/NZS ISO9001:2000
“We commit to exceeding our customers' expectations for quality, responsiveness, and professional excellence while delivering within the agreed price and schedule.” - IFC Group of Companies Mission Statement
Quality Assured to AS/NZS ISO9001:2000
Won a number of awards for excellence
National 2007 Information Management Excellence Award
BRW – Top 100 Fastest Growing Private Company (Awarded 5 times in the last 10 years)
Finalist - Shipping Transport Award
Finalist - Ernst & Young Entrepreneur of the Year
Constantly invest in improving systems & people
Clients have access to best practice advice
Servicing clients’ total end-to-end needs

9. ISO Certification

10. BRW Award

11. Membership
Also:

12. Integrated Solution IFC’s Integrated End-to-End Supply Chain Execution
IFC Logistics Service Providers
Coordinated by IFC Cartage
Pickup from Ports
Delivery to Warehouse or Direct to Client
Delivery to IFC WH&D Centre
Suppliers
International Carriers
Customs Clearance
Manufacturers
Sea
Air
Sea
Air
Overseas Consolidators
Load
Unload
Inbound Cargo Terminals
IFC Warehousing & Distribution Centre
Customers
Importers
End Users
Storage
Inventory Management
Cross Dock
Pick & Pack
Distribution
Reworking

13. Supply Chain Management
“Supply Chain Management is the integration of key business processes from end user through original suppliers that provides products, services and information that add customer value and other stakeholders.”
Global Supply Chain Forum 1998

14. Freight Supply Chain (FSC)
A Key Driver for IFC’s
Competitive Advantage

15. Outdated Processes in Importing

16. Inappropriate Applications / Incompatible Systems
NO STRATEGY AND MISINFORMATION
SUPPLY
POLICIES
marketing and sales
FORECAST DEMAND
Financial Settlements
BUYING
STOCK DISTRIBUTION
Determine Stock
Requirements
STORES
forwarding

17. Evidence of Forrester’s Bullwhip Effect *
…the amplification of demand variability as you move from downstream (customer) to upstream (supplier) sites along a supply chain.
Little JIT information to forecast demands
Replenishment lead times guesstimates
No real time information sharing
No order synchronization
No order visibility
* Industrial Dynamics (1961)

18. Synchronicity of the Exchange of Information in the Supply Chain
FSC Solution
Synchronicity of the Exchange of Information in the Supply Chain

19. IT as enabler and differentiator
Benefits to Customers
Operational:
Ordering products on-line
Organising and tracking shipments in real-time
Strategic:
Information sharing among link partners - seamlessly
Visibility of demand in supply chain
Transparency of order processes
Leveraging speed of information to provide competitive differentiation & flexibility
Heightened customer service offerings
Reduced operating cost
IT as enabler and differentiator

20. Options and freedom how we deploy our business strategy
Benefits to IFC
Forefront as e-SCM service provider
Deliver virtual supply chain to clients
Apply tools & techniques to increase our operational effectiveness (internal & external)
Sustainable competitive advantage
FSC is an intangible asset – difficult to copy
FSC cannot be divorced from IFC
FSC builds a trusting relationship amongst stakeholders
FSC makes other assets (e.g. people) more productive
FSC does not depreciate – funded out of cash flow
Options and freedom how we deploy our business strategy

21. FSC Software Overview

22. FSC Key Features Tracks order from order creation to delivery via web
Real-time tracking of SKU, container & vessel movements, and part-shipments
Rapid notification of changes & events in supply chain
Documents available in digital form & on demand
Early availability of warehouse delivery scheduling
Transactions encrypted
Open platform
Local support

23. FSC Key Benefits
Visibility – thus improving decision making capabilities
Early access to critical performance indicators
Status alerts / arrival forecasts delivered to key personnel
Accessible by stakeholders anytime, anywhere
Transfers data at low cost – value to minor business partners
Data secured and accessible to authorised users
Evolved from the bottom up
Delights clients – low cost of implementation

24. Purchasing

25. Tracking Query utilities Track date milestones KPI’s
Consolidation point

26. Clearance & Delivery Demurrage start date First day of availability
Pick up from port
Notification to DC (or WH)
Delivery to DC
Received by DC
Empty container returns

