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::Opinion::

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Shippers' interests take centerstage in SCMAP Perspective, written by Ed Sanchez, executive director of the Supply Chain Management Association of the Philippines. SCMAP is the association of logistics and distribution managers in the Philippines.

 

You are now viewing: SCMAP Perspective Archive : 2003 Q4

 

December 5 Christmas fellowship (December 15, 2003)

New DMAP officers (December 10, 2003)

Warehousing again (November 17, 2003)

Increasing awareness level for ISPS Code implementation (November 10, 2003)

RORO - Can it take off? (October 31, 2003)

Update on Shipping Rates (October 20, 2003)

Year End Activities ( October 16, 2003)

December 5 Christmas fellowship (December 15, 2003)

DECEMBER 5 was the date of DMAP's Christmas fellowship. It was one of the best attended fellowships ever. Some 160 party goers showed up, made up of 120 from DMAP members and 40 guests.

The mikes were very skillfully manned by Director Marichelle Chan (Unilab), Jude Hong (MSI-Digiland) and Ike Castillo (James Hardie). The entire program was master minded by incoming 2004 President 'Ochie' Ochoa (J&J) and past President Cora Curay (XVC). Vice President Jun Gabrino (Splash), Director Gerry Ong (Cheng Ban Yek) and PRO John Guillermo (CDO) ably assisted. Treasurer Elsie Oafallas (Jaka) took charge of the logistics work, covering the registration desk, the product giveaways and the raffle prizes.

Barangays were sent by Pilipinas Shell (10) led by William Mendez, J&J (10) led by Ochie, Jaka (10) led by Elsie, Nestle (6) led by Whey Mayo, PLDT (5) led by Al Lagera, Quantum Foods (5) led by Edred Almero, Philips (5) led by Jennifer Bool, and XVC (5) led by Cora.

Seen among the guests were Rudy de Ocampo and Ding Osana of CTAP, Mr & Mrs. Ito Carlos of PCCI, Mr. & Mrs. Henry Basilio of UA&P, Tet Gambito and Atty. Rod Domingo from consumer groups, lawyers M. Leonardo and Janette Chua, and JP Fenix from the press.

Only Atty. Pete Mendoza came from the government. The shipping lines were represented by Bimsy Mapa (Nenaco), Jun Tan (Solid), Samson Ang (Sulpicio), Sally Go (NMCCLI). Conference sponsors also came - Jane Ocava & Ronald Guar (Boeing MH), Cecille Geronimo (SSI Schaefer), ABM Computech, Aniec Dungog & Remie Co (Fast).

Past DMAP presidents also came - Norman Adriano, Lorie Cinco, Ike Castillo, Cora Curay and myself.

DMAP extends its thanks to all donors of giveaways and prizes. Major prizes were donated by Accord Logistics, Smart Communications and PAL. The party lasted until past midnight as in past Christmas fellowships.

December 5 was also the date of the PCCI elections, which DMAP was not able to attend. We heard, however, that the election did not push through. We do not have the details, but it seems politics has reared its ugly head there. Being a new member of PCCI, we in DMAP did not imagine it could be like this.

Strangely enough, the anonymous letters being given to attendees of the PCCI Transcom meeting seem to be connected in some way. Earlier letters mentioned political undertones which we could not understand and just ignored. Among the things we could not understand is why there was an attack on Transcom chairman Ito Carlos, when we were under the impression that the writer was just after Tet Gambito.

Speaking of Tet Gambito, and the warrant for his arrest, we understand that he has posted bail. His long experience and wide exposure to the workings of the local shipping industry enables him to question things that he sees are wrong and expose these and their perpetrators. In return he gets attacked from all sides by people who choose to hide behind anonymous letters and writers.

Tet was the one that pushed for the RORO concept, emphasizing that this should have been implemented ages ago, after government people visited Scandinavia and saw the benefits. Tet pointed out that those in power chose not to develop RORO locally, because it was more rewarding for certain quarters to collect unearned shares from cargo handling fees.

Tet correctly pointed out that domestic ship operators preferred to use inefficient multiple handling container operations, and port authorities allowed cargo handling fees to be charged where no work was done, and these contributed to escalating sea transport costs.

