Transport & Logistics

Transport & Logistics

Serbia 2016

INTERVIEW

Streamlining Customs Procedures

SLOBODAN TOMIĆ

HEAD OF CUSTOMS PROCEDURES DEPT., CUSTOMS ADMINISTRATION, MINISTRY OF FINANCE OF THE REPUBLIC OF SERBIA

F

ollowing the adoption of the Customs Law, whose implementation began in May 2010, and its accompanying bylaws, a framework was created for the Customs Administration to start applying a series of new customs procedures collectively known as “streamlined customs procedures”. This new way

The EU accession process has lead to the harmonisation of laws regulating various areas including customs operations and international goods exchange. This process coincides with demands from companies to bring order to the business environment and make this environment more efficient and less formal as much as possible - all the while eliminating the strict and formal procedures associated with the cross-border movement of goods or subjecting these goods to relevant custom clearance procedures prerequisite, known conditions have been met which enable full adherence to regulation, significantly shorter deadlines and shifting from regular to subsequent control of custom clearance process.

The streamlined customs procedure implies that the simplified export/import clearance process is exe-

THE MAIN ADVANTAGE OF THE AUTHORISED ECONOMIC OPERATOR SYSTEM ARE THE STREAMLINED CUSTOMS PROCEDURES, WHICH ENTAIL LESS CONTROL, FEWER DOCUMENTS, CUSTOM CLEARANCE PRIORITY, CHOOSING THE LOCATION OF CUSTOMS SUPERVISION AND BETTER POSITIONING ON THE MARKET FOR COMPANIES of operating enables companies to go through a simplified and expedited processes, which, combined, facilitate a far more efficient and economical implementation of custom clearance procedures relating to import and export of goods. This in turn results in lower costs and more rapid execution of customs processes. Of course, before this is done, the customs authority needs to examine whether certain

4

TRANSPORT & LOGISTICS Serbia 2016

cuted based on an invoice alone and on either consignee or consignor’s premises. This procedure is also known as in-house custom clearance.

The streamlined customs clearance based on an invoice is carried out in the following way – the customs official agrees for a trade or any official document submitted together with the customs clearance request to replace the customs declaration (usually,

this document is an invoice, hence the procedure’s name). The law stipulates that the trade or any official document has to contain the information that properly identifies the goods in question. The declarant is also obligated to submit additional documents before the deadline set by the customs authorities. A custom official will approve the entire procedure for those companies which regularly declare the same type of goods to be custom cleared via the streamlined process, providing that the goods in question are simple, similar and easily recognisable and, as such, easy to inspect at the border customs office. Also, the goods in question should be such that they do not require additional documents to be submitted. In other situations, the procedure can be approved only if other required conditions have been met.

In addition to the information required by law, the invoice, which is used as a streamlined customs declaration for the purpose of identifying the goods, has to contain specific information needed to identify the goods and

all the facts required for the procedure to be executed. Furthermore, the invoice has to contain a special note that reads “Streamlined Customs Declaration� with an approval number.

Apart from the generally prescribed conditions relating to regular customs procedures, in order for the declarants to have this approval, several further conditions must be met. They need to demonstrate economic justification of such operations; have regularly paid customs fees and have no outstanding custom clearance liabilities; they have not filed for bankruptcy or liquidation and, in the last two

IN ORDER FOR COMPANIES TO BECOME ELIGIBLE FOR THIS STREAMLINED CUSTOMS PROCEDURE, THEY NEED TO MEET ALL PERTINENT LEGAL CRITERIA years, they have not committed serious or repeated infringement of customs regulation; possess a valid guarantee for payment of custom clearance liabilities, and have delegated one or more responsible persons who will execute the simplified customs procedure based on an invoice; make sure that the invoice, as a streamlined customs declaration, contains all the required information in order for this customs procedure to be executed; have the ability to electronically file the documents with the customs administration and that the documents accompanying the streamlined customs procedure are

clear enough to facilitate efficient control.

After a detailed check, providing that all conditions have been met, the customs authority issues an approval which enables the company to implement the simplified customs procedure based on an e-filed invoice and, if needed, subsequent inspection of the goods by the border customs official. This allows for a quick completion of the custom clearance procedure on condition that a supplementary declaration has been filed within the deadline stated in the approval. A total of 266 companies in Serbia have been using this simplified procedure.

On the other hand, and with the goal of simplifying custom clearance in import and export (in-house custom clearance), the customs authority can allow a company to receive or deliver the goods submitted for clearance procedure in their own premises or in other approved location without showing these goods and transit documents to customs officials but only bookkeeping documents. This practice eliminates the costs of transporting the goods to customs facilities. The declarant is required to submit a supplementary declaration in this case too.

In order for companies to become eligible for this streamlined customs procedure, they need to meet all pertinent legal criteria. These include having headquarters on the customs territory of the Republic of Serbia, having economic justification for the customs to issue the approval, being able to e-file customs documents, have e-bookkeeping of the goods, strictly adhering to regulation in terms of the hired freight company, having internal instruc-

tions clearly defining the place where a truck (or other transport means) will be positioned to load the goods that are submitted for streamlined customs clearance procedure, having a status of authorised exporter and other relevant conditions. The customs authority will check in detail whether the above conditions have been met prior to issuing an approval.

custom clearance only in export, some only in import, while some have been issued with approvals for both).

On 1st September, 2014, the Republic of Serbia Customs Administration started implementing the Authorised Economic Operator (AEO) system. By doing so, the Administration is now fully compliant with the EU laws and standards and furthermore has created an environment conducive to partnership between the public and private sector. So far, several companies have applied for the AEO status and the first company to be granted one was Hemofarm (the AEO certificate was officially handed to the company representatives on 22nd April, 2015). Following Hemofarm, another seven companies have been granted AEO status.

