Ontario Ontario International Transport and logistics Chapter 1 - Logistics
BACKGROUND… Sylvain G. Pelchat, B. Sc. • Graduated UQAM in Teaching, 1986 • Experience – highlevel 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 ThinkBig Management International – Since 2003 (nowmergedinto NOVAERA CAPITAL GROUP Inc.) • Solutions and training to Canadian companies to take control and easetheirlogisticschain.
…BACKGROUND… Keynotespeaker and/or trainer on Incoterms2010 + C-TPAT + and/or Maximizingyourlogisticschain: • 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
…BACKGROUND • C-TPAT book: Author of ‘C-TPAT, plus qu’une question de sécurité’ by QuebecEconomicboard, 2003 • Wrotelogistics section of ‘Le Commerce International’, by I.Limoges and K Miville De Chêne, Chenelièreeducation, 2010 Lecturer: • CEGEP Marie-Victorin (since 2009) / TAV College (2013): International Transport and Logistics course in the AEC multicultural program.
A) AT NOVAERA CAPITAL GROUP C-TPAT / PIP / AEO implementation of securitycontrols and procedures: • Over 400 companiescertifiedsince 2003 MAXIMIZING the logisticschain: • Over 20 companiessincefall 2010 NETWORKING with experts: • Freightforwarding, Dangerousgoods, Canadian and US customs compliance, Patents and trademark protection, international fiscal support, cargo insurance, warehousing, pick and pack, WMS, ERP for logisticschain control, etc.
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
THE PROGRAM Chapter 7 : Rail transportation and intermodal Chapter 8 : Incoterms®2010 and cargo insurance Chapter 9 : Packaging, marking, labelling Chapter 10 :Dangerousgoods (Haz Mat) Chapter 11:Supplychain security programs: C-TPAT and PIP Chapter 12 :Import sequence Chapter 13: Export sequence Chapter 14 : Action! Chapter 1 : A definition of logistics Chapter 2 :Strategiesand choice of transportation Chapter3 : The actors of the logisticschain Chapter4 :Ocean transportation Chapter 5 :Ait transportation Chapter 6 :Road transportation Chapter7 : Rail transportation and intermodal
Who are you? Who are you? Your company Your position Why this program?
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)
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.
What is logistics? • Logistics involves the integration of: • Information • Transportation • Inventory • Warehousing • Material-handling and packaging • Security • Are the any challenges?...
Air Road Pipeline Rail Vessel There are still roads, oceans, mountains, deserts to cross...
THE LOGISTIC CHAIN DO WE HAVE A 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. SUPPLIER 1 Items SUPPLIER 2
SUPPLY CHAIN VS LOGISTICS CHAIN • Elements of the LOGISTICS Chain Planning Customer Purchasing Transportation Inventory
THE LOGISTIC CHAIN The MANAGEMENT of the logistic Chain (By the management of the company) • 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 LOGISTICS CHAIN Logistics Chain Management - 3 levels of activities • 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
THE LOGISTICS CHAIN Logistics Chain Management - 3 levels of activities • 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.
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
Integration of services and informations Supply chain management Integrated logistics Integraters Multimodal transportation Single Transport Vessel Air Truck Rail Vessel Air truck Rail All services Stocks mgmt All services Stocks mgmt Multimodal Multimodal Customs Customs INTEGRATED LOGISTICS
Supplychain 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.
THE LOGISTIC CHAIN REAL TIME COMMUNICATIONS • 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.
Data infos from origin to destination Traceability Identification / Technolgies /RFID Contain and protect Preparation / inspection Shipping Container origin Container destination Bar codes Bar codes Serial # Serial# Box Pallet Pallet Box SN0082 SN008294 9S825442 9S825442 Logistics chain management Production/ distribution
INTERESTING ELECTRONIC SOURCES Excellent online source in 3Pl environment and the different modes of transportation.
LOGISTICS MAGAZINES / WEB SITES LOGISTICS MAGAZINE (English) http://www.ctl.ca/
www.3plwire.com Excellent online source in 3Pl environment and the different modes of transportation.
MAGAZINES LOGISTIQUES MAGAZINE GESTION LOGISTIQUE (français): http://www.gestionlogistique.com/httpdocs/index.php
WHAT IS WTO ? A. A set of rules Atitsheart are the WTO agreements, negotiated and signed by the bulk of the world’strading nations. These documents provide the legalground-rules for international commerce. They are essentiallycontracts, bindinggovernments to keeptheirtradepolicieswithinagreedlimits.
WHAT IS WTO ? • B. To manage business relations between countries • Liberalizetrade: Help trade flow as freely as possible. • But canmaintaintradebarriers: Can maintaintradebarriers — Ex. to protectconsumers, prevent the spread of disease, dumping… • Rules, guidelines: Teach the traderules are around the world and keepthemrespected. • Settle disputes: Settle differences on an agreed legal foundation.
INTERNATIONAL CHAMBER OF COMMERCE (ICC) • Whatis ICC ? • A. The voice of world business championing the global economy as a force for economicgrowth, job creation and prosperity. • Lobbying: Lobby towardsgovernmentsworldwide. • Role: Very large, arbitration, dispute resolution , open trade, business self-regulation, fighting corruption or commercial crime. • Influence: Direct access to national governmentsworldwidethrough national groups. Canadian headquarters in Ottawa, ON.
INTERNATIONAL CHAMBER OF COMMERCE (ICC) • Whatis ICC ? • Credit: Uniform Customs and Practice (UCP 500) for banks. • ICC Incoterms are standard international tradedefinitionsusedeveryday in countlessthousands of contracts. • ICC contractsmakinglife easier for smallcompanies • E-commerce: Business self-regulation of e-commerce. ICC codes on advertising and marketing are frequentlyreflected in national legislation and the codes of professional associations. • Medias, G8, Doha round, UN, meetings, Transport and 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