For the Industry, by the industry, with the industry
eGenie Forum: Initiative of Peter Machado and Boon Kwang LIM.
A FORUM PREPARING THE MARITIME SUPPLY BUSINESS FOR
DIGITALIZATION TOWARD PROCUREMENT 4.0
The maritime supply industry has historically been analogue and transactional in nature. As the world changes around us with rapid technological development, customers and suppliers in the maritime supply industry need to make use of technical and digital opportunities, to streamline the purchasing process in order to harvest efficiencies and thus counter the constant cost pressures. Digital transformation has completed its transition – from initiative to business imperative.
There appears to be a vacuum today, between the different industry bodies, in addressing these opportunities and the underlying standards required to digitize the maritime purchase and supply chain. There must be better ways to structure, harness and consolidate the procurement and supply chain functions for the industry – while improving the service experienced by the crews on board. The companies that lead the wave to digitalisation, will be the successor market leaders of the future.
The Present Situation
There are challenges on ‘both sides of the supply chain’ .
For the ship owners and managers on the buying side – as well as for the suppliers side.
SHIP OWNER / SHIP MANAGER
SHIP SUPPLIER / SERVICE PROVIDER
Owners/managers face constant cost pressures
on the supply chain, both in terms of product
cost, but also process cost with many assessing
the internal processing cost of each PO in the
range of USD 80-150
Suppliers face smaller order sizes because of
split orders or lower spend-budgets on board –
while last mile delivery costs increase.
Owners/managers’ procurement system is often a module of an overall ‘Planned Maintenance System’ (PMS) or ERP system – mostly leaving the purchasing system inflexible for the purposes of buying stores, provisions and spares and with no accurate way of comparing quotations on e.g.
Suppliers have high processing cost of responding to a very high number of RFQs – in many different formats and from many different systems. Quotations are time consuming and win rates are low. A lot of time(money) is wasted in such process, ultimately
adding cost to the supply chain.
Owners/managers’ crew on board is
increasingly in the dark about the products they
will finally receive on board as they are often
cut out of the process after initial requisition is
sent from the vessel.
Suppliers are faced with ‘returns’ and
frustrated crews unaware what to expect when
the supplies are delivered.
eGenie Forum core purpose is to be the “Voice of the Industry” – Shaping the Future through Creative Innovation and focusing on the Digitalisation of the Procurement and Supply Chain function – by the Industry, for the Industry, with the industry. Our focus is to advise the digitalization path and encourage change, as well as prepare the shipping industry
to cope with technical and mental challenges and business disruption.
The eGenie Forum will bring together relevant industry players to advise and agree on underlying documentation and product standard (including defining the product UOM, descriptions, etc.) and solutions to shape the future through creative innovation and much-improved usage of digital solutions.
The eGenie Forum will spin-off ideas into separate initiatives that key interested parties will then run within groups who
will each decide on the way forward for the initiative. As such, theeGenie Forum is a think tank for the industry, by the industry, with the industry – operating in a vacuum between current industry bodies.
The eGenie Forum will initially focus on the harmonizing standards and processes, and digitalization related to the areas
of provision, stores, spares, chemicals – but over time can expand into other areas.
The eGenie Forum will also focus on changing and modernizing the general perception of the industry: more reliable,
more compliant and faster responses.
Our mission is “Shaping the Future through Creative Innovation and by Embracing Digital Transformation as well as Encouraging Change”.This is based on real practical need in a competitive challenging changing business environment.
To move the industry into the digital age, we need to agree on standards, defined as Document, Product and Process Standardisation. This will enable proper e-catalogues and proper transaction integrations between buyers and sellers (suppliers), thus cutting down on manpower in the current very time consuming RFQ process – as well as enabling proper comparisons of quotes/offers.
In order for buyers and suppliers to go to the next level of Procurement 4.0 savings – process and cooperation efficiencies need to be found as the ‘beating down the price’ relationship eventually cannot produce incremental savings, but process (manpower) efficiencies can. Solutions include Digitalisation, automation, integration, speed, fewer mistakes, customized e-catalogues and eventually, harness Artificial Intelligence + Machine Learning.
1. Amos International, Singapore
2. DMS Corridor, Tanzania
3. East Wind, Germany
4. Kloska, Germany
5. Lighthouse e-Solutions, Singapore
6. Oldendorff Carriers, Germany
7. PM3, UAE
8. RMS, China
9. Rudolf Seldis, Germany
10. Seven Seas, UAE
11. Sinwa, Singapore
12. Wilhelmsen Ship Management, Malaysia
13. Wilhelmsen Ships Service, Norway
14. Wrist Ship Supply, Denmark
Individuals: Bruce Margolin, Michael Klint and Erik Graumann
Membership benefits and scope
The eGenie Forum will work on a membership basis, with members to come from owners/managers as well as the supplier and integrator side.
The benefits experienced on both sides will be similar to those experienced in more advanced B2B industries – as well as generally experienced in B2C: namely that convenience, transparency and TCO become stronger buying criteria than transactional and often in-transparent price comparisons.
Benefits of eGenie membership is a seat at the table as standards for products, processes and documentation are shaped, marketed and scaled up.
The membership fee is at a low USD 500/year for companies, plus a one-time USD 500 sign up fee.
Call to action
More than ever, buyers and suppliers must collaborate and work together to improve operational efficiency to
reduce costs; reduce losses due to errors, reduce waste and build true partnerships.
Sign up now – get on the train to digitize the maritime supply industry.
Contact Captain Peter Machado, Marketing Director, eGenie Forum. Mobile: +971 56 1725 900.