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Presentation For Nike Americas Team

Presentation For Nike Americas Team. March 15, 2004. Content. APLL Taiwan Organization Chart Nike Consolidation Operation Process / Volume Analysis Nike MCC Operation Process / Volume Analysis Nike MCC Divert Operation Process / Volume Analysis Nike Vendor Compliance Performance

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Presentation For Nike Americas Team

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  1. Presentation For Nike Americas Team March 15, 2004

  2. Content • APLL Taiwan Organization Chart • Nike Consolidation Operation Process / Volume Analysis • Nike MCC Operation Process / Volume Analysis • Nike MCC Divert Operation Process / Volume Analysis • Nike Vendor Compliance Performance • APLL Service KPI’s • Issues for Discussion

  3. Managing Director (Korea & Taiwan) Joseph Wu Sales Manager Jennifer Wang Service Integrity Manager Alice Lee Operation Manager Diana Chiang Operation Manager Funney Wu APLL Taiwan Organization Total : 43 Finance Analyst Amanda Lee Account Executive Maureen Yeh Kaohsiung Warehouse + MCC Hub N. Taiwan Warehouse Tao Yuan Sales Rep. Nicole Chou Account Team Kmart Brylane Account Team Nike Limited Radio Shack Account Team MDSI JCP Dell Account Team AMC Marshall Sales Support Joey Lee

  4. APLL Service Features Consolidation Consolidate merchandise, information, and documents per NIKE SOP instruction. Vendor A Vendor B Vendor C MCC– Multi-Country Consolidation A convenient and cost saving service to consolidate LCL shipments from various countries into FCL shipments HKG BKK TWN AIR - SEA APLL HUB conjoins two modes cargo at KAO HUB for Nike project PO (Memphis warehouse 51). SEA – AIR ( Divert Shipment) A transport solution for Nike to transfer shipment mode from SEA to AIR for urgent cargo. MCC Non-Integrated Program (Divert Shipment) FCLtransfer to 2nd carrier ( Maersk Line) LCL transfer to NVO ( M-Logistics)

  5. Nike Consolidation Operation Process • Booking • Vendor submits the booking (vendor booking form) to APLL by Monday noon time. • APLL verifies the booking and coordinates between NLO and vendor to revise content if necessary. • Booking Authorization • APLL issues weekly SPR Monday PM except Mexico on Friday. • Cargo Delivery / Loading • Vendors are required to deliver cargo according to Booking and Nike’s SOP. • Factory file must be received by APLL same day of cargo delivery. If not APLL will notice vendor and copy NLO by email. • APLL warehouse scans carton labels and reconciles with factory file, then APLL system generates OR (tentative file) automatically to Nike. • APLL consolidates cargo from multiple vendors for FCL shipments.

  6. Nike Consolidation Operation Process • Shipment planning based on Nike SOP : • • Target Container Load ability • ETS/GAC and PPR reports • • Carrier allocations • DSI / ESI • CIRs (Need Date reports) • • Independent Distributor Information (Release Instructions and hold list) • • DIT Option • FCR Issuance • APLL issues Forwarders Cargo Receipt to vendors when original commercial documents are received, local charges are paid and cargo is on board the vessel. • LegalizedDocument Verification • APLL verifies and notice vendor within 24 hours after document is received when documents are incorrect • Factory makes all necessary revisions and re-submits original documents to APLL within 24 hours after notice. • APLL pouches documents within 5 days after vessel sailing per NIKE SOP.

  7. Nike Consolidation Container Utilization Analysis (Period : 01/01/03 – 12/31/03)   Remark: Those lower load ability were approved by destinations. Standard Loadability 45’ 65 – 74 cbm 40’ 9’6” 57 – 64 cbm 40’ 8’6” 50 – 56 cbm 20’ 20 – 26 cbm

  8. Nike Consolidation Container Utilization Analysis (Period : 01/01/03 – 12/31/03)   The under utilized containers by destination

  9. APLL in Asia Dalian Beijing Korea Tianjin Tokyo Seoul Pusan Kobe Qingdao Yokohama China Osaka Japan Nanjing Shanghai Ningbo Pakistan Fuzhou/Xiamen Taipei Karachi New Delhi Dhaka Taiwan Huangpu Shenzhen India Kaohsiung Yantian Macau Chittagong Hanoi Hong Kong Thailand Mumbai Manila Bangkok Vietnam Philippines Bangladesh Chennai Hochiminh City Cebu Malaysia Sri Lanka Pt. Kelang Mauritius Penang Colombo Pt. Louis Singapore Indonesia Jakarta APLL Offices and warehouse Surabaya Flight TimeTwn/HK 75 minutes, Twn/SIN 4Hours, Twn/Thai 3 Hours Twn/PHL 1.5 Hours, Twn/JKT 5 Hours, Twn/Shanghai 2 Hours(if direct)

  10. Mauritius Port Louis • MCC ROUTE Japan APLL FACILITY Tokyo Kobe Train MCC HUB Beijing Korea Dalian Osaka Seoul n Mongolia Feeder Vessel Tianjin Pusan Line Haul Vessel Qingdao Shanghai China Nanjing Taipei Ningbo Fuzhou To Mexico, Latin America Taiwan Afghanistan Shenzhen KAOHSIUNG Huangpu Macau Pakistan New Delhi Hong Kong u Karachi Fujairah Philippines Chittagong Laos Dhaka Burma Vietnam Saipan India Thailand Manila Bangladesh Bangkok Kampuchea Bombay Cebu Madras Malaysia Malaysia Port Kelang Penang Sri Lanka SINGAPORE Colombo Indonesia New Guinea Jakarta Surabaya To Europe and other Area a