There are several AEO statuses like AEOC (for customs simplification) which enables streamlined custom

ON SEPTEMBER 1, 2014, THE REPUBLIC OF SERBIA CUSTOMS ADMINISTRATION STARTED IMPLEMENTING THE AUTHORISED ECONOMIC OPERATOR (AEO) SYSTEM. BY DOING SO, THE ADMINISTRATION IS NOW FULLY COMPLIANT WITH THE EU LAWS AND STANDARDS Thanks to this customs procedure, the goods are directly transported from and to a consignor or consignee’s premises. This simplified procedure was devised in order for companies that strictly adhere to the customs regulation to be able to do their business more efficiently, to achieve a quicker turnaround (thus reducing costs) and to become more competitive on the Serbian and the EU market.

A total of 90 Serbian companies have earned this right and have been implementing the streamlined customs procedure under the conditions stipulated in 142 issued approvals (some of them have approvals for streamlined

6

TRANSPORT & LOGISTICS Serbia 2016

clearance procedures, AEO-M (for security and safety) which is granted to companies that adhere to security and safety standards and AEO-P (the most important AEO for customs simplification) which is a combination of the aforementioned two AEOs (all-in-one).

The conditions for granting the AEO status are adhering to custom clearance procedures, having an acceptable sales management system and, if need be, transport documentation in place which allows for proper customs control, proven financial solvency and, if required, relevant security and safety standards in place. Only a company that has passed rigorous inspection

of all its business segments and has adopted strict European standards thus being able to guarantee safe production, storage, distribution and shipping of goods can be granted the AEO status. Apart from several domestic companies, the following foreign companies operating in Serbia also apply streamlined customs procedures – Coca-Cola, Philip Morris Operations, DRÄXLMAIER Automotive, C&A, JUB and others.

The companies to which the Customs Administration has granted AEO status are considered stable longterm partners in the Republic of Serbia’s foreign trade activities. Such a status entails simplified custom clearance procedures and faster process of bringing the product to market, which increases the product’s competitiveness and results in more efficient business operations.

The main advantage of the Authorised Economic Operator system are the streamlined customs procedures, which entail less control, fewer documents, custom clearance priority, choosing the location of customs supervision and better positioning on the market for companies.

With its numerous activities geared towards the business community and its development, the Serbian Customs Administration wants to become even closer to the business sector. This is a trait that all modern customs administrations have, in addition to insisting on strict adherence to regulations, detailed customs supervision and control while taking into account the interests and development of the Serbian economy. To that end, the Administration has implemented concrete measures in order to enable companies to operate in an easier and faster manner. In the interest of improving its relations with the business community, as one of the most important partners, the Customs Administration continues to issue approvals for streamlined customs procedures to companies that operate in a conscientious manner and in line with the law thus enabling them to operate more efficiently and economically. ■

cargo-partner COMPANY GROWING ACROSS EUROPE

Year of Big Investments

cargo-partner will have finished extending its main facility near the Vienna Airport, Austria, by the summer of 2017. In order to satisfy the growing demand of their clients, the company is equipping a logistics centre made from sustainable wood with 25,000 pallet spaces

“W

e use wood as our main construction material. Wood enables us to constantly control, monitor and maintain temperatures between 15 and 25 degrees Celsius, and humidity of 70 per cent. It is very affordable and it emits very little carbondioxide,” says Mirko Ilić, CEO of cargo-partner Serbia. “Environmentally friendly architecture starts with choosing proper construction materials which are conducive to the efficient manipulation of large quantities of goods while providing the best possible environmental protection.”

• Is this the only investment by cargo-partner at the moment?

- Absolutely not. In the near future, we plan to offer similarly high standards in Serbia, Slovenia and Slovakia. In Serbia, we have already met all the necessary technical prerequisites while in Slovenia, we are in the last stage of negotiations about the building land. I cannot disclose more details at this stage. As far as Slovakia goes, the warehouse in Dunajska Streda, which spans 7,200 square metres and

is 17.5 metres high, will have become operational by the end of summer.

• cargo-partner was founded 33 years ago while your branch office in Serbia has been operational for 12 years. What drew so many clients to you?

- cargo-partner is a medium-sized, privately owned international company, specialising in transport and logistics services, particularly

parency in the flow of goods throughout supply chain. Our organisational structure, innovative software, the expertise of our employees, high standards of our services, and exceptional efficiency are all results of our corporate policy. cargo-partner can always provide tailor-made solutions, adapted to each individual client. In Serbia in 2014, we opened our warehouse that spans 8,000 square metres, has 20,000 pallet spaces and 18 reloading bays, including ones

ORGANISATIONAL STRUCTURE, INNOVATIVE SOFTWARE, EXPERTISE OF OUR EMPLOYEES, THE HIGH STANDARDS OF OUR SERVICES AND EXCEPTIONAL EFFICIENCY ARE ALL RESULTS OF OUR CORPORATE POLICY. CARGO-PARTNER CAN ALWAYS PROVIDE TAILOR-MADE SOLUTIONS, ADAPTED TO EACH INDIVIDUAL CLIENT air and sea freight services. Even the most demanding clients have put their trust in us because of our quality storage and proper management of complex freight operations via different transport routes. We have developed the WMS, i.e., an integrated Log Space and the S.P.O.T. system, which ensures complete trans-

for oversized loads. Then, we have a registered public customs warehouse, which covers 2,200 square metres, has a racking system and a blocked zone for storing oversized loads.

