The Beer Blog

Brands paint their supply chains green

2010-10-19T01:59:00.000+08:00

Wal-Mart has been making a presence lately. In a span of a week, the retail giant launched a programme seeking to convert recyclable materials into products for pets, while at the end of the totem pole peeked out into the global market for acquisition opportunities.

A clearly admirable work, I would say, as I read the latest piece of news announced yesterday. Wal-Mart has made news once again, this time vowing to make changes to its global sourcing strategy. It will now seek to buy more sustainably-sourced products from small and mid-sized farmers.

This topic of sustainability has gone on for awhile. But just in September, Procter & Gamble decided to compact its entire range of laundry detergents from the US and Canada as it tries to reduce wastage in its supply chain. Apparel giants like H&M put water, chemical and energy usage in their supply chains through their Chinese textile suppliers. Meanwhile, Ersnt & Young's efforts to implement a greener supply chain weren't in vain, as they helped the company reduce its carbon footprint by 15% in the US.

This are just brands off the top of my head. Sustainability today is crucial, and procurement plays a key role in making sure spend is used to the benefit of the entire supply chain and to the environment.

Green is apparently in.

Looking at the big procurement picture

2010-08-11T10:24:00.000+08:00

Employee productivity is a topic most frequently discussed on ProcurementAsia’s sister brand, Human Resources, but I shall jump into that for this Beer Blog as well.

The reason is simple: procurement professionals are employees and their welfare does matter to the overall productivity and outcome of the organisation.

In procurement, long hours are spent trying to drive a hard bargain and trying not to let a single cost defect slide. Therefore, it is imperative a company does not overlook the health and overall productivity of its procurement department.

In a report by Purcon, it says that employers of procurement workers should take note of the overall productivity of its employees, rather than the number of hours people are putting in.

“The most important thing that managers need to recognise is that the most fundamental thing is output not input,” says Mike Petrook, head of public affairs at The Chartered Management Institute.

However, I would say it is difficult to focus on the big picture sometimes, especially during the recent financial crisis where cost-cutting measures are implemented so drastically and spend is controlled with an iron arm. Hours put in by a company’s employees may not be ignored intentionally, but unfortunately so.

In procurement or any other department out there, it is important to remember to know when it’s enough. If it's inconvenient to take a break, then it's time to think positive. While easier said than done, let this article from Human Resources offer you some insight on how it's done.

Is IT for procurement?

2010-07-29T15:40:00.001+08:00

IT has been (let’s just go out and say this) taking over the world for quite some time, and the benefits are vast and limitations endless. We have cloud computing, complicated algorithms for search engines, countless social media platforms, complex IT databases, the list goes on.

At some point, will procurement start to get entrenched – or to put it gently, influenced by the prowess of IT?

I say, procurement IS already influenced by IT.

A recent study from Gartner believes software applications can be beneficial or even crucial for procurement. The research suggests electronic procurement and sourcing applications can support organisations in saving money.

Of course, some companies have already leveraged the use of IT and reaped results.

But the report doesn’t stop there. It goes on to say that procurement technology programmes, when made mandatory, can be more effective than those allowed to be optional.

I ponder about this for a moment. Some of us welcome change, while some of us stick to the old Microsoft Word 2002 for all eternity because it is familiar. Some embrace the changing face of technology and adapt accordingly, while some linger behind and cling onto what’s safe.

So here’s something to think about on your end. Perhaps procurement could give IT a chance (if your company hasn’t) and adopt a system. It’s all about taking chances, and who knows, Gartner may be right and it will revolutionise the way we do business.

What do you think?

Fly me into the ash cloud

2010-06-08T16:27:00.000+08:00

While bigger airlines today are coming up with different ideas on how to equip their planes with in-flight WiFi, one small low-cost airline is testing new technology to help detect ash clouds within 100 kilometres in range.

This is after Europe’s infamous case of airspace closures as a result of an Icelandic volcano eruption.

Why the need for that? For starters, Eyjafjallajokull has yet to cease erupting, al beit with less significant and disruptive consequences. However, ash cloud issues won’t disappear anytime soon, especially through the rest of the summer and into autumn. We can’t also assume that other volcanoes, dormant or active, won’t follow suit, especially when the earth’s climate is shifting so rapidly.

EasyJet is a British-based airline which ranks only slightly above its rival, Ryanair. However, it is spending almost US$1.5 million to equip its planes with AVOID, the “Airborne Volcanic Object Identifier and Detector”. The gadget works similar to weather detection systems for thunderstorms, but it is specifically targeted to ash clouds.

AVOID works best with many airlines using it up in the air, and it will not be useful unless other airlines are willing to take on this gadget. But a big thumbs-up to EasyJet. If I had to make a choice, I’ll sacrifice that bit of WiFi goodness for a safe journey anytime.

via

Product recalls: The Tweet Age

2010-06-01T18:00:00.000+08:00

We are constantly reminded of the need to get up to speed with changing technology. News is gradually shifting onto online platforms, while companies are jumping on the Twitter bandwagon to promote their goods or services. The latest you’ve heard, though, are product recalls.

A report released by the Australia Competition and Consumer Commission has advocated the use of social media platforms to facilitate product recalls. According to the regulator, there has been more than 10,000 product recalls in Australia in the last 23 years. However, the overall average return rate of recalled goods was only 56.75%.

Now that everything is going digital, recalls through print and other traditional mediums may no longer be sufficient. The use of Twitter or Facebook, for example, may be more prolific than we think.

I believe the convenience of utilising social media is often underestimated. With the newer generation gaining prominence in today’s world, it is almost crucial that members of the supply chain start re-examining the demographics and needs of their consumers.

Bluntly put, product recalls won’t go down with a snap of the finger. Reach out with social media.

