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LSCMS Blog

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

September 28, 2014

The 3D Printing Revolution: How It Will Affect Procurement Strategies

Filed under: Newsletter,Supply Chain Management,Technology — admin @ 11:12 am

Podcast.GIF3D printing is one of the hottest technology developments in supply chain today. Is it for real?

The answer is a qualified yes, according to Shashank Narain, vice president of account development with The Smart Cube, a professional services firm. He has seen a 3D printer create a component with 20 moving parts, all on different axes. Today, 3D printers are being touted for everything from food to medical devices to complex aircraft parts. (They can even turn out guns.) The advantages are many: cheaper manufacturing, lower cost of entry into markets, the ability to tailor products to individual consumer tastes. Still, the technology has a way to go before becoming a routine aspect of many production environments.

[Read more… Curated from Supply Chain Brain]

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September 25, 2014

China e-Commerce and Logistics

Filed under: Asia Supply Chain Insights,Newsletter,Resources — admin @ 12:02 am

China’s direct-to-consumer e-commerce sales grew 42% in 2013 to USD 305.5 billion and McKinsey forecast that by 2020 e-commerce in China could generate online sales of USD 650 billion.
This massive growth in online sales in turn drives the need for comprehensive nationwide B2B and B2C logistics networks, stretching China’s express logistics sector capabilities like never before. Last year the express delivery providers delivered 9 billion pieces, up 61.6 percent year-on-year.
At the recent Post Expo Conference in Hong Kong, I was privileged to moderate the e-Commerce Panel Discussion, where we discussed how stringent customer expectations are driving fierce competition amongst service providers.

The panel discussed how the multi-national service providers have more sophisticated technology systems and provide online track and trace with end-to-end visibility, but are typically at a cost disadvantage when competing with the many thousands of local providers that make up this particular supply chain ecosystem.

Ms. An Chiem from Nike shoemaker Convers, shared how they use multiple different service providers and said that “there are some regions where we work directly with the provider and some regions where we contract a company and let them handle the service providers”.

She also commented on the varying levels of consumer expectations – another factor driving the use of a range of service providers “Some of our consumers are prepared to pay anything for their products, they don’t care how long the parcel takes as long as it arrives undamaged and is delivered to their door. However, by contrast we also have consumers that don’t care what it is and how it comes, they just want it the same day and they want the parcel delivered for free”.

Federico Manno, eBay Enterprise head of e-commerce in Asia, commented that their strategy in China is also to use many different players, quite different to how they operate in USA and Europe. “Logistics in China is still developing, but consumers are really spoiled because they already expect good service and free delivery, which means that the brands have to improve their P&L in order to subsidize most of the shipping costs.”

Also on the panel was Andrew Eldon, COO of Hong Kong based Strawberry Cosmetics who offer a range of 30,000 products from 700 different brands. Andrew shared that Strawberry Cosmetics subsidizes all shipping and uses the postal service networks to service markets all over the world from their main DC in Hong Kong.

In such a crowded market, the fierce competition amongst express delivery service providers is resulting in volumes growing faster than revenues, reflecting price pressure that is reducing revenue per piece. This is impacting profitability for the service providers with expectations amongst market watchers of some impending consolidation.

For Logistics in China we can expect continuing exciting developments, embracing both challenges and opportunities in this rapidly growing sector of e-commerce logistics solutions – which is one of the featured Seminars at the forthcoming 9th China International Logistics Fair (CILF 2014) taking place in Shenzhen, China during 14-16 October 2014 – see http://www.scmfair.com/en/

LSCMS Advisory Board member Mark Millar provides value for clients with independent and informed perspectives on their supply chain strategies in Asia. His series of  ‘Asia Supply Chain Insights’ corporate briefings, consultations and seminars help companies navigate the complex landscapes in China and ASEAN, improve the efficiency of their supply chain ecosystems and make better informed business decisions.

Clients have engaged Mark as Speaker, MC, Moderator or Conference Chairman at more than 350 events in 20 countries. The Global Institute of Logistics recognise him as “One of the most Progressive People in World Logistics”. London based business publisher Kogan Page have recently commissioned Mark to write the book entitled “Global Supply Chain Ecosystems” – due for publication in 2015. Contact: mark@markmillar.com

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September 24, 2014

CEO Series

Filed under: Events,General,Logistics,Newsletter,Singapore,Study & Reference — admin @ 11:44 pm

CEO_Series_2Session1The first session of the LogiSYM CEO Series was held at Hard Rock Cafe Singapore on Thursday the 18th of October.

The aim of this series is to make senior decision makers and CEOs within organisations aware of the opportunities for profit maximisation through leveraging of value within their supply chains, creating a more balanced business model that allows for growth.

Set in a cosy atmosphere to encourage informality and an exchange of thoughts and ideas,the first session was led by Mr. Joe Lombardo, Advisory Board Member of the Logistics & Supply Chain Management Society.

