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LSCMS Blog

Blog for updates and happenings in logistics in the Asia-Pacific region

October 31, 2012

Singapore signs A$140M Tiger/Virgin Deal

Filed under: General,Newsletter,Singapore — admin @ 9:15 am

Tiger Airlines is selling sixty percent of its Australian operations to Virgin Australia, with Singapore Airlines reciprocating with a A$105M (10%) stake in Virgin.

The loss-making Australian Tiger offshoot is being sold to Virgin Australia for A$35M, with a 20-year annual license fee agreement for a undisclosed amount, ensuring the brand identity will be maintained. The annual license fee is reputed to be based on a fixed percentage of gross revenue. There is also a A$5M payment that has been negotiated, based on the achievement of financial performance targets over the next five years. Singapore Airlines has also been given anti-dilution rights to maintain its 10% share should Virgin Australia issue new shares in the future.

Investment targets have also been agreed upon, which will bolster Tiger’s Australian feet from 11 planes to 35 by 2018, to the tune of A$62.5M.

Virgin Australia has been seeking to position themselves as an alternative to QANTAS, particularly in the business traveller market, and this will bolster their position in with budget travellers. This is seen by industry pundits as a move to offset QANTAS’ recent strategy to ditch Singapore as its transit hub for flights to Europe, aligning with its new Middle East partner, Etihad.

Combined with the recently announced takeover by Virgin Australia of Skywest, this should bring increasingly competitive deals to Australian air passengers, and bring about the return of two-carrier dominated skies, reminiscent of the old Ansett-QANTAS days.

More competitive fares and better services for air passengers? Let’s hope this is a good deal all around!

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October 30, 2012

Deutsche Post DHL Flags Off Global Volunteer Day 2012

About 28,000 DHL employees across Asia Pacific, Middle East and Africa to participate in this year’s community outreach initiative.

DHL, part of Deutsche Post DHL, has flagged off its Global Volunteer Day 2012. Between 6 and 16 September 2012, about 28,000 DHL employees across Asia Pacific, Middle East and Africa, along with their business partners and customers, will help over 25,000 beneficiaries through some 230 community programs. This annual global volunteerism initiative is aimed at raising social awareness, driving passion for volunteerism and improving the lives of the communities in which DHL operates.

Introduced in Asia Pacific in 2008, Global Volunteer Day has expanded into the Americas, Middle East, Africa and Europe over the years, and continues to build on its success by involving more employees than ever before. From 6 to 16 September this year, Deutsche Post DHL offices around the world will be participating in diverse community projects in support of various local causes. These programs deliver to the company’s three Corporate Responsibility programs – GoGreen (protecting the environment), GoHelp (delivering help after natural disasters) and GoTeach (championing education).

[Read more…]

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October 29, 2012

Warehousing and Fulfillment Solutions Are Changing Due to E-commerce

Filed under: General,Logistics,Newsletter — admin @ 8:57 am

The warehousing and fulfillment markets are undergoing significant changes as companies incorporate e-commerce into their overall strategy.

Decisions such as physical locations of warehousing and whether to fulfill e-commerce orders from separate facilities, in-store, from existing warehouses or a combination of all three are among the strategic decisions brick and mortar companies are facing as they compete against the likes of Amazon, eBay and Newegg.

While much of this change differs from one company to the next, speed to fulfill and options in the final delivery location are similar for most companies. Not only that, but the need for visibility over the entire process is in demand as companies’ supply chains are further complicated.

Managing the delivery process is also an increasingly difficult task as delivery locations from warehousing/fulfillment centers are no longer confined to physical stores. Now, these facilities are shipping either directly to the customer, a neutral site (such as a lockbox location, FedEx/UPS store or other retailer) or to the physical store for pickup.

As such, IT companies such as High Jump, Red Prairie, Oracle and others have expanded their traditional warehouse management systems (WMS), transportation management systems (TMS) and other IT solutions to meet this need for flexibility, for not only changing transportation needs, but also for order/inventory management and visibility.