The cargo-partner company, however, is not stopping at this – concludes Ilić in the end. ■

TRANSPORT & LOGISTICS Serbia 2016

7

INTERVIEW

25 Years of Doing Business in Serbia DHL monitors the needs of the market and its clients, helping them to be successful DARKO BABIĆ, DIRECTOR AT DHL INTERNATIONAL BELGRADE

D

of services, thereby entering into cooperation with the customer in segments in which it previously wasn’t active, such as sales, marketing, purchasing, research & development, and production. It is not uncommon for logistics companies to even

pacted on the technology, procedures and standards of the sector during this quarter of a century?

- The situation is actually reversed – it is technology that has caused huge changes in our industry, as well as in everyday life. Technological development is inevitable and that is something we have to accept. Whoever understands that best and applies it the fastest, will be more successful. In all of this, however, the most important are is oversight, continuous monitoring and improvement of processes, and, in addition to that, the nurturing of human resources and talents, who must be motivated to work and become successful.

DHL WANTS TO PROVIDE SMEs AND ENTREPRENEURS WITH EVERY KIND OF SUPPORT, PRIMARILY THROUGH COMPLETE LOGISTICAL SUPPORT FOR THEIR OPERATIONS, BUT ALSO THROUGH PRACTICAL “KNOWHOW” FOR THE CONQUERING OF NEW MARKETS

• How much do standardisation and new technologies now play a role in the operations of companies dealing in transport and logistics?

- The digital world prevails everywhere, including in logistics companies, and the digital community provides its members with a faster flow of information and faster access to new solutions. In our company that is also a response to innovation, which we develop at our two innovative centres, where solutions are continuously improved and greater efficiency is secured. Risks are hidden in a failure to grasp the importance of the digital world, but problems are possible

HL began its operations in Serbia in 1991, operating as a domestic company with 100 per cent foreign capital. Darko Babić, director of DHL International, has been with the company for all of these 25 years, spending 23 of them at its helm. What started with an air express courier service for the transport of documents and samples, today represents a worldwide leader in transportation and logistics.

• You are considered as being one of the top experts in the transport and logistics sector in the region. In short, how would you define the current market trends in this area?

- New trends in the region are the same as in our country, and develop increasingly with the arrival of global clients. The greatest focus is placed on the “value chain”, related operations that provide added value and increase the profitability and competitive advantages of companies. That is when, for example, a company in our field offers a wider range

8

TRANSPORT & LOGISTICS Serbia 2016

do HR tasks for their clients. Those are current trends which rely on the client's needs, while the limits of their expansion are almost non-existent.

• You have behind you more than 25 years of experience in the field of transport and logistics. What are the most significant changes that have im-

for those who are not willing to pay the cost of implementing new technological solutions.

• The economic reform process is underway in Serbia. What changes would you suggested when it comes to the transport sector, and technology and its role in economic development?

- The only advice, suggestion or request is to continue with the construction of basic infrastructure! In the future we must invest a lot more in this, because without infrastructure there is absolutely no development of any industrial branches. By this I mean primarily road infrastructure, but also in telecommunications and the education system. Reform in education must start immediately, because the first results cannot be shown in such a short time.

The greatest competitive advantage and most important resource of DHL are employees. Moreover, an uncompromising customer orientation ensures that all employees are trained, motivated and emotionally connected, so that we provide a consistently outstanding quality of service, which leads to the satisfaction of our clients and profitable networks. In practice we have proven that our four pillars – Motivated employees, Exceptional quality of service, Loyal customers and Profitable networks, in cooperation with “Certified International Specialists” training programme and corporate culture – provide top results.

and offer logistics solutions, especially in exports, and we currently service 12,000 SMEs, of which 3,000 are active in import and export each month.

We support the Serbian Chamber of Commerce’s workshops for SMEs and female entrepreneurs, in order to familiarise them and simplify global trade conditions for interested companies.

• What new services will DHL offer its clients in the coming period?

- DHL has published a strategy for 2020, as well as the global reports “Global E-tailing

• DHL operates in 220 countries worldwide and employs more than 340,000 people, making it a world leader. What are the communication priorities in such a large system?

- Internal communication is of the greatest importance to the success of our business. This is equally important between different divisions as well as within them. The whole system has several large units and if communication within them was not perfect that would certainly be reflected in the results. Thus the biggest challenge at the level of the entire corporation is precisely this internal communication and the ability to define a network of activities, functions, divisions and regions in which everything will work flawlessly.

• DHL International Serbia is recognised for its high operating standards, efficient op-

DHL IS SPECIALISED IN TRANSPORT SOLUTIONS FOR ECOMMERCE, ONLINE SHOPS AND COMPANIES THAT SELL PRODUCTS VIA THE INTERNET, AND IT HAS INTERNATIONAL EXPERTS THAT DEAL EXCLUSIVELY IN THE DISTRIBUTION OF SHIPMENTS SOLD VIA THE INTERNET erations and excellent financial results. What provides the basis for these results?

- Although we, as a country, are far from the most successful countries in the world, we have proven that, through togetherness, in such a country we can become the most successful DHL in Europe. We insist on the corporate values that our people live. We have twice (2012 and 2014) been declared the best employer in Serbia in the category of small and mediumsized enterprises, while we have additionally been declared the Preferred supplier and Preferred investment, so we will continue working to strengthen these positions in the future.

• The portfolio of DHL Serbia includes a large number of foreign investors, local and regional companies and institutions. What forms the basis of your long-term cooperation?

