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Tag: supply chain

  • Payload Asia magazine honours excellence in the air cargo supply chain

    Payload Asia magazine honours excellence in the air cargo supply chain

    The Payload Asia Awards 2017 returned for its sixth edition, with more than 90 nominations vying for the 20 awards categories and more than 25,000 online votes received in the Customer Choice Awards. All results – from both Customer Choice and Industry Choice – were audited by an independent auditing firm, Alpes Assurance. The awards seek to honour the very best in the industry and took place over a spectacular gala dinner and awards ceremony, held at Crowne Plaza Changi Airport, Singapore. Gracing the event was the guest of honour, Glyn Hughes, global head of cargo, International Air Transport Association (IATA).

    Confronting and overcoming the manifold challenges in the air cargo sector by creating innovative products and services, and delivering real value to customers is the hallmark of the companies excelling in this industry. The Payload Asia Awards 2017 looked to celebrate these traits and the perseverance, innovative strategies and many other successes of the air cargo community in the face of unprecedented market conditions and ongoing economic uncertainty.

    For the highly coveted title of Overall Carrier of the Year, Qatar Airways Cargo and Turkish Cargo walked away with the Industry Choice Award and Customer Choice Award respectively. This year marked the second consecutive year that Qatar had walked away with the Industry Choice Award title for the Overall Carrier of the Year.

    This year, Ethiopian Airlines snagged both Industry and Customer Choice Award for the Rising Star Carrier of the Year, a testament to its standing in the industry. Other carriers picking up awards included: All Nippon Airways, Singapore Airlines Cargo, Swiss WorldCargo, United Cargo, VietJet Air Cargo, AirAsia Cargo, Atlas Air and Volga-Dnepr Airlines.

    Hong Kong International Airport and Singapore Changi Airport were awarded the Industry Choice and Customer Choice for the Asia Pacific Airport of the Year respectively. Ground handling awards saw the same trend of Singapore and Hong Kong dominating the category, with Hong Kong Air Cargo Terminals Limited (Hactl) and SATS taking home the top prize in this category. Meanwhile, Leipzig/Halle Airport and Liege Airport were the winners in the European Airport of the Year category.

    Chapman Freeborn Airchartering and Air Charter Service again emerged victorious in the Charter Broker of the Year category this year, whereas ECS and Air Logistics Group championed the GSA/GSSA of the Year category this year. Other highlights saw All Nippon Airways (ANA) and flydubai Cargo both winning X-Factor Awards for their unique and highly successful business strategies. Lufthansa Cargo and Thai Airways snagged the Corporate Social Responsibility Award, and DHL Express and Hong Kong Air Cargo Terminals Limited (Hactl) took home the Green Award. IBS Software and Unisys were awarded IT Provider of the Year.

    In the express provider categories, DHL Express and FedEx Express took home the award for Global Express Provider of the Year, and SF Express and Kerry Express took home the award for Regional Express Provider of the Year. Kerry Logistics and Crane Worldwide Logistics were awarded Global Logistics Provider of the Year, and Hong Kong Air Cargo Industry Services (Hacis) made a clean sweep for the Regional Logistics Provider of the Year.

    Among the 23 awards given were three special Editor’s Choice Awards. The Lifetime Achievement Award, which honours an industry veteran who has made an extensive and invaluable contribution to the air cargo industry over many years, went to Tony Tyler. Before he retired in June 2016, he was Director General and Chief Executive Officer at The International Air Transport Association (IATA). Preceding the five-year tenure at IATA, Tony was Chief Executive of Cathay Pacific Airways in Hong Kong.

    Also under the Editor’s Choice Award category, Emirates SkyCargo was awarded Marketing Award of the Year, and Lufthansa Cargo took home Media Award of the Year.

    Dual tracks

    Payload Asia, a respected voice of the air cargo industry which has now been publishing for over 30 years, continued its unique awards approach. Kicked off three years ago, the approach features two, parallel sets of awards for each category: The Customer Choice Awards and the Industry Choice Awards – highlighting two equally important but slightly different views of excellence, one based on popular votes and the other on a detailed assessment by senior industry executives.

    The Customer Choice Awards carry on the previous years online voting system by customers and Payload Asia readers, with all results officially audited by an independent auditing firm. The Industry Choice Awards on the other hand, are determined by a senior level industry panel of 16 judges drawn from across the industry and assessed via a points system based on the published criteria, with the process and results also audited. A full list of awards and winners can be found below.

    The awards were presented during a gala dinner attended by more than 200 members of the air cargo fraternity from around the globe, and hosted by Payload Asia, part of the Contineo Media group.

    The Gala Awards Dinner was preceded by a two-day conference programme and both will return again next year. It is anticipated this event will continue to be an important highlight on the air cargo industry’s calendar.

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  • Digitalisation of supply chains in India

    Digitalisation of supply chains in India

    The digital B2B marketplace for warehousing, Log-hub AG from Switzerland, and the Indian Supply Chain specialist 3SC are now collaborating on the Indian market. Both companies are technology based and offer advanced analytics based transportation and warehousing solutions. Log-hub and 3SC have agreed to combine their capabilities to provide seamless service offerings for those companies who want to identify and implement the savings potential of the new Indian tax regime.

    Log-hub AG and 3SC Solutions Ltd provide complete supply chain management services in terms of planning and execution throughout entire India. Their transportation and warehouse network is rendered by a control tower set up of more than 200 experts and the digital marketplace for warehousing space.