Now President GMA is using RORO as part of her reelection campaign. At the RORO conference, speakers from various sectors pushed for RORO. Nobody said thanks to Tet. Instead Tet is now being sued and criticized. This is what you get for trying to contribute to the improvement of local logistics.

December 5 was also the day DMAP found out about the MARINA's resolution of the case against WG&A's latest rate increase.

One strange thing is that the resolution was signed on Nov. 28, and it was released to WG&A on the same day, one week before DMAP's party. Up to December 11, almost two weeks now, DMAP had not received its copy!!!
The resolution looked very one-sided. It was in 100% agreement with WG&A's arguments. No comments were made to answer DMAP's contention that the rates were in violation of a law, the Public Service Act. Because the rates would allow an ROI of 53%, by DMAP's calculation. Yes, sir, that is fifty three percent. If this is not enough justification to complain, what is?

The resolution also had a statement: "To date. No comment was filed by Complainant on this Answer and/or Motion to Dismiss notwithstanding counsel for Complainant's personal receipt of the Order directing it to comment within ten days of receipt". This is another strange thing because MARINA Record Section has confirmed receiving DMAP's comment.

By the way, there was no sign of MARINA on DMAP's fellowship night. Likewise WG&A, with the exception of new recruit and former DMAP President Norman Adriano. Another strange thing?

Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email dmap@i-manila.com.ph. Those interested in DMAP training and other activities are requested to send their e-mail addresses.

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New DMAP officers (December 10, 2003)

DMAP held its annual election of Directors and Officers for year 2004 during its last general membership meeting for the year, held last November 18.

Elected were
President - Ana Rose Ochoa, Johnson & Johnson
Vice President - Jun Gabrino, Splash
Secretary - Marichelle Chan, Unilab
Treasurer - Elsie Oafallas, Jaka
Auditor - Vangie Relos, Nestle
PRO - John Guillermo, CDO

The other elected Directors are
Cora Curay, XVC Logistics
Bennette Rocha, Procter & Gamble
Deo Patalinghog, Diethelm
Boy Arceo, Smart

DMAP also elected its Committee Chairpersons for 2004, a new procedure started this year. Committee Chairpersons used to be appointed.

Sea Transport - Gerry Ong, Cheng Ban Yek
Land Transport - Alain Ison, Colgate
Air Transport - Ed Fausto, L'Oreal
Warehousing - Ninoy Rollan, TNT Express
Academe - Ike Castillo, James Hardie
Membership - Linda Villegas, Unilever

Committee Chairpersons will be advised by Directors responsible for each function.

Basically the current Board has been retained. This is good for DMAP as this will provide continuity to tackle the various issues DMAP encounters in the course of a year. For 2004, among these issues are the recent proposed shipping rate increases.

Hearings continue on DMAP’s complaints against the 7.5% GRIs of the shipping lines. More accurately, the complaints are against the rates announced by the shipping lines, therefore not only vs. the 7.5% GRI, but also against the 6% GRI of Nov. 2002 and the 20% GRI of Nov. 2000, which are both included in the announced rates. These GRIs are still unresolved to date.

The hearing on the complaint vs. WGA was held on October 21. DMAP submitted its counter comments on Oct. 30. A hearing on the Sulpicio case was held last week, on Nov. 25. Meanwhile Lorenzo Shipping has been asked to comment on DMAP's complaint by Nov. 17.

In the face of these "battles" with the shipping lines, and year-end efforts to meet targets, DMAP member companies will take time out for the annual Christmas fellowship. On December 5, DMAP members and guests will relax to the theme of "Paskong Pinoy, Tayo'y Mag-enjoy".

Expect fun. Attire is "Basta't may touch of Pinoy". There will be "mga pa-contest na Pinoy ang dating", plus "sayawan at kantahan" and "palabunutan ng mga premyong nakakatuwa at nakakakilig". A curious question is who will be declared Mr. Suave and Hot Babe ng Gabi.

Expected guests include friends from the industry, led by the shipping lines, truckers, conference sponsors and speakers, the government, the Coalition for Shipping and Ports Modernization, and past Presidents of DMAP.
Was it a coincidence that, on the second day of the PCCI's 29th Philippine Business Conference at the Manila Hotel, FPJ announced his intention to run for President in the very same hotel?

