1. 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

2. 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

3. APTFF 2011

4. 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

5. APTFF 2011

6. APTFF 2011

7. APTFF 2011

8. 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

9. Supply Chain in e-Business Environment

10. 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
Glasses are couriered by manufacturer to optician or patient as instructed
Payment is received by manufacturer electronically

11. 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

12. 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

13. 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

14. 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

15. 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

16. Thank you
for
the attention