To fly or not to fly

2010-05-24T15:50:00.000+08:00

The IATA was recently displeased with Europe's decision to make airspace closure measures based on theoretical models rather than facts.

According to a recent press release, IATA reported that there had been countries which allowed flights in the "unsafe" fly zones, and post-flight inspections have deemed it safe to fly.

Considering it from Europe's point of view, prevention is better than cure. After all, the safety and lives of thousands lie in their hands. On the other hand, business for airline and cargo carriers have dwindled and airports are left with many passengers stranded.

In my opinion, I would say it is perhaps a good call for Europe to have closed airspace the first time Eyjafjallajökull spewed volcanic ash. During the virgin eruption, there was no way to determine if flights that were allowed could go wrong, and the only plausible solution was to halt them to prevent any mishaps. However, I believe the following airspace closures could have been better managed and yes, as IATA would say, not close airspace simply based on theoretical assumptions.

What is your take on this?

Pressures on CSCOs increase as the economy recovers

2010-04-08T15:59:00.000+08:00

Singapore - 3M's Snr VP of corporate supply chain operations John Woodworth tells us what he thinks CSCOs need to keep an eye on as the world embarks on the path of recovery.

Hear what he has to say in this video.

http://www.youtube.com/user/procurementasia

The cargo smuggling chapter continues

2010-03-31T11:59:00.000+08:00

In latest local news, the Immigration and Checkpoints Authority uncovered 3,360 cartons of cigarettes at the Woodlands checkpoint. The contraband was found in a Malaysia-registered lorry transporting ladies shoes and pharmaceutical items. Upon closer inspection, 56 unlabelled shoe boxes contained the loot.

I can’t help but wonder if smugglers today had a collective brainwave to hide their goods amid products relating to women, the biggest consumer market around. I don’t know about you, but cocaine in flowers and now contraband cigarettes in shoe boxes? Perhaps it is time to be extra vigilant, especially if your shipments involve feminine products.

What should shipping managers (of all cargoes) do to prevent their goods from being tampered with?

The offensive airline manual

2010-03-23T15:14:00.000+08:00

Have you heard? Air New Zealand has apologised to the Tongan community for profiling them in the cabin crew manual as passengers who tend to overindulge in alcohol on long-haul flights. Quoting Times Online, the manual wrote that South Pacific islanders had the tendency to “drink the bar dry”.

Written in 2008, the manual also contained profiles of other nationalities. Chinese customers were said to be “extremely demanding”, while Japanese passengers expected water and reading material during mealtimes. Koreans were perceived to expect good manners and patience from cabin crew, and Samoans “greatly appreciated rugs”.

Needless to say, this manual sparked some anger amongst Tongans. Tevita Finau, a Tongan community leader based in Wellington, was offended by the implication and found it untrue. The airline promptly apologised to the Tongan community, assuring that an updated training manual currently in use did not mention “cultural components”.

Whether we want to admit it or not, profiling is common and I believe it helps give the cabin crew a rough gauge of certain nationalities so as to manage their expectations. Of course, putting such cultural idiosyncrasies in an airline manual can be pretty sensitive. Unless you intend to circulate the manual internally (and apparently not for Air New Zealand, because how did we find out?), perhaps we should all think twice before we put it down on paper, lest we offend.

As real as it gets

2010-03-12T17:05:00.000+08:00

It seems like drug smugglers are gradually becoming more creative. Just days ago, cocaine was found hidden inside a bunch of fake pineapples, and those fruit were again brilliantly buried amid real pineapples shipped into Netherlands.

The police had uncovered US$34 million worth of cocaine in plastic pineapples, says AP. Fruit packers who were unloading a consignment of pineapples found the loot, and while the Dutch police are pretty lenient with soft drug use, they don’t tolerate hard drugs like cocaine and heroin. Still, there were no immediate arrests, and the country from which the pineapples came wasn’t revealed either.

Another act that reeks of creativity happened last month, where custom officials intercepted four kilograms of cocaine smuggled among 20,000 roses around Valentine’s Day.

Well, creativity is one thing. Being able to pull it off without getting caught is still really the whole point. And shipping managers out there, you may want to keep an eye on your goods and make sure that everything is as real (and good) as it gets.

FedEx lives to deliver... your handphone

2010-03-08T15:27:00.001+08:00

The next time you leave something important behind, think FedEx.

When American heiress Paris Hilton went to France for a short getaway with her boyfriend, she informed her followers on Twitter that she had left her Blackberry behind in a hurry. And the solution was simple – she FedExed the phone over to herself in France.

The solution may be simple, but it is also costly. According to the shipping details on the FedEx website, it costs about US$150 to have a handphone shipped from LA to France.

Personally, I would choose to live without my precious smartphone, and find some way to deal with the temporal loss. But if I were Hilton, then FedEx would be my immediate choice. After all, they live to deliver.

Survive to thrive

2010-02-18T20:47:00.000+08:00

Singapore - The recession has changed the way consumers make decisions at the shelf which in turn has had a ripple effect on the retail supply chain. Find out how the retail SC has gone from survive to thrive in this video with JDA's global head of supply chain SVP, David Johnston.

[Video] The brave contender

2010-01-15T09:29:00.000+08:00

Singapore – Yamato is confident it can own 50% market share of the local domestic delivery market in 10 years. ProcurementAsia catches up with Yamato at the launch of their door-to-door delivery service and finds out what makes them so optimistic.

Watch the video here.

Switching to contract manufacturers

2009-12-10T17:33:00.001+08:00

Singapore - Making up 50% of all revenue in Asia Pacific, strong growth in China has prompted Zebra to switch its manufacturing operations from Chicago and California to GuangZhou, China. Andrew Tay, president (Asia Pacific) tells us how better skill sets in China and more sophisticated supply chains helped ease the relocation process.

