The Shipowner Times

The Shipowner and Ship Manager Times, September 2018

shipserv.com | Edition 2

Find.Connect.Trade

“Our man in Europe”

Game changing

Peter Wee’s reflections on the northern European market

OSERV’s Peter Schellenberger on the growth of consortia

Go to page 2

Go to page 2

The Shipowner Times and Ship Manager

Braced for massive change AN in-depth new report and survey finds maritime procurement leaders braced for change. But what form will that change take?

Fully 68% of maritime procurement professionals believe they will see major change in the next 5 years. The consensus is that there will be fewer roles in procurement but the average role will become more strategic.

A small number fear they will turn into “transaction robots” but a more likely scenario is that technology will take the current routine and administrative transactional tasks away leaving the maritime procurement profession to focus more on value added activities.

Tom Holmes, who also edits the IMPA magazine, has written a detailed report based on interviews with many leading CPOs and procurement managers in maritime.

Despite the optimism on the shift to strategic procurement the experts are clear about the current obstacles.

Most see maritime lagging significantly behind other industries. Tom Holmes sums up the prevailing view: “On a scale where

Inside Today

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perfection is a 10, currently the marine industry is a 2.”

Reasons for this include the prevalence of old habits, deep rooted culture, wrong personnel, systems that don’t talk to each other, lack of standardisation and poor quality data.

Despite these issues, there is optimism and the belief that radical change is not far away for maritime purchasing.

The experts have high expectations for the procurement department of 2021 including: • That it will be far less transactional and far more strategic • Automation will be standard • Real and tangible data will not be an issue because data will be in a single system, not silos • Data will be real time and will give full visibility • Fewer operators • Vendors will develop into partners, acting as an extension of the company To read more go to page 3

Reasons to use a dedicated procurement platform

Data & Analytics

“I wish I had this report years ago” Developing advanced data and analytics tools for decision makers in ship operating companies is a key priority for ShipServ and in 2018 two new reports will be launched.

Interview: CEO Kim Skaarup and COO Mikael Weis pictured outside the Copenhagen office.

Spilling the beans

by Ursula Rechnagel Taylor Of Søfart magazine

IN an anonymous office building behind Strandvejen in Hellerup, safety shoes, boots and chemicals are traded for billions of dollars.

Or rather, from here, ShipServ’s platform, which allows the global maritime industry to buy and sell equipment for thousands of ships, is managed by just a few clicks on a computer.

ShipServ is the world’s largest digital shopping platform for the maritime industry and is on the verge of having 10,000 ships on the platform.

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However, ShipServ’s CEO, Kim Skaarup, and his COO Mikael Weis, have said that this has taken a long time to achieve, in an interview with Søfart.

“We have very patient investors,” says Kim Skaarup, a comment which is followed by a crooked smile from Mikael Weis: “And patient wives.”

The two have been part of ShipServ soon after it was established by the Dane Paul Østergaard at the turn of the millennium.

At that time, when e-commerce was still in its infancy, it was headquartered in Silicon Valley, USA. But today the Danish office is the real pivotal point for the company, which now looks at doubledigit growth rates ahead.

Continued on page 2

It’s a direct response to ship operators’ issues with the structure and complexity of procurement transaction data. We are working closely with customers to develop the new tools.

The newest is the Spend Analytics Report which has been developed for senior purchasers. It will clean and categorise the transactions and then present the data in a series of online reports.

Buyers can see accurate spend splits by category and sub-category, by supplier, by vessel/port, and key metrics like % of spend using contracted suppliers.

The cleaning and categorisation of spend is a challenging undertaking and the reporting will be developed on a category by category basis, starting with lubes.

This first category will be available in Q4 2018. For more information, go to page 5.

The second new report for shipowners and managers – the Supplier Performance Report - was launched earlier this year and is now available to all existing ShipServ customers.

It gained a very favourable reaction from users, including the quote in the headline of this article.

The Supplier Performance Report gives 24 procurement KPIs on every supplier that

a buyer trades with on ShipServ, enabling them to improve performance.

This enables them to analyse trends and identify where improvements can be made, thereby enhancing and fully optimising relationships with suppliers.

Having the data readily available in a clear and concise report gives purchasers the ability to identify potential opportunities for generating cost savings.

By understanding exactly what it is they are purchasing and how much is being spent, purchasers can look into negotiating possible volume discounts, or if deemed necessary, seek alternative suppliers.

Amongst the KPIs included are information on transaction totals, quote and win rates, response times, price and time sensitivity analysis, most commonly bought items and spend history, and analysis by vessel and by purchaser.

Key facts: • Separate report for every supplier you trade with on ShipServ • Much of the key data and trends over time are shown graphically • Benchmarks: Unique to ShipServ, the tool shows procurement teams two benchmarks: an individual supplier’s KPIs against the average of all suppliers trading with them, and also against an average of all suppliers trading on ShipServ • Print: All KPIs can be printed at the click of a button. It can also be used by shipowners and managers to streamline their internal reporting as well as in external audits.