[Read more…]

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October 25, 2012

BDP Launches Social Network

Filed under: Logistics,Newsletter — admin @ 7:35 am

Dubbed The BDP Social Experience, the company’s on-line social media presence will endeavor to celebrate BDP people and their achievements, and engage customers and other stakeholders, through diverse content.

In addition to news, industry trends and original content reflecting its industry leadership and expertise on issues such as technology, transportation, trade management / compliance and supply chain optimization, The BDP Social Experience will post content that endeavors to celebrate the human experience.

[Read more…]

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October 20, 2012

Apple’s iPhone5 creates air cargo boom but business practices still questionable

The delivery of millions of latest iPhone5s has created an air cargo boom leading to an increase in freight costs per kilogramme due to sharp demand to get them to stores in time for the cell phone fashion period.

The release of the latest Apple smartphone, coined “Operation iPhone Drop” by freight companies and air carriers, adds to an increasing freight shipment for consumers of must-have technology gadgets at release date. The rush to get the iPhone5 to market boosted freight rates last seen in March with the release of the latest iPad at 20 per cent price increase.

According to LA-based supplychaindigital.com, the boom in electronic freight shipment was mentioned in the US Federal Reserve latest quarterly report.

Such is Apple’s influence to uplift a sector in the doldrums that freight rates, which hit their lowest ebb in July since 2009 are to sure soar to their highest levels with the iPhone5 launch, an item which has sold five million within the first days of US product launch.

On the back of this news however it was reported recently that Foxconn, Apple’s largest manufacturer in China, is once again facing public scrutiny in its latest labour breach of hiring under-aged employees.

Labour rights activists in China have accused the company and other major firms of using student interns as cheap labour in their production lines, Reuters said.

According to various media reports, Foxconn has admitted to hiring youths under the legal age of 16 years in its Chinese factories.

“This is not only a violation of China’s labour law, it is also a violation of Foxconn policy and immediate steps have been taken to return the interns in question to their educational institutions,” Hon Hai Precision Industry, parent company of Foxconn, said in a statement.

The company also said it will take full responsibility for the violations, adding that “any Foxconn employee found, through our investigation, to be responsible for these violations will have their employment immediately terminated”.

Foxconn has been slapped with a large handful of labour problems for the last few years.

Earlier this month, the manufacturer suspended its production when workers at its Zhengzhou facility went on strike. The incident happened a few weeks after a riot broke out at its Taiyuan plant because of a clash between workers and security guards.

In February this year, workers threatened suicide because of the company’s refusal to grant severance pays, forcing Apple to step in and work with Foxconn to improve working conditions. However, suicide threats resurfaced in June at its Wuhan plant.

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Agility receives sustainability award at Asian Manufacturing Awards

Agility has been recognised for the Best Solution for Sustainability at the Asian Manufacturing Awards in Singapore attended by multinational manufacturers.

“This is a great honour for Agility as it is the manufacturing community that recognised our commitment to developing and delivering sustainable supply chain solutions that have a positive impact on the environment,” said Agility vice president Jens Wessel.

According to the judges, Agility solutions enabled manufacturers to meet internal and external goals with regard to operating as socially responsible enterprises. These solutions targeted areas such as carbon emissions, waste disposal, resource management, worker health and safety, and were undertaken in partnership with Agility.

Agility was also cited for offering solutions that serve to promote the concept and realisation of a sustainable manufacturing enterprise.

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October 15, 2012

LOGISYM: The Asia Pacific Supply Chain Symposium 2013

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The Society will be partnering with faculty from Technische Universität München (TUM), National University of Singapore (NUS) and The University of Wollongong (UOW) to host the region’s first Supply Chain Symposium and Summit focussed on bridging concepts, practice and technology in Supply Chain management, to real world implementation and benefits that result in increased Supply Chain pipeline velocity, profitability and performance.

Coupling this academic expertise with leading Supply Chain organisations in the region the event to be held in November 2013 will be a platform for mid to senior level Logisticians from all areas of our very dynamic profession to share real solutions, network, develop and learn new skills that they can apply.

