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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 : 2004 Q3

 

 

*No Appointments Yet, R vs R (August 23, 2004)

*Rising Prices (August 9, 2004)

*RA 9295 (July 12, 2004)

 

RA 9295

LIKE the infamous EO 59 of 1998, which was quietly approved by Erap during the peace of the 1998 holiday season on Dec. 28 when no one was looking, RA 9295 too has quietly been approved, using the smokescreen of the national elections.

RA 9295, sometimes referred to as the Domestic Shipping Development Act, was signed into law on May 3, 2004, by GMA, one week before election day, or during the homestretch of the campaigns.

The exact title of RA 9295 is "An Act Promoting the Development of Philippine Domestic Shipping, Shipbuilding, Ship Repair and Ship Breaking, Ordaining Reforms in Government Policies Towards Shipping in the Philippines, and for Other Purposes".

All those affected by the new law, especially shippers, should read carefully and study closely the provisions of the law and its implementing rules and regulations.The law keeps referring to public interest but, in our opinion, appears short of serving it. The law provides that every domestic ship operator shall have the right to fix its own passenger or cargo rates, or both.

Watch out! Here is a new one. The law also provides that any shipper or group of shippers may be investigated, and even penalized, regarding violations of RA 9295!!! Yet RA 9295 does not state what are the duties and responsibilities of a shipper or a group of shippers, with respect to the law. The Implementing Rules and Regulations (IRR) of RA 9295 are the subject of hearings currently being held in certain key cities. A hearing was held last Monday, June 28, at the MARINA Board room.

DMAP had two working days to study the draft of the IRR. At the hearing, which lasted from 915 am to 1200 noon, the major part of the time, from 915 to 1130 am, was spent in reading the provisions of draft #8 of the IRR. A half hour was allocated for comments and questions. Obviously this time was very insufficient for the varied sectors affected by the new law. Those not able to air their suggestions and comments have been given the opportunity to submit their position papers by July 13. This deprived many suggestions from being aired at a hearing with others present, and from being heard by other affected parties. Most important, arguments cannot be provided and debate is not possible.

Basic Warehousing Seminar Cancelled

DMAP's Basic Warehousing Seminar, scheduled for July 15-16, 2004, has been cancelled due to a problem with the schedule of speakers. We apologize for the inconvenience.

Annual Logistics Conference & Exhibit

DMAP announced the participant's fees for the two day conference, to be held on Sept. 16-17, 2004 at the EDSA Shangri-La Plaza.

• Participants from DMAP member companies P 8,230
• Participants from non-DMAP companies P10,300

This year's conference theme is: "Supply Chain Innovation: Driving Business Growth and Profitability".
DMAP also announced its partial lineup of speakers. Tapped as keynote speakers are:

• Senator Mar Roxas
• Donald Dee, PCCI Executive VP

Speakers at the technical sessions are:

• Mr. Higinio P. Porte Jr., Splash Corp.
• Ms. Lulu S. Guzman, Kraft
• Ms. Stefanie Buczylowski, SAP
• Mr. Charlie Villaseñor, Transpocure
• Ms. Pinky Ruiz, Zuellig Pharma
• Mr. Kevin Hill, SSA

Slots are still open for both Principal and Regular Sponsors. Placements for souvenir program advertisements are still being accepted.

The categories of Sponsors are:

• Regular Sponsors (P30,000), 3m x 2m booth, 1 free participant, 1 page ad
• Principal Sponsors (P60,000), 3m x 3m booth, 2 free participants, 1 page ad, brochures in conference binder
• Break Sponsors (P50,000), Regular sponsor plus presentation at break
• Luncheon Sponsors (P100,000), Principal sponsor plus presentation at lunch
• Cocktails Sponsor (P150,000), Principal sponsor plus presentation at cocktails

Break, luncheon and cocktails sponsors have the opportunity to make a presentation in addition to their exhibit, souvenir program advertisement and free participants.

Rates for advertising in the souvenir program range from P6,600 whole page to P1,650 one fourth page.
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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Rising Prices

EVERYTHING seems to be quiet on the domestic shipping front. There is no news about DMAP's appeal to the DOTC on the rate increases. It's as if everyone is waiting for the finalization of the IRR of RA 9295. But that also seems very quiet these days. It's as if finalization of the IRR is being held because of the impending changes in leadership at MARINA and also at PPA.

