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newsletter
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Overview
Event Highlight
Supply Chain Manufacturing Trends and Insights in Asia
ModusLink improves inventory management for Major PC Manufacturer
ORACLE extends its supply chain foorprint with ORACLE Transportation Management
Ford: China Sourcing Office Sees Improvements in Chinese Aftermarket Parts Manufacturing
Lenovo Announces Plan for Enhanced Responsiveness to Customers, Global Competitiveness and
Operational Efficiency
Sun's migratory supply chain
New Joint Venture for PWC Logistics
Market Strategy and Innovation
Deutsche Post World Net launches new, global quality initiative
Human capital driving BDP’s development
Cathay Pacific plans India logistics venture
Mapletree to invest in China warehouses
CJ Global to use Accord to expand
Swissport opens Air Freight Terminal at Changi
Sinotrans wins project logistics contract; enters alliance with BNP Paribas
Latest Product Releases
Zebra’s Global Printing Solution Simplifies Multi-Language Labeling With Industry’s First Unicodetm-
Compliant Thermal Printer
Intermec and Cascade Collaborate to Create RFID Forklift of the Future
SSI Schaefer Asia Launched New Drive-In (SDI) & Satellite Systems
Top manufacturers will be sharing their supply chain best practices at SCMLogistics World 2006
SCMLogistics World was launched in 2005 to a crowd of over 300 business leaders and logistics practitioners, who convened from Asia and beyond to attend the conference. With the theme “Responsiveness” running across different tracks, attendees were exposed to expert advice, discussions and case studies on shaping their supply chains to increase responsiveness along the supply chain.
With this, attendees demonstrated a need to know more about how companies today are “re-shaping” their operations and develop flexibility to their supply chains to gain a competitive edge in new markets and environments.
SCMLogistics World 2006 steps up to the challenge and with its theme “Re-shape”, Fortune 500 and top companies will be invited to share how they have re-shaped their operations to adjust to the increasingly competitive business environment.
Key manufactures that will be sharing how they reshape their supply chain to be more competitive include:
- Tim Caroll, Vice President, Supply Chain Operations, IBM Integrated Supply Chain, USA
- Jens Gruenkemeier, Director Imaging, World Wide Procurement, Dell, Singapore
- Roy Kannan, Chief Information Officer, Chartered Semiconductor Manufacturing, Singapore
- Enver Yucesan, Professor of Operations Management, INSEAD, France
- Sukumar Narasimhan, Senior Vice President - Supply Chain Management, Reliance Industries Limited
- Mark Holloway, VP Logistics Excellence, Asia, Africa, Middle East, Unilever Thailand
- Dr Rosa Colon, Director, Change Management & Learning, Bristol Myers Squibb, USA
- Craig Dighero, Head of RFID in Supply Chain, Intel USA
- Xavier De-Montgros, Supply Chain Director, HP, France
- Robert Vallender, Senior Vice President, SCM, Nestle Philippines
- Quentin Samelson, Director E-Supply Strategy, Motorola, USA
- Mitsuko Mizushima, Chief Logistics Officer, Fritz Institute, USA
- Henry Kwang, Supply Chain Director, Microsoft, Singapore
- Goh Kim San, Transportation Leader, Dow Chemical, Singapore
Take The First Step Now To Sponsor The Event….
SCMLogistics World 2006 is also specifically designed for companies who want to brand themselves and expand their customer base in Asia.
If you are interested to be featured at this industry gathering of logistics leaders in Asia, please contact Joan Ong, General Manager of Terrapinn at joan.ong@terrapin.com or call her at +65 6322 2733
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| Supply Chain Manufacturing Trends and Insights in Asia |
ModusLink Improves Inventory Management for Major PC Manufacturer
Challenges:
The difficulties of forecasting demand in a service repair environment caused a major PC Manufacturer to keep large amounts of spare parts on hand, resulting in skyrocketing inventory costs and poor utilization of space.
Solution:
The PC maker turned over management of its high-volume, spare parts business to ModusLink, leveraging its world-class demand planning processes to improve inventory management, reduce fulfillment cycle times, and ultimately increase customer satisfaction.
Results:
- Improved demand forecast accuracy from 35% to 99%
- Reduced spare parts inventory by 52% saving $2.3 Million in the first year
- Reduced cycle time by 70% from 3.35 to 1.10 days
- Improved on-time, same day ship rates from 84% to 99%
- Reduced excess and obsolescence (E & O) by 75%
- Improved efficiencies in supply chain related processes by approximately 15%
The difficulties of forecasting demand in a service repair environment caused a major PC Manufacturer to keep large amounts of spare parts on hand, resulting in skyrocketing inventory costs and poor utilization of warehouse space. The OEM turned over one of the most critical, high-volume segments of their reverse logistics program – the processor business – to ModusLink, saving it millions of dollars each year; reducing excess inventory; increasing on-time shipping and improving customer satisfaction.