Report - The future of marine procurement 2021

IMPA codes to be added to platform

What procurement people are saying

by Tom Holmes Editor of Marine Trader, The IMPA Magazine

MARITIME procurement is maturing. How do I know? One of the perks of my job is to listen to procurement people tell me about what they do, why they do it and why they think it’s right (which, invariably, it is).

Over the last 18 months there’s been a definite change in tack and mind-set.

Fewer CPOs and procurement execs talk in transactional terms. Cost and price are important, but strategy and sustainability are where it’s at.

Of course, approaches and strategies vary widely – but they are united in their current themes and principles: Procurement is becoming pre-emptive: the profession is shifting from reactive to proactive; tomorrow’s procurement is pre-emptive, collaborative, flexible and adaptable. We’re seeing this more and more in the shipping industry. Data, for example, is being used to map and monitor vessel-trading routes and plan purchases accordingly, while PMS systems are being

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19th partnership deal sealed at Seatrade

used to predict when spare parts need to be ordered and delivered.

Digitisation is a great enabler… so invest wisely. Whatever methods you choose and whatever platforms you use will need to work for you and for your organisation.

Procurement has to make a case for digitisation that supports the company’s needs and vision, and that brings suppliers and stakeholders closer together.

Under the revised agreement, the IMPA code database will be added into results on both ShipServ Pages, the online marine search engine, and ShipServ Onboard, a comprehensive digital catalogue and ordering guide available on DVD and USB

Invest in people: Your people are your biggest asset. Equipping them with the skills and knowledge to thrive in a digitised and analytical profession is a sound investment. The investments need not all be hard skills either. Soft skills such as communication, leadership, problem solving and negotiation are invaluable to the employee and the organisation.

and used by vessels and crew at sea.

With the MSG information added into ShipServ’s search engines, users will benefit from increased functionality, including the ability to conduct single code and description look ups, as well as being able to see the code hierarchy. Buyers will also benefit from being able to see which suppliers can provide products behind the codes being searched.

Once the ShipServ search engines have been enhanced in this way, IMPA codes will be an integral part of every applicable search result.

Continued on page 2

Upturn in sentiment as new buyers join WITH 200 shipping companies putting the vast majority of their procurement through the platform, ShipServ is a bellweather of marine trends.

With a new all-time record set in trading volume and 6 new buyers joining the platform, sentiment is on the up.

Focus on value creation rather than cost reduction: Data offers insight into how procurement and supply create value, where opportunities are, and where change and disruption might occur. Yes, cost is important, but long-term, sustainable supply chains offer better value to the organisation than cost-reduction alone.

Using data to order the exact quantities of a product required and investing the surplus in better quality/longer lasting alternatives is a simple and effective way to achieve this.

Trust old school intelligence: Tech works and digitisation is here to stay, but they still have some way to go before they replace networking, supplier visits and attending exhibitions. A lot of information is gathered and passed on this way. Why? Because shipping is a sociable industry and because trust is built better in person.

SHIPSERV and IMPA have just announced an extension to their partnership which will see ShipServ using IMPA’s Marine Stores Guide codes throughout its platforms and search engines as well as becoming an authorised reseller of the newly created Publisher Licence.

IB’s InfoSHIP is a maritime software suite which seamlessly integrates into ShipServ’s e-Procurement platform, enabling purchasers to send transactions directly from their software.

ShipServ now has 19 such software partnerships in place with providers including ABS, BASS, DANAOS, DNV GL, ShipNet and SpecTech. See the back page for the full story.

ShipServ is seeing record breaking trading volumes on its platform in 2018 adding to the evidence of recovery in the industry, or at least in most segments. In January 2018, for the first time, more than 100,000 POs in a single month were traded on the platform. The total value of orders issued through the platform in January was also a record at $298m.

Kim Skaarup, CEO, commented: “We definitely witnessed a slowdown in spend in the last few years. Spend per vessel was

down as was average order value. Buyers were being careful and cautious in their spend, which is understandable. We are definitely seeing a re-bound now.”

Mikael Weis, COO, confirms this. “For the last six months we have experienced an unusually high interest from shipowners – even from names where we thought it would be a longer process. The high levels of interest currently being seen comes as a nice surprise,” says Weis.

He continues: “Based on 17 years of experience, I find it hard to believe in a ketchup effect [that we’ll see a turnaround in all segments soon]. Having said that, there are positive signals, and from the Asian markets too.”

Several new buyers have signed up to ShipServ, joining the 200 ship operators already using the platform. Recent additions include Brunei Gas Carriers, Paradise Navigation, Norgas Carriers, TT-Line, BOA, STSM, Interlake Steamship, Seacor and TBS.

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September 2018, The Shipowner and Ship Manager Times

Interview: CEO Kim Skaarup and COO Mikael Weis pictured outside the Copenhagen office.

Spilling the beans Continued from page 1

“WE have experienced steady growth over the years. Except for the last couple of years, where it has been a bit flatter. But we are now cash-flow positive and have nice EBITDA numbers. And our economy is very good and healthy. Something is really happening now,” says Kim Skaarup.

ShipServ does not publish accounting figures, but founder Paul Østergaard has previously stated that there were red

numbers on the bottom line for the first 14 years of the company’s life.

But now ShipServ shines in several sectors of the shipping industry.