DMAP is hoping that President GMA will choose persons that will focus more on making improvements in logistics efficiency and lowering cost so that our industries and agriculture can be more competitive, and so that transport cost can be kept in check.

Meanwhile at the DTI, the National Price Coordinating Council has been very busy organizing meetings with other government agencies and private groups to institute measures for preventing increases in the prices of basic goods. Private groups invited to the meetings include DMAP, CTAP, and associations of manufacturers of various classes of basic goods.

In one of their letter invitations, the NPCC, through Asec Norman Hocson, emphasized that the government is seeking more effective means of government intervention in order to prevent increases in the prices of basic goods and prime commodities.

In the face of the current situation, with oil prices rising, and prices of goods threatening to escalate, RA 9295 and its IRR loom as another vehicle for rising prices, particularly in Vis Min, through the contribution of shipping rates.

In contrast to the NPCC's search for government intervention, the MARINA appears reluctant to intervene. The draft IRR provides that MARINA may consider intervention only after five increases within a year, or only after the total increase in a year has reached more than 30%.

RA 9295, sometimes referred to as the Domestic Shipping Development Act, was quietly signed into law on May 3, 2004, one week before election day, or during the homestretch of the campaigns.

The IRR is not yet final. A revalidation hearing is supposed to be held, but we have not heard of a schedule yet.
Meanwhile, the NPCC continues to hold meetings, more recently concerning the recent and impending increases in toll rates, as well as penalties imposed on truck overloading.

At one of the meetings, CTAP President Col. Rudy de Ocampo gave a presentation on the current situation of truckers, their various problems, and an appeal to reduce / defer the increase.

The additional huge increases in toll fees, said to be 800% by CTAP, and scheduled for October, will greatly impact on the viability of truckers. Many truckers are likely to fold up.

Annual Logistics Conference & Exhibit

DMAP's Annual Logistics Conference & Exhibit is on for Sept. 16-17, 2004 at the EDSA Shangri-La Plaza.

Participant fees are:

  • Participants from DMAP member companies P8,230

  • Participants from non-DMAP companies P10,300

The conference theme is : "Supply Chain Innovation : Driving Growth and Profitability".

Keynote speakers are:

  • Senator Mar Roxas (to be confirmed)

  • Donald Dee, Chairman ECOP, Vice Chairman PCCI

 

Speakers at the technical sessions are:

  • Kevin Hill, SSA Global, "Moving Forward Faster by Extending the Value of Your Supply Chain"

  • Antonio Rivera, Mead Johnson, "Next Generation Supply Chain Solutions"

  • Charlie Villasenor, Transprocure, "Procurement Outsourcing: Finally Reaching the Status of a Proven Paradigm"

  • Teresa Ruiz, Zuellig Pharma, "Logistics Manager: Developing Their Capabilities"

  • Gilda del Rosario, SAP, "Strategic Performance Measurement"

  • Nestor Felicio, SC Johnson, "Sales & Operations Planning: Driving 'Gold' Business Results at SCJ"

  • Philip Macahilig, J&J, "Supply Chain Innovation: Collaborating with Key Stakeholders in the Supply Chain"

  • Lulu Guzman, Kraft, "Supply Chain Challenges in the Changing Environment"

  • Higino Porte, Splash, "Innovating the Supply Chain, "The Splash Way"

Some slots are still open for both Principal and Regular Sponsors. Placements for souvenir program advertisements are also still being accepted.


The categories of Sponsors are:

  • Regular Sponsors (P30,000)

  • Principal Sponsors (P60,000)

  • Break Sponsors (P50,000)

  • Luncheon Sponsors (P100,000)

  • Cocktails Sponsor (P150,000).

Break, luncheon and cocktails sponsors have the opportunity to make a presentation in addition to their exhibit, souvenir program advertisement and free participants.

Rates for advertising in the souvenir program range from P6,600 whole page to P1,650 one fourth page.

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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No Appointments Yet, R vs R

Battle at the Ports

President GMA announced a number of appointments in her cabinet and other lower positions last week, but the announcement was silent about the PPA and the MARINA.

The appointments in the maritime sector appear to be connected to a conflict as to who may be allowed to handle international containerized cargo. Currently these are handled at South Harbor and MICT. Harbour Centre has not been given permission to handle international containerized cargo.

Harbour Centre's position is currently being attacked by high profile persons, Frank Chavez first, followed by Miriam Defensor. Specifically being attacked is the legality or validity of the contract of the Harbour Centre operator R-II Builders.

