Global Trade Management Services

Real-time visibility as a key competitive advantage

Balanced Trade Chain

Real-time visibility becomes a key competitive advantage

The macro global trends are threefold; Globalization, Sustainable Growth and Regulatory Compliance. These trends will drive the intention to identify and implement intelligent trade systems. Real-time global supply chain visibility is a key capability to address these macro challenges. Off shore sourcing provides lower cost, higher agility and financial performance advantages; however these advantages have to be balanced against higher logistics costs, supply chain fulfillment performance and supplier management risks. Many sourcing strategies underestimate the magnitude of the hidden costs of a longer global supply chain, including increased transaction cost and complexity, reduced flexibility, fulfillment errors, delivery delays and cargo loss, resulting in production disruptions, missed sales and higher costs of goods sold. Global trade requires improved visibility. The ability to, in real time, identify the location and status of the sourced goods gives the importer the ability to fine tune its distribution channels, its inventory management and its ability to fulfill commitments to its end users. New and Unique Global Trade Management Service arviem is focused on solving the challenge of executing a visible and intelligent global trade by offering independent services that provide real-time end to end visibility for containers, pallets and packages, as well as monitoring the condition of the cargo. Independent on Demand Service arviems services bundle reliable, proven and market ready components into unique and tested service packages, which clients buy, on demand and as required, for a specific period of time, at their self selected level of need. Potential clients are unwilling to buy a container monitoring solution (e.g. devices, hardware and software) and prefer not to invest in a solution development effort, which would impact both their balance sheet and their revenue. However, clients are inclined to acquire the solution capability on a service basis. arviem is offering an independent trade monitoring service that includes sensing, analytics & operational

Market Drivers and Trends International trade is expanding, with global demand for goods and the growing adoption of off-shore sourcing by major corporations creating increasing demand for (maritime) container transport in unprecedented volumes. Unprecedented Global Trade Volumes Over 16 million maritime containers are in transit throughout the world on any given day at sea, on rail, over the road, or awaiting stuffing, pick-up, delivery and stripping. The value of the cargo in these containers is estimated at 5 Trillion per year and many 100s of thousands of the containers move cargo with a value in excess of 1million . Moving these containers is a 900 Billion Euro business per year, accounting for an estimated 15% of the cost of goods sold. As importers supply chains extend globally, their financial and operational risk grows exponentially. That means, supply chain risk is rising sharply - supply chain management isnt keeping pace, tough. Every importer knows they prosper or expire on the efficient, accurate, secure and timely transit of these containers. Companies arent meeting strategic goals for their supply chains, and relatively few have acted on the macro global trends with the potential to impact their supply chains.

Real-time visibility as a key competitive advantage

functionalities as a service, which is an important value proposition and unique in the market.

to correct negative trends before they become costly problems. Clients are able to build condition-specific business rules, inform vendors, shippers, Government agencies and employees when exceptions occur and use powerful alarm escalations to ensure that issues and alerts are handled in real-time. Content formatting and transformations can be applied to any collected data, and the information can be delivered to desktops, portable devices, and client designated back-end systems that need it. The information can be personalized for end-users by timeof-delivery, by device types, and localized languages. The analytics software can interact with any existing corporate data sources that are accessible, and business modules exist for standard devices such as email, fax, SMS, mobile phones, pagers, and WAP push. Recipients need no additional software or hardware. In summary, defining supply chain specific KPIs and establishing a trade transaction and fulfillment performance baseline, sets the course for improving supply chain management. The arviem service is the realtime navigation system that keeps clients moving in the right direction.

Sensing The arviem solution for end-to-end real-time container monitoring is a device mounted on the container, which communicates via a mobile phone network or satellite in real-time anytime, anywhere on the planet. A comprehensive, client customizable sensor suite monitors container conditions including door security, temperature, humidity, shock, movement, light, and more. Client selected sensors are available as an integral part of the device or in one or more wireless remote sensor units. Container geo location and sensor data enable the client to monitor the location and condition of their cargo. Analytics The arviem analytics service component enables powerful data collection and aggregation features creating total supply chain visibility. Using the container sensor data (in combination with other data sources) enables client tailored analysis and reporting capabilities, such as performance dashboards, ad hoc reporting, online analytical processing and statistical tools, enabling the client to make use of the additional visibility and empowering them to make smarter and faster business decisions by providing more detailed, accurate, and timely understanding of their selected performance metrics. The resulting outcome is

Operations The operations component enables clients to cherry-pick for the information they need and at the same time mitigate investment risks and stay technology independent. The arviem service includes making devices available at the clients premises, meaning arviem takes care of reverse logistics from the point of destination and implicitly maintenance and repair.

Real-time visibility as a key competitive advantage

At the same time the solution fully hosted by arviem including any additional integration into existing client systems for more powerful data collection and enhanced analytics. The data, though, will always be owned and controlled by the client. Key to any successful operation is a thorough understanding of requirements, and a concept of operations (CONOPS) to address those requirements. The implementation process is actually a project phase in which arviem, together with the client, determines targets, requirements, operating procedures, systems integration and the ramp up of the service. Additional Service Level Agreements (SLAs) and the agreed procedures and system integration will be defined, prepared and implemented. arviems services provide independent real-time end-toend visibility for cargo in transit. arviem is the only service provider which offers a pay-as-you-use trade monitoring service, allowing clients flexibility in managing their supply chains while avoiding the cost of developing a proprietary solution or the need to invest in devices, hardware, software and staff, thereby minimizing the expense of improving their trade management and supply chain operations. Importers are the Primary Beneficiary Importers (and exporters) will be the primary beneficiary of the arviem service. Simple ROI Justification The example assumes a 40 feet container shipping cigarettes with an average retail value of 1.6 million. The cost for insuring this content is approx. 16000 . - Lower insurance premium/shipment - Reduced admin costs/shipment - Total benefit/ shipment - Price for arviem service/shipment - ROI per shipment 160 80 240 100 140

The arviem service makes the effective management of an extended supply chain finally attainable. Reliable realtime information, combined with trade transaction and fulfillment performance analysis and reporting capabilities, can easily be integrated with clients existing trade management and financial systems. Vanquish Dependencies A limited level of supply chain visibility is available today, as each involved party in fulfilling a trade already gathers and reports trade transaction data and therefore can provide basic information into trade status. However, these proprietary trade systems are not connected, and frequently involve paper based transaction trails and updates. The result is, that visibility is only available at certain local physical points - and - if at all, not in realtime. arviems services enable clients to get end to end, indepth real-time visibility from an independent, trustworthy source. Operating a global supply chain without really knowing where the cargo is, that cargos condition, who has custody of it, or when a major event occurs, is experiencing the supply chain, not managing it. Simply put, you cant manage what you dont know embrace the known! Give Us Your Valuable Feedback

Address: arviem AG Birkenstrasse 49 6343 Rotkreuz, Switzerland Phone: +41 56 535 7735 Mail: [email protected] Web: www.arviem.com

A simple ROI justification flows from reduced insurance fees, reduced internal handling, management and monitoring costs. Additional benefits including reduced inventory safety stock savings, just-in-time production availability, less counterfeit products and reduced theft etc. are not calculated in this example.

Real-time visibility as a key competitive advantage