The 40 minute presentation was followed by a very lively and active debate that continued even after the event had officially ended. The first of such sessions in the lead up to LogiSYM 2015,

The event was successful in reaching out to a wider audience and a special note of thanks must go out to our sponsors Lazada, Logistics Executive and Oliver Wight for making these sessions possible.

For more information on attending or sponsoring the event, please visit our website at www.logisym.com or contact the Secretariat at elee@lscms.org.

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September 22, 2014

The Drones Are Coming! What Are the Legal Implications?

Filed under: Newsletter,Supply Chain Management — admin @ 11:09 am

Podcast.GIFDelivery drones are on their way to your doorstep. And regulators are right on their tail.

Amazon and other e-commerce retailers are preparing a fleet of drones that can rush product to the consumer. The craft are already in the testing stage, but the legal ramifications of their use are far from clear. Issues to be addressed include privacy, security, safety and environmental impact. The Federal Aviation Administration insists that it has jurisdiction over drones today, but others disagree, and the matter is currently being litigated in the courts. This episode features attorney Joshua Dalrymple, a professor in the School of Legal Studies at Kaplan University.

[Read more… Curated from Supply Chain Brain]

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September 20, 2014

Automotive Logistics Facing the Next Phase of Globalisation

Filed under: Logistics,Newsletter — admin @ 11:14 am

car-icon-5-1408311-mAutomotive logistics offers growth prospects but only for those logistics service providers who can exploit change.

Still growing, with Europe forecast to grow by 6 per cent and North America by 5 per cent, automotive logistics offers growth prospects but only for those logistics service providers who can exploit change.  This is one of the main conclusions of the latest report from Ti, ‘Global Automotive Logistics 2014’.

North America continues to expand and the health of the German and UK car industries balance out the problems in France and Italy, but it is China and other emerging markets that will present the crucial test for logistics providers in the sector.

[Read more… Curated from Logistics Insight Asia]

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September 17, 2014

7 Actions to Assure Business Continuity within the Supply Chain

Filed under: Logistics,Newsletter,Supply Chain Management,Technology — admin @ 11:08 am

high-voltage-1164485-mFor many businesses, relying on IT for processes means that even the smallest disruption can have catastrophic consequences on business continuity and the bottom line. Supply chain and transportation networks are by no means exempt from being affected by external factors that have the potential to cause severe disruptions.

Events, such as fires and power outages, to major disasters like earthquakes, hurricanes and floods, are obvious causes of delays within the supply chain, with IT being a critical link. There are also many other disruptions that keep products from being transported to factories, distributors and stores, such as road congestion or supplier issues, including production line breakdowns and product shortages.

[Read more… Curated from Logistics Insight Asia]

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Technology Not Widely Used in Global Companies’ Emerging Market Supply Chains, Study Says

Filed under: Newsletter,Supply Chain Management,Technology — admin @ 11:08 am

digital-map-1442178-mDespite the vital role that technology plays in helping companies manage the complexity and volatility in global operations, only 48 percent of the more than 1,000 global companies surveyed for an Accenture study use technology extensively in their emerging market supply chains. Technology Not Widely Used in Global Companies’ Emerging Market Supply Chains, Study Says.

Furthermore, 45 percent of the companies from 10 industry sectors sampled for the study, “Supply Chain Success Factors in Emerging Markets,” make only moderate use of technology, automating some essential activities but supporting them with manual processes. The Accenture research also identified “supply chain leaders” from the sample and found that 73 percent of them use technology extensively in the supply chains that support their emerging market presence, versus only 31 percent of lower performers. In fact, nearly three-quarters of the leaders said they had made heavy investments in such automation tools as manufacturing systems, ERP and supply chain systems.

[Read more… Curated from Supply Chain Brain]

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September 11, 2014

‘CEO Series’ Shows SMEs How to Manage Supply Chain Performance

Filed under: Education,Logistics,Newsletter — admin @ 11:14 am

Don Harding, partner at business improvement specialists, Oliver Wight, will present on ‘Managing Supply Chain Performance’ on 16 October 2014 at the Hard Rock Cafe in Singapore, as part of the October CEO Series.

Organised by the Logistics and Supply Chain Management Society, in conjunction with the Chartered Institute of Logistics and Transport, the workshop is designed to help CEOs, executives and senior decision makers of small to medium sized enterprises (SMEs) manage their supply chains more efficiently to achieve a balanced business model and maximise profit.

“To effectively manage the supply chain, the right processes have to be in place. Integrated Business Planning (advanced S&OP), a business management process for running the entire organisation, not only provides a 24-36 month rolling horizon, it directly links the corporate strategy and financial plans, and exerts control over the extended supply chain,” explains Harding. “This results in improved visibility of demand and capability in supply, as well as better understanding and management of product portfolio.”

[Read more… Curated from Logistics Insight Asia]

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