Reactions to the announcement were varied, ranging from cheers for the opposition, to jeers, alarm, anger, or fear for other sectors. As for me, the announcement gave me chills because of the following possibilities.

1. If he wins, FPJ will pardon Erap.

2. The North Harbor monopolists will renew their efforts.

FPJ's entry is expected to take away votes from Lacson; however a further chilling possibility is that one of them would step down to the Vice President position.

Tet Gambito's efforts to blow the whistle on irregularities in some sectors has resulted in a libel case against him, which was filed in Ozamis City. A notice appeared in the Malaya last Monday, stating that a warrant had been issued for his arrest.

We had to cancel / postpone the Advanced Warehouse Management Seminar due to difficulties in synchronizing schedules of speakers. We will try to arrange for early 2004.

Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax
671-4793, cell 0918-914-1689, or email dmap@i-manila.com.ph.

Those interested in DMAP training and other activities are requested to send their e-mail addresses.

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Warehousing again (November 17, 2003)


Today we provide an update on warehousing practices we have gathered over the years.

We added to our database on local ware-housing practices with the holding of the Basic Warehousing Seminar last July 24 to 25. As an optional part of the seminar, we ask participants to help enlarge our database by filling up a one-page survey form. Our database does not include yet the latest re-run of the seminar on November 6 to 7.

We show below selected items from the database, which now stretches from 1998 to 2003 covering 33 companies. Percentages are percentages of respondents, and may add up to more than 100% because of multiple answers by respondents.

There are no real surprises in most of the figures.

On storage equipment, perhaps a mild surprise is the relatively low percentage of users of selective pallet racks. Selective pallet racks are known to be the most popular rack type because of 100% access. I personally expected a higher percentage than 54%.

Many warehouses still rely on no storage equipment; block stacking on the floor is practiced by one out of three. Up to now we have not encountered any users of cantilever racks, push back racks, mobile aisle racks, carousels and ASRS. But flow racks are now becoming more popular.

Storage Equipment
Selective pallet racks - 54%
Shelving - 34
Block stacking - 31
Bulk solids in piles on floor or yard - 14
Storage drawers - 11
Bulk liquids in tanks - 11
Flow racks - 9
Drive in racks - 6
Bulk powders or grains in silos - 3
Others - 0

Plastic pallets continue to gain acceptance, particularly, but not only, in food companies. Their popularity has been enhanced by the availability of lower-priced varieties.

Pallets
Wood - 94%
Plastic - 29
Metal - 3

Reach trucks have grown in use with the increase in high rise storage.

Lift Truck Types and Fuel
Reach - 61%
Counterbalanced - 50
Diesel - 73%
Electric - 43
LPG - 3

Other Handling Equipment
Pallet jack - 89%
Conveyors - 23
Cranes - 6
Others - 20

There are now more users of cycle counts than "wall to wall" counts. Experts have predicted that periodic counts will eventually disappear and IRAs will improve tremendously.

Inventory Taking
Periodic - 53%
Cycle - 68

We see improvements in IRA as also predicted by experts. This is due to the use of cycle counts, computerization and bar codes / RF.

Inventory Record Accuracy
  • Below 90% - 41
  • 90-95% - 14
  • 95-99% - 21
  • 99-100% - 24

Computerization of stock records has been increasing and should eventually reach 100%, with the exception of very small warehouses where a manual system will suffice. Use of warehouse management systems has been growing, but there is still plenty of room for growth. Here the deterrent to growth is the high cost.

A surprise is the relatively high reported usage of sortation systems. I suspect a lack of understanding of true sortation systems as the reason. The use of bar codes for logistics (bar codes on cases / pallets / racks) continues to grow, but there is still plenty of potential. Cross docking, pick to light and RF are technologies that have begun to find local applications.

Technology Adoption Inventory records computerized - 79%
  • Using WMS - 18
  • Using sortation system - 13
  • Doing direct plant to customer deliveries - 11
  • Using bar codes for logistics - 11
  • Doing cross docking - 8
  • Using pick to light system - 3
  • Using RF technology - 3

Warehousing problems faced by companies are the same as decades ago, and I expect them to continue to be the same ones. An exception is poor IRA, which will eventually diminish to very low levels.

