SMOOTH SAILING

Logistics Insight Asia, 1/5/2008

Faced with the challenge to keep their vessels constantly on the move, ship owners have to ensure a ready and reliable supply of spare parts.

By KENNETH BYBJERG.

Today, some 90 percent of the world’s commerce moves across oceans, seas and rivers. With increasing globalization, the demand for capacity to ship cargo around the world is expected to risein tandem.

To keep up with the demand in a business that feeds, links and transport global commerce, the priority of ship owners and managers is to keep their vessels constantly on the move and minimise any vessel downtime.

Imagine if you will, a ship owner has a problem. His vessel en-route to Houston has broken down. It needs a set of bespoke engine tools and a replacement pump. That means arranging for the spares to be collected from the warehouse, packed, freighted, customs cleared, delivered directly to the vessel, and to arrive in top operational condition.

Any delay is costly. Yet traditional deliveries for these critical ship components are fragmented, involve multiple parties and cause coordination challenges, mishandling, miscommunication and paperwork problems. These hiccups often break the supply chain, resulting in money lost, with multiple contact points, leading to co-ordination challenges. Adding to the complexities, ship spare part suppliers are mainly concentrated in just a handful of locations.

The ensuing process involves meticulous planning and time defi nite execution. Procurement and logistics managers must juggle the requirements from the fl eet of vessels, manage supplies from multiple origins, as well as decide the best time, location and option for the vessels to receive the spare parts. Precise coordination is also needed for the supplies to reach the vessel in time.

OUTSOURCING OPTION
As the industry faces increasing competition and squeezed profi t margins, ship owners realise they need to look at more effi cient and innovative alternatives to minimise operational costs. One solution is to outsource global ship spares supply chain management to specialists who can meet their vessels urgent or planned needs for spares in the shortest time and most costeff ective way.

Reducing ship spares inventory, or better and more strategic storage and distribution for inventory, is a main priority for shipowners. It not only frees up capital, and reduces cost, but also improve daily planning and overall operational effi ciency. Cost savings can also be achieved through shipment consolidation rather than transporting each spare part in a piece meal fashion.

Individual shipments not only result in multiple origin freight and destination charges, but it could also lead to higher risk exposure. The key to the development of such a highly specialised logistics solution for ship spares requires expertise not just in logistics services, but also ship agency and off shore marine support capabilities. This is particularly important because a vessel could be in need of a critical part while at a remote location.

A global ship spares logistics service provider can also off er customers the benefi ts of a strong network. Testament to a specialist’s capability will be the ability to deliver to diffi cult locations, in addition to the popular spots for taking spares – that is when any delay is going to be even more costly.

DELIVERY FLEXIBILITY
Solutions provided by specialists extend beyond the normal scope provided by forwarders for ship spares through to delivery on board vessels. To ensure time and cost effi ciency, specialists can off er a wide range of transportation options such as air or sea freight, courier or road transportation.

Working with clients to identify the most economical way to deliver the spares is important. For example, various orders of spares from multiple suppliers can be collected and stored at warehouses until the vessel is optimally placed to receive them. Such fl exibility allows for customisation of solutions according to specifi c requirements – a feature that is particularly crucial during times of emergency or crisis.

Delays to spares deliveries are common problems faced by ship owners. By leveraging on strong carrier and supplier relationships, coupled with strict compliance to global security standards, owners are assured of timely delivery of ship spares and marine parts at competitive rates. The guaranteed transit times prevent potential delays, allowing the ship to be repaired quickly and returned to rotation on time.

A good service provider will invest in IT, such as event-based tracking systems, to off er ship owners complete visibility from source to destination. Such systems are usually web-based, allowing the customer to remain in full control of the operation and communication throughout the supply chain 24/7. This knowledge can enhance planning and reduce vessel downtime.