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DIGP - Shanghai Cambodia Ocean Tradelane

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by

Jerry Chen

on 5 May 2013

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Transcript of DIGP - Shanghai Cambodia Ocean Tradelane

Shanghai Cambodia Go 2 MKT Road Map Damco Cambodia Suppliers of Raw Materials of Garment
in Shanghai Using 3PL to manage logistical needs;
Referrals play an important role;
The smooth operation is key factor;
Rate is an important filter, if it's not the most important one. The Garment Factories in Cambodia Raw Material Export Garment Industry in Cambodia Ocean Tradelane Resources
Jerry Chen
Ya Nan Liu 95% of country's total exports;
45% of Cambodia manufacturing workforce;
16% of the country's gross domestic products(GDP);
"...everything is imported — even the sewing needles and thread" Logistic needs of Garment Factory Financial Fact The industry has LOW net profit margin (around 5%);
The logistics expenditure is around 3% to the total cost of good sold;
The freight rate is a key element to consider before choosing 3PL; "Shipper's feedback" Order quantity is normally less than full container load;
CFS/CFS sounds economical plan but it isn't always cheap;
Most of the decisions for sourcing and distribution of raw materials happen in the headquarters located in the South East Asian region. "Shipper's feedback" DIGP - Research Project Shanghai Cambodia 9.4% - Developing Asia expect to have strong growth
7% - Cambodia is a rapidly developing economy
16% of GDP - Garment industry in Cambodia's pillar industry
66% - China is the major supplier for raw materials to the Garment industry Pre - Paid Business Is Damco too BIG to take care of my small business? "Shipper's feedback" $ Competitive Advantage I CFS Operations in Cambodia, with combined capacity of 16,000 square – meters with over 40 loading bays and an advanced CCTV system. Strategical partnership with sub-contractor of trucks;
Advanced Anti Pilfering Process - Trucks equipped with GPS, Containers with additional security, 24X7 CCTV in CFS facilities;
More skillful commercial and operation organization; Competitive Advantage II Challenges How to build up a LCL product if we don't have any regular volume as base load? How Damco could compete with local players and penetrate new market / vertical - Garment industry? How to build up a LCL product? Market Research 1 3 Pricing Strategy Management Sign off 2 Product Promotion 4 Pulse survey 5 Review and revise the product 6 Evaluate existing / potential average weekly volume
Estimate the cost to service Set up a pricing calculation sheet for sales easy reference
Set up IOPs for financial related issues; Set up communication metrics Set up a marketing strategy(e.g. pricing) to achieve the targeted growth
Get sign-off for the marketing strategy and the sponsorship for the initial investments Design commercial Materials to promote new LCL product
Communicate the new LCL product with internal stake holders
Set up sales campaign in CRM and monitor the progress weekly Review the pipeline development with local sales
Review CFS operation and charges
Share project status with management Review the performance during the initial stage; Adjust the marketing strategy; Decide the next step;
Periodic review of the product Local Player's Strength Damco's Strength III Damco's Strength I Damco's Strength II How Damco could Compete
with Local Player Relationship (e.g. referrals);
Credit Terms;
Key Competition in the region:
a.Agility
b.King’s Freight
c.KN Zigma
d.Small local forwarder as agent office
e.APL
f.K&N and DGF
g.Schenker, Ceva Tradelane Management "Sell" the LCL product to the Global Network - make sure box has been filled up! KAM of lifestyle Vertical could persuade vendors of H&M, Adidas, Target... to consider using Damco for an integrated solution for inbound / outbound. Willing to investment for the future growth: New CFS Facilities - Apr 2013;
Strategic DCC investments: support the strongest DCC initiatives with 50% of Base Ocean Freight during cargo build up - 10 weeks;
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