- In Serbia operate 57 of DHL’s global clients, who use services provided by all modes of transport – plane, truck, ship and rail. They are divided into four sectors: automotive, pharmaceutical and medical, ITC and engineering and manufacturing. In addition, more than 150 foreign companies that operate in Serbia are our regular clients.

For us at DHL Serbia, small and mediumsized companies and entrepreneurs are important. We go out of our way to meet their needs

2025”, “Internet of Things in Logistics” and “Fair and Responsible Logistics”, exploring opportunities and the implementation of specific trends in logistics.

The Strategy to 2020 envisages a thirty per cent reduction in the emissions produced during transportation. The new Go Green service is planned for next year in Serbia and implies the introduction of electric courier vehicles. For private individuals, entrepreneurs and SMEs, we are preparing innovations in the method of paying for services via mobile phones. mDHL will ease and simplify the use of our services.

For next year we are planning to launch the On Demand delivery service in Serbia, which will offer DHL customers the possibility to request a delivery of international shipments to a location that is convenient for them. This type of shipment delivery provides a new level of comfort and ease of use to our clients.

By the end of the year we will increase the capacity of our plane to 18 tonnes by introducing a Boeing 737 cargo flight every day. ■

TRANSPORT & LOGISTICS Serbia 2016

9

THE PORT OF SENTA PORT OF SENTA JSC SENTA is the only international port on the Tisza River in Serbia. The port was founded in 1973, originally as the Potisje Senta Port, and was dealing with construction materials trade. Today, the Port of Senta is a contemporary logistics centre spanning over 20 hectares of land.

This cargo handing and transport centre integrates river, rail, and road transport in a functional multimodal transport.

The Port has indoor storage stretching over 18,000 m2 (including public customs clearance warehouse) and is equipped with all the necessary port equipment: two transfer points for river vessels with carrying capacity of up to 1,800-tonne (on a vertical quay), slide for bulk cargo (3,000-tonne daily capacity), a 25-tonne universal bridge crane (with a grabber, hook and spreader), a truck weighbridge with 60-tonne capacity, petrol station with a 300,000-litre capacity, device for transshipment of LPG (with 1,000m3 storage capacity), trucks, excavators, front loaders and forklifts.

A customs office and 10 freight-forwarding companies are located in the Port's area.

The Port has very experienced workers who can respond to all requirements of its users 7/24.

The Port's business results and the quality of its services have been improving year-on-year. In 2015, the Port of Senta handled in total 453,775 tonnes of cargo, of which 154,700 tonnes handled on water (a 32% increase comparing 2014).

The Port has been in private hands since 2004 and is a member of the LION GROUP, which owns 10 other companies.

Owing to its strategic position primarily and by constantly improving its operations, the Port can now further utilise its capacities and increase the number of its clients.

Domestic export and import companies, cargo handling agents, shippers as well as foreign partners have placed their trust in us.

MSC doo

Makenzijeva 24 11000 Beograd Tel: +381 11 77 00 513 Mail: office@mscserbia.rs

TRANSPORT & LOGISTICS Serbia 2016

11

INTERVIEW

From Experience and Knowledge to Complete Service Logistics is a complex science and comprises a multitude of operations that make up a transport process ZORAN STANKOVIĆ, DIRECTOR OF LOGISTICS

TRANSPORT CONSULTING STANKOVIĆ D.O.O. BELGRADE

L

ogistics Transport Consulting Stankovic d.o.o offers complete service – from planning freight routes and freight modes to securing storage and the required documents for the process. The company’s many satisfied clients are a testament to its success.

• When it comes to transport, you are one of the companies that deal with oversized loads both in Europe and Asia. What kind of oversized loads do you usually ship and, considering the complexity of such transport, do you charge special prices for it?

mon feature of all these loads is that when they are loaded onto a vehicle they exceed the maximum permitted dimensions and weight, as stipulated by law, and they cannot be divided up into smaller loads. The transport of oversized loads depends very much on the business needs and activities in certain business segments. Consequently, we usually transport construction and agricultural machines as well as various production machines, parts of building structures, reservoirs and other loads both whole and in part.

THE TRANSPORT OF OVERSIZED LOADS DEPENDS VERY MUCH ON THE BUSINESS NEEDS AND ACTIVITIES IN CERTAIN BUSINESS SEGMENTS. CONSEQUENTLY, WE USUALLY TRANSPORT CONSTRUCTION AND AGRICULTURAL MACHINES AS WELL AS VARIOUS PRODUCTION MACHINES, PARTS OF BUILDING STRUCTURES, RESERVOIRS AND OTHER LOADS BOTH WHOLE AND IN PART What do these prices depend on?

- Oversized loads vary and include building structures, construction and working machinery, industrial machines and equipment and agricultural machines. One com-

12

TRANSPORT & LOGISTICS Serbia 2016

The price of transporting oversized loads is determined according to dimensions, weight and mileage. The difference between transporting an oversized load and a standard load is that it is very difficult

to find loads for return transport because these are special vehicles that cannot transport all types of loads, so our price also needs to include the return mileage of an empty vehicle. Furthermore, special licenses need to be obtained for transporting oversized loads and, in some cases, we need to have technical and police escorts, which can drastically augment transport costs. Finally, the dimensions, weight and purpose of such cargo affect the complexity of transport and determine the vehicle’s exploitation parameters, which can be bigger than in standard transport. Also, costs like wear and tear and fuel consumption are higher than in standard transport.

• LTC Stankovic has years of experience, including consulting services. Can you tell us something about these services, and what are the most common requirements of your clients?

- LTC Stankovic has been providing consulting services in the traffic and transport segments for 15 years now. I am the third generation of traffic experts in my family and, by utilising the accumulated experience of my predecessors, I founded a company which, at this moment, provides services to almost 100 transport companies in Serbia with over 1,000 transport units all together.