“For the last six months we have experienced an unusually high interest from shipowners – even from names where we thought it would be a longer process.

The high levels of interest currently being seen comes as a nice surprise,” says Mikael Weis.

Interest is seen not least in the cruise industry, which accounts for about a

quarter of the total volume on ShipServ’s platform.

transaction happens automatically through ShipServ’s platform.

“Based on 17 years of experience, I find it hard to believe in a ketchup effect [that we’ll see a turnaround in all segments soon]. But there are positive signals, from the Asian markets. Oil prices are also increasing, and it may have a positive impact on, among other things, offshore parts,” says Mikael Weis.

“The advantage for the shipowner is that you only make one connection to our platform which ensures that they can trade with all their suppliers via ShipServ,” says Kim Skaarup.

ShipServ’s customer base currently comprises of about 200 buyers, including many big names such as Maersk Line, Keppel, MSC and Shell. On the other side, there is a network of about 70,000 suppliers who can connect to ShipServ’s platform for free.

“50 of the largest suppliers in the world have fully connected their sales systems to our solution, for example, MAN Diesel, Wärtsila and others. There are big savings for them in managing their orders through ShipServ,” says Kim Skaarup.

Buyers – both shipowners and shipmanagers – pay a subscription, which depends on the number of ships they own.

One connection The purchase process typically takes place when the ship sends a requisition to their purchasing office, who then send it to the supplier and asks for a price. The entire

He points out that a major shipowner today handles several thousand purchasing requests daily. Previously, they would be handled manually. Now it happens automatically, saving a considerable amount of time.

27001 certified.

According to ShipServ’s management, no competitors currently have similar services on the shelf.

“On the face of it there are two or three companies that deal with something similar, but they are significantly smaller and far less transparent. And competitors from other industries have not penetrated because they do not know the maritime area,” says Kim Skaarup.

Shortened from interview in Søfart magazine

“It’s a big help when things are going faster and faster. In addition, it also helps to enforce compliance, because it becomes harder to change or manipulate the orders.

This is important in an era where we focus on cyber security,” says Kim Skaarup.

IMPA codes to be added to platform Continued from page 1

BY combining the pre-existing “IMPA Web” search, which has been powered

by ShipServ for many years, with ShipServ Pages, this will create a “best of both worlds” result for the users.

Don Staffin, executive vice president for ShipServ’s worldwide partnerships, said:

Benchmarks

“This is a key development for ShipServ as it is part of the strategic move towards higher quality data and greater use of catalogues in our industry, which will lead to better, lower cost, purchasing. So we are delighted to extend our partnership with IMPA.”

ShipServ’s platform also allows buyers to search suppliers for specific products, and benchmark them on factors such as prices and customer satisfaction.

This is done based on all the data ShipServ has collected over the years – totalling around 58 million transactions, analysed to help buyers make the right decisions.

IMPA’s Marine Stores Guide Codes will be added to ShipServ Pages, which is always free to use, in the coming months.

This happens, emphasizes the CEO, under full confidentiality, and only when it is aggregated data. ShipServ is also ISO

The next edition of ShipServ Onboard – the 61st annual edition – will include an unlocked version of the Marine Stores Guide – and are now available to buyers in both DVD and USB formats.

access to all of OSERV’s suppliers – which number more than 2000 - which is a clear and obvious benefit to OSERV and its consortia members. Peter agrees. “It makes perfect sense to work with the largest e-Procurement platform in the market, and S2S works very well with the ShipServ functionality.”

Free copies can be requested from ShipServ at www.shipserv.com.

The partnership with OSERV shows the value ShipServ places on working with existing customers to develop new ideas.

OSERV’s parent company OSM – a longstanding ShipServ client – was very familiar with ShipServ’s capabilities and so it was logical for the companies to work together closely to deliver the finished product.

Mikael Weis (l) from ShipServ and Peter Schellenberger from OSERV sign the agreement between the two companies earlier this year.

ShipServ powers OSERV’s gamechanging S2S platform From page 1

SHIPSERV has provided the technology for OSERV’s Supplies to Ships (S2S) platform, the first platform of its kind in the industry, and one that forms part of the OSERV purchasing management service for marine and offshore consortia.

OSERV – which is a subsidiary of OSM – uses ShipServ’s technology and functionality to underpin the S2S eCommerce platform. The platform itself is a technical solution that facilitates and improves the procurement process from catalogue and product order through to digitally processing procurement transactions, shipment and delivery on board. It also provides data analysis with a dashboard for supply chain performance optimisation.

OSERV’s Managing Director Peter Schellenberger, the driving force behind the initiative, said: “This is a professional service that is a combination of volume aggregation, a smart digital platform with

added functionalities and information systems, as well as quick processing and turn around of information. With this kind of platform, we are a first mover in the shipping industry.”

Peter Schellenberger adds that with OSERV, he wanted to find a way to process digitally that moved away from processing centres. They wanted, he says, to be able to process tenders and tender prices on a global basis to suit OSERV’s consortia.

“S2S does that for us. It is an automated way of dealing with sellers, contracts and catalogues. I like to call it a digital transaction platform - it enables the user to send transactions to S2S’s paying and nonpaying suppliers.

