Consumer & Retail And Fashion 2011

Update: November 2011 1 1

Fashion and Consumer & Retail

Valentin Loktionov

BCS Area, Moscow, November 2011

Fashion

and

Consumer&Retail



Understanding the Fashion Industry.…………………………. 3

Understanding the Retail Industry…….…………………………. 4

Panalpina Suppliers Management Fashion & Retail..…………. 5

Panalpina Ocean Freight Best Sellers…..……………………… 7

Panalpina Air Freight Best Sellers…………………………..…... 8

Reliability, Security vs. Lead Time ( Far East Routing)….…….. 9

Customs Clearance Services…………………………………….. 10

New Warehouse in Moscow………..………….…………………. 13

Content:



3

« …a while ago fed by the ordinary consumption of exceptional

people, luxury activities are supported today by the exceptional

consumption of ordinary people … »

• Global market worth over 200 billion Euros, controlled approx. 30% by French Groups

• Double digit growth even in crisis years 2008 and 2012

• Globalization of market and demand with emergence of new markets like Russia, Ukraine and

Kazakhstan

• Managing Vendors in Fashion is an emerging trend and Panalpina Specials

• Strong competition in the Industry: Door-to-Door solutions including Customs, Distribution and

Warehousing is available in Russia, Ukraine and Kazakhstan now.

Understanding the Fashion Industry:



4

«… we are moving out of the era of mass and cheap into the age of luxury

and ‘made for me’. Mass customization is a trend created by

commoditization, which has in turn been created by globalization… »

• Strong competition in the Industry

• Availability to manage complex solutions and volumable shipments / distribution

• Dominated by mega stores (big box or hypermarkets )

• One size does not fit all for supply chains

• Multi channel offer: FTL / FCL vs. LTL / LCL. Customs clearance in various locations.

• Warehousing for small / big size clients: X-Dock and Pallet Storage, Mezzanine.

• Focus on emerging markets, including Russia

Understanding the Retail Industry:



Typical Scheme:

Client Provides Buyers Forecast with Suppliers Details,

Shipping Windows and Closing Dates. Client provides

qualitative / quantity criteria for PO assessment.

Panalpina manages Suppliers shipments,

POs acceptance and system input, Physical

Goods inspection against Agreement with a Client.

Tools:

• Panalpina Intra Systems

• Interface with Client Systems: Manhattan; SAP, 1C.

Panalpina has got local IT Department to build up

an interface with any Client’ software to provide

an input into Client’ systems if required.

Panalpina Suppliers Management Fashion & Retail:



Receive goods Verify Cargo VS P/L Article, color , size check by pcs

Overall Quality check Sort/ Pack ok by carton, by pcs Report to Client /Suppliers

Panalpina Suppliers Management Fashion & Retail:

Quantity / Quality / Weight Control at Origin or Transshipment prior the final Customs Clearance at Destination (for Import).



Air Freight Ocean Freight

• Overland from Europe

• Customs Clearance

• PO Management

• Consolidation/

Deconsolidation

• Document Check/

Management

• Distribution FTL /LTL

Road Freight

Panalpina Services at a Glance:

• Multi ULD Transport

• Samples, POS Transport

• Chartering and Regular


• PO Management

• Document Check/

Management

• Door-to-Door Delivery

• Airfreight Regular

Domestic Distribution

Air Freight

• FCL and LCL Transportation

• Intermodal Transportation


• PO Management

• Consolidation/

Deconsolidation

• Document Check/

Management

• Weight Control on item level

Ocean Freight



Services:

• Full container loads (FCL)

• Less than full container load (LCL)

• Door-to-door intermodal services

• Port-port, door-port, port-to-door services

• Global coverage with consolidation services

• Oncarriage by truck, rail.

Specials:

• Vendor Management Services for Fashion and Retail Clients


• PO Management

• Weight Control on Item Level

Panalpina Ocean Freight Best Sellers:



Services:

• Import / Export Customs Solutions

• Dedicated Offices in Domodedovo and Sheremetevo Customs with

more 150 personnel. Field Personnel helps to speed up operations

excellence.

• Customs Clearance solutions for every capital city plus

St.Petersburg and Ekat.

• Alternative solutions for airfreight combinations depending on

customer’ requirements: DIRECT AIR; AIR to Europe and on-truck

delivery; RAIL China+ AIR; SEA to Dubai + AIR

Specials:

• Dedicated Fashion Industry expertise in Customs Clearance.