Our company employs traffic engineers who are knowledgeable about Serbian and

European traffic and transport laws and can provide accurate and timely information to all clients, as well as solutions for their transport requirements.

Our cooperation with the Ministry of Construction, Transport and Infrastructure and other state bodies, in addition to our cooperation with the Faculty of Transport and Traffic Engineering, make our services highly reliable.

I am especially proud of our collaboration with the Faculty. Together, we have organised educational trips for graduate students who can then also intern at our company. A number of them are interning at our company as we speak.

JUST BY APPLYING NEW TRANSPORT AND LOGISTICS TECHNOLOGIES AND HAVING PROFESSIONAL MANAGEMENT, ONE CAN GAIN A SIGNIFICANT MARKET ADVANTAGE. SPEED, RELIABILITY AND SAFETY ARE AN IMPERATIVE FOR ANY COMPANY STRIVING TO SURVIVE ON THE MARKET • What is the business environment for transport and logistics companies like?

- The environment has improved a lot in the last few years. Higher numbers of logistics centres and significantly improved infrastructure have both created new opportunities for the development of transport economy.

There are many freight companies operating in Serbia and the region. What are the global trends in this sector considering a very tough competition?

The competition undoubtedly contributes to a higher quality of services provided by transport and logistics companies. Just by applying new transport and logistics technologies and having professional management, one can gain a significant market advantage. Speed, reliability and safety are an imperative for any company

striving to survive on the market.

Considering its geographic location and regional leadership in transport and logistics, Serbia has become the biggest freight hub in South East Europe, which creates a lot of opportunities for progress and development for many companies.

• To what extent does the excessive customs bureaucracy affect business efficiency for transport companies in Serbia and the region?

- The time spent on dealing with customs clearance formalities poses a big problem for both Serbian and regional transport companies. This makes us inferior to other transport companies in Europe. Demurrage costs are very difficult to compensate, and they are usually borne by transport companies. This, in turn, slows down

covering the costs of investing in the transport means, which can slow a company’s growth. Implementing the New Computerised Transit System (NCTS) has somewhat simplified the procedures and reduced the time we used to waste on customs formalities.

There is more work to be done on facilitating better access to the European freight market, which would make us more competitive, both in price and quality.

• What do you think of the cooperation among transport companies in the region?

- Cooperation among regional transport companies is good, but it usually boils down to individual relations between business partners or friends. I think that more should be done on institutional networking. Regional chambers of commerce and associations of logistics and freight companies should work more on finding common interests. Of course, they also need to be more vocal and transparent in their line of work in order for all logistics or transport companies to find their interest.

• What are the biggest obstacles to faster development and bigger profit of transport companies?

- The standard problems in the transport economy include unfair competition, problems with collecting receivables, and lack of drivers. Still, I believe that we will soon see progress in every segment of our business. ■ Phone: +381 (0)11 30 98 290 /291/273/274 E-mail: transport@ltc.rs www.ltc.rs

TRANSPORT & LOGISTICS Serbia 2016

13

INTERVIEW: Miloš Vojinović and Momir Mitrović, Co-Owners of Mobile Solutions

MILOŠ VOJINOVIĆ, Co-Owner of Mobile Solutions

Mobile Solutions d.o.o. is a Belgrade-based company which, according to several marketing surveys, has been recognised as the leading fleet management service provider in Serbia and the region in the past few years. The company is also the recipient of the prestigious Brand Leader Award for developing IT solutions for transport and logistics. The award was presented to them at the conference Transport and Logistics in Southeast Europe and the Danube Region – TIL 2016

M

obile Solutions co-owners Miloš Vojinović and Momir Mitrović are very upbeat and open in discussing the situation in transport and logistics, the target market for their IT solutions, and the company’s development plans.

“We started developing our vehicle tracking system in 2005 as a part of a geoinformatics research project in the MapSoft company,” says Miloš Vojinović, co-owner of Mobile Solutions. “After spending three years in development, we founded a new company – Mobile Solutions – in 2008 which is completely committed to developing solutions for optimisation in the transport

on the development of technical solutions adapted to the specific needs of our users,” Mr. Vojinović adds.

• Software solutions companies have to follow technological development trends in the world carefully and in their immediate environment on a regular basis. To what extent does Mobile Solutions rely on European standards in its business operations?

ONE OF THE MOST IMPORTANT COMPARATIVE ADVANTAGES IS THAT WE CAN INTEGRATE OUR SOLUTIONS WITH THE BUSINESS INFORMATION SYSTEMS OF OUR USERS and logistics segment. The development team from MapSoft and Mobile Solutions is comprised of renowned experts, PhD holders and experienced engineers. The key people in our team have over 25 years of experience in developing geoinformatics software solutions, and 10 years of experience in developing location-based services (LBS). The company's strategy is based

14

TRANSPORT & LOGISTICS Serbia 2016

- In our everyday lives, we are already used to the fact that technology is changing at tremendous speed. The period in which new models emerge – from consumer goods to cars – has been shortened several times compared to the last few decades. Changes in software development are even more rapid. To us, engaged in this business, this sometimes brings a lot of happiness and satisfaction, because we are

MOMIR MITROVIĆ, Co-Owner of Mobile Solutions

Photo: Blic

Leading Provider of Fleet Management Services

able to find certain business solutions in a very easy and efficient way. Sometimes, it causes much frustration because we constantly have to be ready to learn new things.