“I believe S2S is a major step towards purchasing automation, continuous benchmarking, tender price processing, key port comparison and global contract enabling. ShipServ is our technology partner and gives us the capability and functionality to do that.

“OSERV provides one of the most advanced systems in the industry. We are seeing real-time, tangible benefits and enabling better corporate governance and smarter procurement through smarter logistics, greater transparency, better negotiations and improved planning. We are changing the face of the supply chain organisation.”

Natural fit

“Peter had very good and clear ideas. We worked very closely with him and OSM to further develop those,” says Mikael. “One of the core things for us is to work closely with our clients to see where their problems are and to fill some gaps.

“The solutions we provide OSERV with now are an aggregation of our work with other clients as well, and that won’t cease.

We continue to work with our clients on invoicing, catalogues, spend analytics – and these are all solutions and services OSERV’s consortia members will benefit from too.”

Consortia growth As more consortia emerge, ShipServ is perfectly positioned to meet their demands.

“This is because of the strength of our core solutions, our knowledge and our ability to work closely with the consortia manager,” says Mikael.

“We can consolidate all the information that comes from the consortia members and provide critical reports online and in real-time for the consortia management.

“All our developments will benefit consortia members because they want greater transparency and to know the right and best place to buy things. So while some developments were made for individual owners or managers, the whole consortia will benefit from them.

“Also, we have developed integrations with our partners to almost all marine purchasing systems, so it doesn’t matter what procurement system a buyer uses (even if they have no system at all), as we can consolidate the necessary information regardless.”

According to ShipServ’s Chief Operating Officer, Mikael Weis, the partnership is a natural fit. The ShipServ interface offers

ShipServ’s solution is simple and powerful.

Automate your existing manual procurement system by making 1 connection to ShipServ.

This results in lots of efficiencies.

It also liberates your busy team so they can be more strategic and save you more money.

Automation is the enabler for better data and benchmarking.

ShipServ provides a suite of analytics tools to access this data so you can save even more money.

“Our man in Europe” From page 1

NORTHERN Europe represents over 45% of ShipServ’s buyer customers globally, so the Shipowner Times took the opportunity to catch up with Peter Wee, one of ShipServ’s Sales Directors for the region.

Peter, you’ve been in shipping for over 40 years, do you think the current pace of change is greater and faster than ever before?

PW: The progression in the size and efficiency of vessels has been significant, and I was privileged enough to work with the team that designed and monitored the building of the famous Triple-E vessels when I was at Maersk. But undoubtedly, the impact that digitalisation is having is immense and the greatest force for change, as well as good in enabling the industry to meet some of the real challenges that it faces. I genuinely believe that the technology train is moving fast; and those not on board will be left standing at the station!

What’s the mindset in Northern Europe towards digitalisation and e-procurement?

PW: There’s unquestionably a more advanced understanding and greater awareness of technology, and an appetite for innovation. Shipowners in the Emission Control Areas (ECA) regions are particularly attuned to the need to keep costs down,

not least due to the higher fuel prices.

They know every dollar counts, and see the benefits of driving transaction efficiencies within their procurement departments, as well as utilising the data and intelligence that is generated to optimise their relationships with suppliers. Typically, they also have existing procurement systems, which makes it easy for them to integrate with ShipServ’s buyer solutions.

What specific trends are you seeing in procurement?

PW: From a market perspective we’re seeing an increase in offshore business due to the stabilising of oil prices. For shipowners there’s a desire to enter longer term contracts with suppliers as well as embracing category management in order to take a more strategic approach to how procurement resources and processes are organised, concentrating on specific areas of spend. Our Analytics and Benchmarking solutions facilitate this by unlocking value from data and providing actionable intelligence on procurement trends.

What do buyers see as the greatest benefits of partnering with ShipServ?

PW: Benefits are based around three key words. ‘Transparency’ across their whole procurement process, ‘Predictability’ in knowing where they’re spending and at what price, and the real ‘Potential’ to reduce their OPEX.

ShipServ today

200 Shipowners / managers

1999 Year founded

The Shipowner and Ship Manager Times, September 2018

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New Report and Survey

The future of maritime procurement 2021 Tom Holmes, the editor of the IMPA magazine, has written a report on the state of marine e-Procurement - and its future. ShipServ has also run its e-Procurement 2018 survey. Thanks to all the purchasing professionals who contributed.

Maritime procurement survey 2018

Report: Maritime e-Procurement: a roadmap to 2021 and beyond Is shipping really lagging behind? Why? • If you are not fast you’re last.

• It’s for that reason that shipping has to sit up, take notice and embrace advances in technology. Yes its challenges are unique but no it’s not exempt from the tide of change.

• Shipping lags behind the times. Its adoption of technology and strategic practice in procurement are well off the pace of other industries.

• Why? Is it an obstinate culture that refuses to change, or is it because shipping has challenges that other industries don’t? According to key figures in marine procurement, it’s both.

• Marine procurement might not be ready for enhanced digitisation according to one person we spoke to; although there are already possibilities to improve, the industry won’t take advantage of them because the ‘marine business is full of old habits and know how’ and ‘has a very sensitive sense of pride and trust in the old ways of working.’

