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 CHECK
Bill 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 FCL
THC Factory Destuffing
INR 5060
INR 7400
Docks Destuffing Non Haz INR 9565
INR 16210
Docks Destuffing Haz
INR 17215
JNPT PORT
INR10555
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
Washing Charges
Survey Fees
LCL
INR 2000 PER HBL
INR 450/- PER CONT. INR 900/- PER CONT.
INR 350/- PER CONT 450/- PER CONT.
Rs. 750 Per Ton/Rs.450 Per CBM
Container Detention charges 20’ feet
First 5 days free
US $ 8.50 Per Day/Per Cont. for 7 days there after
US $ 13.50 Per Day/Per Cont. for next 7 days
US $ 17.50 Per Day/Per Cont. for the next 7 days there after
US $ 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
TEU
INR 250/- Per Day/Per
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
CBM)
INR 90/- Per week/Per CBM (Minimum 5
Bonded Cargo
First 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.
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