Against all the noise of Miriam's attack, everything continues to be quiet concerning DMAP's appeal to the DOTC on the rate increases. Likewise with the finalization of the IRR of RA 9295.

Could it be that all of the above are interconnected?

Rising Logistics Costs

Meanwhile oil prices continue to rise. No doubt this will seriously affect logistics costs. This early the PLSA has already hinted at freight rate increases next year. Likewise trucking costs will be affected.

Very recently North Harbor truckers have provided a copy of a letter announcement of a 20% increase, based on an agreement with PLSA. This shows a marked change in the process. In the mid-90s and late 90s, the process consisted of meetings and discussions between DMAP and INHTA, with DSA (the shipping lines association then) standing by in the sidelines. DMAP is consulting its members on its response.

Another threat on logistics cost is the huge increase said to be for implementation at NLEX by the Manila North Tollways Corp. (MNTC). The increase is on top of the large increase recently granted to PNCC, current operators of NLEX. MNTC will take over the operation of NLEX from PNCC. The truckers' groups CTAP, led by its President Col. Rudy de Ocampo, and past President Joe Cortez, had earlier complained about an 800% increase. The figure may not be right and might be exaggerated somewhat, but the correct percentage will still be huge. For example, class 3 vehicle toll fee will increase from P125 to P600, or a +380% increase.

A meeting-presentation organized by MNTC for CTAP members was watered down when the trucker attendees chose to spend most of the available time on load limits, instead of toll fees. The meeting was originally intended for MNTC to provide quantified justification for the increase.

Logistics Program at DLSU

A special event will take place at the 2004 Logistics Conference. DMAP and De La Salle University will launch a joint Logistics Program on day 1 of the Logistics Conference. The program will consist of 6 modules and the first module is expected to be available to students right after the conference. Classes start on October 2 at the Green Hills campus on Ortigas Avenue.

Annual Logistics Conference & Exhibit

DMAP's Annual Logistics Conference & Exhibit is on for Sept. 16-17, 2004 at the EDSA Shangri-La Plaza. Registration is going on. Participant fees are:

  • Participants from DMAP member companies P 8,230

  • Participants from non-DMAP companies P10,300

  • Student participants P 8,230

  • The exhibits are open to the public for free.

The conference theme is: "Supply Chain Innovation : Driving Growth and Profitability".

Keynote speakers are:


• DTI Sec. Cesar Purisima (to be confirmed)
• Donald Dee, Chairman ECOP, Vice Chairman PCCI


Speakers at the technical sessions are:


• Kevin Hill, SSA Global, "Moving Forward Faster by Extending the Value of Your Supply Chain"
• Antonio Rivera, Mead Johnson, "Next Generation Supply Chain Solutions"
• Charlie Villasenor, Transprocure, "Procurement Outsourcing: Finally Reaching the Status of a Proven Paradigm"
• Teresa Ruiz, Zuellig Pharma, "Logistics Manager : Developing Their Capabilities"
• Gilda del Rosario, SAP, "Strategic Performance Measurement"
• Nestor Felicio, SC Johnson, "Sales & Operations Planning: Driving 'Gold' Business Results at SCJ"
• Philip Macahilig, J&J, "Supply Chain Innovation: Collaborating with Key Stakeholders in the Supply Chain"
• Lulu Guzman, Kraft, "Supply Chain Challenges in the Changing Environment"
•Higino Porte, Splash, "Innovating the Supply Chain, "The Splash Way"


A few slots are still open for both Principal and Regular Sponsors. Placements for souvenir program advertisements are also still being accepted.

The categories of Sponsors are:

  • Regular Sponsors (P30,000) - 2 slots left

  • Principal Sponsors (P60,000) - 3 slots left

  • Break Sponsors (P50,000) - 2 slots left

  • Luncheon Sponsors (P100,000) - 1 slot left

  • Cocktails Sponsor (P150,000) - 1 slot left


Break, luncheon and cocktails sponsors have the opportunity to make a presentation in addition to their exhibit, souvenir program advertisement and free participants.

Rates for advertising in the souvenir program range from P6,600 whole page to P1,650 one-fourth page.

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.

Back to Top

Annual Logistics Conference & Exhibit

DMAP's Annual Logistics Conference & Exhibit was held last week on Sept. 16-17, 2004 at the EDSA Shangri-La Plaza. The conference theme was "Supply Chain Innovation: Driving Growth and Profitability".