Problems:
  • Damages, breakage, spoilage - 55%
  • Lack of space/crowded - 45
  • Lack of employee training - 30
  • Poor inventory record accuracy - 25
  • Pilferage - 20
  • High cost of space rental - 15
  • High employee turnover - 10
  • Accidents,lack of safety - 8


Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email dmap@i-manila.com.ph. Those interested in DMAP training and other activities are requested to send their e-mail addresses.

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Increasing awareness level for ISPS Code implementation (November 10, 2003)

An interesting topic discussed during the recent PortCalls Cargo Economics Conference was the forthcoming implementation deadline of the International Maritime Organization's International Ship and Port Facility Security Code (ISPS Code).

I have a serious concern here in the sense that the level of industry general awareness on the ISPS Code seems to be either negligible or concentrated only in a few expert circles in government, the academe or private business.

It is in the spirit of helping increase this awareness level that I went through my research files and now would like to briefly highlight topics during a symposium of maritime experts held 18-20 June 2003 in Melbourne, Australia that discussed the ISPS Code implementation.

Problems With The ISPS Code
The symposium listed these as definitions of a ship and a port facility and the setting of its boundaries. Answers to these questions varied according to the nature of the port, the type of cargo and the level of risk. In some countries the definitions of what constituted a port facility or even a ship were of considerable importance in terms of ISPS implementation.

It was agreed that the ISPS Code represented a step on the way towards full supply chain security, and that measures contained in the Code needed to be considered and applied in the broader context of other supply chain security initiatives such as those contained in APEC STAR. Of particular relevance were initiatives to secure shipping containers and improve the way Customs information is gathered and shared.

Major Areas of Concern
Recognizing the difficulties in meeting the implementation deadline, the symposium identified a number of major areas of concern:

* Awareness and understanding at the political, public and private sector levels of the issues involved and the consequences of failure to meet the deadline;

* The need within each APEC economy to agree on and to identify the lead agency involved in implementation of initiatives related to maritime security including the IMO ISPS Code, as well as establish effective governance arrangements to support implementation;

* The need to ensure that implementation plans had ministerial level support and both commercial and public interests were considered;

* The need to identify and allocate costs involved, including identifying financial and human resources required for implementation, and to have government funding to commence the process;

* The high costs involved in implementation and the need to identify ways of minimizing these costs, such as through use of existing legislation, systems, and infrastructure where possible.

* The need for all APEC economies to carry out a full risk assessment based on sound intelligence, and to apply risk management principles to the maritime environment to meet the Code's requirements;

* The need to identify appropriate mechanisms for consultation with the private sector, and to clearly define and delineate roles and responsibilities between government and industry;

* The need to develop workable timetables for implementation;

*The need for extensive training for government officials on awareness raising and implementation of the ISPS Code and in risk assessment and risk management; for port and maritime operations generally, and for Company Security Officers, Ship Security Officers, and Port Facility Security Officers.

Feedback On Our Review Of Maersk SMS -We received an email from Jayme Crizel S. Sio of Maersk-Filipinas following this column's review of Maersk SMS facility. It reads as follows:

"We are writing you in reference to your article regarding our new SMS service, Maersk SMS. Firstly, we would like to extend our thanks for your favorable review of Maersk SMS.

Secondly, we would like to correct your understanding that you need to specify the registry number as well as the B/L number in order to perform B/L tracking. This is not so, REG & BL are separate features.

The REG keyword is separate from the BL keyword. Typing REG <MM DD> would give you the vessel registry number of the import vessel which arrived in Manila or Subic on the specified date. Description of this keyword can also be retrieved by sending HELP REG to Maersk SMS.

As for BL <bl number>, you get the latest movement of the specified B/L (similar to b/l tracking in our website).

Taking this into consideration, we have edited the Maersk SMS reply to HELP so that REG is more clearly separated from the BL keyword.

We hope that this serves to clarify. Thank you and best regards."

I'm sure all our port users will be looking forward to subsequent enhancements of this SMS facility as well as new SMS services from other organizations.

As of today, the available SMS facilities already operational in port & transport are those of Aboitiz Express, Asian Terminals Incorporated, Negros Navigation and Maersk Sealand Philippines

. I am sure other similar services are currently in various stages of planning or development.

