Content
• About Colombo Dockyard PLC
• Supply Chain Management – Introduction
• Supply Chain Management & business strategy
• Incoterms 2010
• Important documents related to the SCM
• History of the shipping Document
• Supplier Network
• Challenges and risk strategies
• New Trend in SCM
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About Us
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us
• Est: 1974 • Ship repairing • Ship building • Heavy engineering • Offshore engineering • 125,000 DWT graving docks capacity • More than 3500 no of total employment
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Evolution of Colombo Dockyard PLC
1975 Commencement
of steel shipbuilding
1974 Incorporation
of CDL with
3 dry docks
Incorporation
of CSA
1976
1st Tug Boat
for Colombo
Port Commission
1978
1981 Incorporation of
Ceylon Bulk Carriers Ltd
and renamed as CDGE
Incorporation of CDL
as a private limited
liability company
1st offshore patrol vessel
1982
CDL converted into PLC
and BOI company.
1st export order in
shipbuilding for
Myanmar
1983
1987 1st Ship building
project to the Maldives
Hull 78-81
Fish collector vessels
CDPLC commences
operation of the
125,000 DWT
newly built Dry dock
1988
1992 Commencement of
Aluminum shipbuilding
in Sri Lanka
1993
Major re-structuring
of CDPLC &
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Remarkable event of the odyssey
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
• Core values
- flexibility
- innovation
- being customer centric
- environmental friendly
- people focused
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
Ultra Fast Attack Craft (Series II)
Petrol Duties of Sri Lanka Navy
Length – 24.03m
Loading – 52.0T
Speed – 45 knot
Endurance – 500Nm
Combat system
Missiles: AGM-114 Hellfire (Surface-to-surface type)
Guns: 2x20 mm AA, 2x12.7 mm MG, one 84MM Recoilless gun
Radars: 1 Raytheon type
E/O: El-Op MSIS Weapon Director
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
Ultra Fast Attack Craft (Series III)
Petrol Duties of Sri Lanka Navy
Length – 24.03m
Loading – 52.0T
Speed – 53 knot
Endurance – 500Nm
10 heads per boat
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
MPSV – Multipurpose supply vessel • Long – 78m • Speed – 13.8 knot • Popular in Gulf region • Vessel is to support offshore oil & gas field
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
200 passengers cum 100T cargo vessel
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
• Second Class – 40 passengers
• Bunk Class – 350 passengers
• Crew – 69 persons
• Speed – 15 knots
• Fuel Oil – 400 T
• Length overall – 99.00 m
• Breadth mld – 17.00 m
• Depth – 9.20 m
• Design Draft – 4.20 m
• First Class – 10 passengers
400 passengers cum 250 Tons cargo
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
Ship Repairing
Main repairing areas Machinery repairs Hull repairs Propeller repairs Electrical repairs Electronic and automation repairs Cargo gear repairs Internal tank, cargo hold blasting and coating
Maximum capacity of up to 125,000 DWT and over 1000 meters of fully serviced alongside repair berths.
“…an Odyssey of Excellence”
Colombo Dockyard PLC
About us cont…
Colombo Dockyard has made significant progress and been able to forge into top end repair markets in the offshore sector. The Offshore Engineering division has managed some unique retrofits and repair work creating history in the local maritime industry.
Offshore Engineering
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Major components of the multipurpose supply vessel
1. Stern roll for anchor handling 2. Stoppers for anchor handling 3. Steering engine 4. Starboard ducted propeller 5. Stern tube 6. Transverse thruster 7. Cofferdam 8. Tanks for dry bulk cargo e.g. cement 9. Mud tanks 10. Propeller shaft 11. (Reduction) Gear box 12. Main engine 13. Fire pump 14. Life rafts 15. MOB-boat with crane 16. Storage reel for steel wires for anchor handling 17. Anchor handling winch 18. Bridge with controls for deck gear and ship’s steering 19. Fire fighting monitor 20. Radar antennas 21. Antenna for communication system / satellite antenna 22. Watertight bulkhead 23. Anchor windlass, below deck 24. Azimuth thruster 25. Bow thruster
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Supply Chain Management
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Why supply chain management? History
• Sun Tzu (ancient Chinese military general, strategist and philosopher and author) - The “Art of War” more than 2500 years ago
• QC Management – Can you manage and improve the quality standard of your product or service measured by the end-consumer w/o managing the suppliers and buyers ?