The project began by addressing the forecasting and demand planning challenges. ModusLink’s proven demand planning methodology (SCP& E) uses sophisticated rules and procedures to reduce inventory risk by creating an accurate, demand driven forecast. ModusLink’s model immediately improved forecast accuracy from 35% to 99% and reduced inventory levels by 52%, saving the client $5 Million in the first year.
The next goal was to create a sourcing program to meet spare parts demand. A primary source for processors is the RMA program. For example, when products are returned, ModusLink performs rigorous testing to identify processors that can be returened to forward inventory. Conversly, when supply levels are low, ModusLink taps the open market to purchase processors. These capabilities streamlined efficiency and provided significant cost savings for the client. On-time/same day shipping improved from 84% to 99% and cycle time was reduced by 70% excellerating fufillment from 3.35 to 1.10 days.
Highly-efficient planning and execution makes all the difference. ModusLink was able to reduce E & O by 75% and improve overall efficiency for supply chain-related processes by approximately 15% for the client.
Source: ModusLink
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ORACLE extends its supply chain foorprint with ORACLE Transportation Management
Oracle recently unveiled Oracle Transportation Management (OTM), a result of the acquisition of G-Log, best-of-breed transportation management solution provider. Joan Ong, General Manager at Terrapinn, interviewed Jasbir Singh, Senior Director, SCM Applications, to get his take on this acquisition and the Asia Pacific strategy around supply chain management.
Joan Ong: Analyst reports on Oracle’s acquisition of G-Log have been positive and a highly strategic one. What does this mean to prospects and customers in the Asia Pacific region?
Jasbir Singh: With globalization and the adoption of Internet technology, supply chain networks are getting more fragmented and complex to monitor and manage. Asia Pacific is the world’s manufacturing and sourcing hub. What we are seeing is that the demand for supply chain execution applications is now need to have today, and for the future.
Noha Tohamu, the principal supply chain analyst at Forrester Research pointed out that G-Log customers love the deep functionality of the solution but had concerns over the company’s longer term strategy and viability. From our side, Oracle’s customers in the transportation sector were demanding similar capabilities from the E-Business Suite. With the G-Log acquisition and integration, they now they have the ‘best of both worlds’: best-of-breed transportation management functionalities from G-Log delivered as part of Oracle’s leading-edge business applications portfolio.
Joan Ong: Will OTM be integrated into the Oracle E-Business Suite?
Jasbir Singh: Yes, work has already started using the latest open standards BPEL tools and on a service based architecture. This is demanded from our customers as an immediate need in line with Oracle strategy to leverage the Service Oriented Architecture. Soon customers will get this integrated out of the box with latest middleware technology from Oracle, which is also RFID ready.
Joan Ong: What about customers that are do not have Oracle as their ERP?
Jasbir Singh: Since OTM is built on a service-oriented architecture, customers can deploy this application as a stand alone application with low-level integration to their backend ERP or legacy systems. Today we already have existing OTM customers that are not using the E-Business Suite as their backend ERP.
A good example is that before this acquisition, about one-quarter of existing GC3 G-Log users were using SAP applications as their backend ERP while GC3 manages their complex supply chain network and logistics.
Joan Ong: How will this fit in to Oracle’s Fusion Middleware strategy?
Jasbir Singh: The integration between OTM and E-Business Suite will use open standards and business service oriented integration tools. With Fusion Middleware these applications can be further developed as independent, loosely coupled business applications linked by process services. Each process service can be easily integrated or reused, creating a more flexible IT infrastructure with faster delivery cycles and lower costs.
Joan Ong: What is your take on the overall supply chain management trends and customer demands around this region, and what is Oracle’s solution to meeting some of the challenges with increased costs and globalization activities?
Jasbir Singh: The market is definitely a more discerning one today. The 90s boom where companies bought software because it had the word “software” on it, is definitely over. Strategic integration, or fusion, is an operative word for many companies still operating in an environment festered with multiple, disparate and silo-ed systems.
Many companies make good plans for their IT transformation, but the challenge is in execution. These encompass meeting high velocity service levels demanded by customers and integrating numerous disparate internal business units and systems. These pressures are pushing leading organizations towards an integrated service oriented business system. In helping customers to meet these challenges, Oracle has a stronger competitive edge than ever before with the launch of OTM and RFID capabilities in Oracle Fusion Middleware.
Joan Ong: Who are some of your customers in this region?
Jasbir Singh: We have had great traction for Oracle Transportation Management in the Asia Pacific with some major customer wins in Singapore, Malaysia and Australia within a year and a half. Some of our global customers on OTM include Big Lots, Brown Shoe, DuPont, Exel, Family Dollar Stores, Giant Eagle, Halliburton, Kuehne & Nagel, Rohm and Haas, Tesco, Toll Solutions, Total Logistic Control, UPM, and Volvo Logistics
Joan Ong: Thank you, Jasbir. One last question - If you had one word to say to your competitors, what would it be?
Jasbir Singh: Fusion.
For more information on Oracle’s E-Business Suite Supply Chain Management or Oracle Transportation Management, contact Ash Lim at +65 6436-1455 or email ash.lim@oracle.com.
