SHIPPING COST REDUCTION STRATEGIES

Scots Skill ONE – Develop Shipping Cost Reduction Plan 2022/2023 Scots Skill TWO – Conduct a Costs Analysis for SHIPPING COST REDUCTION FOCUS Scots Skill THREE – TEN Key Shipping Costs Reduction Strategies STRATEGY ONE – DIRECT LINER/VESSEL OWNER BOOKING STRATEGY TWO – FORWARDING AGENT NEGOTIATION STRATEGY THREE – LOGISTICS and GROUND TRANSPORT STRATEGY FOUR – PORT and 3PL FACILITIES STRATEGY FIVE – SHIPPING DEPARTMENT ADMINISTRATION STRATEGY SIX – FACILITIES and WAREHOUSE OPERATIONS STRATEGY SEVEN – SHIPMENT DAMAGE/LOST and INSURANCE STRATEGY EIGHT – ‘RIGHT’ SHIPPING INCOTERMS 2022 STRATEGY NINE – SHIPPING ‘HIDDEN’ COSTS STRATEGY TEN – SHIPPING MANPOWER COSTS Scots Skill FOUR – Shipping Cost Reduction Team Feedback – Identify and Implement Corrective Action

PART A – SHIPPING COST REDUCTION STRATEGIES – THE WORLD HAS CHANGED 1. The World Has Changed 2022 – Shipping Work Relationship, Diplomacy vs Threat, Limited Shipment, Delays, etc. 2. Shipping Cost Reduction Strategies – WFH, User Difficulties, Shipment Failures, New Priorities & Fluctuating Orders PART B – ‘NEW NORMAL’ SHIPPING COSTS 2022/2023 REVIEW 1. SHIPPING COST REDUCTION ANNUAL PLAN 2022/2023 A. Annual Shipping Plan 2022 – Lower Freight Charges, Insurance, Demurrage, Delivery, Hidden Costs, etc. B. Shipping Team in Cost Down Focus – Incoming/Outgoing Delay, Reduce Mistakes, Manage Users/Customers, etc. C. Scots Skill ONE – Develop Shipping Cost Reduction Plan 2022/2023 2. ANALYSE and FOCUS SHIPPING COST IMPROVEMENT AREAS A. Shipping Direct Costs Analysis – Freight, Insurance, Ground Transport, Port Charges, Custom Duties, etc. B. ‘Shipping Hidden Costs’ – Vessel Delay, Wrong Nomination, Last Minute Booking, Interest Costs, Staffs Time, etc. C. Scots Skill TWO – Conduct a Costs Analysis for SHIPPING COST REDUCTION FOCUS PART C – ‘NEW NORMAL’ SHIPPING COSTS 2022/2023 REVIEW 3. SHIPPING COST REDUCTION STRATEGIES A. Shipping Costs Reduction Model – Objectives, Costs Analysis, Strategy Selection and Shipping Action Plan. B. TEN Key Shipping Costs Reduction Strategies STRATEGY ONE – DIRECT LINER/VESSEL OWNER BOOKING Long Term Customer Discount Forwarding Agent Fees Early Vessel Space Reservation STRATEGY TWO – FORWARDING AGENT NEGOTIATION Consolidate Agents Business Shipment Routing Annual Shipment Consumption Discount STRATEGY THREE – LOGISTICS and GROUND TRANSPORT Transport Trips and Capacity Local vs Overseas Insurance Annual Logistics Consumption Discount STRATEGY FOUR – PORT and THIRD PARTY LOGISTICS FACILITIES Container Size/Volume Equipment/Loading Services 3PL Annual Consumption Discount STRATEGY FIVE – SHIPPING DEPARTMENT ADMINISTRATION Staffs Productivity/Costs Administrative/Operating Expenses Wrong Shipment Delivery STRATEGY SIX – FACILITIES and WAREHOUSE OPERATIONS Facilities/Equipment Depreciation Warehouse Utilities and Rental Facilities Maintenance Costs STRATEGY SEVEN – SHIPMENT DAMAGE/LOST and INSURANCE Incoming/Outgoing Shipment Damages Cost of Shipment/Production Delays Insurance Loading Costs STRATEGY EIGHT – ‘RIGHT’ SHIPPING INCOTERMS 2020 RIGHT Incoterms Selection Freight/Transport Costs Local vs Overseas Insurance/Forwarder STRATEGY NINE – SHIPPING ‘HIDDEN’ COSTS Cost of Shipment Returns Demurrage/Delay Costs Last Minute Shipments STRATEGY TEN – SHIPPING MANPOWER COSTS Staff Costly Mistakes Forwarder Manpower Support Training and Staff Productivity Part D – SHIPPING COST REDUCTION IMPLEMENTATION 4. SHIPPING COST REDUCTION ACTION PLAN A. Develop Shipping Cost Reduction Champion – Project Team Leader and Team Members to Reduce Costs! B. Implement Shipping Cost Reduction Action Plan – What, How, When, What Resources and Who C. Scots Skill FOUR – Shipping Cost Reduction Team Feedback – Identify and Implement Corrective Action