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  • GateHouse talks supply chain nirvana at IoT Slam Conference

    GateHouse talks supply chain nirvana at IoT Slam Conference

    Logistics data unifier GateHouse Logistics A/S announces that it has been invited to present its vision of the future direction of data used in the logistics industry at the upcoming IoT Slam Conference being staged at Raleigh in North Carolina on June 21 and 22. The annual Conference brings together the The Internet of Things Community (IoT Community), the world’s largest group of CxOs and IoT professionals.

    The function of the community is to focus on the adoption and application of IoT in commercial environments such as the transport industry, seeking to understand and contribute to applying the technology or overcoming the wide variety of barriers, inhibitors, and technical and operational issues involved.

    “The logistics industry is moving into the smart connected era and an industry-wide and truly system agnostic mobility platform is needed now by all parties involved in the supply chain to control, make visual and rationalize the mountains of data involved in order to reach the next level of business efficiency,” says Jesper Bennike, CEO, GateHouse Logistics.

    He adds: “Data about connected trucks and Just-in-Sequence supplies to smart factories are just the tip of tomorrow’s supply chain issues and the IoT Slam Conference is the perfect platform for GateHouse to discuss its IoT solution with leaders responsible for shaping the use of data in the future IoT logistics industry.”

    As a leading independent logistics data unifier and aggregator, GateHouse Logistics believes that it is within its remit to propose a cross-system data mobility platform to the transport industry that can not only collect and unify all data from all telematics systems, but also distribute it to authorised enterprises as one datastream.

    The mobility platform provides LSP’s with a mixed fleet a unified and consolidated data stream from their whole fleet. The data stream can be easily integrated with any TMS system and it can also securely be shared with third parties.

  • Yonghui to build supply chain industrial park in Sichuan with CNY1 billion

    Yonghui to build supply chain industrial park in Sichuan with CNY1 billion

    Chinese supermarket chain retailer Yonghui Supermarket has decided to build a supply chain industrial park in Sichuan’s Pengzhou city, with a total investment of CNY1 billion.

    The company says the industrial park will better support its regional distribution and warehousing demands and food processing business development in Sichuan.

    Yonghui Supermarket will purchase an area of 300 mu for this project. The first phase of the project, which covers 93 mu, will be launched first; and the second phase, which covers 207 mu, is expected to be launched in 2019.

    With an investment of CNY100 million, Yonghui Supermarket will also set up a project company in the industrial park and this project company will be named “Sichuan Caishixian Supply Chain Development Company Limited”, which is subject to the approval of industry and commercial authorities.

    Meanwhile, Yonghui Supermarket will establish two “Caishixian” processing subsidiaries – one in Hefei, Anhui province and the other in Kunshan, Jiangsu province with CNY50 million investments in each.

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  • Why supply chain integration is crucial in the Industry 4.0 era

    Why supply chain integration is crucial in the Industry 4.0 era

    Local Motors is a carmaker with a difference. Rather than following the traditional vehicle design process, the Arizona-based micro-multinational instead crowd-sources its car designs from an online community. Once the design is chosen, the company harnesses advances in translating data from the digital to the virtual world to build cars almost entirely by 3D printing. This innovative process enables it to build a completely new model of car from scratch in just one year – far less than the industry average of six.

    This is a great example of the revolution that is sweeping the world of manufacturing. Not since the ‘lean revolution’ of the 1970s, often dubbed the ‘third industrial revolution’, have such radical changes been made to the way production is designed, monitored and executed, and the repercussions of this sea-change are being felt all the way down the value chain right into the hands of the end-customer. Today’s always-on, e-commerce-driven global economy is creating a brave new world known as the fourth industrial revolution, or ‘Industry 4.0’ – and businesses need to rapidly adapt  to avoid being left behind.

    Industry 4.0 is shorthand for applying new, digitally-driven capabilities to manufacturing and at each subsequent stage in the value chain. At its simplest, it can mean applying technology to a single stage in the chain – a gold mine in Africa leveraged big data from its sensors to discover an irregularity at a particular point in its production process, for example. Fixing this increased yield by 3.7 percent – or US$20 million – each year.

    However, to realize the full potential of Industry 4.0, companies are looking more holistically at their value chains. With four decades of experience in supporting customers’ supply chains, our business is uniquely positioned to observe how these changes are impacting supply chains everywhere. I believe that a rethink of supply chain management is needed if manufacturers and retailers are to successfully harness the possibilities of Industry 4.0.

    Making supply chains customer-centric

    Once viewed purely in terms of its potential to yield cost efficiencies, supply chain management has evolved. Thanks to big data analytics and changing customer expectations, demand forecasting is more sophisticated. This means that modern supply chains now have a vital additional role in ensuring customer satisfaction and retention.

    To achieve this goal, logistics now needs to work across the company from the front-end to the back-end, seamlessly integrating production, inventory, marketing, sales, payments, distribution and product returns to optimize the supply chain model that balances cost efficiencies with keeping customers happy.

    Embracing innovation

    Achieving this degree of integration is complex – in a recent research study, only 7 percent of business executives believed they had created fully-integrated businesses that could be regarded as Industry 4.0-ready. Access to the right technology is only one part of the puzzle; businesses also need a culture that embraces innovation and a workforce – from c-suites to general staff – that is willing to innovate to drive change.