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Ford Customer Service Division: China Sourcing Office Sees Improvements in Chinese Aftermarket Parts Manufacturing
From Randy Creel, Director of China Parts Supply & Logistics from Ford Motor Company, China
During the past year, our aftermarket sourcing office has seen positive trends in Chinese manufacturers. Three areas stand out; first, increased investment in technology and the people who manage it; second, better understanding of quality operating systems; and third, increased packaging capabilities. Let’s look at each of these.
First, many plants have invested in equipment for in-house tool shops. The size and capability of these tool shops provides greater flexibility for parts manufacturing.
Engineers and skilled machinists have been hired and trained to manage and operate the new systems. Accordingly, we see greater on-site capability in the areas of design engineering, and machining.
Second, there is better understanding of quality operating systems. In particular, we see improvement at the operator level. Beyond certificates on the wall, and work instructions on the plant floor, manufactures are trying harder to instill a quality mindset in the workforce. To be sure, this is a challenging and long-term process that requires constant attention. But, in more and more cases, the management willingness is there, and the increased emphasis is evident when speaking with operators.
Third, packaging capabilities have improved as new suppliers have recently moved to China. They bring with them increased sophistication in packaging technology. High-tech labeling, special packaging materials, and advanced I.T. systems are but a few examples. Given our need for a wide variety of boxes and containers for aftermarket parts, these new suppliers are welcome additions to the local area.
In summary, we have seen positive incremental change over the past year that is clearly visible. Investments for in-house tool shops, increased management effort to instill a quality mindset, and the introduction of new packagers to the local area are most welcome. Given these promising trends, we believe there will be even larger improvements in Chinese manufacturing capability in 2006.
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Lenovo Announces Plan for Enhanced Responsiveness to Customers, Global Competitiveness and Operational Efficiency
Lenovo Group Limited today announced an action plan to enhance responsiveness to customers in all of its markets, strengthen Lenovo's global competitive position, and increase operational efficiency.
"We want Lenovo to deliver profitable, sustainable growth everywhere we do business," said William J. Amelio, president and chief executive officer of Lenovo. "The plan we are announcing today helps us achieve that, positioning Lenovo to pursue growth aggressively in both the relationship and transaction customer segments and delivering a cost structure that better reflects the realities of today's highly competitive, global PC industry," Mr. Amelio said.
"Our plan integrates Lenovo's global sales organization and back-office support into one highly responsive customer-service unit, and ensures that, where it makes sense, teams are centralized for better performance and efficiency," said Mr. Amelio. "These steps position Lenovo as a more effective global competitor while supporting our commitment to lead in innovation and customer satisfaction," Mr. Amelio said.
Through the plan, which will be completed in six-to-12 months, the company expects to achieve annual end-to-end run-rate savings of approximately US$250 million. "We intend to drive a substantial portion of the anticipated run-rate savings into programs that will help Lenovo combat competitive pressures around the world and leverage our new products and brand recognition," said Mr. Amelio.
The actions include a resource reduction of approximately 1,000 regular, full-time positions in the Americas, Asia/Pacific and EMEA, which is approximately five percent of the 21,400 regular employees in Lenovo Group, and other expense savings. Lenovo said it anticipated a restructuring charge relating to the plan of approximately US$100 million, most of which will be taken in its fourth fiscal quarter which ends March 31, 2006.
The key components of the Lenovo plan include:
· Integrating sales service, support and fulfillment operations in the Americas, Asia/Pacific and EMEA, creating an efficient "one-touch" interface for customers with Lenovo;
· Streamlining global sales and marketing: reducing layers in the sales structure - empowering sales leaders and bringing decision-making closer to customers - and streamlining marketing operations by eliminating redundancies;
· Moving the global supply chain closer to manufacturing and suppliers; centralizing the desktop team in China for increased efficiency; moving corporate functions currently located in Purchase, New York, to Raleigh, North Carolina, saving time and money and locating executives closer to operations.
"The resource reductions that are part of this plan are, without question, the most difficult part of our program. We have thoroughly examined Lenovo's competitive position, and it's clear that for the future of the company, we have to take these actions," said Mr. Amelio.
"We intend to communicate all details to affected employees as soon as possible, to be open and clear with all employees on what to expect and when. We will work with affected employees during the transition period and provide both financial and career-transition assistance," said Mr. Amelio. "The steps we are taking are not easy. However, for Lenovo to be a world-class competitor, we must take these steps."
"Consistency and continuity for customers are a top priority as we move ahead with our initiatives," said Mr. Amelio, who said that the customer-facing sales and service teams will remain virtually intact. "Most customers will continue to work with the same teams. Keeping our commitment to customer satisfaction paramount, the plan integrates the key functions customers depend on -- sales, support and fulfillment -- to provide a "one-touch" relationship that's simpler and more responsive. Our customers will also benefit from the changes in our global supply chain, which will improve our efficiency and execution."
