Switching to contract manufacturers

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

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

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

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

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

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

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

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

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

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

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

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?

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

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?

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

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?

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

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?

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

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

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

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

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

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

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?

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?

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?

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?

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?