Today, the industry, led by technologically strong corporations, set most standards. This is especially true of the IT sector because, apart from industrial standards, we also apply ISO standards. In our line of work it is important to monitor carefully automobile industry standards too because the equipment we use is incorporated in the users’ vehicles. In that respect, it is crucial to follow the standards in the EU. • Mr. Mitrović, what do you think of the regional market in terms of the interest shown for adopting different software solutions?

- One of the most important features of modern IT solutions is that they are very open. This enables a simple integration between different business processes in supply chain management. Our solutions are primarily geared towards fleet management and vehicle tracking, and they are easily integrated with warehouse management systems (WMS), enterprise resource planning (ERP), and customer relationship management (CRM). Developed companies in the region follow these IT trends, and they implement even the most complex IT solutions relatively fast.

• What is the difference in the efficiency of the companies that use your services and others which rely on out-dated business models?

- Based on our long experience in this business, we came to realise that for us the most desirable user is the one who clearly knows the cost of the particular business processes that they wish to make more affordable, faster or more optimised.

It is easy to work with such users because planning is effortless with them, and soon after the implementation of our solutions, they can see and measure the effects of our systems.

The users for which the organisational level doesn’t generate clear parameters through which they can monitor the realisation of all business stages are not that easily convinced that they need our solutions, and it is not that easy to prove to them how efficient our solutions are. Luckily, both user groups really want to cut down on their business costs and are motivated to use our solutions.

• How does a company that uses your transport tracking and monitoring systems benefit from them?

- The current market situation is such that competition is huge while profit margins very thin, so both user groups are struggling to reduce their costs to a minimum. Users see our systems as a way to make

mentioning that our systems improve work safety, as well as contribute to reduction of CO2 emission, which can be measured.

• You cover almost the entire region. What do you think is the biggest obstacle in achieving faster and more efficient transport of goods, something about which both national and international transport providers are complaining?

- When you are traveling to or from Serbia, you feel uneasy when you see lines and lines of trucks patiently waiting to cross the border. A lot of time, fuel and working hours are wasted, and it is the consumers that pay the ultimate price – that means us, the people who are buying the goods that are transported. Similar borders exist in our line of work too albeit they are not clearly visible. Serbia and its neighbouring countries are still not EU members, and they have more expensive telecommunication services. State borders are also telecommuni-

BASED ON OUR LONG EXPERIENCE IN THIS BUSINESS, WE CAME TO REALISE THAT FOR US THE MOST DESIRABLE USER IS THE ONE WHO CLEARLY KNOWS THE COST OF THE PARTICULAR BUSINESS PROCESSES THAT THEY WISH TO MAKE MORE AFFORDABLE, FASTER OR MORE OPTIMISED quick and tangible savings from reducing transport costs. This is the first benefit that they see.

We have also noticed a very interesting trend in the last year or so. When we carefully analysed user requirements, we noticed that speed is the most important thing to them, even more than cost optimisation. Based on discussions with our users, we came to realise that the competition has got so tough that getting to the consumers first, even at the cost of applying solutions that cost more than the optimum ones, is the most important. The main reason being that if they don’t get to the consumer fast enough, the competition will get there first, offering the same or a similar product or service.

Apart from these benefits, our users are given solutions that bring order into their companies in terms of knowing exactly who and in which way a business procedure is carried out relating to transport of goods or services. Lastly, it is worth

cation borders, and here we pay more for such services compared to the people in the EU. The same applies to the quality and speed of telecommunication services. Our telecommunication pathways are slower and of poorer quality than in the EU. Luckily, the situation has been changing for better lately, and there are initiatives for the pricing policy and conditions to comply with the EU regulation.

• You have quite a few companies in your portfolio including some of the biggest companies in Serbia. How compatible are your standards and procedures with the standards applied in these mostly foreign companies?

- One of the most important comparative advantages is that we can integrate our solutions with the business information systems of our users. Last autumn, at the annual conference of the Serbian Logistics Association, we presented several such

scenarios that we implemented in large international and national companies.

An example of this is our integration with the system developed by Timocom, considered to be the largest freight exchange platform in Europe. This is a representative example that ties in several topics that we have been talking about today. On the one hand, we have the global and European freight leader (Timocom) and, on the other, there are numerous small, medium and large European enterprises that use Timocom’s services. Also, there are hundreds of companies like Mobile Solutions that provide services to

these companies. These services are often quite unique and can be provided only by local companies. In such situation, Timocom sets standards to which every single company that wants to integrate its solutions has to adhere. Thanks to the technology that we use and the open architecture of our system, we have managed to complete this integration in a couple of weeks.

Timocom has confirmed that 177 European companies (including Mobile Solutions) integrated their vehicle tracking systems with theirs.

• What technological and other projects are you going to implement in order to maintain your current market position?

- The first thing that comes to my mind is development. Constantly perfecting ourselves and listening intently to our users’ needs are the key elements of our business policy. Hard work and dedication helped us to win the trust of our users.

Today, our MobTrack:24 system is successfully used in over 200 companies with some of these companies representing the biggest brands in the country and the region, as well as in several companies that are considered global leaders in their respective segments. ■

TRANSPORT & LOGISTICS Serbia 2016

15

INTERVIEW

Focus on The Most Modern Infrastructure And Expertise NELT is present on the markets of Serbia, Bosnia-Herzegovina, Montenegro, Macedonia, Angola, Zambia and Mozambique, while its logistics is based on modern technologies IVAN MILIĆEVIĆ, NELT, LSP SALES AND DEVELOPMENT MANAGER

W

ith more than 1,100 employees, 125,000m2 of certified storage capacities, 360 vehicles in different temperature regimes, with over 9,000 haulage transports per year, networked in the latest WMS technology and with a turnover of 700 million in sales per year, NELT occupies a high position in the world when it comes to logistics processes in the field of consumer goods.

