HR Discovery of SCM Logistics The Integration of

HR Discovery of SCM & Logistics The Integration of China & HKG ( Pan-PRD & HK ) Speaker : Joe YANG Venue : HKBU – LMRC Date : 2005. 11. 05 Ideas sharing 1

What is the same in between HK & Pan-PRD on Logistics, SCM & DMC ? Information ( data, IT ) Finance ( cash ) Commodities ( goods ) Can you identify your learning, working scope inside these 3 ? 2

What is the meaning of logistics market ? The formation of logistics market & covering what ? 1. Market – founding, explore & develop, relationship, position & rank, linkage, DNA, components & elements, stage ……… 2. Capacity – index, standard, identity, (goods, industries, 3. 4. 5. 6. 7. consuming) ; demand change, supply volume & trend ……… Structure – demand & supply ……. . Policy – present, future ( maintain, restructuring, innovation ) …. . Operation – positioning, standard, workflow, details ………. Outsourcing – standard, definition, tender ………… Sales & marketing – product & service, specific, win ( single, win, total ) networking, supporting …………. 8. Or even more …………………………. 3

China Overview – Agricultural, Industries, Commercial, Economic. . . (key) N North China Home Appliances North West China Garments, Textiles Agricultural Products Auto, Motor Cycles Dairy Products Coal, Minerals Heilongjiang Raw Materials, wool Low end manufactures Agricultural Jiling Raw Materials, cotton Plants, forests Liaoning North East China Inner Mongolia Xinjiang Beijing Heavy Industries, Hebei Shanxi Qinghai Ship Building Shandong Auto and parts Gansu Tibet Ningxia Hubei China Wares Dairy Products Agricultural Products Yunnan Guishou South China Hi Tech Products Raw Materials, cotton Garments, Apparels Minerals Auto Industries Plantation ……. Agricultural Light industries Shanghai Zhejiang Hunan Home Appliances Garment, Textiles Anhui Sichuan Central & S. W. China Agricultural Jiangsu Henan Jiangxi Fujian Guangxi Guangdong Hongkong Macau (SAR) Hainan Taiwan East China Hi Tech Products Hi-end Garments, Toys Auto Industries Agricultural 5

Current Economic Development – Zones Populations : 10, 000 unit ( ROUGH ) Guangdong : 8642 Guangxi : 4489 Hainan : 787 Sichuan : 11, 419 Yunan : 4288 Jiangxi : 4140 Fujian : 3471 Hunan : 6440 Guizhou : 3525 Total : 9 / 472, 010, 000 Xinjiang Road KM : ( estimated ) Shenzhen – Fuzhou : 890 Shenzhen – Guangzhou : 120 Shenzhen – Haikou : around 900 Shenzhen – Nanning : 883 Shenzhen – Kunming : 1675 Shenzhen – Nanchang : 993 Shenzhen – Changsha : 922 Shenzhen – Chengdu : 2335 Shenzhen – Guiyang : 1505 Jiling Liaoning Inner Mongolia Beijing Tianjin Traffic : By air : around 1 -2 hours By road : around 15 to 40 hours Hebei Qinghai Shanxi Gansu Shandong : Yangtsze River Delta – around 15 M TEU Jiangsu Shanghai Anhui Hubei Chongqing Zhejiang Sichuan Hunan : Pearl River Delta – nearly 40 M TEU Jiangxi Guizhou Fujian ( not yet included HK & Macau * ) Taiwan Yunnan Pearl River Delta (PRD) -Guangzhou - Yantian -Dongguan - Zhuhai -Zhongshan - Hongkong -Shenzheng - Macau Bohai Bay Area (BBA) - Beijing - Tianjin - Shijiazhuang - Qingdao - Dalian - Xian - Jinan Ningxia Henan Tibet N Heilongjiang Guangxi Guangdong Hongkong (SAR) Yangtsze River Delta (YRD) - Shanghai - Ningbo - Suzhou - Wuxi - Kunshan - Nanjing - Hangzhou Macau (SAR) Hainan 6

Logistics is a service supporting to DCM & SCM ( demand chain management & supply chain management ) How you work on this scope & what is yr play role ? Information flow – 2 ways Market Needs Commodity Design Local Distribution I. W. D. R. Consumer Product Development Customs Formalities Retailer Demand Wholesaler Importer Suppliers Sourcing Manufacturer Sourcing Shipping/Transport Arrangement Carrier Consolidator Documents Prepare Customs Broker Logistics Production Control Warehousing Inventory Manufacturer Purchaser Vendor Supplier Supply 7

