the new strategic purchaser -...
TRANSCRIPT
The new strategic purchaserEfficiency, visibility and risk management- Reduce purchasing cycle times - Increase order accuracy - Improve service to ships
Ane Fosseng, Business Development Manager, ShipServ
Steinar Sandberg, Group Purchasing Manager, OSM Ship Management
ShipServ
• ShipServ helps Shipowners and Shipmanagers to find
the best suppliers easily, trade efficiently and build
trusted relationships.
• We offer the largest online trading platform, the most
used supplier search engine, the leading ordering
guide and the first online ad network.
• The high volumes of sourcing, trading and search
data our community shares every day helps us deliver
better results and more accurate information to both
buyers and suppliers.
$3 bn Sourced &
160 Shipowners / Managers
36,000 Suppliers
70,000 Users
6,000 Ships
The ShipServ Community
Traded
Requisition
Quote
Request for
Quote
Order
Order
Confirmation
Invoice
Logistics Info
Logistics
Info
Logistics Info
…still has many areas that are NOT automated
Buyer
Supplier Logistics
Provider
Ship
The traditional procurement
process…
• Poor Data Quality
• Error-prone Processes
• Poor Reporting
• Limited automation
• Lack of control
Leading
to
Delayed orders
Too much time on admin, not enough on strategic buying
activities
Lack of visibility into operations makes management control
difficult and disguises opportunities for improvement
The result – for Shipowner/manager
Shipping company in-house systemsSupplier in-house systems
In-House
Spectec AMOS
ShipNet
Tero Marine
ABS NS
BASS
Consultas
Logimatic
CL-Sea
WebBuyer.
Danaos
EtcEtc
Etc
SAP R/2
SAP R/3
Oracle
JDE
Concorde
Navision
StartSupplier
Etc.
EtcEtc
Etc
IFS
Baan
MFG/PRO
Custom
SmartSupplier
Nothing
Etc.
Custom
Teomaki
…with exactly one connections per
participant
“Our buyers can do more
„buying‟, there‟s less
wasted time.”
“Purchasers now have time
to do better things…they get
15-20% of their time back.”
“Buyers were dealing
with 20 ships, now they
can do 40.”
“RFQ to PO time
reduced by 30%”
“We use the KPI reports every
month...to evaluate suppliers.”
“A 1% savings on the procurement
side equals about 10% revenue
increase on the chartering side.”
Source: ShipServ Customer Survey, Spring 2008
Speed up
purchasing, reduce
administration
Negotiate better
deals, enable
strategic sourcing
Deliver
savings to the
bottom line
Benefits for
the Ship owner/
manager
Customer feedback
• Tidewater reduced cycle times by 45%, and saved 39% in one year on electrical purchases alone.
• Hoegh Fleet Services reported order cycle times reduced by 3 days.
• Holland America Lines operates a fleet of 14 large cruise ships with half the number of buyers vs. the industry average.
• Vroon Offshore increased fleet by 30% with no increase in purchasing staff, and reduced head office purchasing department cost by 10%.
• Crowley Maritime reported a reduction of 23% in time spent per vessel, and is on track to achieve their target of 2% savings in the first year of operation.
• Solstad Offshore AS reported that they freed up 20% of their time to devote to sourcing and negotiations.
Better manage customers
Be more responsive
Win new
Targeted Advertising on Pages
TradeRank and Reviews
business
Benefits for the supplier
City Country
ARENDAL NORWAY ● ● ●
KRISTIANSAND NORWAY ● ●
ABERDEEN U.K ●
STENUNGSUND SWEDEN ●
HAMBURG GERMANY ● ●
GDYNIA POLAND ●
KLAIPEDA LITHUANIA ●
RIGA LATVIA ●
ARCHANGELSK RUSSIA ●
ODESSA UKRAINE ●
SPLIT CROATIA ●
MUMBAI INDIA ●
JAKARTA INDONESIA ●
SINGAPORE SINGAPORE ● ●
MANILA PHILIPPINES ● ● ●
HONG KONG CHINA ●
SHANGHAI CHINA ●
RIO DE JANEIRO BRAZIL ● ●
FORT LAUDERDALE USA ●
POINT NOIRE CONGO ●
Cre
w
Ma
nag
em
en
t
Sh
ip
Ma
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Off
sh
ore
Co
rpo
rate
Facts and figures,at a glance.
More than 7,700 employees at sea
More than 500 employees on shore
21 offices worldwide
Three business units; providing
Ship Management,
Crew Management and
Offshore Management
Privately owned, management holds
more than 75% of shares
Diverse customer base comprising
private and public shipping companies,
international and integrated drilling
and offshore operators
2009 Revenue of US$275.5m
(2008: US$245.7m)
Ma
nn
ing
Key FactsOSM Globally
Company IntroductionOffice Locations and Key Facts
ShipServ – impacts for OSM
• OSM joined ShipServ in 2010 with a full integration to PMS/Purchasing system Teomaki
• OSM does purchasing on ships from 4 different locations –Arendal, Hamburg, Singapore and Manila. By using ShipServ‟s reports and statistic tools we are able to get better control across borders
• Purchaser can concentrate on smart sourcing rather than typing
• Better cost control onboard the ships as all prices are visible on line item level
• Potential for full backend integration of our suppliers with additional response time advantages