• What are the specifics of managing logistics processes in the field of consumer goods?

- Viewed professionally, all the specifics of these logistics processes are based on the distribution requirement that 100% of the recommended portfolio is available 100% of the time in 100% of facilities with 100% quality preserved. Impacting in particular on the complexity of logistics processes are

- The logistics profession recognises different models of relations between service providers and clients (2PL, 3PL, 4PL). Nelt, as a provider of logistics services, operates under the model of Logistics Service Provider (LSP), which means that, depending on the needs of the client, it can provide individual service transportation, warehousing and customs brokerage, but can also be an integrator of complex supply chains, consultant in logistics processes or service “in house” logistics at locations where clients perform manufacturing processes. Our expertise is best illustrated by our clients, or rather the industry from which they come. We have a broad portfolio of services for the pharmaceutical industry, through FMCG to the hi-tech equipment industry and packaging industry. Additional services of packing, bundling and assembling mass quantities are a special benefit that we offer our FMCG clients.

THE BUSINESS ENVIRONMENT IN SERBIA IMPOSES THE TOPICS OF TRADE LIBERALISATION AND FACTORS THAT ANNUL ITS POSITIVE EFFECTS, INFRASTRUCTURE ISSUES AND THE UNFAVOURABLE MODEL OF PARTICIPATION FOR DIFFERENT MODES OF TRANSPORT IN WHICH THE FOCUS CONTINUES TO BE ON ROAD TRANSPORT, WHILE RAIL AND WATER CAPACITIES ARE NOT GIVEN SUFFICIENT ATTENTION the additional requirements specific to consumer goods, such as the application of the required standards, respect for different temperature regimes in storage and delivery, best-by dates.

• There are ever more frequent requests for offers of integrated logistics solutions, which means it is no longer sufficient to offer only freight forwarding and goods transport services. What does your offer include in total? What are the basic and additional services you offer clients from the FMCG sector?

16

TRANSPORT & LOGISTICS Serbia 2016

• In which way is the business of your company organised, in terms of markets, distribution networks, storage capacities, delivery dates, the number of transport vehicles etc.?

- NELT’s key logistic determinants are its presence on the markets of Serbia, Bosnia-Herzegovina, Montenegro, Macedonia, Angola, Zambia and Mozambique, as well as cooperation with international logistics providers. Moreover, there is also our storage capacity of 125,000m2 in different temperature regimes, with customs and non-tariff status. Our warehouses are certified for food and medicine. They are

managed by the latest WMS technology, where the use of state of art technology, such as “Pick to voice” in commissioning achieves an accuracy of 99.99%.

In addition to this, NELT also owns a shipping fleet of over 360 vehicles in different temperature regimes, which are monitored in real time via the most modern TMS. More than 9,000 haulage transports are realised annually in international transport for APS clients. NELT APS is also characterised by the direct presence of customs offices at locations in headquarters in Dobanovci and Subotica, business operations harmonised with ISO iHACCP standards, industrial sidings at locations in Subotica and Dobanovci, with more than 1,100 employees who represent the backbone of the supply chain.

• What would you single out as the benefits of engaging companies specialised in logistics support, or outsourcing to complete professional teams for the shipping and distribution of goods?

- In short, we offer partners our absolute focus on their logistical needs; we make available the most modern infrastructure and expertise in which we invest continuously; we guarantee stability as a business system with a turnover of 700 million euros. So, we offer synergies with a successful and sustainable system that has been recognised as a partner by global leaders from various industries.

• What are the biggest challenges to logistics operations on our market?

- If we need to point out the specifics brought by Serbia as a business environment, the topics that impose themselves as a focus are trade liberalisation and factors that annul its positive effects, infrastructure issues and the unfavourable model of participation for different modes of transport in which the focus continues to be on road transport, while rail and water capacities are not given sufficient attention. ■

TRANSPORT & LOGISTICS Serbia 2016

17

INTERVIEW

Logistics And Freight Forwarding - Inseparable Parts of a Modern Economy Standard Logistic organises rail transport with all kinds of goods and transport modes, with more than 600 rail tankers available that can be offered to clients at any moment, while all operations are implemented by a team of highly professional people who view logistics as a branch of science

S

tandard Logistic owes its success and good operations to the modern way of doing business in the transport of oil, petroleum products and petrochemical products, which represent the backbone of the company's activities.

• Standard Logistic is a corporation, networked in a system of corporate and private transporters with a wide range of

stantly. A fascinating aspect of our business is the knowledge that each product or commodity in this world must be transported from one place to another. Logistics and freight forwarding is an inseparable part of a modern economy, and we dare to say that the most important aspect of our business is in dealing with oil, petroleum derivatives and petrochemical products, which also represent our core business.

FOR OUR CLIENTS THE MOST IMPORTANT ASPECT IS USUALLY DELIVERY ON TIME AND AS WELL AS TIME FOR THE RAPID TRANSIT OF GOODS, AND IT IS IN PRECISELY THIS FIELD THAT STANDARD LOGISTIC HAS AN IMPACT FROM THE VERY BEGINNING, THROUGH OPTIONS FOR THE PROVISION OF WAGONS AT THE LOADING SITE PRIOR TO PRICE CHANGES IN THE MARKET, DELIVERING PRODUCTS TO THEIR FINAL DESTINATION WITH ALREADY WELL-ESTABLISHED TRACKS services. What you mention as the most important services that you offer the markets of Serbia and the region?

