Facilitating Logistics for Improving Supply Chain International Conference on Logistics & Supply Chain Lahore, 22nd November 2011 Facilitating Logistics for Improving Supply Chain Javaid Mansoor Executive Secretary National Trade and Transport Facilitation Committee

Supply Chain Management Involves efficiently integrating: suppliers, manufacturers, warehouses, transporters and customers to distribute right product or service in right quantities to right locations at the right time in order to minimize system-wide costs and satisfying customer requirements to achieve sustainable competitive advantage

APTFF 2011

Business Environment of 21st Century Globalization, multinational companies, joint ventures, strategic alliances and business partnerships Standardized quality, minimum inventory, short lead time and just-in-time delivery of goods and services for achieving competitiveness Extensive use of information technology Adoption of Enterprise Resource Planning (ERP) systems Use of Collaborative Planning, Forecasting, and Replenishment (CPFR) techniques Outsourcing of materials and services Emphasis on reduction of transaction costs Dell, Wal-Mart and Proctor & Gamble are examples of such successful enterprises

APTFF 2011

APTFF 2011

APTFF 2011

Emergence of e-business and Virtual Integration Developments in information and communication technology have enabled e-business Traditional boundaries among them are getting curtailed Suppliers, manufacturers, distributors, and end-users in a supply chain are being virtually integrated Suppliers and customer are trading over the internet in real-time to create maximum value

Supply Chain in e-Business Environment

Pakistan Example of e-business and Virtual Supply Chain A manufacturer of eye glasses in Karachi has facility for manufacturing lenses and maintains stock of imported frames; and has developed online connectivity with opticians in USA Patient visiting optician in USA selects, over internet, frame from catalogue maintained by manufacturer in Pakistan Optician sends prescription with catalogue number of frame to manufacturer by email Glasses are couriered by manufacturer to optician or patient as instructed Payment is received by manufacturer electronically

Modern Logistics Practices Logistics services are increasingly outsourced and subcontracted to specialists or logistics partners such as freight forwarders Modern freight forwarders provide comprehensive service from point of origin to destination These may include transport, warehousing, packaging, inventory control and even security Logistics has critical role in creating and maintaining competitive advantage Cost and quality of service by the logistics service provider is extremely important Many products have a life cycle or have to meet a production schedule deadline Delay in delivery is not acceptable

Provision of Logistics Services in Pakistan Logistics services are mainly provided by freight forwarders Many are not sufficiently well organized to provide a comprehensive range of services Qualifications and level of professional competence needs improvement to meet requirements of modern supply chain PIFFA is doing commendable work by conducting courses for training of freight forwarders Some regulatory arrangement is required to ensure satisfactory provision of logistics services

Liberalization of Trade Environment WTO Doha Development Agenda is stalled This has resulted in proliferation of: Regional Trade Agreements Free Trade Agreements Preferential Trade Agreements Pakistan is least connected through trade agreements This imposes greater demand for competitiveness on Pakistani enterprises

Role of NTTFC to Facilitate Logistics and International Trade Supported PIFFA in conducting Freight Forwarders Training for Trainers workshops in Karachi and Lahore Coordinating with Pakistan Customs for implementation of fully computerized Customs clearance system Produced UNLK harmonized formats of important international trade documents for conversion to electronic version Coordinated with ministries for negotiation of APTTA 2010 Pursuing with ministries for accession to international conventions to facilitate transit trade Pursuing with ministries to negotiate transit traffic agreements with Central Asian States Pursuing enactment of various legislations relating to carriage of goods

Way Forward Industry Freight Forwarders Adequately train human resource Adopt modern management practices like ERP and CPFR Adopt industry specific modern technology to improve quality of products to meet international standards Reduce lead time and ensure timely delivery to remain internationally competitive Freight Forwarders Raise quality and scope of services Ensure inbuilt capability to provide expected level of service satisfaction Take insurance to meet liabilities of contract of carriage in case of damage, loss or delay in delivery

Thank you for the attention j.mansoor@nttfc.org 021 35242570