The Glass Pipeline Its all about Supply Chain
The Glass Pipeline It’s all about Supply Chain Visibility Wilson Lee Director of Information Technology © Kerry Logistics Network Limited. All rights reserved. HK Logistics Technology Managemenet Forum 2007 (2007/3/12)
What is Supply Chain Visibility Why is it important to us? Event Management Collaboration Execution & Planning Monitoring & Visibility Manufacturing and retail industry leaders are now looking at end-to-end supply chain processes and it has significantly increased the visibility capabilities a 3 PL needs in order to match their requirements 2
What happened in the last 50 years… Domestic Manufacturing Domestic Distribution Domestic Market 60’s Domestic Manufacturing Outsource Domestic Distribution Domestic Market 70’s Offshore Outsource Manufacturing International Domestic Freight to Distribution Destination DC Sourcing Offshore Distributed Outsource Offshore Manufacturing Distribution International Market 80’s 90’s Multi-modal International Freight/Express International Tiered Market 00’s Supply Chain Management 3
Imagine you are… the VP, Logistics of a MNC How can I move those activities along the supply chain out of this expensive place? Who can I trust? How to close down the DC against the Union? You’re continuously regarded as a heavy cost center or a costly supporting function out of the Corporation’s core competence. Frontline Brands have increasing demand on cutting cost. One day, you are sitting in your US Headquarters office struggling with your survival in the Corporation, what are you thinking now. . . ? 4
An Opportunity for us n We have the established network of facilities, partners and relationships throughout China & Asia. n Low cost country sourcing and distribution hubs are continuously shifting into the region. n Major foreign companies have higher expectations on their logistics service providers, both in terms of the services offered and the levels of performance. n These foreign companies are forced to look to their major 3 PL partners to support expanded global operations. n Logistics operation is further regarded as their non-core competence to be outsourced The matter is how the service providers can provide the confidence for these companies to let go their supply chain control. n We have the logistics infrastructure in place, it needs to be able to offer the services that these large foreign companies regard as compelling in order to maximize market potential. 5
Today’s Global 3 PL Services Model Order Placement for Customers Logistics for Manufacturing OMS Forwarding Raw Material Manufacturers Logistics for Sales Forwarding Customer (Factory) Delivery Domestic Logistics Center WMS TMS FMS Domestic Delivery Destination Forwarding Delivery Domestic Delivery Destination WMS TMS Domestic Logistics Center Forwarding Logistics for Overseas Affiliated Customs Broker Export FMS Forwarding/Delivery Import Overseas Logistics Hub Forwarding Import WMS TMS Forwarding Overseas Factory Key Success Factor – A tool to manage this complex scenario. Give confidence to Supply Chain owner to be hands-off from their Supply Chain ! 6
The SCM Value Proposition Ability to Design Supply Chain Solution Supply Chain Owner’s feeling on Outsourcing: Supply Chain Modeling Total Supply Chain Outsourcing Ability to Manage Supply Chain Management Supply Chain Visibility & Proactive Management Ability to Operate Discrete Logistics Services Operational Capabilities (WMS, TMS, FMS, T&T) Willing to Comfortable Worry 7
The SCM Value Proposition Highly Sustainable Business Ability to Design Supply Chain Solution Supply Chain Modeling Total Supply Chain Outsourcing Ability to Manage Revenue Margin Margin Customer Retention Supply Chain Management Supply Chain Visibility & Proactive Management Ability to Operate Discrete Logistics Services Operational Capabilities (WMS, TMS, FMS, T&T) 8
What is Supply Chain Visibility? Supply Chain Modeling Supply Chain Visibility Pipeline Visibility Cost Visibility Event Management 9
Three Elements of Visibility Pipeline Visibility Event Management Cost Visibility Cross Business Units / Service Providers Item Tracking Capability. Relationship Management between Supply Chain Nodes with event triggered actions to enable proactive Supply Chain Management. Cost Element Identification down to piece level in each of the Supply Chain Nodes. 10
The Kerry Logistics Approach - Kerrier. VISION A Service Oriented Architecture Initial Goal – Pipeline Visibility Ultimate Goal – Cost Visibility Medium Term Goal – Supply Chain Event Management Kerrier. VISION SCV Portal Standard EVENTS Standard SERVICE Application Systems E 1 E 2 E 3 E 4 E 5 E 6 S 1 S 2 S 3 S 4 S 5 S 6 SSS ? ? ? WMS TMS FMS Kerrier Applications ? ? ? Other Application Sources 11
Visualized Supply Chain 12
Integrated View along the Supply Chain 13
Event Driven Alert & Action 14
SKU Level Visibility 15
Forecast Capability 16
Importance of Visibility According to Aberdeen research … fully 79% of executives at large enterprises (over US$1 B) point to poor supply chain visibility as their top concern for managing their global supply chain operations. Supply chain visibility technology users are: ► 2. 4 times as likely to have reduced their inventory levels since 2004. ► Three times as likely to have faster order to delivery times. ► Twice as likely to have an on-time delivery rate of 95 percent or higher. The Supply Chain Visibility Roadmap, November 2006, Aberdeen Group 17
The High End Job ► Hong Kong’s edge • Design the supply chain – Develop HK as the regional supply chain designer. DESIGN • Control the supply chain – Develop HK as the regional supply chain control center. CONTROL EXECUTE • Business Intelligence. • Business Performance Management. • Information Brokerage. 18
Excessive Stock is just a matter of supply chain inefficiency! Thank You © Kerry Logistics Network Limited. All rights reserved. HK Logistics Technology Managemenet Forum 2007 (2007/3/12)
- Slides: 19