"Ultimately, as we continue to grow our business profitably, our plan and actions will create a Lenovo that is stronger, more efficient, easier to do business with, and therefore, a company that offers even greater opportunities for our employees worldwide." Mr. Amelio said.
"Our global strategy will remain focused on developing high-growth markets such as SMB and emerging countries. In the current stage of the strategy execution, substantial strides forward have been made in all key areas -- innovation, customer satisfaction and operational excellence -- notably through our recent introduction of the Lenovo 3000 products worldwide and our terrific performance as the computer hardware provider to the 2006 Winter Olympics. I believe our action plan will drive additional successful strategy execution toward our goal of profitable growth," said Mr. Amelio.
In Europe, Lenovo will immediately launch the process of consultation with workforce representatives in appropriate countries regarding the plan's intended efficiency gains and cost structure reductions
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Sun's migratory supply chain
To thrive in a demand-driven world, Sun built a new manufacturing supply chain to deliver its product.
Is the shortest distance between two points a straight line? Not if you look at the Sun Microsystems global manufacturing supply chain.
Not long ago, Sun built its products to a forecast in domestic manufacturing plants, then shipped the finished products to a nearby distribution center. When customers placed orders, they were sent directly to them.
But building to stock and building domestically are no longer the most profitable ways to do business. Instead, manufacturing is much more of an on-demand global event.
A manufacturer like Sun is likely to wait to build an order to a customer's specifications rather than build to what it thinks might sell. What's more, manufacturers will use a combination of low-cost suppliers in China for basic assembly, value-added manufacturing centers in Mexico and Eastern Europe, and third-party logistics (3PL) providers in the United States and Europe for transportation and distribution.
To see it on a map, the second approach is anything but a straight line from order to delivery like the old model. But according to Eugene McCabe, Sun's executive vice president for worldwide operations, this second path reflects the reality of competition in a global market. He calls it the "migratory supply chain."
"The term is not mine," McCabe says. "But it's the best description of how Sun is responding to a manufacturing world that has changed."
To manage the migratory supply chain, Sun recently revamped its manufacturing and supply chain processes. The project included the development of an internal supply chain management and execution software system. That system synchronizes all the activities across the supply chain to manufacture, customize and deliver a product to a customer in a unique configuration.
"What we set out to create is a system that will support a one-touch supply chain," McCabe says. "The goal is that you only touch it once, which is the first time you build it."
A migrating model
What the migratory supply chain implies is that manufacturers face a stiff head wind if they intend to set up shop and produce from one fixed location. Instead, like nomads moving to the best grazing land, Sun and other manufacturers will migrate operations to wherever the right conditions exist for a specific process.
There's a name for that approach: outsourcing. The migratory supply chain contends that the location of outsourced manufacturing facilities is likely to migrate to new areas as business conditions change. In fact, McCabe assumes that the right combination of labor and currency exchange rates today will probably not be the same next year.
Since it is now someone else's job to manage the manufacturing and distribution operations, Sun takes on a new role. Its job is to provide the systems and discipline that can manage the circuitous route an order takes along the migratory supply chain, from the time Sun receives an order until a customer is up and running.
The Sun supply chain
The reasons were simple, says McCabe. A little more than two years ago, Sun began to direct ship orders to customers, bypassing the DC.
That was easy if a customer ordered a standard product that didn't need customization or ordered just one product. But if a customer wanted to modify the software, a standard product still needed to be shipped in-house where an engineer could make the changes. Otherwise, a technician had to make the changes on site. The company also did not have a process in place to easily coordinate the delivery of orders with products from multiple suppliers.
"Two things happened almost simultaneously," says McCabe. "One is that we wanted to build to real customer orders, rather than do configurations later at the customer's site. The other is that we wanted to get out of stocking finished goods."
That said, Sun spent nearly 18 months creating a new supply chain management solution that allows it to synchronize custom orders across a global supply chain
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| Market Strategy and Innovation |
Deutsche Post World Net launches new, global quality initiative
- "First Choice" to reinforce the Group's market leadership and contribute to the forecast 2009 earnings of at least 5 billion euros
- Dividend for 2005 up 40 percent to 70 cents
- Group expects revenue to top 60 billion euros in 2006
Deutsche Post World Net is advancing its corporate strategy to sharpen customer focus, improve product and service quality, and become the preferred logistics provider for customers worldwide. A program named "First Choice" will support the strategy through 2009. The Group also wants to be the employer of choice for managers and employees and a first choice investment for shareholders.
"In strategic terms, no other logistics provider is better placed to compete on a global scale. From this platform, the launch of First Choice ushers in a new era in our company's history. In addition to strengthening our financial performance further, we will work hard to become the world number one for quality and customer satisfaction," said Chairman and Chief Executive Officer Klaus Zumwinkel. "The acquisition of Exel makes us the world's largest logistics company. Yet success is not determined by size alone. Satisfying our customers is what counts. And this is why we will focus all of our processes even more firmly on the needs of our customers."