• It’s a problem they blame on the culture of marine companies hiring former seamen to office roles and procurement positions, positions that they are not suited to, despite their undeniable technical knowledge.

• According to many that we spoke to, the issue will resolve itself in one of

two ways. Via implementation of a change management programme, or the gradual changing demographics entering the workforce.

• Further issues such as unverified, inaccurate and siloed data, poor or nonexistent analytic tools and poor connectivity with vessels are very common; and perhaps explains why 64% of respondents told our survey they are unhappy with their e-Procurement system.

• So, where are we? On a scale where perfection is a 10, currently the marine industry is at a 2. Archaic systems that don’t integrate and cannot talk to one another prevail; they’re labour intensive and make admin assistants of intelligent and capable procurement executives.

The case for enhanced digitisation • Extracting meaningful data that is legible and easily found are among the most common criteria our pool of experts demanded of their systems – few have this right now.

• Cost savings, efficiencies and time saving will be the most tangible wins • The enhanced clarity will lead to benefits further down the supply chain too. Analysing consumption and trading patterns allows for better forecasting, which in turn leads to volume discount and increased lead times with happier, more productive suppliers.

• Innovation through automation is essential to increasing procurement’s value and its strategic importance. This primarily comes through reducing the manpower required to perform essential tasks, and freeing said manpower to get on with valuable strategic work.

Maritime procurement in 2021 - experts’ predictions

• So, what does this look like? The manual, email-based transaction flow between procurement departments and their suppliers is one of the biggest uses of manpower in the maritime supply chain today.

• Automation will be standard practice, freeing valuable time and manpower to work on gaining competitive advantage through efficiency and optimisation.

• Increasingly, procurement departments in the shipping supply chain are automating transactions through their e-Procurement platforms. A solution like ShipServ, for example, allows purchasing departments to connect with suppliers using a single system, meaning that RFQs and orders are sent from and received by that system. The decrease in administrative tasks reduces the procurement cycle time by half and increases productivity by 30%.

• Automate contracted spend: According to Teekay’s Allan Muir, if you have contracts in place, then very little spend under that contract requires human intervention. It should all be automated as far as he is concerned.

• Technology changes will be seen most in advances in cloud based solutions, blockchain and data

• Will be far less transactional and far more strategic

There’s a lot of purchasers not that happy with their procurement system....

• Gaining real and tangible data from them will no longer be a problem because data will be sat in a single system as opposed to in silos across many.

• Real time data: The strategic approach will be reaching a new level of quality. Most of the experts we spoke to expected to have fewer operators in 2021, full spend visibility and to have developed vendors into partners that acted more as an extension of the company than as suppliers.

To download your free copy of the full report please go to www.shipserv.com

”Category buying will be essential” ”Purchasing officers administrators”

18% 36%

46%

• As communications improve between systems and vessels, there will be less error and more savings.

There is a great difference in views about the nature of change:

Perceived high cost is the main reason stopping purchasers upgrading to an e-Procurement system (35%).

Get ready for change: 68% of marine procurement professions believe the profession is set for major change in the next 5 years.

will

be

pure

”My job will be done by a robot within 5 years” ”More educated, more trained, more strategic, more modern”

Even though it’s transformed other industries, if there was a marine version of Amazon, most marine purchasers (71%) don’t think it would have a sizeable impact.

70% of those with an e-Procurement system make greater than 20% time savings as a result.

34% think it will totally change beyond recognition.

• Data: potentially the key that unlocks the door to a whole universe of untapped savings, efficiency and value.

What the experts said...

Andrew Oxley

Zois Dagkaris

Dimitris Theodossiou

Allan Muir

Peter Schellenberger

Zois Dagkaris

SIEM Ship Management

Euronav

DANAOS

Teekay Shipping

OSM

Euronav

“Changing mind-sets is huge. How do we convince people that the system can help them to if they don’t allow it to? Digitisation is fantastic if you can get everyone on board with it, and get from it what you actually need.”

“The new generation won’t want to perform monotonous tasks; some guys aren’t doing procurement, they’re doing admin. We’ll be using machinery more and more with a view to liberating the people to maximise their potential.”

“The bottom line is that ecommerce is collaboration.

It is about the buyer and supplier working together to achieve the best performance.”

“I think there will definitely be an emarketplace – it’s going to come.”

“There’s a lot of reactive buying in the shipping supply chain, and not so much smart buying.”

“We are starting to take the best practice from other industries and adapt to the shipping industry’s reality – which is the most demanding reality in modern business.”

Why choose the ShipServ platform?

Latest Platform news

• The market leader

• Record breaking trading volumes on platform

• 18 years of experience in marine

• January 2018 new month record of 100k POs

• Global, 24 hour support

• New buyers join platform including Brunei Gas Carriers, Paradise Navigation, Norgas, TT-Line, BOA, STSM, Interlake Steamship, Seacor and TBS

• Strict data confidentiality

Our SVP sales team

Visit

Our stand at SMM, IMPA London and WorkBoat Contact

contactus@shipserv.com Mikael Weis

COO Copenhagen Office

Donald Staffin

Carsten Schmidt

Sharon Gill

New Jersey Office

Copenhagen Office

Singapore Office

Americas

EMEA

APAC

Web

www.shipserv.com

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September 2018, The Shipowner and Ship Manager Times

e-Procurement in action: How it works

The first big benefit of e-Procurement is automation...