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RORO - Can it take off? (October 31, 2003)

The SRNH (Strong Republic Nautical Highway) Conference, sponsored by the PCCI and supported by the DBP and USAID, and held on October 22 at the Hotel Intercontinental, was well attended.

Extensive coverage of different aspects of the SRNH-RRTS during the whole day session could be seen from the lineup of speakers from both government and the private sector.

High ranking government officials who were speakers were Sec. Neri (competition policy in the transport sector), Sec. Marita Jimenez (SRNH-RRTS policy and program) and Sec. Lorenzo (experiences of existing RORO operators.).

Other speakers from government were Usec Oscar Palabyab (SRNH-RRTS & tourism promotion), Usec Manuel Bonoan (role of DPWH), Southern Leyte Gov. Rosette Lerias (potential SRNH-RRTS projects), Batangas Gov. Hermilando Mandanas (role of LGUs), DBP Chairman Vitaliano Nanagas (investment opportunities and finanacial support), PPA GM Al Cusi (role of PPA), and Marina Franchising Director Atty. Gloria Banas (role of MARINA).

Speakers from the private sector were Prof. Ramon Quesada (countryside development), UAP’s Dr. Rolando Dy (agri-fisheries sector), DMAP’s Cora Curay (new trucking business philosophy), Alejandro Yague (busing the Philippines), and Christopher Pastrana (experiences of existing RORO operators).

In line with its objectives, the conference was able to give a general picture of the SRNH-RRTS’ framework, mechanism and business opportunities. It was also able to highlight the developmental role of LGUs in creating a potential market as well as providing for the necessary infrastructure and support systems that must be put into place to make the SRNH-RRTS fully functional. The conference also served as a venue to raise issues.

Whether or not the conference was able to attract more players or participants is another matter. Likewise whether or not issues raised were resolved.

Atty. Gilbert Lorenzo of the NUPP raised a question on why, if transport costs have been reduced, have the prices of goods not reduced correspondingly.

As the question implied that cargo owners were benefiting from RORO and not passing on the savings to consumers, we could not let it pass and we gave our comments.

As far as DMAP is concerned, the RRTS has not taken off. Despite lots of encouragement we have given to our members, esp. with the lifting of the 50 mile limit, not many DMAP members have tried RORO. We know of only one or two companies that have tried it.

The reason, we said, is that the PPA continues to charge cargo handling at the ports. Another factor to consider is that, as RRTS struggles to take off, the MARINA has a new proposal of rates in the Batangas-Dapitan route, with huge increases.

What we forgot to mention is that there are not many shipping companies offering RORO services, outside of the experimental Cagayan de Oro to Batangas route being advertised on tv.

We also forgot to mention that sea transport rates will remain high if shipping lines continue to raise their rates, as been happening in the last three years.

Update on Shipping Rates -Speaking of domestic shipping rates, the hearing on DMAP’s complaint versus WG&A’s 7.5% GRI went through as scheduled on October 21. WG&A avoided a presentation of calculations by harping on the famous letter resolution of June 2001.

With respect to the other shipping lines, DMAP indeed filed separate complaints versus their proposed GRIs, all identical at 7.5% like WG&A, of four other shipping lines. These are Lorenzo Shipping, Negros Navigation, Solid Shipping and Sulpicio Lines.

Anonymous Letters - Prior to today’s PCCI Transcom meeting, invited participants received another anonymous letter about Tet Gambito, including several clippings. Again we expect the suspected author to be absent from today’s meeting. The sender again put a return address, which is on Urdaneta St., Quezon City (we wrongly said “somewhere in Pangasinan” last time).

A brief reference to the PCCI election in the last anonymous letter has been amplified. The letter says “Some of our members have confided that people identified with Mr. Ito Carlos are campaigning to ensure a failure of elections to preserve the status quo.”

Strange Behavior - An outfit called Meeting Points International, has erroneously included DMAP among the list of cooperating agencies for Freight Logistics Summit, a conference it has organized.

We at first thought it was an honest mistake. DMAP is one of 13 agencies and institutions whose names are printed beside the conference overview in the brochure without authorization from DMAP. We complained to one of their staff and thought that that was the end of it.

About a week ago we received a fax message announcing the conference and inviting participants. On the side of the page, DMAP is again listed as one of the cooperating agencies!