    However, these barriers to implementing an Industry 4.0-ready supply chain have to be weighed against the potential benefits – and when they are, an almost unassailable business case emerges in favor of making the leap for businesses large and small. Consider the aircraft maker Airbus. The company has invested significantly in creating a “Factory of the Future” by building aircraft in virtual reality, with production lines that include computer-suited personnel and robots working side by side. As a result of these changes, which the company dubs ‘smart production’, Airbus is able to keep pace with increased demand, and also now manufactures its products in a more sustainable way.

    Moreover, the benefits of Industry 4.0. are certainly not confined to large multinational corporations. Closer to home, China-based furniture retailer Markor realized that it could innovate its supply chain to identify trends in customer purchasing behavior. The company created a smartphone app that interrogates big data to identify these trends, then make personalized recommendations to customers on product designs. Using mobile devices, sales staff can show products demos and 3D images of custom furniture. When sales are made, customer preferences and purchase details are saved automatically, and the company uses the information to drive future business.

    The next frontier for competition

    Of course, these are just some examples of technology overhauling the supply chain. Touch-screens, robotics and augmented reality can all be orchestrated to achieve value-creating supply chains capable of responding automatically to changes in end-demand. The central question is not what technology is harnessed, but whether you work with the right manufacturing, technology or logistics providers to enable your supply chain to be truly integrated and demand-driven.

    Get it right, and you’ll be on the way to achieving efficiencies, reduced time-to-market, cost savings, improved productivity and revenue gains. Despite the substantial investment involved, more than half of the respondents in a recent Industry 4.0 global survey anticipated return on investment in just two years.

    In a world where business is increasingly transacted digitally, preparing your supply chain for Industry 4.0 represents the next frontier in the battle for competitive edge.

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  • Using artificial intelligence in the supply chain

    Using artificial intelligence in the supply chain

    Leveraging artificial intelligence (AI) for supply chains is an important next step to lower costs, improve productivity and drive growth by helping businesses reduces time-to-market.

    There are many opportunities to utilize AI along the chain from buying raw materials/components, converting them into finished products, selling to customers and delivering to end customers. Supply chains, generally, still comprise large amount of repetitive manual tasks and this is where AI can offer the most value.

    AI can be used in selling to customers using an AI-driven software platform, warehouses, transport, analysis of data and many other areas. AI allows companies to reallocate time and resources to their core business, and other high value, judgment-based jobs by using AI for low value, high frequency activities.

    In an AI-driven selling platform, the chat bots handle many of the sales, customer services and operations tasks traditionally done by humans, for example, interacting with buyers, taking down their orders and passing them on along the supply chain. This way, there is significant reductions in staff costs and also can help to overcome manpower shortage. Moreover, this solution is very applicable to green-field markets where there is explosive growth and multiple languages are required.

    In warehouses, distribution and fulfillment centers, AI can be seen in the use of robotics and sensors for conveying, stacking and retrieval systems, order picking, checking on stock level and re-ordering when stock is low. Furthermore, powerful algorithms also allow AI to automatically adapt in real-time to events in the supply chains, for example the arrival of new orders over the Internet for delivery in a few hours, changes in manufacturing schedules, or even a hiccup in the transportation schedule.

    Amazon is using robotic shelves in warehouses where robots the size and shape of a footstool carry shelves on top. These robots can glide quickly across the floor to rearrange the shelves in neatly arranged rows or bring them over to human workers, who stack them with new products or retrieve goods for packaging.

    Amazon’s robotic shelves also allow more products to be packed into a tighter space. They also make stacking and picking more efficient by automatically bringing empty shelves over to packers or the right products over to pickers. The process is more efficient than having humans walk around, so it also a good example of how automation can be combined with human labor to increase productivity.

    Autonomous vehicles and drones, for example, deploy a combination of sensors and algorithms to perform the complex work of driverless navigating. DHL is using autonomous forklifts and other self-driven equipment in warehouse operations. The next step for autonomous vehicles in logistics is to overcome regulatory and security challenges to deploy them on public roads for goods delivery operations. In the US, the use of drones is governed by the Federal Aviation Administration’s regulation known as Part 107 that went into effect on 29 August 2016.

    Supply chains are generating a huge amount of data and rather than let them go to waste, AI can help businesses make sense of them so that better decisions can be made. AI is able to quickly analyze and organize this data to enable users to see trends, and gain a better understanding of the many variables in the supply chains. Users are thus able to anticipate future scenarios and plan accordingly for uncertainties.

    Driving force of AI

    Powerful algorithms are fueling the rise of using AI in supply chains. Algorithms are instructions to the robots, drones, and autonomous vehicles etc. for calculations, data processing and automated reasoning. In a nutshell, algorithms give instructions on what and how to do in order to reach a specified end goal. More advanced algorithms, rather than follow only explicitly programmed instructions, can even go a step further in allowing AI to learn on its own in what is known as machine learning.

    Using algorithms that continuously and repeatedly learn from new data, machine learning allows AI to find hidden insights without being explicitly programmed where to look. Machine learning is a method of data analysis that automates analytical model building.

    The pioneering technology within machine learning is the neural network, which mimics the pattern recognition abilities of the human brain by processing thousands or even millions of data points. This technology is not just about optimization

    Take the example of supply chains. The algorithms are able to engage in forward thinking to predict all the volatility in the industry, come up with solutions for different scenarios and then base on the available data, choose and execute the most efficient solution. Whenever the AI is faced with a new situation, the algorithms are also adept at making real-time adjustment to pre-programmed instructions. Moreover, compare to humans, the speed and decisiveness of making decisions for AI is so much faster, because for one thing, AI is void of emotion and biasness.