Creative understanding about the Chains : - info chain 資 訊 鏈 - demand chain 需 求 鏈 - educational chain 教 育 鏈 - food & beverage chain 飲 食 鏈 - infectious chain 傳 染 鏈 - production chain 制 造 鏈 - transport chain 運 輸 鏈 - enterprise chain 企 業 鏈 - criminal chain 罪 案 鏈 - financial chain 金 融 鏈 - account chain 會 計 鏈 - and ………………. Have you develop your own chain – job chain, working chain, industrial chains, life chain …. . ? Services Chain 服務鏈 TRAVEL CHAIN : 旅遊鏈 (人流) Industrial Chains ………… 8

Can you identify yr correct play role inside this chain ? . . . Origin The 3 rd Vendor The 2 nd Vendor The 1 ST Vendor Raw materials Supplier Parts/attachments Supplier Accessories Supplier Sourcing R E C Y L I N G Collection, Re-production, Logistics, Transport, New resources, Materials … Final Customer End-user ………… The 3 rd Customer The 2 nd Customer The 1 ST Customer Retailer Direct market Regional/District Distributor Trader/Agent Wholesaler . . . . M A N U F A C T U R E R 9

I N P U T HR FACTORY MATERIAL EQUIPMENT INFO INVESTMENT OTHERS … P R O D U C T I O N PRODUCING SERVICING SUPPLYING DELIVERY SELLING TRAINING OTHERS … D E L I V E R Y PRODUCTS SERVICES PROFIT CONSUMING WAGES ENTERTAINMENT OTHERS … O U T P U T D E M A N D …………. . Product or Services / Product & Services …………. . . S U P P L Y Auto. Land, Mobile House Factory Property, Architect Tailor Merchant, Garment, Fashion. . Fast Food Chain Health Travel Education, Hospital, Public Care : Service, Academy, Medical Services, Product, Hotel, Training. . care Transport. Service Recreational Civil servants Others : Media, Finance, Insurance, Agency, Broker ……………… 10

Future : 3 A supply chain ? Agility 反應敏捷 Adaptability 適應 Alignment 利益一致 Preparation ! Standard ! Harmony ! Balance ! Total win ! ……… ! ! ! Reasons behind – value & service chains factors 11

What is the key & 1 st priority consideration for following industries to be cost effective in supply chain & logistics : USA Mcdonald – Swiss Lindt – food Supermarket – ice-cream – Levis – jeans shirts – BMW – ………. cow, vegetables cocoa bean all fresh items cow cotton & farming mineral, fuel ………. . 12

How can you imagine the life of a PAPER ? 成長 P R O D U C T E X A M P L E 移植 Seed Packing 配 送 Whole-sale 運輸 Retailer 切屑 Trees 成品化 Paper 切割 采購 Log 砍伐 Seeding Paper Reel 處 理 加 Paper Diversification End-user Raw Paper Wood Pulp 回收 Recycling 銷售 What you can imagine yr logistics, DCM & SCM services inside this product cycle ? 再 造 New sources, New products, New chains ………. 13

Well use on common knowledge : What you should have but lack ? Where you should go (direction) but miss ? Which part you are strong but not yet ? When you will be prepared but not yet ? How you are going to do next but not plan ? Who are you but you don’t know ? AGAIN : HOW many you know about PPRD/HK or China ? * WHAT is the trend of SCM & logistics in PPRD/HK ? WHICH industry you are interested for yr career in PPRD/HK ? WHERE is the best place to start in PPRD/HK ? WHEN you will be valuable in PPRD/HK markets ? WHO is your target after you achieved all above ? 14

How much you can achieve ? 1. creative & imagination …. . 2. broad insight, awareness & confidence 3. systematic, organizing, standardization … 4. code of conduct, corporate governance … 5. trust & initiative, immediate response …. 6. reliable & sustainable, time management …. 7. service orientated, measurement tools …. . 8. What else …………. . 15

What is China future, how is the market ? green SCM green logistics agricultural technology agricultural innovation standardization & systematic improvement servicing industry & industrial chains integration sourcing optimization, integration ……. code of conduct & corporate governance human, corporate culture & branding some more …………. . 16

Common language in China & HK ? Agricultural history & traditional Industry & manufacturing society Knowledge Economic Conceptual age 17

What HK possess & more !! Better & Correct Knowledge Better & Right Concept ( knowledge economy ) ( conceptual age ) Service orientated Standardization & Systematize International trust & Global credibility Broad knowledge & free info What else ……………. . 18