- Standard Logistic d.o.o. (Ltd.) is a company engaged in the organisation of rail transport, with all kinds of goods and modes of transport. Our main commitment is to transporting goods via train in our wagons. Standard Logistic Ltd. owns a “wagon pool” of over 600 rail tank cars that is expanding con-

18

TRANSPORT & LOGISTICS Serbia 2016

• In addition to that, you also specialise in logistics services, particularly in the petrochemical industry. What are all the kinds of logistics solutions that you offer?

- One of the reasons for our business success, and therefore the success of our clients, is the quality of the logistics solutions we provide. Our great advantage in this business is that we consider logistics flows not only as one of the branches of business, but

rather our company approaches logistics as a branch of science, perhaps because most of our employees have graduated with Masters and titles of transport engineer and others. For our clients the most important aspect is usually delivery on time and as well as time for the rapid transit of goods, and it is in precisely this field that Standard Logistic has an impact from the very beginning, through options for the provision of wagons at the loading site prior to price changes in the market, delivering products to their final destination with already well-established tracks. Standard Logistic possesses over 600 rail tankers that can be offered to clients at any moment, “Long-term” contracts with major European operators, terminals for transshipment of goods at the Ukrainian - Hungary border, thus providing a direct connection from the vehicle loading area via the city’s major road transport routes by the closest roads, with the maximum optimisation of transportation costs.

• You have over 600 rail wagons in the region to transport derivatives. To what extent do administrative procedures impact on your operations?

- Standard Logistic, as the organiser of rail transport and provider of complete logistics services, does not encounter limitations when it comes to administrative procedures, but that does not mean that other participants in the entire supply chain do not have problems when it comes to administrative procedures.■

GERMANY 2012

MILEN ĐOKIĆ, DIRECTOR, STANDARD LOGISTIC D.O.O.

CORPORATE

Agroport Logistics Centre According to The Turnkey System

In Bačka Palanka agribusiness companies can now resolve everything from storage to transport

T

wo member companies of Victoria Group – Victoria Logistic and the Port of Bačka Palanka – have prepared a new service in a joint offer: the AgroPort logistics centre.

This is a complete package of services that now includes in one place, in Bačka Palanka, warehousing, packaging and port services for commercial goods and chemical fertiliser. The AgroPort logistics centre is designed to improve the operations of partners, but also all agribusiness companies whose operational priorities are quality, safety and efficiency.

The AgroPort logistics centre has a storage capacity of 55 thousand tonnes for mercantile goods.

Grain storage in a 25-tonne silo ensures the daily capacity to receive 1,500 tonnes. Users can also take advantage of quality grain treatment services in the form of cleaning, drying and fumigation, followed by separation of grain by quality, ensuring the quantitative and qualitative safety of grains, monitoring the temperature of grain 24/7 and sampling automatic vacuum probe. The daily drying capacity totals 600-700 tonnes, while the daily capacity of shipping is 2,000 tonnes.

One of the most important advantages is certainly its location at a distance of just five kilo-

metres from the Port of Bačka Palanka. The warehouse in the port has a floor capacity of 30 thousand tonnes of grain and provides security in every respect, while on a daily basis it can receive three thousand tonnes and disptach two thousand. The Port of Bačka Palanka has the possibility of receiv-

ing grain from two barges simultaneously as well as loading two barges simultaneously, it has two available weighbridges and automatic filling of the warehouse using transport conveyor belts.

There is also complete infrastructure for the storage and conditional packaging of chemical fertiliser, while the AgroPort centre also ensures the complete procurement of the required packaging.

The storage capacity of fertiliser is 50 thousand tonnes for bulk commodities, 30 thousand tonnes of finished palletised product in open runways and five thousand tonnes of finished palletised product in an enclosed area.

When it comes to packing, the daily capacity totals 450 tonnes, and it is possible to be done in PE sacks of 1 to 50 kilos and in BIG BAG sacks. After packing, customers can take advantage of the dispatch of chemical fertilisers up to a daily capacity of two thousand tonnes.

AgroPort logistics centre offers organised transportation to final destination addresses, as well as additional quality control services for chemical fertilisers and the possibility of checking

AGROPORT LOGISTICS CENTRE OFFERS ORGANISED TRANSPORTATION TO FINAL DESTINATION ADDRESSES, AS WELL AS ADDITIONAL QUALITY CONTROL SERVICES FOR CHEMICAL FERTILISERS AND THE POSSIBILITY OF CHECKING ALL SAMPLES OF MERCANTILE GOODS IN SP LABORATORY

Victoria Logistic deals with the organisation of primary agricultural production, trade, transport and storage of agricultural commodities and distribution of input materials. Investments in the company’s infrastructure and processing technology have resulted in enviable storage capacities and logistical strength that enables the manipulation of several kinds of goods at the same time and a daily reception capacity of 10,000 tonnes for the peak season purchase of grains and oilseeds.

The Port of Bačka Palanka has an exceptional strategic position thanks to its links with Pan-European Corridor 7 (river-canal system Rhine-Main-Danube) that connect it with the countries from the North to the Black Sea. In the immediate vicinity is the motorway and the main Novi Sad-Osijek road, while the railway line is just five kilometres away.

all samples of mercantile goods in SP Laboratory, which is also a member of Victoria Group.

This package of services and system works on the turnkey principle that company Victoria Logistic will to promote during July among all its partners and potential customers. The AgroPort logistics centre in Bačka Palanka is based on the concept of offering in one place, under the shortest possible deadlines, the highest quality service with complete oversight of all processes, thereby saving its customers time and reducing their costs. ■

TRANSPORT & LOGISTICS Serbia 2016

19