Find out more here:

Behind every great company is a great supply chain

2009-12-03T15:37:00.000+08:00

Singapore - It would be useless if a company had a good product and marketing insight, but not the means to bring it to the customer, and this is where the supply chain comes in, says Didier Chenneveau, LG’s CSCO.

“You can’t be a great company without a great supply chain,” he says.

In this video interview with ProcurementAsia, Chenneveau speaks on the strategic importance of the supply chain on an organisation’s bottom line, their growing importance after the recession, and if CSCOs are going to get even more attention from top management from now on.

Chenneveau also gives his two cents worth on what CSCOs can expect in the year ahead, including where the market is going in terms of IT investments, strategy, RFID and the industry’s new favourite buzzword: sustainability.

Asia to recover before the West

2009-11-19T15:48:00.000+08:00

Asia will emerge from the recession quicker than the West, because it can adapt quickly to changes in the economy, says Hoang Van Dung, first vice executive president of the Vietnam Chamber of Commerce and Industry.

Rebranding the supply chain

2009-11-06T09:35:00.000+08:00

Singapore – Polishing your organisation’s supply chain image can help you attract top talent, go global and even appear more desirable to your customers. Bonsey Design's Jonathan Bonsey tells ProcurementAsia how.

Buying an ERM solution

2009-10-30T09:29:00.000+08:00

Singapore – Procurement professionals should make sure their broad organisational goals are aligned with those of their ERM providers in order to maximise visibility. What else should you keep in mind when selecting a vendor that is right for your supply chain?

We find out in this video.

Adopt technology into your SC today

2009-10-15T19:23:00.000+08:00

Many companies fail to understand what a good supply chain solution can do for them, preferring instead to use a spreadsheet, says William Leo, director, SCM, CEO Asia, Infor. He tells of how SCM solutions can help turn your supply chain into a cost-kicking, risk-mitigating organisation.

Dell banks on closer supplier relations

2009-10-09T11:39:00.000+08:00

Singapore - To counter the illeffects of the downturn, Dell is forging closer relationships with their strategic suppliers so the latter can gain enhanced visibility into Dell's initiatives and focus areas, which in turn can help save operating costs during these lean times, says Vinay Asdhir, senior manager, worldwide procurement at Dell Singapore.

Watch the video to learn more:

The new supply chain normal

2009-10-02T09:29:00.000+08:00

Singapore – Has the recession been good to 3PLs? Yes – for smart companies.

John Langley Jr, professor of supply chain management at Georgia Institute of Technology and director of supply chain executive forum, as well as Mark Goh, director of industry research at The Logistics Institute – Asia Pacific, were speaking at a THINK Logistics forum this week, during which the results of the 14th annual 3PL study was released.

“Shippers have to work closely with 3PLs even if they were traditionally hesitant to, while 3PLs need to go beyond their transportation roles to offer high level industry information,” says Langley, author of the report.

Together with Goh, they speak on the state of the industry, the changed relationship between customers and 3PLs, and tackle the tricky question of what the new supply chain “normal” is.

Opportunity in a down market

2009-09-18T09:37:00.000+08:00

Singapore – Industry players in the aviation sector that have turned their attention to aerospace manufacturing may be in for a pleasant surprise, says a senior executive at Frost and Sullivan.

There is much opportunity to be found in the aerospace manufacturing industry in Singapore in spite of having to go head to head with low cost countries like China, Lavigne says. In this video he tells us how aerospace players should capitalise on this opportunity and get an edge over the competition.

Apologies about the sound on the video. It was either water sounds or the sound of clattering plates and chatter. At least the water sounds peaceful… Almost.

The secret to SC visibility

2009-09-10T18:33:00.000+08:00

Gaining the voice of the customer is key to supply chain visibility, says Cary Noah, senior supply chain director of Intermec. He urges companies to partner with their own internal departments such as sales and marketing to achieve this.

DHL bullish on LCL sector

2009-09-02T18:02:00.000+08:00

Singapore - DHL is increasing its the number of direct bilateral services from Europe, Asia and North America in its LCL (less than container load) sector as well as looking into new product segments to counter the effects of the credit crunch. Marc Meier, senior VP of ocean freight and head of global LCL at DHL predicts no change in this year’s financial results from last year.

Click here to find out more:

Recession vs sustainability

2009-08-27T18:16:00.000+08:00

Singapore – Who will emerge victorious in the battle between the recession and sustainability? It may not necessarily be one over the other - what businesses have to do is align green supply chain initiatives with their wider business goals. Sam Wong, partner at Ernst & Young tells us more.

Find out more in the video:

SIA cargo, SATS new contract - what's different?

2009-08-21T09:37:00.000+08:00

Singapore - SATS and SIA Cargo announced this week that they will be renewing their partnership together for another five years. ProcurementAsia speaks to SATS President and CEO to find out what's going to be different this time.

T&E: In for a slow recovery

2009-08-13T17:33:00.000+08:00

Asia – Companies in Asia are beginning to manage travel as a procurement item, says Brett Henry, VP of marketing at Abacus International. He talks about the state of corporate travel procurement, how buying patterns have changed in the downturn, and makes a prediction to when the sector will finally see an uptick.

[Video] Green supply chain – Who bears the cost?

2009-07-30T11:18:00.000+08:00

Singapore - Jeffrey Russell, managing partner, supply chain Asia Pacific, Accenture Singapore, tells us how to go about implementing a sustainable supply chain, and tackles the tricky question of who bears the cost.

Find out more in this video:

[Video] Boosting supply chain visibility

2009-07-17T11:42:00.000+08:00

Asia - It’s become more important today than ever to have visibility in your supply chain. DHL tells us how you can manage your processes better, if only you knew where your shipment was.

