Blog for updates and happenings in logistics in Singapore
Thankfully we have seen fuel prices dropping these last few weeks but many market analysts and industry players say that this is merely a temporary trend and that we will see fuel prices heading north in the near future.
Coupled to this gloomy perspective, many carriers are either ditching older, non fuel efficient aircraft or laying off employees.
Where do you think the market is headed and what are the steps you think we need to take to head off this crisis ?
I was sent an email yesterday from a student in Europe who wanted to know what ‘our ‘definition of LOGISTICS MANAGEMENT was.
Traditionally, LOGISTICS MANAGEMENT is seen as the planning , implementation and control of our Logistics processes for the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.
When this practice is extended beyond the organisation to the macro level, it includes the integration of the Logistics processes or pipelines of suppliers and customers thus forming a ‘chain’ from the point of origin to consumption.
An extension of the definition of the Supply Chain is that we are not really just a chain or a series of events but rather we are a web of inter-related organisations made up of numerous suppliers, customers and even competitors that form a “Dynamic Value Network”.
This makes absolute sense but also raises the bar somewhat.
From my post yesterday about how difficult it is to truly collaborate with our 3PL, just imagine trying to achieve through collaboration that is both efficient and effective with a network of organisations with differing objectives and cultures.
I am reminded of a picture of a confused orang utan, a friend used to have hanging in his office with a caption that said - Just as I figured out all the answers, they went and changed all the questions.
Raymon Krishnan
Logistics providers, academia and practitioners are all familiar with the theory of Collaboration. The ideal is that manufacturers, retailers and others are most likely to achieve maximum supply chain efficiency, particularly where global operations are involved, if they work closely together. This includes choosing one 3PL as a lead logistics provider (LLP) .
Whilst this theory is generally acceptable, there are those of us who remain dubious about developing a relationship with just one 3PL. Aside from over dependency, there is the concern that a proposed solution from the LLP could perhaps not be the ‘best’ solution. The 3PL, would most certainly (as they would be expected) be acting in their own self interest. Additionally the solution would be based on their perspective of our supply chain or what they perceive the supply chain to be.
What do you think? Raymon
The Logistics & Supply Chain Distinction Awards have been announced.
Check them out under our News Section.
On 28th June, students from the LSCMS Republic Polytechnic Chapter ventured to the Jurong Fishery Port to discover the start of the seafood supply chain and understand how fish and other seafood get from the sea to our plates.
Update: Photos of the event now available here!
We would like to invite our members and friends for an evening of discussion with one of the premier personalities in Logistics in Asia today, Stuart Dickinson on the 10th July @6pm. Having recently joined leading executive recruiter, Logistics Recruitment in the role of Strategic Business Development Manager, Stuart possesses an extensive background in supply chain, logistics, sport and policing.
His operational and management experience in the transport, logistics and supply chain fields includes a successful background in developing and managing executive business relationships within one of Australia’s tier one logistics and transport operators.
An International rugby referee, and a bestselling author on the game, Stuart’s involvement for a long period of time at the highest levels of rugby shows a proven ability to maintain the highest standards of professionalism as well as the ability to manage change and make decisions under extreme pressure.
“Supply Chain is all about detail and discipline and Stuart brings these qualities to our business at the highest level,” Kim Winter, Group Managing Director, Logistics Recruitment.
Stuart is a specialist across the spectrum of customer satisfaction, with a passion for developing and maintaining high quality long term relationships and outcomes for clients and candidates.
So joins us for this great opportunity to meet Stuart, and to hear his thoughts and opinions on the opportunities in international supply chain management today. In the comfortable setting of the Masonic Club on Coleman Street, our guests will also enjoy refreshments in the spirit of our relaxed & informal theme.
Finger Foods, Beer and Soft Drinks will be available FREE. Please email Edmund Lee at elee@lscms.org to reserve a place.
Event Summary
Event: Industry Pub Night
Date: 10th July
Time: 5.30pm
Venue: Masonic Club on Coleman Street (behind Central Fire Station)
We are delighted to advise that the 6th ASEAN Ports and Shipping 2008 Viet Nam will take place in Ho Chi Minh city on Thursday 5 and Friday 6 June 2008.
Viet Nam is today the fastest growing economy in the South East Asia.
This international transportation gathering will be one of the opportunities to promote Viet Nam,regional shipping and transport logistic to foreign investment and Ho Chi Minh city showcase as a cultural, tourism and conference destination.
The Logistics & Supply Chain Management Society is pleased to be a supporting organisation of this event.
For more information, visit the event website, or view the Conference Programme (PDF).
The concept of Combined Distribution Networks (CDN’s) is fairly easy to comprehend. A basic and simple definition would be:
“A CDN is the combination of the supply networks of different companies in the Supply Chain to achieve increased efficiencies and effectiveness.”
Collaboration of this nature is not unheard of and can be considered merely an extension of the theory of Supply Chain collaboration. There exists some real world examples in support of such implementation. The challenge in implementing an effective CDN would be between companies that would otherwise be competitors. The potential for recognizing increased efficiencies and effectiveness in overall performance in individual companies who implement CDN’s of this nature is staggering.
Current Supply Chain collaborative techniques allow growing businesses to reduce costs and improve customer service. In a Combined Distribution Network, detailed analysis of companies SKU-level product information is conducted over a period of time. This data will allow us to clearly understand the current transportation and warehousing structure as well as to establish an accurate cost baseline by which all optimization would be evaluated.
Purchasing, Inventory Management and Technology requirements could also be targets for a hybrid of the CDN theory.
Once the historical network baselines are developed, the analysis phase of the CDN can start by first scrutinizing the product flows, then using both the production information as well as customer consumption to determine the appropriate placement of warehouses and the transport network.
All models in the CDN will balance real world operational constraints put in place by companies involved in the CDN model with the need to service a majority of customers within a specified time frame, all whilst factoring in current market conditions for transportation rates into and out of each distribution market.
The further development and implementation of a CDN (ideally amongst competitors) will enable companies to optimize customer service whilst at the same time improve shareholder and stakeholder value.
After a complete and thorough analysis has been completed, a comprehensive RFQ can be built and 3PL’s with the capability to meet both or a part of the requirements invited to bid.
The final and perhaps most important reason why CDN’s should be further explored is the positive impact on the environment. Much has been done and needs to be done in the area of reducing the impact our Supply Chains have on the environment. The carbon footprint of individual products, from point of supply, to point of consumption are already being measured. CDN’s is one of the many ways these can be reduced.
From preliminary discussions with Supply Chain practitioners, there are a number of reasons why people feel CDN’s will not work. The main hurdle it would seem is the need to get stakeholders to overcome the common mindset that competitors should be treated as the enemy.
By Raymon Krishnan
20/02/2008
The Logistics and Supply Chain Management Society has achieved an industry’s first! It’s training partner, The Turning Point Business School, has been appointed as the ‘Program Manager’, the first Approved Training Organisation in Logistics Training with the Singapore Workforce Development Agency to conduct the ‘Workforce Skills Qualification’ or WSQ in Logistics.
By achieving the ‘Program Manager’ status, it allows the school to train individuals; both employed and unemployed, with minimal charges. On top of this, Training Allowance will also be disbursed to individuals or companies upon successful completion of their modules.