    As a final testament to the power of AI, consider the following example. In January, two researchers from Carnegie Mellon University developed an AI poker player that beat four world champions and won US$1.77 million in poker chips. This is groundbreaking as it signals the ability to deal with incomplete information and to deal with situations that require bluffing and an opponent that generates misinformation.

    AI can process huge amount of possibilities and can outthink humans in terms of unpredictability if the algorithms are programmed correctly.

    AI is the future of supply chains. AI strengthens a company’s core business and opens up new opportunities that can even lead to a new business model.

  • Supply chain group Tigers launches new e-shop marketplace supporting brands entering china

    Supply chain group Tigers launches new e-shop marketplace supporting brands entering china

    Supply chain group Tigers has launched a new marketplace, called eShop, to support brands entering the rapidly expanding China and Southeast Asia e-commerce markets.

    The digital marketplace, part of Tigers’ suite of e-commerce products, offers a one-stop shop solution, from marketing, to taking payments, managing the supply chain, order fulfilment, and returns.

    Up-and-coming Italian designer workout wear Gr1ps, and award-winning golf simulator OptiShot Golf are amongst the first Tigers eShop customers in China, Hong Kong, and Malaysia.

    “Tigers eShop offers a cost-effective, scalable enterprise solution for companies of all sizes,” said Andrew Jillings, chief executive officer and group managing director, Tigers.

    “We can provide fiscal representation to SMEs wanting to enter the China market that do not have a presence there.”

    “The logistics industry has the desire to adopt technology, but few providers are offering a real solution that ultimately services every e-commerce business.

    “Rather than being a one-size fits all, Tigers’ IT systems, which work on a cloud-based operating platform, are flexible enough to meet a large variety of demands.”

    Gr1ps, founded in 2011, designs innovative functional training products and has been recognised as a pioneer in Brazilian Jiu Jitsu and Mixed Martial Arts apparel. “Tigers eShop forms a core part of our sales strategy in acquiring new clients in the Asia market, and increasing brand awareness and exposure through Tigers’ network,” said Katty Fung, chief operating officer, Gr1ps.

    “We look forward to bringing our brand values, of quality and attention to detail, to larger sports and lifestyle communities with this expansion.”

    OptiShot Golf is a golf simulator platform designed by two fans of the game, which allows players to practice and play on replicas of major championship courses, as well as play in global online tournaments, with real clubs and real golf balls.

    “China is an important market for us and the Tigers eShop is an exciting opportunity for us to grow our presence there,” said Kevin Johnston, president and chief operating officer (COO), OptiShot Golf.

    Tigers, which has been operational in Greater China since 1969, has 17 offices across the country and specialises in e-commerce fulfilment, transportation, and supply chain solutions.

    The Hong Kong headquartered supply chain specialist has 65 offices and 32 omni-distribution hubs across China, the USA, Germany, the United Kingdom, the Netherlands, Switzerland, Australia, Malaysia, India, and South Africa.

    Tigers plans to open more eShops across a number of strategic locations.

    “Tigers will continue to focus on our two main assets, our technology and our people,” said Jillings.

    “We are privileged to be working with exciting brands like Gr1ps and OptiShot Golf. They are both dynamic groups with great products and they embrace the online retail space.

    “There is always a learning curve working with companies like these.”

    Tigers can trace its founding origins back to 1888 in the Cape of Good Hope, South Africa, where their South African subsidiary was first founded.

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  • Y3 Technologies opens new office, signs MoU with GOGOVAN

    Y3 Technologies opens new office, signs MoU with GOGOVAN

    Supply chain and logistics innovation providers Y3 Technologies (Y3) has officially launched its new 6722 sq. ft. office space. Located in heart of Singapore’s supply chain logistics hub – Bulim Avenue, the move to the new office housed within Supply Chain City highlights its commitment towards further providing businesses with top-notched technological logistics solutions.

    In line with that, Y3 Technologies also unveiled an MoU signing with hyperlocal on-demand delivery provider, GOGOVAN. As Asia’s pioneer app-based logistics platform, GOGOVAN connects users with real-time delivery services. Under the MoU, GOGOVAN will be part of Y3’s supply chain ecosystem, offering enhanced delivery capabilities to Y3’s end-to-end supply chain management system. Both entities will provide joint efforts involving collaborations between management systems and physical last mile deliveries.

    “We are extremely excited to be operating out of our new office space, with the move playing an integral part of our transformational journey over the past 18 months. Not stopping short of our aim to provide continued service excellence as well as business expansion, the partnership with GOGOVAN will further enable us to better cater to businesses in this digital age,” said Marc Dragon, CEO, Y3 Technologies.

    “It is a great opportunity to be able to collaborate with Y3 Technologies and we are extremely honored to be part of this partnership. This collaboration will enable us to be part of Y3’s supply chain ecosystem. We would also like to congratulate Y3 on the new office opening that we witnessed today,” shared Patrick Wong, country manager, GOGOVAN.

    Apart from the MoU announcement, attendees also had the opportunity to witness Y3’s Innovation Showcase and experience first-hand the company’s technological solutions and offerings. CEO, Marc Dragon, also carried out an insightful presentation addressing some of the key trends and challenges that businesses currently face, and the ability of supply chain technology solutions to empower businesses and enable them to overcome these challenges.