As a result, purchasing departments improve efficiency and productivity typically by 30%. Here’s how

Before

After

Manual processes

One connection to ShipServ

Countless emails, excels, PDFs, re-typing

Transactions direct from, and to, your purchasing system

Communications chaos

Excels, PDFs, re-typing not required Efficient, automated

Result: Proven efficiency savings “15% time saved”

Richard O’Malley

“Saves a significant amount in terms of time”

Walter Woodage

“We save 30% of our time”

Panikos Parmenides

“Substantial reduction in time spent”

Stellios Dimon

“A great time-saver”

Ivan Purpovac

“I eliminated re-typing”

Roar Misje

The Shipowner and Ship Manager Times, September 2018

5

e-Procurement in action: How it works

...the other is the great analytics and benchmarks e-Procurement means better quality data. ShipServ offers: - Tools to optimise your supplier base

- Spend Analytics report

- Supplier Performance Report for each of your suppliers

- IMPA spend benchmarking tool

New: Spend Analytics Report ShipServ is currently developing a sophisticated Spend Analytics tool for our shipowner and manager customers. It will clean and categorise the transactions that our customers put through ShipServ, and then we will present the data in a series of online reports. ShipServ will deliver this analysis category by category. The first category will be lubes and we expect this to be ready to view in Q4 2018. You see here screenshots of the planned screens in the online tool showing the final product with all categories (not just lubes) displayed.

Dashboard

Category detail

Category breakdown

Trading summary and total spend category

Showing % of spend with contracted suppliers

Drill down further into each individual category

Price tracking

Spend detail

Supplier spend

See price trends over time

See your spend by sub-category by port and vessel

See what type of categories and brands you are purchasing from each supplier

Supplier Performance Report (for buyers) A new report for shipowners and mangers, which gives 24 procurement KPIs on every supplier they trade with, enabling them to improve performance.

potential opportunities for generating cost savings. By understanding exactly what it is they are purchasing and how much is being spent, purchasers can look into negotiating possible volume discounts, or if deemed necessary, seek alternative suppliers.

ShipServ recently launched the Supplier Performance Report which provides purchasers with a host of key real-time data on the procurement performance of every supplier that they trade with on ShipServ. This enables them to analyse trends and identify where improvements can be made, thereby enhancing and fully optimising relationships with suppliers.

Amongst the KPIs included are information on transaction totals, quote and win rates, response times, price and time sensitivity analysis, most commonly bought items and spend history, and analysis by vessel and by purchaser.

Having the data readily available in a clear and concise report gives purchasers the ability to identify

• Separate report for every supplier you trade with on ShipServ

Key facts:

• Much of the key data and trends over time are shown graphically • Benchmarks: Unique to ShipServ, the tool shows procurement teams two benchmarks: an individual supplier’s KPIs against the average of all suppliers trading with them, and also against an average of all suppliers trading on ShipServ • Print: All KPIs can be printed at the click of a button It can also be used by shipowners and managers to streamline their internal reporting as well as in external audits.

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September 2018, The Shipowner and Ship Manager Times

The Top

200 shipowners and managers have linked their procurement software to ShipServ. As a result of this automation they can send their transactions directly from their software to all their suppliers.

200

Chemical Carrier Rederiet Stenersen AS Seatrans AS Sunship/Lauterjung Utkilen AS

Norway Norway Germany Norway

Container APL Maritime Ltd. CMA CGM Crowley Maritime Corporation E.R. Schiffahrt GmbH & Cie. KG Maersk Line Maersk Line Ltd. Matson Navigation Company Inc. MSC Mediterranean Shipping Company S.R.L. MSC Ship Management Ltd. (Cyprus) NSB Niederelbe Schiffahrtsgesellschaft GmbH NYK Shipmanagement Pte Ltd Reederei F. Laeisz GmbH Seaspan Ship Management Ltd. Sunship/Lauterjung UASC

USA France USA Germany Denmark USA USA Italy Cyprus Germany Singapore Germany Canada Germany Dubai

Dredging Great Lakes Dredge and Dock Company

USA

Dry Bulk Carrier American Steamship Company (ASC) Berge Bulk Maritime Pte. Ltd. Chellaram Shipping (Hong Kong) Ltd. D/S Norden A/S Eagle Ship Management LLC Fairmont Shipping (Canada) Ltd Grieg Star John Samonas & Sons Ltd. Klaveness Ship Management AS Liberty Maritime Corporation Magsaysay MOL Ship Management, Inc. Misuga Kaiun (Hong Kong) Ltd. Neom Maritime (Singapore) Pte. Ltd. Norbulk Shipping UK Ltd. Orion Reederei GmbH & Co. KG Sunship/Lauterjung Tai Chong Cheang Steamship Co. (Singapore) Pte. TBS Ship Management The Interlake Steamship Company

USA Singapore Hong Kong Denmark USA Canada Norway UK Norway USA Philippines Hong Kong Singapore UK Germany Germany Singapore USA USA

Vrontados SA Westfal-Larsen Management AS Wilson ASA

Greece Norway Norway

General Cargo SMT Shipping (Cyprus) Ltd. TOTE Maritime Puerto Rico, LLC Wan Hai Lines Ltd.