Previously, the company took as long as 56 hours to notify customers of shipments that have been placed on the wrong flight or offloaded shipments. DHL says that time has been shaved down to two hours, which in turn helps CSCOs manage their supply chains better.

“We tell customers the package hasn’t made this flight [within two hours], so they can tell their customers who may have manufacturing schedules planned. This improves everybody’s view of the supply chain through a more proactive approach,” said Jonathan O’Leary, Senior Director of the First Choice Performance Improvement Performance Management, Asia Pacific for DHL.

The First Choice program is a service initiative launched by DPDHL. The company has set an ambitious goal of being the first choice for every customer when it comes to choosing a logistics provider.

[Video] Time to look into e-procurement?

2009-07-09T16:58:00.000+08:00

Singapore - E-Procurement can help you work with suppliers to reduce product and transaction cost, says Ian Mason, CEO of RS Components. We find out more about why the pick up in e-procurement is slower in Asia, and why it might be time for you to consider implementing the system in your supply chains.

Get clued in in this video:

Supply chain risks spike in recession

2009-07-02T17:47:00.000+08:00

There is a need for an increase in supply chain security especially in recessionary times, says Tony Lugg, director of security at TNT Asia. He notes that as the global downturn takes out bottom lines everywhere, companies are prone to put security on the backburner in favour of cutting losses, resulting in a spike in litigation against them.

In this video, find out what the potential risks to your supply chain are, and how you can partner 3PLs to step up security.

To squeeze or not to squeeze?

2009-06-18T17:33:00.000+08:00

Nokia Siemens Networks showed their appreciation to their most innovative suppliers in the second Nokia Siemens Networks Supplier Innovation Day held yesterday. "It's about rewarding our suppliers for what they've done throughout the year," NSN's head of services procurement Basil Byrne says.

Here he is to tell us more about why they started doing this and how it's worked out for them so far. Byrne also shares his thoughts on companies putting the squeeze on suppliers as a means to ride out the crisis.

(As Murphy would have it, as soon as I hit 'record' someone was in the same area as us talking exceedingly loudly on the phone. Please excuse the interruption. But hey, at least you know it was unrehearsed and we were out nabbing the news as it broke.)

Majority of local SMEs negative on economy

2009-06-10T18:22:00.000+08:00

Singapore - The recent UPS Asia Business Monitor reveals that 87% of local SMEs expect the economy to decline this year, compared to 65% of SMEs in Asia Pacific. However, 38% of local SMEs predict the market could pick up as early as next year.

Find out more from Gillian Sim, MD of UPS Singapore in this video:

The future of supply chains

2009-06-01T11:30:00.000+08:00

Singapore - The business case for creating a regional instead of global supply chain is getting stronger in today's economic climate, says Damien Tan, general manager for TNT Express Singapore. He explains why and what this means for supply chains and manufacturers in Asia in this video:

[Video] DHL optimistic on the recovery of cargo

2009-05-20T16:40:00.000+08:00

Singapore – Herbert Vongpusanachai, county manager of DHL Express said DHL’s recent addition of a Boeing 747 to its Asia Pacific trade route is testament to the company’s optimism on the recovery of the cargo industry.

Learn more about DHL Express Singapore’s view on the air cargo industry in the Asia Pacific region and Singapore's potential as a trading hub.

Plane eats cargo

2009-05-15T15:32:00.000+08:00

JAL's appetite for cargo: a case of human error or has dwindling freight volume literally prompt an airplane into ingesting a baggage container?

Earlier this week, A Japan Airlines (JAL) plane sucked up a large metal baggage container, with one of its engines, as the plane prepared to depart from Los Angeles International Airport.

The incident took place on Monday, just as JAL flight 61 heading to Narita, Japan was leaving one of the airport's gates at the Tom Bradley International Terminal.

Media sources have suggested that during the unfortunate event, the baggage cart was either parked or driven too close to the aircraft, when the vacuum created by the engines preparing for take-off sucked the baggage cart into the left outboard engine housing.

Fortunately, all 245 passengers and 18 crew members on board made a lucky escape due to a quick thinking pilot in charge. The plane was duly grounded and towed to a hangar for investigation by The Federal Aviation Administration.

Could this be another big blunder by baggage handlers, frequently flamed for luggage that go missing on flights, or did poor volumes really prompt the airliner into a sporadic action.

Tweet tweet

2009-05-13T22:25:00.000+08:00

The more Internet-savvy of you out there will realise ProcurementAsia has its own twitter account, and are part of the 136 (and counting) that we correspond with on the micro-blogging site.

"Tweet...what?" Unfortunately, apart from PR companies or those that are active in the social media space, that's the normal response I get when I try to tell my esteemed purchasing colleagues about it.

Twitter, explained by Wikipedia, is a free social networking and micro-blogging service that enables its users to send and read other users' updates known as tweets. Tweets are text-based posts of up to 140 characters in length which are displayed on the user's profile page and delivered to other users who have subscribed to them (known as followers).

What does this mean to you? Well let's see. ProcurementAsia is now in contact with 136 purchasing and supply chain professionals across the world, who update on their Twitter about their lives, their jobs and what's going on in the supply chain space where they are at. I've essentially met and chatted with over a hundred buyers and supply chain folk, most of who I would have otherwise never get the chance to.

What's more, our followers get live updates when we're at conferences, price and market trends and the news when it breaks. In fact, more and more visitors to the ProcurementAsia website (www.procurement-online.com) are redirected from Twitter. It's a great place to bounce your thoughts out to the purchasing and supply chain world, and have them respond quickly, in 140 characters back to you.

But don't just take my word for it. Try also UPS, whose account (@thomasatups) helps frazzled Twitter clients find or track their parcels; Kingfisher (@flykingfisher) which uses Twitter to reach out to their customers; @ariba and @Oracle which extend their spend management helpline, new products and tips to the twitterverse; oh and of course, the very helpful groups of supply chain experts at @SupplyChainNtwk and @PurchasingPros.