There seems to be a rash of unprofessionalism these days? Several months ago we mentioned the incident at DMAP’s shipping immersion course.

Not too long ago also, Business World published a news item attributing to DMAP a conclusion that RORO may not be good for the long haul. DMAP had not, and up to today, has not released any report or study to make that conclusion. We were able to trace the source and it was a careless statement within Philexport.

Seminars - DMAP’s two year end seminars will push through at the Legend Hotel.

* Basic Warehousing Seminar, November 6 – 7 (previously scheduled Oct. 23-24)

* Advanced Warehouse Management Seminar, November 28 (previously scheduled Nov. 21)

The AWMS is intended as a sequel to the BWS. It will provide updates on warehousing developments and trends, warehouse software, warehouse equipment, auto data capture and RF technology. More specifically it will cover local examples of WMS applications, as seen from the eyes of users.


Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email dmap@i-manila.com.ph.

Those interested in DMAP training and other activities are requested to send their e-mail addresses.

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Busy 4th quarter
Update on Shipping Rates
(October 20, 2003)

DMAP’s complaint against the 7.5% general rate increase, which was filed by WG&A with the MARINA, will be heard at the MARINA on Tuesday October 21, 2003.

DMAP filed a complaint only against WG&A’s move because, it was the only rate increase known to DMAP at the time. DMAP had been busy with its annual conference.

With more shipping lines now pressing for a rate increase, expect DMAP to file more complaints. However DMAP will have to evaluate the situation per shipping line.

To our knowledge, Lorenzo Shipping, Negros Navigation, Solid Shipping, Sulpicio Lines, Oceanic Container Lines and NMCCLI have made moves to increase rates. DMAP is still checking if the rates are the same.

The rates issue appears to be getting messier, as the Nov. 2000 20% GRI and the Nov. 2002 6% GRI remain unresolved. To make matters more confusing, shipping lines have been pushing to overhaul the cargo classification list, with a hearing set last month in Davao.

Collaboration – Just Talk? - Nothing much happened at the last collaboration meeting between DMAP and the shipping lines. With a hearing now set on October 21, and with DMAP studying moves against other shipping lines, nothing much is expected to be accomplished by the collaboration group in the near future. Maybe they can focus on logistics efficiencies.

RORO Conference
The SRNH (Strong Republic Nautical Highway) Conference, sponsored by the PCCI and supported by the DBP, will be held on Wednesday October 22 at the Hotel Intercontinental.

It will be a whole day session with speakers from the government and various groups from the private sector. According to the PCCI email, the aim of the conference is to promote the SRNH and the RRTS (Road RORO Transport System).

The conference will give a general picture of the SRNH-RRTS’ framework, mechanism and business opportunities, which will attract more players or participants

. It will also highlight the developmental role of local government units in creating a potential market as well as providing for the necessary infrastructure and support systems that must be put into place to make the SRNH-RRTS fully functional. It will also serve as a venue to raise and resolve issues concerning the SRNH-RRTS.

The fee is minimal, P300 for PCCI members and P400 for non-members. DMAP, as a member of PCCI, would be entitled to the member’s fee..

Anonymous Letters - At the last PCCI Transcom meeting, as I predicted, Tet Gambito was absent. Likewise the suspected author of the anonymous letters.

PCCI Transcom Chairman Meneleo Carlos continued not to take up the anonymous letters. Rightly so, as a document sent by someone who does not identify himself should not be taken seriously.

This time it was a bit different. PCCI Vice President Raul Boncan raised the matter. No attempt was made to discuss it though, because the author was not there, or probably not there. There was no one who dared to discuss it.

There was another difference. The sender put a return address, which is somewhere in Pangasinan.

BWS Seminar Re-schedule - DMAP’s Basic Warehousing Seminar, originally scheduled for October 23 – 24, has been reset for November 6 – 7.

This is a two-day seminar which is a re-run of the one done last July, because of additional demand. There are still a few seats for those interested.

The BWS is intended for both neophytes in the warehousing function and oldtimers needing a refresher. The seminar is also useful for non-warehousing personnel who interface with warehousing and therefore need to understand the basics of warehousing.

For example, purchasing, manufacturing, quality assurance, accounting personnel, etc.