    Y3 has also recently acquired leading CRM and eCommerce solutions provider Ascentis, and is actively involved in the Chongqing Connectivity Initiative (CCI), Singapore’s third Government-to-Government (G2G) collaboration with China.

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  • DHL Supply Chain appoints Jerome Gillet as CEO of its new Singapore cluster

    DHL Supply Chain appoints Jerome Gillet as CEO of its new Singapore cluster

    DHL Supply Chain, which is involved in contract logistics solutions, has named Jerome Gillet as CEO of the new Singapore cluster which includes Singapore, Malaysia, and the Philippines.

    In this role, Gillet will continue to report to DHL Supply Chain Asia Pacific CEO Terry Ryan, while remaining as a member of the regional board.

    The appointment will bring synergy for the three markets and drive new growth for the region.

    The DHL Supply Chain businesses locally will continue to be led by the respective country heads – Jason Goh, managing director, DHL Supply Chain Singapore; Mike Davies, managing director, DHL Supply Chain Malaysia; and Suzie Mitchell, managing director, DHL Supply Chain Philippines — who now report to Gillet.

    “We see tremendous opportunity in Singapore, Malaysia and the Philippines to grow our business with even more focus on greater service quality in the markets. Jerome has repeatedly demonstrated his commitment to customer needs, and, in a changing economic climate, he is well placed to help customers deliver greater value from their supply chains,” said.

    “An innovator and strategic leader, Jerome is well suited to lead the next stage of growth transformation in our Singapore cluster. With his track record of delivering accelerated growth and building strong customer relationships, I am confident he will drive this new cluster in achieving high and sustainable growth.”

    “I am looking forward to accelerating growth in the newly formed cluster with a strong focus on quality, innovation and customer centricity,” said Gillet.

    Gillet’s career in logistics spans over 20 years (the last 17 years in the Asia Pacific) and includes roles in general management, operations and business development. His last appointment as chief customer officer (CCO) of DHL Supply Chain Asia Pacific saw him turn Asia Pacific into the fastest-growing region worldwide within DHL Supply Chain.

    The growth was driven by his business development efforts in key sectors such as Consumer & Retail, Technology and Life Sciences.

    Prior to his role as the CCO, Gillet was the vice president of Consumer sector for Asia Pacific, and increased annual new business gains by over 200% between 2008 and 2014.

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  • New technologies to enable greater supply chain efficiencies in Singapore

    New technologies to enable greater supply chain efficiencies in Singapore

     

    Singapore is set to enjoy greater supply chain efficiencies in near future, thanks to the Urban Logistics technology roadmap for 2020 that was unveiled by the Infocomm Media Development Authority (IMDA) on 28 November 2016.

    The roadmap includes the testing and implementation of new technologies in 12 additional retail malls in Singapore next year.

    The Urban Logistics programme is dedicated to analysing challenges in the logistics sector, identify technologies that can significantly improve Singapore’s supply chain processes, and improve efficiencies.

    2020’s gameplan will address different stages of the urban logistics process, outlining requirements that ensure the Urban Logistics solutions, systems and processes are interoperable, and remain open for interested industry players to adopt and/or adapt.

    This will also help optimise resources, as well as improve turnaround times and process efficiencies.

    Dynamic scheduling

    IMDA’s technology roadmap also includes steps that enable dynamic scheduling to accommodate early or late arrivals as well as complex algorithms to manage increasingly larger volumes of deliveries.

    A unique In-Mall Distribution model of delivery management establishes an in-mall operator to receive goods at the mall unloading bay. This model is designed to improve current delivery/acceptance processes and reduce congestion of delivery vehicles leading to the unloading bay.

    Moreover, this model also enables Singapore’s malls to have extended hours of delivery/acceptance operations, and foster greater automation, professionalism and security of such services.

    “Since the implementation of the In-Mall Distribution solution at Tampines Mall and Bedok Mall in June and September respectively, we have noticed an easing of road congestion around our malls as the queuing time for delivery trucks reduces,” said Teresa Teow, head of Retail Management, Singapore, CapitaLand Mall Asia. “This has resulted in greater efficiency for the different parties along the delivery chain and a better experience for all visitors who drive to our malls, including shoppers.”

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  • How to make the most of the Asian food retailing boom

    How to make the most of the Asian food retailing boom

    Asia’s consumers are expected to spend US$5.9 trillion on food, beverages, and tobacco by 2018, making up 60 per cent of global expenditure in this category.

    This means retailers need to expand aggressively, scaling up in new markets and keeping their supply chains adaptable to target more customers to make the most of the Asian food retailing boom. The middle class population in Southeast Asia is projected to grow to 400 million by 2020 and businesses that fail to scale will miss out on this tremendous market opportunity.

    Food retailing is all about delivering the best customer experience through high on-shelf availability (OSA), wide stock variety, and immaculate product quality to drive sales. Whether you are a convenience store chain, supermarket, or hypermarket, the goal is to build and retain a loyal customer base while keeping operating costs low to ensure prices remain competitive. However, food retailers in Asia Pacific face a unique set of roadblocks.