Over 200 logistics practitioners gathered at the event, which was graced by government officials, with DTI Asec Norman Hocson as keynote speaker. Actually he stood for DTI Sec. Cesar Purisima and read the latter's speech. DOTC Usec Agustin Bengzon and incoming MARINA Administrator Vic Suazo opened the conference by doing the ribbon cutting and initial round of the exhibit booths.

I had to read the speech of first keynote speaker Donald Dee, Executive VP of PCCI, because he had to be at a PCCI Board meeting which President GMA was also attending.

Another highlight of the conference was the signing of an MOA between DMAP and De La Salle University Graduate School of Business on the launch of a joint six-module logistics program. The MOA was signed by President Ana Rose Ochoa for DMAP and Dean Philip Ella Juico for DLSU-GSB. The first module is expected to be available to students starting Oct. 2.

Other personalities seen at the conference were Hector Miole from PPA, Clem Paylangco from PSB, Col. Rudy de Ocampo from CTAP, Atty. Clem San Agustin of Philexport, Jordan Go of Sulpicio Lines, Bert Santos of Solid Shipping, Sally Go and Dino Diaz of NMCCLI, DMAP lawyer Atty. Janette Chua, and a large group from Fastcargo Logistics, including Aniec Dungog, Boni Doroy, Remie Co, Manny Granada, Rene Samontan, Eric Mendez and William Chiongbian.

Other non-DMAP companies represented were Monde Nissin, CVC Supermarket, Fort Steel, Getz Bros., Globe Telecom, Merck, Premier Wine & Spirits, Rustan Supercenters, Sanofi-Synthlabo, Starlite Cargo, St. Lukes Medical Center, Suy Sing Commercial and Trans Asia Wood.

DMAP member companies with large representation were Diethelm Phils., Johnson &Johnson, Splash Corp, Golden ABC, PLDT and Smart. Other companies present were Accord Logistics, Asia Cargo, Asset Marketing, BMW, Bristol Myers, CDO, Ed Keller, Energizer, Golden ABC, Loscam, Master Foods, Metro Drug, Philip Morris, Procter & Gamble, Quantum Foods, Sara Lee, SMC, Steel Asia, TNT Express, Unilever Foods, Union Cement, and XVC Logistics.

Special luncheon sponsor was Globe Quest Innove. Principal sponsors included ABM Computech / SSA Global, Fastcargo Logistics, Boeing Material Handling, Ed Keller, Exel Logistics, Loscam Phils., Maxima Equipment, Messe & Handel, SMC, SSI Schaefer and TNT Express. Epson was a break sponsor and supplied the projector as in past years.

The list of sponsors and cooperating organizations included: Accord Logistics, Agrilink, ECR Phils., Filogistics, Geologistics, GAC Logistics, Handling Innovation, Johnson & Johnson, Kardex Systems, Markland Logistics Monark Equiment, Newton Scanning, NMCCLI, Nonpareil, Omni Logistics, PANC, PISM, PortCalls, PTSI, Smart, Solid Shipping, Sulpicio Lines, Ximex.

The technical sessions were:

• Kevin Hill, SSA Global, "Moving Forward Faster by Extending the Value of Your Supply Chain"
• Antonio Rivera, Mead Johnson, "Next Generation Supply Chain Solutions"
• Charlie Villaseñor, Transprocure, "Procurement Outsourcing: Finally Reaching the Status of a Proven Paradigm"
• Ma. Teresa Ruiz, Zuellig Pharma, "Logistics Manager : Developing Their Capabilities"
• Gilda del Rosario, SAP, "Strategic Performance Measurement"
• Nestor Felicio, SC Johnson, "Sales & Operations Planning: Driving 'Gold' Business Results at SCJ"
• Philip Macahilig, J&J, "Supply Chain Innovation: Collaborating with Key Stakeholders in the Supply Chain"
• Lulu Guzman, Kraft, "Supply Chain Challenges in the Changing Environment"
• Higinio Porte, Splash, "Innovating the Supply Chain, "The Splash Way"

Update on Rates Cases
DMAP received a delayed copy of the decision of the DOTC on the appeal filed by DMAP with respect to an earlier decision of MARINA concerning DMAP's complaint vs. shipping lines GRIs. The last paragraph of DOTC Sec. Mendoza's reply was "The notice of appeal having been erroneously filed before the Department, all maters in issue need not be discussed. All documents submitted before the Department relative thereto shall be forwarded to the MARINA Board for appropriate action." DMAP will have to think over its next move, after the conference.

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.