27. Product Pipeline Visibility Product Tracking Functional Relationship
Key Benefits To Importer:
Visibility of supplier’s process
Status and location of product
ETA of product into warehouse
Schedule order receipt workflow & fulfilment
Know the cost to land each unit
Leaner inventories
Product Tracking Functional Relationship
Key Benefits To End-User:
Product availability
Final delivery date

28. Customer Service 28

29. Overview of Customer Service
Main point of contact between the Customer and IFC Global Logistics
Provides updates on freight service and rates to the customer
Advises best method of shipment, transit time, rates, LCL, FCL or Air Freight
Assists the Customer’s staff in understanding the shipping process
The go between with the Customer and other IFC Departments
Tracks the Customers’ orders door to door

30. Door to Door Chain Airfreight Shipment Order ready?
Pick up of cargo by truck
Delivery to Airport Depot
Export Document Process
Delivery from Depot to Airport

31. Door to Door Chain Airfreight Shipment Loading the Aircraft
Transit Stops
Arrival in Australia
Import Document Process
Delivery to Customer

32. Tracking of Shipment Customer places order in FSC
Order transferred to Supplier
Order transferred to IFC o/s office
Monitored by IFC Customer Service Team
Order close to ready date
FSC reminds IFC o/s office to follow-up
IFC o/s office updates FSC with ready date or delay

33. Tracking of Shipment
Booking by Supplier – O/s office updates FSC and books shipment with Airline / Shipping Line – Pick up arranged
Documents scanned into FSC for all parties to view and use
Vessel journey tracked – transhipment, offload or port delays
Confirmed ETA details entered into FSC 33

34. Tracking of Shipment Projected ETA into warehouse and delivery
Confirm ATA – Vessel, Warehouse and Delivery
Products shipped entered against order
Part shipped orders – reordered
Landed Costing completed in FSC
Loaded on Board – details of cargo, vessel, departure date and arrival date confirmed in FSC

35. Operations 35

36. Business Groups Each Group consists of: Customs Broker
Cartage Coordinator
Customer Service
Operations
Compiler
Registration
Export

37. Overview of Operations
Import Operations
Prepare import documentation for reporting to Australian Customs.
Liaising with carriers and overseas agents to process payment and invoicing client.
Ensuring all delivery paperwork is available prior to cargo arrival.
Compile
Collate all required and correct import clearance documents and compile information in our database for customs entries
Customs Brokers
Report cargo to Customs & AQIS as per Australian Customs requirements. Classify new products and advise clients on duty & GST rates as well as Customs and Quarantine impediments. Attend to any misc Customs and AQIS queries.
Cartage Coordinators
Ensure shipments have a clear status for delivery
Check AQIS impediments and organize delivery to clients according to their instructions / requirements.

38. Mission Statement (Operations)
Commit to exceeding our customers’ expectations for quality, responsiveness, and professional excellence while delivering within the agreed price and schedule
Pursue Cost effective alternatives to increase value for our customers in all areas from which we offer service.
Foster a working environment that encourages the furthering of technical knowledge, professional and financial growth, and competitive excellence.
Objectives
Profitability
Quick Turnaround
High Level of Customer Service
Lower Costs
Improve Productivity

39. Electronic Data Interface
OVERSEAS AGENT
1 - STOP
ediENTERPRISE
CMR / ICS
(Cargo Management Reporting / Integrated Customs Services)
AQIS – AEP
(Australian Electronic Processing)
FSC
(Freight Supply Chain Managements)

40. Electronically sending information to Enterprise
1 - STOP
ediENTERPRISE
CMR / ICS
(Cargo Management Reporting / Integrated Customs Services)
AQIS – AEP
(Australian Electronic Processing)
FSC
(Freight Supply Chain Managements)
OVERSEAS AGENT
OVERSEAS AGENT
Electronically sending information to Enterprise
Reducing Double handling of data
Improved information flow to Australian Customs, Quarantine and Clients

41. Vessel Schedule and Container Event information for Australian Ports.
1 - STOP
ediENTERPRISE
CMR / ICS
(Cargo Management Reporting / Integrated Customs Services)
AQIS – AEP
(Australian Electronic Processing)
FSC
(Freight Supply Chain Managements)
OVERSEAS AGENT
1 - STOP
Vessel Schedule and Container Event information for Australian Ports.
Live information, keeping our system up to date with any delays, vessel adjustments and container movements.
Up to date information availability to IFC Staff and clients at any given time.