    Countries across the region are at different stages of development. With geographic diversity, companies face significant challenges when it comes to taking advantage of the growth possibilities. This will prove problematic, especially with Asia Pacific’s status as the world’s largest and fastest growing B2C eCommerce region. Consumers will expect faster, better services from food retailers as their threshold for waiting times lower in the “on-demand” age.  A recent announcement by Kantar Worldpanel forecast online grocery sales will be worth US$150 billion by 2025 – currently South Korea and Japan hold the first and second spots on the global e-commerce grocery market with Taiwan in the fifth position and China coming in sixth.

    The Four Ingredients of Supply Chain Success

    Asian food retailers , especially those selling fresh or frozen products, face issues due to the time-sensitive nature of the products which spoil quickly if not kept in the right conditions. Delivering chilled or frozen food across long distances is difficult due to infrastructure and asset availability, with options such as local sourcing or storage not always feasible. In light of these factors, it is critical to change the mindset to view the supply chain as a strategic business enabler driving competitive advantage, rather than a backend function focused on transport and storage. Here are four key ingredients to get you on your way.

    1. Take a fresh look at your supply chain

    Make a commitment to review your supply chain from end to end. What you need to look out for are potential cost inefficiencies and gaps in service performance, and understand the underlying reasons why these occur to help identify appropriate new solutions. For example, can you automate packing processes to speed up your deliveries down the line? Are you facing over- and under-stocked inventories because you cannot accurately anticipate supply and demand? Getting these questions answered is vital to your success. One route is to engage a consultant to assist. However, a specialist supply chain partner with extensive expertise will not only help with the review and design, but also has the capability to deliver. But also think about the long-term strategy and predicted expansion so that the new design is fit not just for today, but for your future business.

    1. Streamline your operations end to end

    Facilities, people, transportation, and technology are the ingredients within your supply chain that influence your overall business performance. Hence, it is important to make the right investments and realise the maximum benefits through continual review and optimisation.

    You can begin by analysing your truck fleets and find ways to fully use their capacity and improve routing. New designs and technologies enable delivery trucks to have different temperature zones to transport ambient, chilled, and frozen products in the same vehicle – enabling food products to be consolidated and transported using a single vehicle rather than needing to run multiple vehicles to the same location. And to accelerate deliveries, transport management systems provide insight and data analysis to determine the quickest and most cost-effective routes – incorporating telematics and real-time tracking gives full visibility throughout the journey which can lead to far more efficient unloading processes at the receiving end. Often, retailers can leverage a specialist 3PL like DHL and its existing investments in resource, technology, facilities and assets, such as trucking, to reduce retailers’ cash outflow and deliver a competitive cost-per-unit. In addition, a good supply chain management (SCM) partner with inroads in emerging markets can offer effective consultation on building delivery networks in new territories.

    1. Add visibility and control

    Gaining more control over your supply chain empowers you to navigate and anticipate any potential disruptions to food product deliveries. The first step is to improve visibility over inventory levels to maximise OSA whilst minimising spoilage – it’s a fine balance to manage and focus on the detailed insights of supply and demand patterns. Inventory optimisation manages stock cost effectively, balancing stock holding with customer service levels by taking into account availability, requirements, and lead time variability.

    A high level of inventory is not only capital intensive but also expensive to service through increased indirect spend, such as warehousing, transport, and procurement. Hence, not only will inventory optimisation reduce logistics costs, but drive excellent service to create satisfied customers by having the right stock at the right location.

    By looking at inventory holding, you can then make informed decisions about your storage requirements, and whether other options are more suitable. For instance, instead of using a conventional warehousing model, you can complement it with cross-docking for fast-moving goods. This speeds up distribution and reduces warehousing space as stock is not moved into storage. You can also consider hybrid inventory models to make the most of your existing warehouse facilities. Effective solutions can help you achieve an average inventory age of between 15 and 30 days which brings the additional benefit of improving cash flow. Achieving these metrics is not easy but specialist knowledge, experience, and sophisticated systems are the catalysts to creating a lean and responsive operation.

    1. Innovate to deliver

    Innovation has become a critical differentiator for food retailers in recent years. Automated sorting and storage retrieval solutions can speed up picking processes and shrink warehousing footprints; packaging technologies can quickly create promotional packs with minimal labor requirements; and IT system development will enhance customer experience should shoppers switch from purchasing in-store to online, where they will have home delivery or “click and collect” options. These are just a few developments and there are many more taking place to help meet the ever-increasing customer expectations when making decisions.

    Get Your Supply Chain Right

    Supply chains are no longer just “part of the organisation” for today’s food retailers. An adaptive and flexible supply chain is the difference between winning and losing the market – given the escalating demands of customers. You must understand your customers, and then focus on those elements which are most important to them to drive sales. Whether you are competing on price, convenience, or quality or even a combination of all three, these best practices will give you a head-start in creating an integrated supply chain that will bring advantages now and into the future.

    If you are part of the Asian food retailing industry, you need to start re-thinking your supply chains today to meet the challenges of tomorrow.

    -Dean Eichorn-

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  • How 3D printing will shake up the supply chain

    How 3D printing will shake up the supply chain

    Consumers today are already familiar with personalizing their favorite treats by molding them into unique shapes or printing edible messages on cakes, chocolate and flowers, among others. What if you could customize any product in the future to suit your preference – from shoes to even houses? While some may perceive this to be a pipe dream, the fact is that this is actually a reality. New Balance just introduced 3D printed shoes last April, and in China, Huashang Tengda successfully built a two-storey house in just under two days!