First Choice
The First Choice program comprises a package of medium-term measures designed to meet customer needs in all sectors. It will improve the way Deutsche Post World Net communicates with its customers, strengthen customer loyalty and raise the quality of the Group's products and processes across all business units.
Numerous operational and structural improvements, bolstered by the new quality initiative, will boost EBIT to at least 5 billion euros by 2009. First Choice will start in six to eight pilot countries in 2006 and will go global from 2007.
First Choice follows the successful STAR value-creation program, which focused primarily on maximizing internal synergies and reducing costs. By the end of 2005, STAR had contributed 1.44 billion euros to earnings, exceeding original expectations.
First Choice will begin with a series of reference projects, for example the planning of aviation, pro-active shipment tracking and tracing, call centers and Global Business Services. There is potential to improve customer communications and complaints management at regional and country level, as well as pick-up, transport and delivery.
Some 50,000 managers will be involved in the first stage of the process. Their task will be to kick off and then steer individual initiatives. The program will use scorecards to measure results, which will be reflected in all employees' performance evaluations and compensation schemes.
Key financial figures
In business year 2005, profit from operating activities on a like-for-like EBIT basis rose by 25.1 percent to 3.76 billion euros, up from 3 billion euros in 2004. Revenue grew by 3.3 percent to 44.6 billion euros in 2005, while consolidated net income climbed 39.9 percent to 2.24 billion euros. In the past fiscal year, Deutsche Post World Net improved its earnings per share by 38 percent to 1.99 euros, up from 1.44 euros the previous year.
At the Annual General Meeting on May 10, the Board of Management will propose a dividend for 2005 of 70 cents per share, an increase of 40 percent. The Group plans to continue its current dividend policy in the future, in order that its shareholders benefit from the continued development of the Group's business and its strong financial performance.
MAIL Corporate Division
In the MAIL division, international revenue growth has more than offset the anticipated decline in domestic revenue. Overall revenue in MAIL climbed by 1 percent to 12.9 billion euros, while EBIT amounted to 2.03 billion euros. The market for mail communication in Germany is expected to contract further, yet it is anticipated that growth in the German advertising market will pick up again in the future. Deutsche Post World Net intends to strengthen its presence in the overall advertising market by positioning itself as an integrated provider of cross-media offerings. The company is also alert to new market opportunities created by the further deregulation of foreign mail markets.
EXPRESS Corporate Division
In 2005, EXPRESS increased its revenue by 4.1 percent to 18.3 billion euros. Business in the Asia Pacific and Emerging Markets regions remained strong, with both regions posting double-digit revenue growth. Revenue in the Americas region rose by 5.8 percent to 4.6 billion euros, despite the previously announced start-up issues. Profit before impairment on goodwill was 445 million euros, up from 117 million euros the previous year. Profit after this impairment, which amounted to 434 million euros in the Americas region, was 11 million euros.
LOGISTICS Corporate Division
As in the previous year, the LOGISTICS division performed successfully in 2005. Revenue climbed 17.1 percent to about 7.9 billion euros, driven by strong organic growth in DHL Global Forwarding and DHL Exel Supply Chain. EBIT increased by 73.1 percent to 315 million euros, boosting the return on sales for the corporate division from 2.7 percent in 2004 to 4 percent in 2005. The figures for 2005 do not yet include Exel.
FINANCIAL SERVICES Corporate Division
EBIT for the FINANCIAL SERVICES division, which consists mainly of Postbank, increased in 2005 by 10.6 percent from 714 million euros to 790 million euros. Postbank reported separately on its results on March 13.
Outlook for 2006
Deutsche Post World Net expects to make further progress in developing its business in 2006. The Group anticipates revenue for the current year to exceed 60 billion euros and EBIT to total at least 3.7 billion euros. This includes significant non-recurrent expenditure on the integration of Exel and BHW.
Revenue in the MAIL Corporate Division is expected to remain stable or rise slightly, while EBIT is forecast at about 2 billion euros. In the EXPRESS Corporate Division, the Group is anticipating single-digit revenue growth in 2006. The operating profit for 2006 should be equivalent to the 2005 figure without the impairment loss on goodwill of 445 million euros. In the LOGISTICS Corporate Division, enlarged by the acquisition of Exel, revenue is expected to exceed 18 billion euros by some margin, with EBIT at about 500 million euros. In the FINANCIAL SERVICES Corporate Division, income is forecast to rise, driven in part by the inclusion of BHW Holding AG. This will be accompanied by double-digit growth in operating profit to at least 900 million euros.
Source: DHL Group
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Human capital driving BDP’s development
US-based BDP International, a privately owned global logistics provider, has experienced rapid growth since it started operations in Asia since 1993. This growth has been increasingly pronounced over the last five years and BDP is also developing an extensive network of strategic alliances throughout the country.
Unlike its competitors, many of whom own storage, drumming and transportation assets, BDP operates with few hard assets.
Peter M. Huels, BDP Asia Pacific’s managing director, claims the company’s success relies on the skills and talents of its staff and its customized global information technology. (Information technology – depending on how fast, how broad and how flexible it is - is the currency of advantage when international supply chains compete head-to-head.)