42. 1 - STOP
ediENTERPRISE
CMR / ICS
(Cargo Management Reporting / Integrated Customs Services)
AQIS – AEP
(Australian Electronic Processing)
FSC
(Freight Supply Chain Managements)
OVERSEAS AGENT
CMR / ICS
(Cargo Management Reporting / Integrated Customs Services)
Electronic communication of data between the Customs Broker, Australian Customs & Australian Quarantine
Data which is processed: Shipment details, values of goods, classification of goods, customs clearance status, border processing requirements, etc.

43. Reporting electronically, through assessment to Quarantine
1 - STOP
ediENTERPRISE
CMR / ICS
(Cargo Management Reporting / Integrated Customs Services)
AQIS – AEP
(Australian Electronic Processing)
FSC
(Freight Supply Chain Managements)
OVERSEAS AGENT
AQIS – AEP
(Australian Electronic Processing)
Reporting electronically, through assessment to Quarantine
Developed for non commodity and some commodity concerns

44. Live information on all current, upcoming and old shipments
1 - STOP
ediENTERPRISE
CMR / ICS
(Cargo Management Reporting / Integrated Customs Services)
AQIS – AEP
(Australian Electronic Processing)
FSC
(Freight Supply Chain Managements)
OVERSEAS AGENT
FSC
(Freight Supply Chain Managements)
Updated by Information gathered in Enterprise from our Agents, 1-Stop, CMR / ICS, and AQIS
Live information on all current, upcoming and old shipments
Availability of Documentation, i.e. Commercial invoices, Packing Lists, Customs Entries, Invoices, Electronic Delivery orders
Allows clients and their Distribution Centers, Warehouses, Depots, and Transport Contractors to access documentation at any given time

45. Measuring Supply Chain Performance
3PL and 4PL Logistics
Measuring Supply Chain Performance 45

46. What are the Objectives?
Defining the Supply Chain and Logistics
The importance of knowing Warehousing and Distribution costs
Measuring the cost of Warehousing and Distribution

47. Supply Chain Management
“Supply Chain Management is the integration of key business processes from end user through original suppliers that provides products, services and information that add customer value and other stakeholders.”
Global Supply Chain Forum 1998

48. Logistics/Supply Chain
Important features:
Customer Orientation
Global Approach
Total Cost NOT Individual Price
Strategic Partnerships and Alliances

49. Business Logistics
PETER DRUCKER
“ Almost 50 Cents of each dollar the American spends for goods goes for activities that occur after the goods are made, that is, after they have come in finished form. Economically, distribution is the process by which physical properties of matter are converted into economic value: it brings the customer to the product. ”

50. Logistic Strategy Planning
Logistic Strategy Depends On:
SALES VOLUME PLAN
MARKETING PLAN
CUSTOMER SERVICE PLAN
FINANCIAL PLAN
SOURCING/MANUFACTURING PLAN
Focus On Company Profit & ROI

51. Management
Moving From: FUNCTIONAL MANAGEMENT To: PROCESS MANAGEMENT

52. Logistic Plan Trade Offs
Inventory carrying costs
Production/sourcing costs
Information processing costs
Warehouse operations costs
Transport costs - in & out
Customer focus - competitive

53. Customer service levels are set by Company Executives
They are expressed as operational standards:
Examples:
Daily deliveries to all customers
24 hour cross dock operation
Customer queries answered within 24 hours
98% stock availability
Warehouse costs below 1.5% of sales
Loss/damage less than 0.2% of throughput
Warehouse inventory less than 10% of company inventory

54. IFC Warehousing & Distribution Centre

55. IFC Warehousing & Distribution
Capacities include:
8,000M2 with capacity for over 8,000 pallets
2,000M2 front cross-dock processing area
6 covered docks with hydraulic dock levellers
Extending by additional 6,000M2