The event will have a general and specialist tracks in these 5 areas:

  • Cold Chain – Food, Pharmaceutical, Biomedical and Beauty
  • Chemicals and Oil & Gas
  • Supply Chain Visibility and Sustainability
  • Economic Impacts on Dynamic Supply Chains
  • FMCG & Retail

We are looking at working with sponsors, speakers and partners to organise and promote this event to make it a success and the Society welcomes you to contact us at peter@lscms.org to find out more. Information will also be available at our website at www.lscms.org


Update: 22.Mar.2013

Theme: Supply Chains of Tomorrow: Ideas in Practice
Date: 13-14 November, 2013
The region’s first Supply Chain Symposium focussed on bridging concepts, practice and technology in Supply Chain management to real world implementation and benefits that result in increased Supply Chain pipeline velocity, profitability and performance. Coupling this academic expertise with leading Supply Chain organisations in the region this event will be a platform for mid to senior level Logisticians from all areas of our very dynamic profession to share real solutions, network, develop and workshop techniques that they can apply.

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October 14, 2012

DHL Disaster Response Team Ups Emergency Training In Indonesia

Filed under: Newsletter — admin @ 12:41 pm

DHL has conducted a four-day emergency relief simulation course in Indonesia with the Indonesian Army, 27 in-country volunteers and seven volunteers from its South East Asia DHL Disaster Response Team (DHL DRT). DHL DRT has over 400 volunteers worldwide creating a global disaster relief network for vulnerable regions and managed by the DHL GoHelp network in Panama, Dubai and Singapore.

In Indonesia, DHL DRT volunteers from every DHL division including DHL Express, DHL Global Forwarding, DHL Global Mail and DHL Supply Chain participated in the training. To provide the volunteers with a realistic training, DHL DRT used the 2010 Mount Merapi eruption as a disaster scenario for the real-life deployment where volunteers applied their knowledge and training on disaster relief fundamentals, warehouse management of genuine relief supplies for the affected communities and how to work effectively with UN and other disaster relief organizations.

[Read more at Logistics Insight Asia…]

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October 12, 2012

Asian Manufacturing Awards 2012

Filed under: Logistics Social Responsibility,Newsletter — admin @ 8:34 pm

There are a plethora of industry awards in the market today but one of the more prominent awards to receive in 2012 was organized by the Manufacturing Group of publications at Contineo Media, who hosted the Asian Manufacturing Awards (AMA) ceremony to recognize products, solutions and services that are enabling excellence in manufacturing performance in the region.

There were more than 30 awards across the seven themes of Control & Automation, Manufacturing Software, Packaging Industry, Logistics & Supply Chain, Food & Beverage Industry, Pharmaceutical Industry and Corporate Social Responsibility and the Society’s President, Raymon Krishnan was a judge and also presented awards to the winners in the Supply Chain Management category at the Grand Awards Ceremony & Gala Dinner on 27 September 2012 at Shangri-La Hotel Singapore

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October 10, 2012

Not all gloom and doom for 2013

Filed under: Newsletter — admin @ 8:02 am

The World Bank has predicted that economic growth will indeed slow down in this region this year, but it will climb back up in 2013.

The region’s economic growth is expected to fall to 7.2% from 2011’s 8.2%. This is because of a weaker demand for exports in East Asia, slowing down the regional economy. China’s GDP growth, for example, will fall from 9.2% last year to 7.2%.

However, 2013 will see its growth rate recovering slightly with an increasing domestic demand in developing countries.

Countries like Indonesia, Thailand and Malaysia are currently seeing a spike in spending by their governments and the private sector on capital goods, according to its East Asia and Pacific Economic Data Monitor report.

“Weaker demand for East Asia’s exports is slowing the regional economy, but compared to other parts of the world, it’s still growing strongly, and thriving domestic demand will enable the region’s economy to bounce back to 7.6% next year,” Pamela Cox, World Bank East Asia and Pacific regional vice president, said.

The report also warned that the region will need to manage its growth, saying exporters of commodities have to take measures to “manage volatile commodity revenues”.

“Continued structural reforms, improvements in the business climate and investments in infrastructure and education systems will become more important,” Bert Hofman, World Bank chief economist for East Asia and the Pacific, said

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