• Direct link with the cash flow management of a company
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Supply Chain Management
Group of inter-connected participating companies that add values to a stream of transformed inputs from their source of origin to the end products or services that are demanded by the designated end-consumer
Major categories of SCM
- product Flow
- information flow
- finance Flow
- commercial flow
Definition
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Why supply chain is important for the CDPLC ?
• More than 65% of the total cost of production contribute by the materials
• Non of the marine quality materials are not producing in Sri Lanka
• entirely depend on the international market
• Able to make significant impact for the top line
• Quality materials deliver at the right time with the minimum cost is requirement
“…an Odyssey of Excellence”
Colombo Dockyard PLC
SCM & BUSINESS STRATEGY
• We believe that a supply chain that is closely aligned with business strategy helps to advance business objectives and achieve sustained, profitable growth. While business strategy should drive supply chain design decisions, it is also critical to execute well on all of the supply chain’s tactical dimensions.
• In a recent Bain survey, C-suite and supply chain executives agreed that supply chains are at the heart of outstanding performance. Nearly 90% of all executives surveyed felt that supply chains promote competitive advantage, are critical for satisfying customers and, at the same time, have significant room for improvement.
• Our supply chain consultants have teamed with hundreds of clients on more than 1,500 engagements across all industry verticals. In working with client teams, we clarify supply chain priorities by bridging the gap between strategy and design and ensuring successful implementation, backed by operational expertise, to make the results stick.
“…an Odyssey of Excellence”
Colombo Dockyard PLC
High performance SC setup flows from the business strategy
Key Question * What is our overall business strategy ? How will we win today ? * What must the supply chain deliver to best support our business strategy
“…an Odyssey of Excellence”
Colombo Dockyard PLC
How do Lean, Agile, and “Leagile” Supply Chain Strategies Compare?
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Procurement Process of New Construction
Arrange the payments
Appoint 3PL
Collect the Shipping
Document
Customs Clearance
Incoming inspection
Store the goods
Issue the goods
Design the
vessel
Planning the material
required dates
Prepare the MOC
(Material Ordering Card)
Check against the available
general stock
Allocate the goods from
available stock
Forward to Procurement
In-charge
Accept the MOC & Select
the sourcing category
Foreign Purchase Local Purchase
Purchase Enquires
Evaluate Technical
specifications
Recommend a quotation
with the reasons
Evaluate the commercial
and logistics aspects
Purchase Approval
Purchase Order / PO
Order Acknowledgement
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Procurement Process of Ship Repairing
MOC
Stores
Purchase Enquiry
Recommend the quotations by end user/Production
Purchase Order
Price Approval
Invoicing Engineer negotiate with vessel owner
Collect the Quotations
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Incoterms 2010 (8th version)
The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes. Main purpose is to demarcate the responsibility and assist in the complex situations to avoid any conflict • FOB • CIF • CFR • CPT • EXW
“…an Odyssey of Excellence”
Colombo Dockyard PLC
MOC – Material Ordering Card
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Vital Areas of the MOC • Description/ Technical
specification • Required date (This need to
submit by planning team)
Purchase Enquiry
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Purchase Enquiry • Minimum 10 or more P/E s needs to send per
item • Need minimum 3 or more quotations to
proceed further • This is directly link to cost factor
Purchase Order
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Purchase Order cont….