56. IFC Warehousing & Distribution
Radio Frequency (RF) scanners
Automatic stock put-away zoning
Receipts, flexible stock allocation, put-away, cross-dock or staging
3PL communication & network support system
Pick n pack, rework processing, bill of materials

57. IFC Warehousing & Distribution
Provides leading supply chain practices such as:
Customer driven planning – for effective on-demand, order-to-delivery and distribution management
Efficient customer order fulfilment – through real-time order processing via web portal
Improved product lifecycle management – through product visibility and information transparency within the supply chain
Enabling technologies (Manhattan WMS) – for core performance data, efficiency, accessibility and integration to own ERP system

58. IFC Warehousing & Distribution
Purchase order raised in FSC
Client Packing lists scanned into FSC/Excel import
Packing list interfaced from FSC/Excel directly into ILS Manhattan
Containers opened stock scanned from Delivery into IFC Warehouse
Manhattan receipts stock in against Packing list/auto Exception reporting to Client

59. IFC Warehousing & Distribution
Client has access via IFC Web site to view Stock records
Internet Portal access 24/7 Globally
Client can access status of Stock
Direct Access of Orders in progress
Client can create orders via Internet Portal
Direct Access to Reporting

60. IFC Warehousing & Distribution
Key features of Warehouse Management System (Manhattan Associates – Integrated Logistics Solutions)
Multi-lingual application on Microsoft Platform
User Web Portal
Create & view orders, order status and cyclic count status
View inventory levels and shipped inventory
Off-shore generation of Advanced Shipping Notices (ASN) and unit labelling
Comprehensive inventory management and order fulfilment system

61. Time for your questions…

62. (Large Retail Hardware)
CASE STUDY “A”
FSC Services
Web-based Order Management
Accessible by all stakeholders
Configured to support Co.X’s business flows, monitoring & reporting requirements
Full product, documentation and shipment visibility
Collaborative management of container movements & container costs
Early access to critical performance indicators and costing
Key Efficiency Gains
All Co.X Departments now use common product code for ordering
Ordering and multi-supplier consolidation now done on-line & in real-time
Now manages track & trace by exception
Container deliveries coordinated and monitored on-line
Promotional start-date monitored
Early downloads of landed costing information
Direct Container Buy ordering directly interfaced with FSC
COMPANY “X”
(Large Retail Hardware)
Key Savings
From 3.5 Full-time Equivalent down to
0.9 FTE in peak season
0.4 off-peak, whilst volume has doubled in past 2 years

63. (Large Textile/Homewares)
CASE STUDY “B”
FSC Services
Web-based Shipment Tracking
Shipment data accessible by all internal Departments, but via own ERP system
Configured to support Co.Y’s ordering practices & business flows
Early access to shipping documentation
Early access to critical performance indicators
Key Efficiency Gains
Buyer behaviour monitored
Purchase orders transferred to FSC and shipment data returned to Client, daily via FTP
Effective management of shipment consolidations
Shipping documentation faster at hand
Now Client enjoys full track & trace visibility, by product line
Container demurrages better managed
Deliveries coordinated and monitored on-line
COMPANY “Y”
(Large Textile/Homewares)
Key Savings
From 3 Full-time Equivalent down to 2.5
Container storage bill from $350,000 to $6,000 p.a.

64. Excellence Award
“…unambiguously the most prestigious and influential award in the industry.” - Supply Chain & Logistics Association of Australia (SCLAA)
IFC Wins National 2007 Information Management Excellence Award
National recognition as a significant achiever in supply chain and logistics information management
Granted by largest association of logistics professionals for significant achievement in the use of:
Communications
Information management
Technology
e-business
…with particular regard to the added value produced by the achievement

65. Excellence Award
“… unambiguously the most prestigious and influential award in the industry.” - Supply Chain & Logistics Association of Australia (SCLAA)
“ Freight Supply Chain (FSC), is a quality product…developed to manage and distribute up to the minute information to all stakeholders in the supply chain. FSC was recognized as a powerful strategic tool that leverages real-time information to improve everyone’s time to value. “
…an integral part of our pursuit to:
streamline supply chain processes
improve response times to clients
improve accuracy of information
reduce clients’ costs and overheads, and
improve product time to market
…essentially, allowing our customers and their clients to do, and get a lot more, for less.“

66. Time for your questions…