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Logistics Intelligence + Efficiency = Competitive Advantage

By: Simon Kaye
Posted: June 7, 2011, from the June 2011 issue of GCI Magazine.

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The new Rotterdam Rules developed under the auspices of the United Nations further supports simplified processing. The rules allow carrier liability terms to be included in individual, confidential contracts that clearly document responsibility and liability during the whole transport process. Electronic document processing and tracking can define obligations regarding carriage, risks, costs and delivery terms under the rules and reduce costs while ensuring that shipments arrive without delays or surprises.

Customs Pre-Clearance

Authorities in charge of customs and border security are adopting new systems that allow for shipment pre-clearance if the content is verified through electronic tracking and screening. The U.S. Customs and Border Protection agency (CBP) has created rules for the Importer Security Filing (ISF) on maritime shipment and the Customs-Trade Partnership Against Terrorism (C-TPAT) security guidelines for multimodal imports, both of which allow pre-qualified importers to avoid massive security delays. The same is true for the Transportation Security Administration’s Certified Cargo Screening Facilities (CCSF) for pre-screening of air cargo.

Security Assurance

Theft, piracy and terrorism all have the potential to create massive shipment delays that can be mitigated by sophisticated and integrated techniques for protecting cargo and supply chain security. For example, in conjunction with electronic tracking, geofencing technology puts a virtual “fence” around the route that the load is scheduled to travel from pick-up to delivery, using GPS tracking to alert for problems. Electronic seals send an instant alert if container or transport vehicle seals are breached, using a combination of GPS and global system for mobile communications (GSM) for tracking and positioning.

Afterword

It should be apparent that planning and information control are essential to creating an intelligent global supply chain in which accurate and instantaneous information supports competitive efficiency. With its rapid marketing cycle times, perishable products and far-flung supply chain, few industries benefit more from supply chain intelligence than beauty. An integrated process founded on realistic logistics planning to create supply chains with maximum amount of efficiency and flexibility is the most intelligent path to profitability for any cosmetics industry player.

Simon Kaye is founder and CEO of Jaguar Freight Services, with operations and fully integrated door-to-door freight solution networks in Europe, North America, South America, Australasia, Asia, the Middle East and Africa. simon@jaguarfreight.com; www.jaguarfreight.com; 1-516-239-1900