For a proven logistics service organization with 40 years of hard-won experience, it comes down to combining our intellectual capital and substantial technological applications with a clear understanding of our customers’ business drivers. As a fourth party logistics operator, BDP manages our customers’ business and design better processes in the safest, most efficient and most cost-effective way.
BDP International and its subsidiaries serve more than 4,000 customers worldwide. Chemical companies provide 60 percent of BDP’s business, with consumer goods, electronics and general cargo providing the rest. Most of BDP’s clients are leading multi-national corporations in the chemical industry who outsource their chemical logistics on long-term contracts. BDP has a number of long-term major clients namely DuPont, Dow Chemical, Eastman, Ethyl, Witco, Sartomer, BP, etc.
The company’s competitive strength lies in its staff’s intimate knowledge of the international chemical supply chain, and its heavy investment in IT to help staff and customers manage product flows.
BDP International is one of the leading privately held freight logistics/ transportation management firms in the US. It operates freight logistics centers in more than 20 cities throughout North America and has a network of subsidiaries, joint ventures and strategic partnerships in 113 countries.
By design, the company continuously refines the global network to help its clients reach new markets and achieve greater efficiency in their supply chains.
BDP provides a range of services, including ocean, air and ground transportation; fourth party logistics, lead logistics process analysis, design and management; export freight forwarding; import customs, brokerage and regulatory compliance; project logistics; warehousing / consolidation / distribution; and Internet shipping transaction/tracking management systems.
Singapore is the regional hub for BDP operations in South East Asia and Australia. Established in 1995 with a staff of just eight people working in a shared office with a borrowed fan and typewriter, BDP Singapore now employs more than 100 logistics professionals, who expedite 40,000 shipments a year for hundreds of customers in a range of industries including chemicals and consumer goods.
Through its three Singapore locations, BDP’s core logistics services include ocean, air and ground transport; import/export customs clearance and freight forwarding; a Non-Vessel Operating Common Carrier (NVOCC); warehousing, distribution and a container freight station; project and energy logistics; a fast-moving consumer goods value creation center; chemical logistics consulting; documentation center; supply chain management expertise; and a lead logistics provider (LLP) practice.
In addition to Singapore, BDP has more than 37 offices in 11 countries in Asia Pacific and the Middle East including China (Shanghai, Beijing, Guangzhou, Tianjin, Dalian, Qingdao, Ningbo), Hong Kong, Taiwan, Korea, India (Mumbai, New Delhi, Calcutta, Pune, Chennai, Ahmedabad, Baroda), Dubai, Qatar, Malaysia (Kuala Lumpur, Kerteh, Penang, Kuantan), Indonesia (Jakarta, Surabaya), Thailand (Bangkok, Phuket), and Australia (Melbourne, Sydney, Queensland).
For further information in Singapore, contact Anna Neo, Regional Business Executive, BDP Asia Pacific (Singapore), Block 511, Unit 01/05, Keppel Distripark, Kampong Bahru Road, Singapore, 099447, Singapore. Phone: 65 67234 218. E-mail: anna.neo@bdpap.com. In North America, Europe and South America, contact Arnie Bornstein, Director – Marketing & Corporate Communications, BDP International, Inc., 510 Walnut Street, Philadelphia, PA 19106. Phone: 215-629-8493. E-mail: abornstein@bdpnet.com.
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Cathay Pacific plans India logistics venture
New Delhi: The Hong Kong-based airlines Cathay Pacific will soon form a joint venture with an Indian logistics major to set up a trucking network in India.
The proposed arrangement will connect Cathay Pacific's existing cargo hubs, Mumbai and Delhi.
Rupert Bray, Cathay Pacific country manager (India, Nepal and Bangladesh), confirmed that the airline is in talks with a leading logistics company and will make a formal announcement soon. However, Bray declined to divulge further details of the deal.
"The objective behind launching a trucking network is to connect all other key destinations to Mumbai and Delhi, where we operate our dedicated freighters,'' Bray said.
At present, Cathay Pacific operates three services from Delhi to Hong Kong with Boeing 747-400 freighters and three services from Delhi to Paris with Boeing 747-200 freighters. At present, the airline generates 30 per cent of its revenue from cargo operations. It uplifts 20 tonnes on each passenger aircraft and over 100 tonnes on every freighter.
Meanwhile, the airline is also planning to increase the cargo carrying capacity to and from India by 233 per cent. Bray pointed out that the company would add one more freighter on the Hong Kong-Mumbai-Paris route by early September and two more on the Hong Kong-Delhi-Dubai route by August.
"We plan to induct new direct India-Hong Kong freighter flights by June, subject to the approval of the Indian government. All freighters will be Boeing 747-400 aircraft,'' Bray said.
James Barrington, Cathay Pacific director (sales and marketing), said the airline is looking to launch more flights to India. It is in talks with the government to secure rights.
