1. Ontario International Transport and logistics Chapter 14: Action !

2. FACTS GATHERING: Take a close look at each step of your logistic chain, from the PO up to client invoicing. You need to have total control on each of them. Also:  Validate import and export official ‘liquidation’ (compliance 7501, B-3);  Validate Incoterms in use (minimize the risks);  Validate the partners with whom you are dealing with: carriers, forwarders, customs broker, couriers, warehousers, consolidators, etc. (liability, security, costs)..

3. Once the facts on hand:. Implement benchmarks at each important step. Implement a negotiation process with customer/supplier deals. Put in place tools to order, follow-up and validate invoicing. Separate the functions: import, export, receiving, shipping. Train personnel of import and export teams. Use technologies. Outsource some tasks, steps, functions ACTION PLAN

4. THE COSTS WARNING: Carrier’s rates are NOT the only financial data to consider It is often more on the ‘transport organization’ that we need to look. 1. Simplicity of the the steps, the management 2. Priority placed in the incoming/outgoing shipments: Urgent Vs non-urgent as an example 3. Verification of each invoice Vs the quotation.

5. STARTING POINT: Your actual logistic scenario  Where are we located geographically?  Do we need to have our own trucks ?  Is that task performed by someone who has another main function?  To reduce management, can we outsource some functions while keeping control?  Should/Do I have to use technologies ?  Witch Incoterms®2010 are we using?

6. SIMPLE MANAGEMENT SYSTEM Incoming: 1.Order form, including the Incoterm 2.Transport quotations 3.Information on the movement: ETD / ETA / intermodal coordination and follow-up 4.Documented reception

7. SIMPLE MANAGEMENT SYSTEM Outgoing: 1.Shipping form, including the Incoterm 2.Transport quotations 3.Information on the movement: ETD / ETA / intermodal coordination and follow-up 4.Shipment documented, supervised and scelled. ALL: Approbation of each invoice by logistic first and then payables.

8. INTERNAL ORGANIZATION Import and Export functions separated Shipping/Receiving separated Documented procédures Daily/weekly follow-ups on shipments No proof of delivery = no payment VERY IMPORTANT: Validate all invoices (do not assume), (different rate, extra charges, % of fuel surcharge, wrong HS, wrong custom duties, etc.).

9. INTERNAL ORGANISATION If in the negotiated Incoterm it is the client/supplier that pays the bill and you have a good transport department, you have 2 options: 1.They take care of it themselves 2.You coordinate and RE-BILL! Since you already have negotiated good rates, you can charge a premium (min 10%). You are funding your own department!

10. INTERNAL ORGANIZATION OUTSOURCING:  Do it for the good reasons!  Some or all tasks can be outsourced externally.  There are some firms that are taking charge of some of these steps and pays themselves with the savings.  You must have someone revising EACH INVOICE.

11. INTERNAL ORGANIZATION: SHIPPING  Outgoing shipments: Watch out for hidden fees. Priorities: Identify what is urgent and what is NOT (courier/road or Ocean/air for example) You can see a drop in your coast rapidly. Have a weekly Shipping Calendar (not a daily one). Example: Shipments on Mon, Wed and Friday). Regroup shipments: LTL Vs FTL Control the accesses to these zones. Reserve it to authorized employees only (theft, security, etc.) Use consolidation hubs with 3PL’s.

12. 9 points to Consider for Saving $$$ 1.Choice of Incoterm®2010 and write it on documentation 2.Choose recognized partners: Know the people and have the numbers/way to get to them quickly 3.$ Detailled quotations: Minimum of 3, occasionnal movements as well as regular 4.Import and Export functions separated

13. 9 points to Consider for Saving $$$ 5.Follow-up on shipments with ETD/ETA 6.Caro insurance necessary? All risks? 7.$$ Shipping dept: Manage urgent Vs non-urgent 8.$$$ Have import/export services validate EACH invoice prior to send to payables 9.Train your staff, give them the tools