“…an Odyssey of Excellence”
Colombo Dockyard PLC
• Most vital document and legally enforceable document
• Currency code, Description, qty, required date, delivery date, shipping term need to specifically mention
• Shipping marks and nos, warranty • Signature of the head of the division
Payment Term
• Advance – T/T
• Balance – Letter of credit
• Credit – 30/60/90 days etc
Proforma invoice is compulsory to arrange any of the above payments except credit payment
Credit payment required commercial invoice and GRN to settle the payment
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Payment Term cont…
• letter of credit/ Irrevocable letter of credit (LC/DC) can not cancelled or modified w/o consent of the parties involved
• an irrevocable letter of credit is a guarantee from a bank, issued in the form of a letter. These letters allow companies (and individuals) do to business with confidence.
• letters of credit are often found in international trade, but they can also be used for domestic transactions. The details of each deal are not as important as the concept of a bank promising to pay a “beneficiary” once something happens.
banking.about.com
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Payment Term cont…..
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Advance payment / LC Payment • Use proforma invoice • Currency code, shipping term as
per the PO • Once remitted need to send the
T/T copy and get the acknowledment
Payment Term cont…
Letter of credit
• Bank to bank formats are differ
• Content is same
• This is separate subject and need to learn from the superior/ experience person while doing the actual job
•
For more details, www.investopedia.com/terms/i/iloc.asp
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Payment Term
Letter of credit SWIFT
Copy issued by the bank
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Shipping documents - History
• 13th Century • Codified provisions on bills of lading may be found in the 1924
Hague Rules, the 1968 and 1979 Hague-Visby Rules, and the Hamburg Rules.
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Shipping Documents
“…an Odyssey of Excellence”
Colombo Dockyard PLC
• Read well • Consignee address • Shipping marks and nos • Weight and dimension of the package as per the agreed rate of
3PLs • Check whether “SURRENDER/EXPRESS/WAY BILL/TELEX”
released stamp • On board date must appear • Signature must appear • Vessel name and Voyage no Tracking purpose http://www.marinetraffic.com/ https://www.flightradar24.com/59.75,16.76/6
Shipping documents
“…an Odyssey of Excellence”
Colombo Dockyard PLC
• Identify the master/ housing awb • Flight arrival schedule • Size and dimensions • Always need to collect the AWB from the
line office • FAN is compulsory pre-arrangement of the
customs documents • /cusdec preparation • Make sure non of the declaration stated
as damage cargo/ missing cargo
https://www.flightradar24.com
http://www.marinetraffic.com
Shipping Documents
“…an Odyssey of Excellence”
Colombo Dockyard PLC
• Signature is compulsory requirement • Price • Qty • Description ( Nos/ code system rejecting by the
Sri Lanka customs) • Description ( Doors, Dongle, Valves, Electric
Motor) • Shipping term • Price (If term CIF, Freight charge need to display
seperately) • No of pallets • If declare the payment term need to find the T/T
references for the advance payments or other payments.
• Supplier’s bank account no, IBN NO, swift • If the recipient is BOI company need to state
BOISL No
Shipping documents
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Need to declare the items in details Qty, no of crates, pallets, boxes Shipping marks and nos Cargo clearence party must aware of the item
Supplier Network
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Challenges, Strategies & Risk Management
Challenges
• Price Fluctuations • Trustworthy sources • World Economy • Changes of the project requirement • Natural Disasters, Local & Foreign legal Barriers (TRC, Defense etc)
Strategies
• Finding reliable Sources with competitive price. • Mutual relationships with suppliers • On time delivery (JIT –just in time)
Risk Management
• Changing delivery terms (Incoterms 2010) • Payment methods (LC) • BG, Performance Bond, agreements etc
“…an Odyssey of Excellence”
Colombo Dockyard PLC
New trends in SCM
• Green supply chain Pepsi/Coke saved $44 by switching from corrugated to reusable plastic containers, Global warming, eco friendly, Less material usage designs, minimum operations, achieving of economies of scale • AI (Artificial Intelligence) embedded for the SCM • RFID enhancement • Reverse logistics
“…an Odyssey of Excellence”
Colombo Dockyard PLC
Q & A
“…an Odyssey of Excellence”
Colombo Dockyard PLC