See the number of likeminded purchasing and supply chain individuals you might be missing out on meeting? It's not too late. Get on over to http://twitter.com and start your 140 character updates.

Oh, and don't forget to follow us. We're at http://twitter.com/procurementasia

Happy tweeting!

[Video] How to keep costs down

2009-04-15T14:41:00.000+08:00

Singapore - YCH chairman and CEO Dr Robert Yap gives a few pointers on how to keep supply chain costs at a minimum and keep your company from going under.

[Video] RFID adoption in Asia on the rise?

2009-03-26T18:29:00.000+08:00

Singapore - The food recalls of 2008, together with initiatives from governments and mandates from retailers like Wal-Mart is expected to push RFID adoption in Asia, says a top NXP executive.

Competitive, much?

2009-03-05T16:36:00.000+08:00

I always knew the 3PL industry was competitive, but I had first hand experience of just how cutthroat it can get at a press conference this week.

One of the major 3PLs held a good press conference this week and after the presentation and q&a I decided to approach the company's head honcho with a couple of questions, notebook open and pen poised.

It was only when he exclaimed and called over his head of marketing that I realised something was amiss. I was at their company event, but writing in my notebook from another 3PL, with a pen from a third major player in the logistics market.

Whoops.

It was a bigger hooha than I had originally expected. The executive made sure the marketing department sent over a new company-branded notebook saying "this simply will not do!". I think he was more than just a little appalled.

I really wasn't out to offend anyone, and my attempts at telling them I still have the media gift they sent two years ago fell on deaf years after my little faux pas.

But if I may just defend myself for a minute, I guess they really don't call us starving writers for nothing. When we need notebooks, pens or recorders (just a few journalism essentials), we'll grab the first thing available. Of course there are certain notebooks or pens or post-its that we like from one company over another, but when push comes to shove and you're running out to nail that story, most of us will grab the nearest free essential we can lay our hands on.

On the flip side, it just goes to show exactly how loyal these executives are to their brands, and that's always really nice to see. Competition is healthy anyway, right?

Ps/ Unlined notebooks are the best. I'm not saying anything, but you know. Just FYI.

Who says logistics is a boring business?

2009-02-05T14:31:00.000+08:00

At our job we sometimes have to trudge through pages and pages of photos to put in the magazine. During one such session late in the night I came across this image that stopped me in my tracks.

While some may look at it like a silly, even frivolous thing to do (or in Singapore the colloquial terms "eat already nothing to do"), it made me chuckle and think: there's so much being said about not being able to find good talent because the supply chain is not a sexy business, but is that really true? Being in charge of a whole network that drives a company means you have to get creative to get an advantage, so why the boring stigma?

I don't think logisticians and supply chain professionals deserve the "boring" title. Don't believe me? Here's more proof. Check out this Christmas carol from William Martin of Total Logistics Solutions I got in the mail:

It was the night before Christmas, when all through the warehouse, Not a forklift was stirring, not even a mouse;

There were no stockings hung, only safety signs that read, Pedestrians beware, or you could end up dead;

As I looked around I noticed, the inventory was not nestled where it was supposed to be,

The warehouse was out of space and all the world could see;
The supervisor in his kerchief, and I in my cap,

Had just settled down and told me, the consultant, "he was sick of this crap;"

Inaccurate inventory, not enough space,

Constant employee turnover, a pile of returns,

He took a deep breath, and then put his hands on his face;

How did we get here, he asked, what are we doing wrong,

How will we catch up with receiving, I thought to myself,

"This is the same tired song;"

Next comes the dreams of a Warehouse Management System, to save us next year,

But it never comes, because a lack of ROI is what the executives fear;

I tell him the lack of ROI is not because of the software,

But because few organizations address their problems,

Before implementing a solution that big,

They merely end up putting clean clothes on dirty kid;

He says, nothing ever changes and wonders if we will be able to keep our sanity,

How many more customers will we lose and blame on the economy;

What will we do when the customer on the phone asks, "Are you sure you have that in stock,"

Smile like always and say, "Can you hold while I check my receiving dock;"

Just then the CEO enters and asks how is it going,

The supervisor smiles and says, "Its going, as you can see its going;"

The CEO then tells of a simpler time when customers weren't so demanding,

When inventory levels were low and all he thought about was expanding;

Well expand we have done, with a warehouse bursting at the seams,

But is the warehouse too small he asks, or do I need to speak with the Purchasing team;

The supervisor responds no I think we will be okay,

We just need to catch up on the receiving that came in the other day;

Well we definitely need to get those receivers entered so we can close out this year,

So do what you can, to make it disappear;

As he began to stroll away, down the aisle, he stepped over numerous piles of inventory, He then turned and said, "Merry Christmas you two," and that is the end of Warehouse Christmas story.

Now to all of those who think the supply chain business is boring and "not sexy" enough should think twice. Clearly people can get pretty creative on this. And even if some might look at it and laugh, what it actually highlights is just how much passion and interest the community has in their work - something that has drawn me in since we kick-started the magazine.

Passion. Now that's pretty sexy, isn't it?

Cord blood banking, a logistics organisation?

2009-01-23T09:53:00.000+08:00

Lighthouse Independent Media recently lost one of our designers to a much dreaded illness, leukemia. It started with a minor bout of bleeding gums in September last year but by 18 January 2009, she had left us.

In her painful and heart wrenching fight to recovery, she managed to find a donor match, but the donor "disappeared" before the operation could begin. As a last alternative, the use of cord blood was introduced in her treatment. Which brings to mind, what is cord blood?

