L – 2 Global SCM Partners /

Channel Design and management

TOTAL COST CONCEPT

• The total cost Concept is the key to effectively managing the processes. The goal of the organization should be to reduce the total cost of logistical activities, rather than focusing on each activity in isolation

MAJOR COST HEADS

• Place / Customer Service

• Inventory Carrying Costs

• Transportation cost cost

• Low quantity costs

• Warehousing costs

• Order processing and information costs

MODE

• International air freight forwarding

• International ocean freight

• Multi-modal transportation

• Trucking / solutions

• Rail network

Concepts

• Air Consolidation• Road /rail• Indian customs procedures• Ocean freight

– Containerization– Types of Vessels – B/bulk, Ro-Ro, Bulk, Combi

Tankers / LPG/CNG– Port operations– CFS /ICD

Model links

• Out Bound – Exports

Factory Stuffed

Dock stuffed

• In Bound -Imports

Dock De-stuffed

Factory De-stuffed

Along Wharf

Customs Clearance Heads

• Basic duty – 10% • (Depends on the product)• Addl. Duty – 8 % or 4 % ( Value + Duty)• Education cess – 2 %• Sec &High Education cess – 1 %• Customs education cess – 2 %• Customs Sec. & High Education cess – 1%• Sp. Addl. Duty – 4 %

INBOUND CLEARANCE PROCESS

Original HBL, Invoice & Packing List, certificate of origin, catalogue ,.

Clearance Dept. Manifest the Documents in System

Bill of Entry is Generated

Bill of Entry is uploaded on Indian Customs Site ICE GATE

Bill of Entry Number is Generated in EDI System of Customs

Bill of Entry is forwarded to the concerned Appraiser on his screen

From here the process is divided into Second Check & First Check

SECOND CHECKBill of Entry assessment by the Group Appraiser

Bill of Entry Passed by the Deputy Commissioner of Customs

TR6 & Bill of Entry Print Out taken

Cargo is traced at nominated CFS

Customs Duty is Paid

Delivery Advice is collected from the Consol Dept. on Submission of the HBL

Delivery Advice, Bill of Entry & TR6 Submitted to the Shipping Co.

Shipping Co. Chgs. & 0.1% Stamp Duty on Assessable Value & Customs Duty is paid & Delivery Order is Collected

Shipment Received Order is taken from the CFS

Forwarding is taken from the Shed Appraiser

Sealing Cutting Permission is taken from CFS for FCL Shpt.

Examination by Shed Appraiser

Examination Report is punched & print command given.

5 Copies of Bill of Entry & Examination Order is Printed & Signed by the Shed Appraiser

CFS Charges are Paid & Delivery Taken

FIRST CHECK.

Group Appraiser Disagrees with the Value/Custom Tariff Classification/Description of Goods, he issues First Check

Examination Order & Bill of Entry is Printed

Delivery Advice is collected from the Consol Dept. on Submission of the HBL

Delivery Advice Submitted to the Shipping Co.

Examination Delivery Order is Collected from the Shipping Co.

Shipment Received Order is taken from the CFS

Forwarding is taken from the Shed Appraiser

Sealing Cutting Permission is taken from CFS for FCL Shpt

Examination by Shed Appraiser

.Examination Report is punch in the Customs System & Bill of Entry forwarded to the Group Appraiser

Group Appraiser Assess the Bill of Entry on the Basis of the Examination Report

Bill of Entry Passed by the Deputy Commissioner of Customs

TR6 & Bill of Entry Print Out taken

Customs Duty is Paid

Bill of Entry & TR6 Submitted to the Shipping Co

Shipping Co. Charges & 0.1% Stamp duty on Assessable Value+ Customs Duty is paid & Delivery Order is Collected

Shed Appraiser is approached for Out Of Charge.

5 Copies of Bill of Entry & Examination Order is Printed & Signed by the Shed Appraiser

CFS Charges are Paid & Delivery Taken

Mumbai Port 20’FCL 40 FCLTHC Factory Destuffing INR 5060 INR 7400

Docks Destuffing Non Haz INR 9565 INR 16210

Docks Destuffing Haz INR10555 INR 17215

JNPT PORT 20’FCL 40 FCL

THC Factory Destuffing INR 3900 INR 5970

Docks Destuffing Non Haz INR 6395 INR 10845

Docks Destuffing Haz INR 6945 INR 11670

Delivery Order Charges INR 2000 PER HBLWashing Charges INR 450/- PER CONT. INR 900/- PER CONT.Survey Fees INR 350/- PER CONT 450/- PER CONT. LCL Rs. 750 Per Ton/Rs.450 Per CBM

Container Detention charges 20’ feet First 5 days freeUS $ 8.50 Per Day/Per Cont. for 7 days there afterUS $ 13.50 Per Day/Per Cont. for next 7 daysUS $ 17.50 Per Day/Per Cont. for the next 7 days there afterUS $ 48.00 Per Day/Per Cont. there after

Double for 40’

Port Trust Charges if shipment arrived at Mumbai port

First 6 Days Free

INR 30/- Per Day/Per M.T for the first 20 days there after

INR 45/- Per Day/Per M.T for the next 20 days.

INR 60/- Per Day/Per M.T there after

+ 0.22% wharfage on assessable value.

CFS Charges JNPT port

Ground Rent 1st to 7th Day INR 150/- Per Day/Per TEU

8th to 15th Day INR 250/- Per Day/Per TEU

16th to 30th Day INR 500/- Per Day/Per TEU

31st Day on wards INR 650/- Per Day/Per TEU

LCL

First 4 weeks INR 75/- Per week/Per CBM (Minimum 5 CBM)

There after INR 90/- Per week/Per CBM (Minimum 5 CBM)Bonded CargoFirst 4 weeks INR 85/- Per week/Per CBM (Minimum 5 CBM)There after INR 100/- Per week/Per CBM (Minimum 5 CBM)Handling Charges INR 70/- Per M.T.

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Channel Design & Management

• Do your channel partners proactively search out your prospective customers and have the skills needed to close the business?

• Do your channel partners have the reach you need to fully participate in your chosen markets?

• Does your solution form a strategic part of your partners business? • How quickly can you recruit effective new partners? • How do you minimize channel conflicts without reducing market

coverage? • What performance data will you need to collect from the channel

and how? • How will you use your performance data to enhance the

effectiveness of your channel partners and create a better service for your customers?

• Which partner programs will work for you and which won’t

• CASE STUDY