• Air Fright Domestic Distribution Russia.

• Karaganda Customs WHS +

Malaysian Air service in Kazakhstan

• Vendor Management for Far East Fashion / Retail Suppliers.

Client WHS

MOSCOW

LUX Client WHS

Shanghai

HoChiMinh

Jakarta

Yantian

Panalpina Air Freight Best Sellers:

Urumqi

MOSCOW

MOSCOW

LUX



Reliability, Security vs. Lead Time

on routing from Far East to Russia

RANKING PANALPINA Rating

Reliability/ Security**

Panalpina’ Lead Time,

incl. Customs*

SEAFREIGHT to Moscow via

FINLAND Kotka 1 1 42

RUSSIA St.Petersburg, FCT 2 2 46

RUSSIA St.Petersburg, PLP 2 2 46

RUSSIA St.Petersburg, Ust Luga 3 3 46

RUSSIA Vostochniy / Vladivostok 4 3 37

ESTONIA Tallinn 4 4 49

AIRFREIGHT to Moscow via

Moscow Domodedovo 1 1 7

Moscow Sheremetevo 2 2 7

LUX Luxemburg 2 3 17

COMBINATIONS, NON DIRECT to Moscow via

RAIL-AIR Urumqi 1 1 23

SEA-AIR Dubai 2 2 33

* Estimated Time. **Panalpina provides reliable and secure transportation only, but we tried to prioritize within each group.

Reliability, Security vs. Lead Time on Routing from Far East to Russia:



Panalpina is one of E-Customs pioneers in Black and Caspian Sea Area.

• Declaring the goods prior to arrival;

• Declaring upon arrival;

• Import customs clearance;

• Export customs clearance;

Customs Clearance Services:



The Panalpina station in the European part of Russia is the gateway to Russia and it also acts as

transit point for shipments into other CIS countries. Moscow has several airports, of which the two

most used are Sheremetevo and Domodedovo (with Vnukovo a distant third).

SVO-2 is the larger and more up-to-date of two terminals.

There is no physical connection between the two terminals, they

are essentially separate cargo terminals using the same set of

runways.

Sheremetevo (SVO -1 and SVO - 2) Customs Terminals

Domodedovo (DME) Customs Terminal

Slightly less red tape and more modern facilities. Fit for

Fashion clientele, although lack Customs Inspection

space, zone remain a bottle neck for years to come, both

DME and SVO Customs.

Vnukovo (VKO) Customs Terminal

A perspective part of future development. Presently, Vnukovo

is lacking scheduled cargo carrier presence, but situation may

change in 2012.

Panalpina Customs in Airports:

Pulkovo (St.Petersburg); Borispol (Ukraine); Almati and Karaganda (Kazakhstan)

Customs Terminals are operational and support full Panalpina’ range of services.



Panalpina’ all new terminal to complement and extend Kashirskiy’ capacity. The

other advantage is this terminal is fit to allow truck / rail customs clearances.

Railroad solutions become more popular for imported goods ex-Far East

Lvovskiy Customs Terminal, 45km Moscow

Kashirskiy Customs Terminal, 37km Moscow

The most widely used Customs point for Fashion and Consumer&Retail goods

clearance by Panalpina.

Russian Government has invested a hefty portion into facility’ upgrade. Facility

become a know-how center to translate knowledge across the organization for

overland customs clearance solutions.

Lately been overpopulated with the clientele so that Panalpina decided to develop an

alternative facility named Lvovskiy Terminal.

Smolensk Customs Terminal and other facilities

Future tells that Customs Terminals will migrate closer to the borders and

Panalpina has already done pilots with Smolensk Customs Terminal to be at the

edge of latest trends.

Panalpina Overland Customs:

St.Petersburg Baltic, Ust Luga Customs;

Kiev, Ilichevsk, Odessa Customs (Ukraine);

Almati (Kazakhstan) Customs are operational and support full Panalpina’ range of services.



• Starting from the 2012 New Panalpina A-class warehouse in Krekshino Logistics Park ,10’200 sqm

• 25 km South-West of Moscow Circle Highway (MKAD), between Kievskoye highway (M3) and Minskoye highway (M1)

• Services:

Temperature & Humidity Control and General Storage

Shelving & Possibility for GOH facilities

Inventory Management

Reverse Logistics

Local Distribution

Bar Code Scanning

Re-Packaging and Re-labeling

Quality Control

Pick and Pack

New Warehouse in Moscow:

Documents

Consumer & Retail And Fashion 2011