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Mapletree to invest in China warehouses
Singapore: Mapletree Investments, the sponsor of Singapore-listed Mapletree Logistics Trust (MapletreeLog), is paving the way for the latter to acquire logistics properties in Shanghai.
Mapletree -- which recently unveiled plans for a new industrial property Reit in 2007 -- said that it has signed an agreement with Lingang International Logistics Development to invest in two blocks of warehouses under development in Shanghai's Lingang Free Port. The two blocks will have a total gross floor area of about 46,500 sq m.
It's a move which Mapletree, the unlisted property arm of Singapore investment company Temasek Holdings, said will firmly establish Mapletree's foothold in one of China's most important logistics and manufacturing hubs, and entrench its leading logistics real estate position in the Chinese logistics market.
Mapletree said the deal will allow it to provide a future pipeline of well-designed and developed logistics properties for acquisition by MapletreeLog. The latter, the first Asia-focused logistics real estate investment trust in Singapore, is managed by Mapletree's subsidiary Mapletree Logistics Trust Management.
Mapletree will incubate the warehouses and market them. When the facilities become income-generating, they will be offered first to MapletreeLog for acquisition within three years from date of completion on terms and prices to be agreed.
"China is a very important market for us,'' said Mapletree CEO Hiew Yoon Khong. "The logistics market in China is growing rapidly, fuelled by factors such as the liberalisation of the logistics market in 2005, China's 28.5 per cent import/export growth rate in 2005, as well as the forecast 15 per cent rise in China's container throughput last year.
"This agreement will enable Mapletree to tap into China's burgeoning logistics sector and build up its presence in the key logistics hubs in China, to both develop and invest in suitable logistics facilities to service the logistics sector,'' he added.
Mapletree did not say how much it was investing in the warehouses.
The two blocks of warehouses are located in Lingang Free Port -- the first bonded port zone in China that offers the most liberal and favourable investment policies in China. It enjoys the tax and foreign currency benefits of both a bonded logistics park and an export-processing zone. Work on the warehouses is expected to be completed by the end of the third quarter this year.
The free port is also said to be an integral part of Lingang New City, a satellite city planned by the Shanghai Municipal Government to support the newly opened Yangshan Deep-water Port and to promote Shanghai as the logistics hub of the region.
Hiew further explained the impact of the deal: "By undertaking these types of development projects, we are providing a full value chain of real estate solutions to logistics operators as there may be a dearth of ready and good quality facilities currently available to serve their needs. This is in line with our regional strategy to establish Mapletree as a leading real estate company with an Asian focus.''
-- Business Times Singapore
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CJ Global to use Accord to expand
Singapore: Leading Korean logistics player CJ Global Logistics is expected to use new Singapore vehicle Accord Express Holdings to expand in the region in a bid to become one of the top five regional logistics players, according to the chief executive officer of the home-grown company.
"Accord Express will grow to become one of Asia's top five logistics and supply chain management companies by merging the European or American logistic companies in the near future,'' Accord Express CEO Eugene Rim said.
The Singapore-based logistics company is in the process of merging with leading Korean third-party logistics (3PL) service provider CJ Global to help create an entity with combined sales of over US$780 million. This will make it the 22nd largest logistic company in the world, according to Accord Express' estimation.
"With the strategic union of CJ, we will create a larger and stronger entity that is expected to boost its market position, but we will try to do another merger and acquisition,'' Rim added.
CJ is a subsidiary of chaebol CJ Group, which is ranked the 21st largest conglomerate in Korea and owns a diverse range of businesses, including food and food services.
According to the Straits Times recently, Henry Tan, together with co-founder Ronnie Poh, own 90 per cent of Accord Express. The report said Tan was likely to step down as chairman and "may not play a role'' in the merged entity.
Henry Tan is the brother of Victor Tan, who faces charges over alleged wrongdoing at listed mobile phone repairer Accord Customer Care Solutions (ACCS). The two brothers founded ACCS.
Accord Express is expected to expand further under the new Korean owner.
"Global network is the core for logistic companies, so we seek a chance to affiliate with American or European companies,'' Rim said.
While he declined to reveal the exact price of the sale and amount of the percentage of stake sold, Rim hinted that it is around US$40 million.
When asked whether Accord Express will consider an initial public offer, Rim said the company will look at the possibility of a dual listing exercise in Korea and Singapore stock markets. But he said nothing has been decided yet.
The merger between Accord Express and CJ will be completed by June this year.
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Swissport opens Air Freight Terminal at Changi
Following a launch in February, Swissport’s latest cargo warehouse has officially opened with an inaugural ceremony at Singapore Changi Airport. The 17,600 sqm Air Freight Terminal will increase Changi Airport’s cargo handling capacity to 3 million tons per year. Management commened that the warehouse was a key step for Swissport to become a significant player in Singapore’s growing cargo market.
The warehouse has an initial capacity of 250,000 tons a year and future expansion potential to 400,000. The Air Freight Terminal is the largest such facility in Swissport’s global station network of 175 airports.