    3D printing is also known as additive manufacturing, a process that allows us to seemingly create objects such as bicycle frames and toys out of thin air. Manufacturing and supply chains have typically been all about assembly lines, warehousing and shifting products outwards from the point of manufacture. 3D printing is now revolutionizing the way products are manufactured and distributed.

    With the advent of 3D printing, individualized products can be designed, produced, delivered, and serviced in new ways. To start, organizations can leverage a product innovation platform that supports direct communication with customers and network partners from conceptualization to production. Consumers today love to customize everything and anything, and 3D printing makes this both possible and affordable. Organizations can now evolve beyond demand-driven supply chains to enable demand-driven manufacturing, furthering customer centricity and personalization.

    3D printing is also transforming the manufacturing industry, making it more digitized and in the process throwing out all the traditional rules of the game. Essentially, 3D printing changes who is in control. Analog manufacturing used to be the realm of huge companies that have the resources to invest and produce large quantities of the same good. These companies need to have the capital to support research, prototyping and focus groups to identify products that will please the critical mass, and marketing to promote that same product to large volumes of consumers. On top of that, delivering the products to consumers requires complex supply chain and retail channels.

    In contrast, 3D printing allows complex items to be produced on demand, eliminating the need for assembly lines. With 3D printing, the supply chain has the potential to become more efficient, more local and globally connected. Manufacturers are using 3D to respond to dynamic, real-time customer demands, reduce inventory and slice into transportation costs while dramatically compressing the time needed to ship products.

    Imagine this: Without the need for huge capital outlay, manufacturers do not need to set up factories at permanent locations. All manufacturers need is a 3D printer in local markets or regional production hubs, solving a number of large problems. The ability to bring manufacturing local will provide a way to significantly reduce carbon footprint. If you add the benefits of timeliness, cost reduction, and the freedom to print multiple materials and properties, you start to understand the impact 3D printing can have on society.

    Supply chains have a reputation for being boring, complicated, and uninteresting. But with the advent of the digital economy and 3D printing technologies, all of this is about to change. As the digital supply chains become both disruptive and important within the next few years, supporting the supply chain and the manufacturing floor to boost productivity will have ripple effects throughout any industry. The future of supply chain will be more collaborative and integrated with suppliers, retailers and even product planning and design.

    Where supply chain used to be the most inelastic piece in the journey from manufacturing to customer delivery, 3D printing will be the catalyst and enabler to reimagine a supply chain that can dynamically respond to customer requirements and expectations. In addition, we are going to see more of these advanced efficiencies permeating production activities as 3D printing continues to rise past the hype and into everyday manufacturing.

    In 2013, Wohlers Associates, a consulting firm that specializes in 3D printing, predicted that the sector would grow to $10.8 billion by 2021. The firm now forecasts even greater and faster growth, with the industry reaching $21.2 billion in 2020. That’s because while the firm is skeptical about the value of low-end, consumer-oriented printers, they are positive that more and more industrial clients – especially manufacturers – will be buying and implementing high-end, expensive 3D printers.

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  • Gravity’s transport app offers real time shipping schedules

    Gravity’s transport app offers real time shipping schedules

    Gravity Supply Chain, a developer of cloud-based apps that helps companies modernize the management of their global supply chains, released RTM (Route-to-Market), a new tile for its Transport app that provides up-to-date sailing schedules for over 50 major ocean carriers, over 250,000 port pairs covering over 90 percent of the world’s container capacity. Transport RTM is an advanced solution that enables logistics providers to deliver these capabilities directly to their customers as part of their end-to-end supply chain visibility and execution solution.

    The Transport RTM tile offers a sailing schedules search engine 3PLs and supply chain managers can use to select any global port pair and date range, and instantly see all sailing options. Uploading information related to contracted rates with various shipping lines enables users to create lists of routes that can be filtered by factors such as quickest sailing route and cost.

    “RTM is the newest feature of our mission to create one holistic data hub that provides our users with the real-time information they need to view, control, share and execute sourcing, supply, transport, inventory and selling activities anywhere in the world,” said Darren Palfrey, COO, Gravity Supply Chain. “This is especially valuable to 3PLs struggling to close the  technology gap between what shippers need, and what all but the industry’s largest players can offer.”

    The RTM tile is available today at no additional cost to all Transport app users. The Transport app integrates with your transportation partners and systems and automates the creation of packing lists, advance ship notices and compliance documents, and provides real-time tracking so retailers, brands and product companies know where their products are at all times with real-time tracking visibility. Transport is one app in Gravity’s suite of apps that make up its cloud-based end-to-end supply chain management and logistics platform.

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  • Henkel opens global supply chain hub in Singapore

    Henkel opens global supply chain hub in Singapore

    Henkel has officially opened its global supply chain hub in Singapore. This is a major milestone which follows the successful set-up of the company’s global supply chain headquarters in Amsterdam. Working closely together, the two hubs in Amsterdam and Singapore will steer Henkel’s strategic initiative to consolidate all its supply chains company-wide around the world.

    A single global supply chain is a key initiative of Henkel‘s strategic priority to continuously simplify the organization in order to drive operational excellence and build a scalable business model, increasing Henkel’s competitiveness in terms of speed, agility and efficiency. As such, the initiative will be a key driver for realizing the company’s vision to be ‘a global leader in brands and technologies’.