Cyprus USA Taiwan

Heavy Lift Crowley Maritime Corporation

USA

Liquefied Gas Brunei Gas Carriers Sendirian Berhad Eaglestar Shipmanagement (L) Pte Ltd Epic Ship Management Pte. Ltd. Gaslog LNG Services Ltd. GAZOCEAN Golar Management Oslo AS Hoegh LNG Fleet Management AS Navigator Gas Shipmanagement Ltd. NiMiC Ship Management Co. Ltd. Norgas Carriers Private Limited NYK LNG Shipmanagement (UK) Ltd. NYK LNG Shipmanagement Ltd.

Brunei Malaysia Singapore Greece France Norway Norway UK/Poland Taiwan Singapore UK Japan

Offshore Drilling Maersk Drilling

Denmark

Offshore Supply Atlantic Towing DOF ASA Eidesvik AS Hornbeck Offshore Services Maersk Supply Service RK8 Offshore Shipmanagement Pte. Ltd. SEACOR Offshore Dubai LLC Siem Offshore AS SolstadFarstad ASA Vroon Ship Management

Canada Norway Norway USA Denmark Singapore Dubai Norway Norway Netherlands

Oil Tankers Alaska Tanker Company Chevron Shipping Company LLC Eaglestar Shipmanagement (S) Pte Ltd Expedo Ship Management (Canada) Ltd. Finaval S.p.A. Di Navigazione

USA USA Singapore Canada Italy

Maersk Line Ltd. Maersk Tanker New Shipping Kaisha Ltd. OSG America Scorpio Ship Management SEACOR Ocean Transport Inc. Shell International Trading & Shipping Company Ltd Socatra Tankerska plovidba d.d.

Teekay Shipping Ltd.

USA Denmark Japan/Korea USA Monaco USA UK France Croatia Canada

Passenger/Cruise Carnival Australia Carnival UK Columbia Cruise Services Ltd. Crystal Cruises Holland America Line Norwegian Cruise Line Oceania Cruises Inc. Paradise Cruise Line Operator Ltd. Princess Cruises Regent Seven Seas Cruises Seabourn Cruise Line Ltd. Star Cruises The World Windstar Cruises

Australia USA/UK Cyprus USA USA USA USA USA USA USA USA Malaysia USA USA

Reefer Green Reefers Norbulk Shipping UK Ltd. SIEM Ship Management

Norway UK Poland

RoRo American Roll-on Roll-off Carrier, LLC (ARC) Finnlines Grimaldi Group Maersk Line Ltd. MOL Ship Management (Singapore) Pte. Ltd. NYK Shipmanagement Pte. Ltd. OSM Ship Management AS SEACOR Ocean Transport Inc. TOTE Maritime Alaska Wallenius Marine AB Wilhelmsen Ship Management

USA Finland Italy USA Singapore Singapore Norway USA USA Sweden Norway

Ship Managers Anglo-Eastern Shipmanagement Ltd. BOA Management AS Columbia Shipmanagement Ltd. Fareast Shipmanagement Hong Kong Ltd Magsaysay Shipmanagement Inc. MMS Co. Ltd. Norbulk Shipping UK Ltd. Phil-Bright Ocean Ship Management, Inc. (POSM) SIEM Ship Management South Trade Shipmanagement Co. S.A Synergy Maritime Pte. Ltd. Tamar Ship Management Ltd. Thome Ship Management Pte. Ltd. TOTE Maritime Puerto Rico, LLC Wilhelmsen Ship Management

Poland Chile India Hong Kong Singapore USA Norway

Ship Yard Keppel Batangas Shipyard Keppel Shipyard Ltd. - Benoi Yard Keppel Shipyard Ltd. - Gul yard Keppel Shipyard Ltd. - Tuas Yard Keppel Singmarine Pte. Ltd. Keppel Subic Shipyard

Philippines Singapore Singapore Singapore Singapore Philippines

Tugboat Crowley Maritime Corporation

USA

Richard O’Malley, Purchasing Manager

Roar Misje, Head of Procurement

Walter Woodage, Director/ GM

Charles Ong, Purchasing Manager

Crowley Maritime

Grieg Shipping

Norbulk Shipping UK

Keppel Shipyard

“Time is the biggest saving through ShipServ.

We have detailed data that tells us that the amount of time we spend per vessel each week has dropped from 9.2 hours to 7.9 hours.”

“By using ShipServ TradeNet, we have eliminated the manual retyping of work and our team of six purchasers can spend a lot more time on strategic sourcing of suppliers through ShipServ Pages.

ShipServ also gives us an automatic KPI dashboard which helps in our negotiation with key suppliers.”

“The integration from my procurement system to ShipServ saves a significant amount in terms of time, efficiency and improved data quality. RFQs, Quotes and POs out and into the system are seamless without the need for retyping.”

