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EXPERTISE IN TECHNOLOGY AND ECONOMICS

• Logistic solutions of imported renovation
  materials a critical assessment
• Marita Auramaa,
• Research Assistant
• Member of the CLIENT- Project Team
• Lappeenranta 16th November 2004

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Case studies of logistic processes

• Researched and interviewed Importers of
• Tiles
• Floor materials
• Wallpapers
• Paints
• Kitchen fitments
• Bathroom furniture
• Taps
• Washbasins and toilets
• Interior Design products
• shipping companies, forwarding agencies

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Example of case Tiles

• Finnish markets 3 big and several dozen small
  importers
• Current countries of import China, Brazil and
  South-Europe e.g. Turkey, Italy, Portugal, Spain
• Current way of transport Container traffic
• General routes To and from ports of Germany to
  Helsinki
• Decision-making process Depends of the size of
  the company
• Bottlenecks Lack of free containers (especially
  in China and Brazil), heavy and fragile material
• Ports in Finland According to the tiles
  importers, the Finnish ports are working well

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Viewpoint Small Medium sized Enterprises (SME)

• Decision-making about route selection Forwarding
  agency
• Criteria of choice Reliability, experience,
  service
• Bottlenecks Transportation costs, delivery time
  (generally)
• Ports SMEs do not have own experience
• Warehouse Own warehouses or central warehouses
  in Europe
• Future vision Outsourcing (warehouses, logistics)

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Viewpoint Large-scale enterprises

• Decision-making about route selection Generally
  making decision by themselves
• Criteria of choice Experience, reliability,
  service
• Bottlenecks Flexible service, capability to
  react enough fast
• Ports Should be situated near warehouses
• Warehouses Warehouses often outsourced
• Future vision Flexible service from logistics
  operators

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Viewpoint Forwarding agencies

• Decision-making about route selection Shipping
  company
• Criteria of choice Effectiveness, flexibility,
  cost efficiency
• Bottlenecks Staff of customs and stevedore
  should work 24 h / 7 d a week
• Ports Visiting time and unloading time of
  feeders in Finland is not at the international
  level
• Future vision Vessels size are growing, visiting
  time in ports should be faster

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Viewpoint Shipping companies

• Decision-making about route selection In the
  head office in Europe and/or customer
• Criteria of choice Service with added value
• Bottlenecks Too high shipping route fee, customs
  and stevedore staff should work 24 h / 7 d a week
  in Finnish ports
• Ports safe, functional
• Required from warehouses flexibility,
  functionality
• Future vision Customs and stevedoring should
  work 24 h / 365 d

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Summary

• Decision-making about route selection
• Importer -gt Forwarding agency
• Forwarding agency -gt Shipping company
• Shipping company -gt Customer (Importers)
• Criteria of choice Efficiency, flexibility,
  reliability
• Bottlenecks Working hours of customs and
  stevedores
• Ports in Finland Generally working well
• Future vision Finnish ports has a good
  reputation
• problems too high shipping route fees and
• too low working hours of customs and stevedores
  gt
• If the ports in Baltic countries and Russia
  develop fast,
• they will hijack part of the transit business

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• Thank You!