  11. Nike MCC Operation Process • Booking • APLL origins arrange shipments per Nike SOP and make remark on ACS123 (APLL system) as well as APL Liner for MCC at Kao Hub. • Before Feeder Sails • APL origins stow MCC container for KAO discharge. • APLL origins send pre alert to APLL KAO/TPE and APL KAO. • After Feeder Sails • APLL origins send SPR to Nike and APLL KAO / TPE. • APLL origins upload the scan file to ACS123 system. • APLL origins pouch vendors document to APLL Taipei. • APL origins update APL system for Kao rework.

  12. Nike MCC Operation Process • After Feeder Arrives at Kao HUB • Liner KAO discharges MCC containers, applies for customs special permit to un-stuff containers, and store all cartons at ‘Relay’ warehouse, under customs custody. • APLL Taipei OP receives MCC on hand summary from Kao Hub plus Taiwan cargo details, then sends combined SPR (TWN+MCC) to Nike in charge party for shipment authorization. • Per Nike’s authorization, APLL finalizes vessel/voyage for Taiwan vendors to process customs formality. • APLL Kao finalizes MCC load plan (stuffing, topping, equipment size etc..) and notify Liner Kao. • Liner Kao stuffs container per APLL load plan. • Mother vessel sails • APLL Kao prepares MCC container manifest. • Liner amends MCC B/L based on Nike fixed rate. • Liner provides APLL B/L copy for verification. • APLL Taipei sends out the MCC Shipping Advice with Scan File to Nike within 3 days after vessel sails. • APLL Taipei combines and sorts all documents with those from origin countries, and pouches to Nike destination and NLO within 5 days after vessel sails

  13. MCC Relay Matrix via KAO (E/B) Destination Vessel service T/T from Kao Canada Scarborough PNW 24 days Uruguay Montevideo APX 48 days Argentina Buenos Aires APX 41 days Mexico Queretaro MAX 26 days Ecuador Manta MSK / TP3 27 days Brazil Sao Paulo APX 38 days Santos Panama Colon Free Zone APX 24 days Chile Iquique MSK / TP3 33 days Santiago APX 35 days

  14. Mexico price inspection –Bureau Veritas • Cargo Arrives at Kao HUB • Nike destination SPR notifies APLL Taipei to conduct price inspection for particular items. • Inspection Arrangement • APLL Taipei OP prepares application and necessary documents (Invoice, Packing List) to request BV’s cargo inspection 3 working days before vessel cutoff . • APLL Taipei passes inspection schedule to APLL KAO. • APLL KAO applies special permit with customs and assign person accompanies with BV to make cargo inspection at the warehouse. • Documentation • BV Taipei will issue inspection report to APLL Taipei and EDI formal report to BV Mexico. • Nike Mexico receives report from BV Mexico

  15. Specific Needs by Destination

  16. Specific Needs by Destination

  17. Specific Needs by Destination

  18. Specific Needs by Destination

  19. Nike MCC Container Utilization Analysis (Period : 01/01/03 – 12/31/03)  

  20. Nike MCC Container Utilization Analysis (Period : 01/01/03 – 12/31/03)   The under utilized containers by destination Standard 20 CBM Standard 50 CBM

  21. Nike MCC Volume by Origin ( 01/01/03 – 12/31/03)  

  22. Nike Volume by Destination ( 01/01/03 – 12/31/03)  

  23. Nike MCC cargo stage over 30 days at HUB

  24. Nike MCC cargo stage over 30 days at HUB

  25. Actions to improve cycle time • Canada : Advance Cut-Off for LCL shipment • Uruguay : Show anticipated document receiving date on SPR • Mexico : Coordinate BV to expedite inspection for exception cases • SEA – AIR : Coordinate broker and air freight forwarder

  26. Nike MCC Divert Operation Process • Before Feeder arrives at the HUB • APLL HUB receives shipment authorization from destination to arrange MCC divert shipment (Non-Integrated Program) 1. SEA – AIR shipment 2. FCL via Maersk 3. LCL via Maersk Logistics • Shipment Arrangement • APLL confirms with Liner to terminate shipment at Kaohsiung • Liner makes B/L amendment based on Nike service contract • Liner KAO releases cargoes after APLL pays ocean freight • APLL works with broker to process customs formality for cargo transfer to Maersk / Maersk Logistics or Air Forwarder’s facility • After Cargo Ships Out • Get Air-waybill and Ocean Bill from Air Forwarder / Carrier • APLL inputs shipment data into APLL system • Nike track shipment details from “See Change” system at same time • APLL pouches document to relative parties

  27. Nike NON-Integrated Volume Analysis (Period : 01/01/03 – 07/31/03)   1. MCC Cargo Transfer to ship as LCL move via MLOG 2. MCC Cargo Transfer to ship as FCL move via carrier Maersk line 3. MCC Cargo Transfer to ship as AIR via Nike nominated air forwarder

  28. Nike Taiwan Vendor Compliance Performance (Period : 01/01/03 – 12/31/03)   Total: 5,598 bookings

  29. Nike S/A & Documents Performance (Period : 01/01/03 – 12/31/03)

  30. Thank You

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