Cord blood is the extra human blood left over following childbirth. Cord blood, from the umbilical cord and the placenta, is exceptional because of the abundant blood-forming stem cells that it contains and the advantages it has over other types of stem cells.

Medicine obtained from these stem cells can be used to repair or replace cells that are diseased or damaged. Specifically, stem cells can cure or treat red blood cell diseases, white blood cell diseases, cancers and Tissue (such as heart tissue).

So what is cord blood banking?

I spoke with Victor Tay Kah Soon, director of transport, logistics, environmental & engineering services, biomedical & chemicals at Spring Singapore last month about niche concepts in logistics when the same topic of cord blood came up.

He told me that in Singapore, there are approximately three cord blood banking groups.

After the birth of a baby, these companies help to bank the newborn's umbilical cord and part of this becomes very rich cord blood that can be stored.

"At first glance, these companies look like pharmaceutical companies and [need to be] well trained in clinical aspects to be able to transport the umbilical cord, store it and after 'x' number of years down the road, if the newborn is infected with diseases, they can retrieve the cord blood which is rich blood and be able to extract the cells when the technology becomes more advance," he said.

Upon delivery, these blood cord companies arrange for a delivery person to go down to the hospital, wait for the doctor to cut the umbilical cord, place it in an air-sealed envelope which is brought back to the cord blood company, registered into a system, banked in and never do anything more until needed. The whole process of delivery and storage is frankly that of a logistics company, he said.

Pondering on his views that a cord blood company runs on the basic principles of a logistics company, I decided to call up a local cord blood group, Cordlife to find if they share his views as well.

Jerrel: What kind of services do you provide?

Customer service officer: We are a cord blood company; it is the business of storing the baby's umbilical cord blood after delivery.

Jerrel: So what kind of a company do you consider yourself? A pharmaceutical company?

Customer service officer: I would say it's under healthcare. It not pharmaceutical because this is not a pharmaceutical product, it's more of a health service.

Jerrel: You know, it would seem like a logistics company as well as you have the core functions of one. You send a delivery man to collect the cord blood in the hospital, the delivery man returns and cold storages it in in Cordlife until a need for it arises. As such it functions as a logistics company as well you think?

Customer service officer: It's not really that case, it’s not logistical in that way, I would say.

Jerrel: So what is the process like?

Customer service officer: The doctor collects the umbilical cord blood for the parents and then it is brought back to us for protecting and storage. We liaise with the parents.

Jerrel: How much does it cost to use your services?

Customer service officer: Currently, $1,400 (US$950) for the initial payment and then $250 (US$166) per year for the storage fees.

I have gathered the views from an expert in the logistics sector and also that of a cord blood bank and it seems they share differing view. Is cord blood banking really just a niche logistics company? What do you think?

[Video] DHL introduces First Choice program in AP

2008-12-11T10:06:00.000+08:00

India - Frank Sterpin, DHL vice president for strategic planning in Asia Pacific tells ProcurementAsia how the company's First Choice programme will improve the logistics situation in India.

The First Choice programme aims to establish a mode of continuous improvement throughout the group's operations. The programme's focus is on analysing work procedures, identifying problems in processes and systematically developing solutions. It encourages employee initiatives for improvement and incorporates it into the work process.

Watch on to find out more

Thank God for ERP!

2008-12-04T16:02:00.000+08:00

On my first ever visit to India, blessed with good fortune; I was able to take a day trip to visit the Taj Mahal – one of the Seven Wonders of the World.

The Taj Mahal is located in Agra and since I was putting up in New Delhi, that meant a gruelling eight hour journey to-and-fro with ample time to observe the traffic conditions of roads in India, which would very much affects the logistics and supply chain of companies operating in India.

It must have been the third or fourth time I had to stop, queue and pay toll fees on the 203 km journey when I started comparing the Indian Toll-fees system to Singapore’s ERP (Electronic Road Pricing). This must be the first time I must say, with a little bit of embarrassment that I actually welcomed the “beep” of passing through an ERP gantry and be off on my journey, without the need to stop, queue and pay. The ERP for me represented a new dimension of efficiency.

As I engaged in more time consuming stopovers to pay toll, the situation turned dire. Instead of being confronted by yet another toll booth, at some stopovers, paying toll was done at a 1.5m x 1m desk in the middle of nowhere and my driver had to literary get down from the car and walk towards these desks.

In this time consuming and rather comical toll paying practice, I cannot help but notice the huge number of trucks and goods vehicles which were queuing up back to back at these “toll-desks” I came across and like my drivers, the drivers of these vehicles had to unbuckle their seat belts, leave their vehicles and crowd around to pay toll at these desks.

In fact, this ritual was proving such a deal, that street performers find it lucrative enough to bring along their monkeys to earn an extra buck (see picture on the left).

Although stopping at toll booths were time consuming, having your driver get out of the car and pay toll at a desk was all very unprofessional and a complete waste of time.

This would no doubt affect the efficiency of companies dealing with end to end supplying and I thought was a problem that could be eradicated with a bit of planning and restructuring.

I am not suggesting that roads in India go high tech and start erecting gantries, as I am sure drivers in India would soon be heard cursing and swearing every time they hear the “beep” like drivers on “the little red dot”. But surely, they could build more toll booths and employ very efficient toll collectors like the one in the (picture on the right) to speed up the whole process.

I do wish that some higher-ups in New Delhi or Agra reads this little comment I’ve made and for all you know, transporting of goods and end to end supply could be much less time consuming and all these truck drivers could spend more time resting on their beds rather than queuing and waiting into the wee hours of the night (see picture below) just to get their shipment to their destination.

Manufacturers' guide to surviving the economic slump

2008-11-27T16:26:00.000+08:00

With the manufacturing sector already notoriously named the "sunset" industry, the recent slew of reports on job cuts and mass retrenchment may be leaving folk in the sector shaking in their shoes.