How can you engage with Threat, but Grasp the Chance Every trend is a threat to someone who knows nothing about it. But, it is also a great opportunity if you understand it. It seemed that quality rather than quantity distinguishes the master. What you are seeking for – quantity, quality or both ? Can you find the Way or Direction based on these 2 ? ? 19

TIMES UP ! Thank you so much Welcome for more input …………………………… ……… Example of some learning edge fm creative : China Map, Common senses & Motto : as attached 20

China Provincial identification : 34 Provinces, Municipalities & Autonomous Regions ; and Special Administrative Regions - 1 China - 2 SAR 特別行政區 - 23 Provinces 省 - 4 Municipalities 直轄市 - 5 Autonomous Regions 自治區 - 1 Capital - 28 省1級行政中心 ; 4 直轄市 - 333 1 st Cities 地級市/autonomous自治州/City districts地區/州/盟 - 2, 862 2 nd Cities areas 市轄區/縣級市/縣/自治縣/旗/自冶旗/特區/林區 - 43, 275 Town 鄉 鎮 / village 村, 街 21

China Figure Components 1, 2, 3, 4, 5. 54 43 33. 5 1 China included : 2 SAR & 31 Provinces/Administrational Cities/Municipalities = 33 省, 市, 自治區 / 33 > ( 22 省* + 4 直轄市 + 5 自治區 # ) 2 SAR & 32 Provinces/Administrational Cities/Municipalities = 34 省, 市, 自治區 / 34 > ( 23 省* + 4 直轄市 + 5 自治區 # ) * A 台灣 / # 新彊維吾爾 ; 宁夏回族 ; 廣西 壯族 ; 西藏 ; 內蒙古 ; S. 華南地區 : Hainan 海南, Guangdong 廣東, Hunan 湖南, Jiangxi 江西, Fujian 福建 ; 5 S. W. 西南地區 : Guangxi 廣西, Yunan 云南, Guizhou 貴州, Sichuan 四川 ; 4 N. 華北地區 : Hubei 河北, Shangdong 山東, Shanxi 山西, Inner-mongolia 內蒙古 ; 4 N. E. 東北地區 : Heilongjiang 黑龍江, Jilin 吉林, Liaoning 遼宁 ; 3 E. 華東地區 : Jiangsu 江蘇, Zhejiang 浙江, Anhui 安徽 ; 3 C. 華中地區 : Hubei 湖北, Henan 河南, Shaanxi 陝西 ; 3 N. W. 西北地區 : Ningxia 宁夏, Gansu 甘肅, Qinghai 青海, Xinjiang 新彊, Tibet 西藏 ; 5 直轄市 : 北京 , 上海 , 天津 , 重慶 ; 22

China Figure 中國三圍 54 43 33. 5 55 or 43 33. 5 54 Any better idea to think about China map ? 3 4 5 3 3 North : 4 South : 5 North east : 3 South west : 4 East : 3 North : 4 Central : 3 4 A* OR North east : 3 North west : 5 East : 3 South : 5 Central : 3 South west : 4 North west : 5 5* 23

Future = 5 -10 years Appendix 1 – just some common sense, but easy absent minded ! 1. Who is yr current customers ? Who will be yr customer in the future ? 2. What channel you are going to approach yr clients ? What kind of channel you are going to approach yr clients in the future ? 3. Who is yr current competitors ? Who will be yr future competitors ? 4. What is yr current core competence & base ? What is yr future competence & base ? 5. Where is yr profit engaged now ? Where is yr future profit engagement ? 6. What is yr specific in the market now ? What will be yr future specific ? 7. What is yr product & services range in current market ? What is yr product & services range in the future ? 8. Why you are able to survive in current market ? Why you are still able to survive in the future via forecasting ? 9. How you are going to do next in current market ? How you are able to maintain & always stepping at the front in the future ? 10. When you are prepared well for current market ? When you are able to command yourself or career in the future ? 24

Appendix 2 – common sense fm GE, also easy absent minded ! A. In Globalization or Regional China market, what is yr industry core competence & how is the competitive environment ? B. In the past 3 years, what you have done or learned fm above markets ? And what yr competitors have done or learned as well ? C. In the future, how yr competitors will hack on you ? D. In the coming, what strategies you will have to overcome others ? 參考格言 : w w w 預思未來, 卸下感情包袱, ……… 香港品牌、优質人材 站得高、看得遠, 學得闊、能力強, …………. 中國品牌、优質資源 想得通、价值高 ………. 25