    The global hubs will centrally manage the purchasing, production and logistics processes of Henkel’s three business units – Adhesive Technologies, Beauty Care and Laundry & Home Care. The effort spans across supply planning, sourcing, manufacturing, inventory and distribution. This harmonization across the entire company will lead to higher process standardization, improved customer service levels and enhanced efficiency.

    Bertrand Conquéret, Corporate Senior Vice President of Global Purchasing at Henkel, said, “Together, the Amsterdam and Singapore global supply chain hubs will steer Henkel’s biggest initiative in business transformation. Singapore was selected for its excellent logistics capabilities, availability of supply chain talent and geographical location in the heart of Asia, which is a key growth market for Henkel.”

    Singapore also serves as a conduit to the trade routes that extend to India and the Middle East and Africa region. Both Singapore and Amsterdam are amongst the largest sea ports and logistics centres in the world. With their strategic locations, the two global hubs are well-positioned to manage the supply chains that connect all our markets globally.

    Notably, the new global supply chain hub builds upon the success of Henkel Singapore, which was established in 1983 and serves as a strategic business and technical services sub-regional hub for the company’s adhesive and beauty care businesses in Southeast Asia.

    Thomas Holenia, Managing Director of the global supply chain hub in Singapore and President of Henkel Singapore, said, “Our successful business presence here of more than 30 years and the global supply chain hub provide a strong foundation for developing Singapore into a global centre of excellence for Henkel – through the implementation of best practices in supply chain management, sustainability, digitalization and talent management.”

    In terms of sustainability, the Singapore hub is partnering with suppliers and business partners to continually improve the sustainability impact across the entire value chain.

    Digitalization is a key component of the global supply chain hub, enabling the standardization and harmonization of data and processes across the businesses and functions. It creates transparency on the vast amount of data on customers, products, raw materials and logistics. This improves the exchange of knowledge significantly, brings consistency in customer service and enables managers to make informed decisions faster resulting in quality processes across markets.

    With a corporate culture that strongly promotes diversity and inclusion, the global supply chain hub currently employs an international and cross-functional team of more than 14 nationalities. In the global supply chain hub, employees from purchasing, supply chain, operations and IT collaborate with other departments as an integrated team on a common agenda. As a result, the team is able to harness the diversity of knowledge, insights and experiences to deliver best solutions.

    In its ramp-up phase, the global hub is in the process of hiring new graduates and experienced managers. It is working closely with the National University of Singapore and Nanyang Technological University to identify local talents who have a global mind-set and strong leadership skills. With an inclusive corporate culture and attractive career development opportunities, Henkel aims to be an employer of choice.

    Chan Ih-Ming, Director of Consumer Businesses for the Singapore Economic Development Board (EDB), said, “Henkel’s decision to house one of its two global supply chain bases in Singapore marks a significant milestone in the Henkel-Singapore partnership. Henkel’s expansion in Singapore is testament to our strategic position as a key supply chain control tower for both Asia and the world. This investment also builds on the growing community of German companies – both Mittelstand and multi-national companies – that are using Singapore as a business hub for the region.

    “The EDB will accelerate our work with companies to equip the Singapore workforce with the right capabilities to seize the exciting professional opportunities in the logistics industry, such as those created to enable Henkel’s sustainable supply chain.

    Dr Steffen Koch, Acting Head of Mission of the German Embassy in Singapore, congratulated Henkel on choosing the city-state to base its global supply chain hub, and said, “Singapore’s prime geo-economic location at the core of the dynamically developing Asia, its business-friendliness as well as its highly efficient ports and airport make it an ideal choice for all kinds of logistical operations.”

    Dr Tim Philippi, Executive Director of the Singaporean-German Chamber of Industry and Commerce (SGC) congratulated Henkel on opening the new global supply chain hub in Singapore, which is a highly desired location in Southeast Asia for its favourable business environment. “The SGC is tasked to promote bilateral business relations between Singapore and Germany and as a chamber, we welcome companies such as Henkel as they contribute towards the bilateral relations between our two nations.”

  • DHL eCommerce expands presence in China

    DHL eCommerce expands presence in China

    DHL eCommerce has opened a Distribution Centre in Shenzhen as part of its effort to expand its presence in China by at least another 50 percent.

    The new centre will support the manufacturing and online retail sectors. It can handle 18 million shipments per year and will allow shipment and clearance of e-commerce exports across the globe. It will also consolidate international outbound shipments in Southern China and will provide customer service support for locally-based online merchants.

    “We see significant potential in China’s e-commerce sector, particularly between China and the U.S., where we’ve seen triple digit growth since 2015,” said Charles Brewer, CEO of DHL eCommerce in a press statement.

    “With China accounting for more than 40 percent of global retail e-commerce sales in 2015, our investments in China demonstrate our focus on developing efficient and reliable logistics services, to bring high quality e-commerce services to Chinese retailers and meet changing consumer expectations.”

    DHL eCommerce is also making serious plans to expand existing distribution centres in Shanghai and Hong Kong – the centres will be able to handle 48 million and 71 million shipments a year, respectively.

    “Since its launch last July, the DHL eCommerce Shanghai Distribution Centre has seen a 700 percent increase in the volume of e-commerce goods being shipped out of China. With our plans to expand our existing capabilities in Shanghai and Hong Kong, we are confident that this will provide our customers with the fullest support they need, in order to reach their global customer base,” said Malcolm Monteiro, CEO of DHL eCommerce in Asia Pacific.

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