I speak with Randy Sng, industry manager for manufacturing and general business at IBM Singapore on whats in store for manufacturers in Asia, and what they can do to help ride out the economic storm.

Watch on to find out more.

Pilots forced to fly uncomfortably low on fuel

2008-08-25T17:35:00.001+08:00

The fuel price crisis seems to have hit a new level with this TIME exclusive on how pilots have been forced to fly with minimum fuel.

Read more here: http://tinyurl.com/6r4etu

New Post: The only time we don't want flour to rise

2008-01-11T18:11:00.000+08:00

After a quick poll of family, friends and colleagues, I have come to realise that a lot of people, or at least the people I interact with, tend to rank “lose weight” as one of the top New Year’s resolutions made each year.

Me included.

Well, it seems the bid to lead a healthier lifestyle may be easier to stick to this year, especially during the (marathon-eating) Lunar New Year season.

Prices of Chinese New Year goodies imported from Malaysia have increased, owing largely to a whopping 45% increase in the price of flour from Malaysia.

In turn, supermarket chain Sheng Siong upped the prices of its Malaysia-imported New Year goodies by 10-20%, and is offering promotional prices to offset half of the price increase.

NTUC too, have said they intend to raise the prices of their Malaysia-imported goodies by about 20%. New Year goodies from Malaysia make up about 60% of all Lunar New Year products in their stores, NTUC said.

Prices of Indonesian-imported goodies, on the other hand, are not affected by the price increase.

Not just the Lunar New Year, but prices of flour-based products will be on the rise in the coming months should the price of flour from Malaysia stay on its upward trajectory. Coupled with rising oil prices, procurement managers in liaison with flour suppliers across the causeway may begin flexing their negotiating muscles to strike a better deal and keep their margins in check… or looking elsewhere.

Leftover turkey for Lunar New Year, anyone? It’s healthy, you know.

The rise of the non-traditional competition

2007-12-10T14:13:00.000+08:00

Over lunch with senior manager for performance improvement in PricewaterhouseCoopers Andreas Wettstein was when I first caught a glimpse of what transportation in China looked like 10 years ago.

Imagine this: you’re a supply chain manager and on a rainy weekend, you receive a call saying your shipment of sugar has arrived – in an open container.

Horrified? I sure was.

But that was 10 years ago. China has since transformed their logistics sector to one that now causes their European competition to shake in their shoes.

“The average Chinese competitor of 10 years ago and one of today is very different,” says Wettstein. “Non-traditional companies are now big competition to European companies.”

Clearly, the competitive landscape is changing. Armed with cheap labour and raw materials, local Chinese competition is slowly but surely matching their might to the big boys.

How to gain a competitive edge? Get your supply chain right, Wettstein said.

International MNCs can now ill afford to view local Chinese competition as anything but significant, he said. Asia as a collective is now both a source and a market, so “the importance of getting your supply chain right cannot be compromised.”

And not just in terms of getting the goods to the end consumer on time, but also the method in which goods and raw materials are transported will be increasingly important in the years to come, especially when end consumers are beginning to pledge their loyalty (and money) to companies with greener, more ethical supply chains.

Which means no child labour, no slavery and no raw materials subjected to the elements during transportation.

Personally I think the Chinese government is more than ready to set those wheels in motion. Once they do, local Chinese businesses, or what was previously termed non-traditional competition, will move out of the non-traditional realm and evolve into formidable players in the global business platform.

The iPhone supply chain loophole

2007-11-12T11:24:00.001+08:00

It was recently widely reported that Apple is limiting iPhone sales to only 2 per customer, for fear of “illegal trafficking” and to “preserve stock” for the Christmas crush – reports I read with slight amusement.

Is it just me, or are Apple’s efforts to keep its supply chain hack-free a noble yet not exactly useful act? Because I personally know of a few friends on our sunny island who are already using the iPhone, which they bought from a famous IT building somewhere in the Little India region.

According to one such consumer (who has asked for anonymity), the AT&T function has been disabled and a new software has been put in place so that it works with local telco operators.

In the midst of the software upgrade, users in Singapore will also apparently only be allowed to use iTunes 7 and no other updates.

While consumers admit the phone is still rather “buggy”, waiting for a second generation, or worse, waiting for the iPhone to be launched officially in Asia next year is hardly an option.

“Consumers (in Singapore) change their mobile phones almost every year or year and a half,” said another iPhone user. “By the time the iPhone launches here, the hype is over and we’re on to the next new gadget.”

At first glance, it seems the Singaporean consumers’ “kiasuism” (first to everything) will affect sales of the iPhone here once it is officially launched in Asia next year. But I was proven wrong.

A quick telephone call to a good friend (and MacHead, we call him behind his back) later, I learned there are other consumers out there who would skip the unlocked phones and wait for the iPhone to be officially launched in Singapore before getting one.

According to him, this had nothing to do with staying true to the brand, neither has it to do with the iPhone’s superior functions (which are arguably lacking when compared to other smartphones). Rather, he advises consumers not to buy unlocked products, which will make them incompatible to official software upgrades. In addition, Microsoft functions may not be added or may not work as well with the unlocked phones, and they are most likely not covered by warranty.

So will consumers still take a bite out of the Apple iPhone when it comes here? Or will Apple lose out to resellers who’ve already claimed a piece of the iPhone pie with their unlocked versions? I suppose we’ll find out.

Important announcement

2007-10-25T17:33:00.000+08:00

Here’s a very important blogpost to announce that Procurement magazine has gone…

Off to the printers!

As I type this, my very talented designers are laying out the last few pages, making sure everything’s set when we go to the printers – tonight.

If you have subscribed to the magazine via our website be prepared to receive a copy on your desks really soon. If you haven’t, well, what are you waiting for?

