17 December 2012
Leading shipmanager Anglo-Eastern has put ShipServ at the heart of its procurement strategy using ShipLink for onboard requisition tool and TradeNet to connect suppliers.
Ivan Blazina: Implementing a Single Point of Contact purchasing strategy only possible with a common trading platform to standardise documents.
Established in the 1980s, Anglo-Eastern Ship Management has established itself as one of the leading shipmanagers having today approximately 450 ships in full management.
As a truly global operation with seven different offices around the world handling thousands of suppliers, Anglo-Eastern has always been keen to use technology to provide automation and a high-level of control over its global purchasing activities and this has culminated in its strategy of pursuing a SPC (Single Point of Contact) for all its major suppliers, with multiple locations around the world.
“With our purchasing based in seven locations, this meant that we had a few 1000s of records for suppliers across the globe, so in 2010 – we decided to rationalize the number of suppliers to easy and manageable level,” said Ivan Blazina, Group Purchasing Director of Anglo-Eastern Shipmanagement.
The SPC (Single Point of Contact) strategy allows suppliers to channel all the RFQs and POs from different Anglo-Eastern offices to one single supplier connection to the ShipServ TradeNet platform. Each supplier’s branch offices can therefore see all the RFQs and POs from Anglo-Eastern offices across the globe and respond centrally in a coordinated manner.
This improves standardisation to the suppliers, and suppliers can respond to an RFQ as quickly as possible – eliminating delays and mistakes where RFQs and POs may need to be forwarded from one supplier branch office to another. “This is where ShipServ has helped us – it has provided a single connection for our different servers to talk via MTML and a common trading platform to a whole host of suppliers and means our orders and quotes have global visibility”.
The supplier creates a single point of contact, which means that all relevant supplier’s offices across the globe can see all Anglo-Eastern’s digital documents hosted on ShipServ allowing quotes and orders to be worked on effectively 24/7. Anglo-Eastern increased the use of KPIs generated by ShipServ to assess pre-qualified suppliers looking specifically at response times and to ensure they have only quality suppliers for every required category.
“Our SPC strategy would be hard to implement without ShipServ and a common MTML standard- it now means that suppliers with a global presence can coordinate their operation globally through a common trading platform that people in multiple locations can use,” said Mr Blazina.
He admits that the implementation of the Single Point of Contact strategy hasn’t been without resistance – both internal and external – but this has been over-come. “There was a concern that relationships people had with the suppliers would disappear from local offices, but this hasn’t happened as there is always visibility for each local office and everybody can see requisitions and the local technical support remains – it’s just part of a centralised and coordinated system now,” said Mr Blazina.
ShipServ Pages is also used by Anglo-Eastern as part of the Single Point of Contact strategy to cross-check and verify suppliers and the products they provide. “Pages helps us keep up to date with suppliers and the products they provide and we can also see directly their TradeNet ID.”
All Anglo-Eastern managed vessels also use ShipServ’s ShipLink software, meaning that it is easy for ship personnel to browse catalogues, create requisitions and send to shore personnel via TradeNet for fast processing allowing Anglo-Eastern to speed up the entire purchasing cycle from source.
ShipLink is used in conjunction with the ShipCat tool and Anglo-Eastern worked with ShipServ and key suppliers to produce bespoke catalogues that ensures that correct part numbers or product codes are entered in the onboard requisition. The catalogue makes it easier for the ship crew to select items without typing, and the correct product number makes it much easier for suppliers to identify the right item and to quote. This is being aligned with a unique training programme that ensures all cadets are trained in the basics of supply chain management, while at their training centres and academy in India.
“Cadets need to learn new tricks and understand more about supply chain management as it is a significant amount of money that is spent through purchasing.”“Future Officers (onboard managers) must understand the procurement process, and understand how important it is that purchasing must be planned and how the supply chain works and the part that e-commerce plays. It’s not rocket science but it does take some practice to grasps the intricacies of purchasing and understand that every purchase order has a price,” concludes Mr Blazina.