“Encouraging our suppliers to adopt ShipServ has been well worth the effort. We have reaped significant cost savings from streamlining our purchasing processes.

Our relationship with ShipServ, particularly with its Client Relations team, is very strong. When problems crop up, they are dealt with promptly and quickly.”

ShipServ today

Hong Kong Norway Cyprus/Germany Hong Kong Philippines Japan UK Philippines

Stelios Dimou, C&P Manager GasLog

“We have been using ShipServ for almost two years and we have made significant financial savings from day one, not least in the time my team spends on each and every transaction, where we have seen a substantial reduction in time spent.”

200

10,000

$3.5bn

7m

70,000

Shipowners / managers

Vessels trading

Total trade per year

Total transactions per year

Connected suppliers

The Shipowner and Ship Manager Times, September 2018

For 18 years, ShipServ has dedicated itself to efficiency and effectiveness in marine procurement.

To match that, we’re keeping this ad short and sweet.

To find out more about how to save OPEX via more efficient procurement and better data please visit our stand at SMM, IMPA London or WorkBoat. www.shipserv.com

7

8

September 2018, The Shipowner and Ship Manager Times

Manage 10 ships?

Save $300,000 to $1.2m every year How ShipServ reduces OPEX OFTEN in purchasing departments, cycle times are too slow, procurement costs are too high, processes are plagued by errors, and unreliable data means that it’s hard to make strategic decisions.

These problems all stem from the communications chaos caused by inefficient, email-based transaction flows between you and your suppliers.

Think about all those emails, excels, PDFs, printing out and re-typing, scaled up to your entire operation – for all your fleet - you can see the waste, and its cost.

This is the issue ShipServ addresses and fixes.

Emails, excels, PDFs, printing out and re-typing become a thing of the past It is a proven system. Today, over 200 leading shipowners and managers – and their nearly

10,000 vessels – put the vast majority of their procurement through ShipServ. It makes ShipServ by far the market leader in automated procurement.

Here’s how it works.

You make a single simple connection to ShipServ.

Importantly, you make this connection from your current purchasing system so no change is needed there.

We sort out – and guarantee - connections to all your suppliers.

The end result is that your purchasing transactions go directly from, and come back into, your purchasing system.

The benefits of connecting to ShipServ include: 1. Cutting your purchasing cycle times in half

2. 30% typical savings from increased productivity, so you can run more vessels with the same number of people 3. Liberated from admin tasks, and provided with additional analytics from ShipServ, purchasers have more time to spend on reducing OPEX via strategic procurement.

Now that your procurement transactions run via ShipServ, your data is more complete and more accurate.

Much better data enables ShipServ to give its customers both: • a range of data analysis tools, and

Let’s take just two examples of reports available to ShipServ customers.

First, the Supplier Performance Report.

Online and printable, it shows 24 KPIs, presented in a series of graphs and tables, for each of the suppliers you trade with. It’s designed to be used at supplier review meetings to improve their performance with you.

Second is the Spend Analytics Report. This uses your trading data, cleans and categorises it, and present a series of reports on your spend – both high level and with drill down options.

To discuss your particular needs, please get in touch.

• a wide variety of benchmarks.

Accurate data puts power into your hands, enabling you, the procurement professional, to do what you do best - add insight and make key decisions.

Email marketing@shipserv.com or go to www. shipserv.com for more information.

19th partnership deal sealed at Seatrade ShipServ and IB, a leading provider of technical fleet management software, announced their partnership agreement, which will see ShipServ’s e-procurement solution fully integrated with IB’s InfoSHIP maritime software suite.

The announcement was made at Seatrade Cruise Global 2018 in

Fort Lauderdale.

The agreement will see both parties working together to enable all InfoSHIP customers to benefit from seamless integration to the ShipServ trading platform. Once integrated, all InfoSHIP customers will be able to automatically link to ShipServ’s TradeNet procurement

platform and have access to the 70,000 suppliers currently on ShipServ’s network.

These integrations can be put in place for ship operators without the need for a major IT project or long technical implementation cycles.

Over the last 18 years, ShipServ has leveraged partner integrations

such as this to provide over 150 ship owners and managers with access to e-procurement on the world’s largest e-marketplace for the marine industry.

Overseeing the integration project is Don Staffin, EVP at ShipServ, who in addition to being responsible for the company’s

business in the Americas and initiatives in the cruise industry, is also responsible for managing relationships with ShipServ’s maritime software partners.

“ShipServ has always valued its close working relationship with maritime software providers, who we consider key partners.

Collaborations such as this deliver genuine mutual benefits, enabling us to provide the advantages of our solution to such a wide range of buyers,” Don commented.

ShipServ works with ship operators’ existing procurement systems, including all of these (and more).......

It also works with your own bespoke or in-house system.

To find out more about anything in this newspaper visit www.shipserv.com

You can also download the two eBooks from the website Follow us on LinkedIn and Twitter

ShipServ today

200

10,000

$3.5bn

7m

70,000

Shipowners / managers

Vessels trading

Total trade per year

Total transactions per year

Connected suppliers