Managers will also benefit from the BWS if they need to know basic principles and would like to be updated on the latest developments in warehousing

As in past BWS sessions, the speakers are ex-Presidents of DMAP – Malou Santos (formerly with J&J, now a consultant), Norman Adriano (formerly with Avon, now with WG&A) and myself, plus President Larry Go of Auto-ID Phils..

The Advanced Warehouse Management Seminar remains scheduled for November 21. This is a one day seminar which is a sequel to the BWS and provides an update.

DMAP Membership Update - Five new members were added to the DMAP roster on October 1, bringing up the membership from 87 to 92. Three of the new members come from the ranks of so-called “Logistics Providers”.

The new members are Accord Logistics, James Hardie Phils., Lambert Williams Logistics, ScanAsia, TNT Express Worldwide.

DMAP Christmas - DMAP recently announced plans for its Christmas fellowship activity on December 5. It will have a “Masayang Selebrasyon” with the theme of “Paskong Pinoy. Tayo’y Mag-Enjoy”. Barring any surprises in the sea transport sector, this will be DMAP’s last activity for the year. Meanwhile many logistics practitioners will be working double time to meet targets.


Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email dmap@i-manila.com.ph.

hose interested in DMAP training and other activities are requested to send their e-mail addresses.

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Year End Activities
As the year draws to a close, DMAP undertakes two more training activities.
(Octoberr 16, 2003)

*Basic Warehousing Seminar. This is a two-day seminar which is a re-run of the one done last July, because of additional demand. The schedule is October 23-24.

*Advanced Warehouse Management Seminar. This is a one day seminar which is a sequel to the BWS and provides an update. The schedule is November 21.

The BWS is intended for both neophytes in the warehousing function and oldtimers requiring a refresher. At the same time the seminar is also useful for non-warehousing personnel who interface with warehousing and therefore need to understand the basics of warehousing. Such personnel could be in purchasing, manufacturing, quality assurance, accounting, etc.

Managers will also benefit from the BWS if they need to know basic principles and be updated on what is the latest in warehousing

As in past BWS sessions, the speakers are ex-Presidents of DMAP - Malou Santos (formerly with J&J, now a consultant), Norman Adriano (formerly with Avon, now with WG&A), Larry Go of Auto-ID Phils., and myself.

The other year end activities facing DMAP are:

* 'Battles' with the shipping lines over rates

* Election of the new Board for 2004

* Christmas fellowship

The shipping lines, led by WG&A made a move that came as a surprise to DMAP. With the so-called collaboration initiatives just starting, the move of WG&A to publish new increased rates was quite unexpected.

It was also pushed while DMAP was busy with its main event of the year, the annual Logistics Conference.
The collaboration teams of DMAP and shipping lines had agreed that shipping lines would sit down and discuss with DMAP first before any publication. Well, so much for collaboration.

The rates published by WG&A reflect an additional 7.5% on top of the following increases:

* the 20% GRI in November 2000

* the 6% GRI in November 2002

* the 5.98% AFRA in March 2003

DMAP filed a complaint against the WGA increase. The complaint basically stated something like the following. Looking only at WG&A's 2002 FS, the ROI for 2002 was 10.5%. With the AFRA last March, the ROI already jumped to 16%. Noting that the 2002 FS did not yet include the main affect of any 6% GRI, and at best only part of the 20% GRI, the ROI would shoot up to the following values:

* 16%, if only the AFRA is considered

* 22%, if the AFRA and the 6% GRI are considered

* 30%, if the AFRA and the 6% GRI and the new 7.5% GRI are considered

* 53%, if in addition the 20% GRI is included

The 6% GRI and the 20% GRI are still disputed.

Other shipping lines that have signified an intention to raise rates are Solid, Sulpicio, Lorenzo. Cebu Ferries and Oceanic are also said to have signified a rate increase.

This will be a busy year end for DMAP members.

The PCCI Transcom and its members continue to be the recipients of anonymous letters from attacking Tet Gambito. As before, we expect that in the October 6 meeting of the Committee, the letter will not be taken up as the authors do not identify themselves.

The Transcom Chairman has no choice but to ignore the letter. We also expect that Tet Gambito will be absent again. Likewise the suspected author.

Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email dmap@i-manila.com.ph.

Those interested in DMAP training and other activities are requested to send their e-mail addresses.

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