Finally, when you guys (and many of you guys do) call me to ask when the magazine will arrive, I have an answer for you.

From the team at Procurement magazine, thanks for all your enthusiasm, your time and your encouragement. I hope you enjoy the first issue.

~~~

In other unrelated news, a colleague and I went for the screening of the 11th Hour, a documentary directed by Nadia Conners and Leila Conners Petersen and narrated by Leonardo diCaprio who also wrote it. In a nutshell, the film discussed the eco-system's degeneration and how mankind's pollution was causing massive changes in the climate that will eventually impact us all.

While I didn't quite enjoy the movie, the take-home point was clear: our earth is dying at our hands. What's worse, the film pointed out that amongst others, a few of the biggest culprits remain the manufacturing and logistics businesses, who are guilty of pouring waste into streams and polluting the air with emissions.

The need to go green is intense and this is reflected in not just in the movies (like Al Gore's An Inconvenient Truth), but on the covers of magazines and emblazoned in headlines in newspapers all around the world.

Yet in our "clean and green" city, we have admitted to not being overly conscious to keeping our manufacturing, logistics and in fact the entire supply chain green. Am I wrong? Perhaps. What's holding us back from loving mother nature?

Think about this from the film: previously, only a handful of children in a classroom of about 40 are afflicted with asthma. Now, if you walk into a room full of children and asked those with asthma to raise their hands, nearly 30% of the children will have their hands raised.

There's nothing like the present to change this. What can corporations do to drive this change, what can supply chain managers do to execute it, and more importantly, why hasn't it been done yet?

Imitation – still the greatest form of flattery?

2007-09-13T15:26:00.000+08:00

Fashion designers, electronics giants and even car manufacturers certainly don’t think so.

Just prior to the New York fashion week that started September 10, a report in the New York Times (registration required) revealed that the show was racking up viewership not just in the form of other designers and fashionista-wannabes.

Apparently, manufacturers and even retailers in the US had their tvs on too, eager to find out what people will be wearing next season… and getting a knock off design at a cheaper price to customers earlier than when it hits designer shelves.

Makers of the iPhone too undoubtedly read about a clone cousin emerging on Chinese soil a year ahead of its Asian launch. While reportedly a little buggy, it was at least compatible with local telco operators.

Automobile makers certainly weren’t spared uncanny similarities getting made in other factories. AP business news recently reported that the makers of BMW and DaimlerCrysler filed suit against Chinese automakers that produced cars too similar in design to their own.

While I’m sure their outrage echoes many other Western companies’ intent on retaining its intellectual property, (and I’m not one to dispute intellectual property) let’s take a step back and look at this from the other side of the coin.

I’m sure most consumers would love to be able to afford a cute Versace dress to match their Jimmy Choo heels and Balenciaga bag while yakking away on the latest mobile phone in the most expensive convertible, but unfortunately not everyone can be either an heiress of a large hotel chain or the adopted daughter of a 70’s R&B singer.

What do normal white-and-blue collared professionals turn to? Knock offs. And not just from China, but from places like Bangkok, sometimes affectionately known as the land of AAA quality imitation goods.

And why should Asian consumers (who are not Apple fans) wait a full year before Apple’s iPhone hits their shores when they can get one from local manufacturers at a cheaper price? Sure Mac-fans would fume at the thought (travesty!) but clearly the demand from non-Apple fans is strong enough to initiate a whole supply chain based on a copy.

Isn’t that what supply chains are about? Getting the product to the consumer just in time and at the most favourable price? Who’s to say a businessman is wrong for providing what people want and earning a few bucks along the way? Sure it might be considered stealing, but if that’s what consumers want, then that’s what consumers get… isn’t it?

An even larger headache is stopping these operations from taking place. I was in Beijing last year after reports said local police had shut down or banned shopowners from selling pirated goods (CDs, apparel, electronics etc), but I was hardly surprised when a shopkeeper waved me quietly into a little room at the back of the store to show me a treasure chest of pirated goods, telling me in mandarin to “bring my friends” next time I’m in town.

With lax laws at manufacturing sites millions of miles away from where the designer sits, coupled with competition from other more efficient supply chains, it’s definitely an uphill battle for companies battling to protect their intellectual property.

Welcome to The Beer Blog!

2007-09-03T15:28:00.000+08:00

If you’ve ever taken a supply chain related academic course, you’ve probably played or at least heard of The Beer Game.

The game, created by a group of professors at MIT Sloan School of Management in the early 1960s, aims to teach or demonstrate the fundamentals of supply chain management.

If you haven’t played the Beer Game before, the good people at MIT have created a web version here.

The rules of the game are simple – get the beer to the customer through a multi-stage supply chain with minimal expenditure on back orders and inventory.

Now I know you’re dying to click on that nifty “comment” button below and tell me all about how wrong this beer game can be in real life, educational or not. Of course, supply chain management is hardly as straightforward as the single retailer, single supplier, concrete lead-times scenario the Beer Game puts forward.

(And if I can be honest, when I tried my hand at it on a friend’s laptop over a few at the Intercontinental Hotel I ended up cursing and swearing, but whatever.)

So in my slightly passive aggressive way I’ve named this blog The Beer Blog and making the rules of THIS game simple – The Procurement team will treat this blog as a forum on which we will chat about topics related to the supply chain regardless of industry, but in an offhand, informal manner.

Nearly everyone I’ve spoken to over the past few months has positive things to say about this magazine, believing the roles of the procurement and supply chain directors to soon take on more responsibility and have higher visibility than ever before.

It’s an exciting time for people working in supply chain and procurement, being on the cusp of change. Procurement magazine is glad to be a part of it and we welcome comments, feedback and whatever suggestions you might have.

Happy reading and stay tuned for more insights, opinions and stories in our supply-related posts!