The warehouse shell had been constructed by the Civil Aviation Authority of Singapore (CAAS), with Swissport investing an additional $10 million in a fully-automated, material handling system and other infrastructure. The construction and fit out of the facility took almost 18 months to complete.
Launch customers in the new warehouse include Swiss World Cargo, Adam Air, Thai Air Asia, Cardig Air and Northwest Airlines, with many more airlines having indicated strong interest to use the facility.
Source: Swissport
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Sinotrans wins project logistics contract; enters alliance with BNP Paribas
Sinotrans Liaoning has been awarded the contract for transportation of materials to the Jinghong power station of the Three-gorges station on the Yangtse River beating off competition from six other bidders.
The project will include the movement of high value, special needs cargo totaling 11944 tons in weight, and 40000 cubic meters in volume, with many over-sized and heavy-lift items. The turbine on its own weighs 440 tons, with a diameter of 10.6 metres, and a height of 6 metres.
Separately Sinotrans has announced that it has entered into a strategic logistics financing agreement with French bank BNP Paribas. In recent years, Sinotrans has made progress in logistics financing, with products covering seven categories including steel, minerals, cotton, pulp, chemicals, home appliances and cell phones. The deal will add trade financing to its existing portfolio, aiming to integrate flow of funds with freight forwarding and shipping.
Source: Sinotrans
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New Joint Venture for PWC Logistics
PWC Logistics, the MidEast based provider of integrated supply chain solutions, and Al-Ghaith Holding PJSC have announced the signing of a joint venture agreement to provide automotive logistics services.
The newly formed company, Automotive Logistics Middle East (ALME), will be headquartered in Dubai’s Jebel Ali Free Zone and managed by PWC Logistics. Due for completion in 2006, the company will provide services for the import of motor vehicles arriving in the Emirates each year.
ALME will focus on providing automobile pre-delivery and inspection and replacement parts logistics services to vehicle manufacturers, original equipment agents and used vehicle dealers throughout the GCC. ALME will also offer logistics solutions tailored to meet the specific requirements of motor vehicle exhibition and event organizers. ALME is Dubai’s first third-party logistics solution provider to offer these types of services.
Operations will begin using a sheltered storage and workshop facility, with a capacity of over 500 vehicles, located near the vehicle off-loading berth at the Jebel Ali Free Zone.
Source: PWC Logistics
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Zebra’s Global Printing Solution Simplifies Multi-Language Labeling With Industry’s First Unicodetm-Compliant Thermal Printer
Zebra Technologies, a global leader in printing solutions for business improvement, has taken the expense and complexity out of printing international characters on demand. Zebra’s new Global Printing Solution now includes Unicode-compliant encoding and font support on its bar code, label and receipt printers. All major European, Middle Eastern and African (EMEA) languages, plus custom characters and logos, can be printed right out of the box. Chinese, Japanese, Korean and other Asian languages can be added via a simple font upgrade. Zebra is the first thermal printer manufacturer to provide native Unicode-compliant encoding support for printing multiple languages, even on the same label.
The Zebra Global Printing Solution lets the printer automatically output any language, with no need for an operator to configure or adjust the printer. Optional fonts to support Asia-Pacific languages can be purchased separately and used concurrently with the printer-resident Unicode-compatible font. An optional 64M memory upgrade will also be available for storing label formats and large Asian fonts. The solution supports the GB18030 encoding standard, which is now required for all computer operating systems sold in China, for multilingual printing from GB18030-compliant devices.
The flexible solution also enables companies to create private libraries of logos and special characters, and to easily include them in labels. This is extremely valuable in Asia where fonts frequently do not support characters for family names, street names and other proper nouns. The Zebra solution also includes special features for quickly and accurately printing Arabic, Hindi, Thai, Vietnamese and other languages that may require bi-directional printing or complex text and character layout.
Zebra’s Global Printing Solution is available for the company’s industrial and high-performance Xi series, 105SL, and Z4Mplus/Z6Mplus model printers and PAX4 print engines. For more information, visit www.zebra.com/globalprinting
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Intermec and Cascade Collaborate to Create RFID Forklift of the Future
New Forklift Concept Enhances Warehouse Workers Productivity and Efficiency
In the emerging world of RFID-enabled inventory tracking, the forklift can become a powerful supply-chain information tool. This is the view of Intermec, an RFID pioneer and leading supplier of Gen 2 RFID technology and equipment, and Cascade, the world’s largest manufacturer of forklift attachments, who have now unveiled a prototype forklift of the future. The prototype incorporates RFID technology built into a forklift’s infrastructure, replacing today’s cumbersome and inefficient bolt-on approach to data collection.
“Imagine a mobile RFID system that provides real-time, hands-free information on what the product is and automatically making better decisions about how to handle that product,” said Cascade Product Manager Brad Vandehey. “When you throw out preconceived ideas of what forklifts do today and think about how RFID capabilities could be built into the very structure of a complete forklift equipment system, you begin to realise the efficiencies this type of mobile data-collection system can deliver.”
Companies that use mobile RFID systems, identifying and tracking pro | |
