Strategic Sourcing & Procurement Excellence by Marcus Evans

December 14, 2010 by carlo  
Filed under Highlights

Marcus Evans presents
Strategic Sourcing & Procurement Excellence
24th & 25th January

Singapore

Dear SCMAP members,

It is with great pleasure that we invite you to attend the Strategic Sourcing & Procurement Excellence. This event will take place from January 24 through 25 and is proudly supported by Supply Chain Management Association of the Philippines (SCMAP).

This 2-days conference is designed for all professionals in procurement and sourcing field to meet and discuss new ideas, solutions, best practices and future directions. It will outline the critical issues and the challenges in procurement today and will focus on creating a successful and resilient procurement functions which will lead to sustainable business.

The event features speakers from General Motors International Operations, China, Beroe Inc, USA, Associated British Foods, Australia, LG Electronics, United Arab Emirates, BT Global Services, Singapore, Unilever, Singapore, Novartis Asia Pacific Pharmaceutical, Singapore, FCI Asia Headquarters, Singapore, Motorola, Singapore, Chevron International, Singapore, to name a few.

Some of the topics to be discussed are strategic supplier selection process,  Tax Effective Supply Chain Management (TESCM), Supply Chain Integration (SCI), Green Procurement, enhancing the use of technology in procurement, global sourcing strategies and Streamlining the procurement processes and more.

Attend this informative event and gain practical insights into: Achieving significant financial savings by aligning procurement procedures with tax strategies; Analysing the spend of procurement by focusing on cost drivers to increase company’s bottom line; Streamlining the procurement process to improve the business model and the efficiency of operations; Studying global market trends in procurement and how to take advantage of them and Identifying and minimising risks in procurement

For registration as a SCMAP member by quoting “SCMAP-ME”, you will get a special 10% discount. Find out more today by contacting Ms. Chew Wan at T: +603-2723-6748 or email LeeC@marcusevanskl.com

Download Details here: SCMAP MARCUS EVANS 11 Programme – Strategic Sourcing Procurement Excellence

SCMAP Perspective #245

August 16, 2010 by carlo  
Filed under SCMAP Perspective

perspectivelogo

Published in Port Calls, July 5, 2010

QUANTITATIVE APPROACHES WORKSHOP

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Quantitative Approaches to Logistics Planning Workshop, July 31

This is a five hour workshop on Forecasting and Distribution Network Planning, to be conducted at the Astoria Plaza.

Target participants are

  • Logistics staff, supply chain analysts
  • Managers of logistics, manufacturing and other SCM functions
  • Other supply chain and logistics staff, or staff in related and interface functions (finance, distribution planning, inventory management, transportation, etc.) who could be involved in a review of the company’s SC processes

The workshop will cover two tools that you might use to re-design your distribution network and improve your demand forecasts. Computer workshop topics will be:

  • Forecasting Techniques – Basics of forecasting, types of forecasts, forecasting approaches, ‘recommended techniques’, estimating probable forecast error, steps in preparing a forecast, importance in logistics planning
  • Warehouse Site Selection Using Optimization – Issues involved, cost items considered, relevant constraints and other factors, modeling the problem, using Excel to solve the problem, interpretation of model results    

The speaker / workshop leader is Sam Cruz, an operations research expert and consultant. He is currently Sr. Manager, Supply Chain Solutions, at IDS Logistics,

and formerly Operations Research Manager at San Miguel Corp.

Fees : P5,000 for SCMAP members, P6,250 for non-members. 10% discount if paid by July 9. 5% discount for 3 or more participants from same company.

Mini-Survey in Warehousing

Over the early years after the turn of the century, we did mini-surveys on warehousing practices among participants in our past warehousing seminars, up to 2006. In more recent years, however, practices have been changing, particularly on technology. Thus I decided to do another mini-survey at our recent warehousing seminar, held on June 17 – 18, 2010.

All 26 participants responded to our survey, although not all respondents answered all groups of questions. Some of the responses include the following. Total using / total answers exceed the number of respondents due to multiple answers.

  • Storage equipment

(22 respondents)

Selective pallet racks

11

Block stacking

6

Drive in racks

5

Mobile aisle racks

2

Shelving

4

Bulk solids in piles on floor or yard

3

Cantilever racks

2

Storage drawers

0

Flow racks

0

Push back racks

0

Carousels

0

ASRS

0

  • Pallets

(18 respondents)

Wood

14

Plastic

6

Metal

1

  • Lift trucks type

(11 respondents)

Reach

6

Counterbalanced

8

Side loading

3

Turret

0

  • Other equipment

(26 respondents)

Pallet jack

18

Conveyors

7

Cranes

4

AGVS

0

  • Inventory taking count procedure

(15 respondents)

Periodic count

10

Cycle count

10

  • Inventory taking accuracy

(23 respondents)

Accuracy < 90%

3

Accuracy 90-95%

3

Accuracy 95-99%

8

Accuracy 99-100%

11

  • Technology adoption

(24 respondents)

Inventory records computerized

19

Using WMS

11

Using bar codes for logistics

10

Using RF technology

6

Doing cross docking

6

Using sortation system

2

Using pick to light system

0

Other technologies

6

  • Problems

(24 respondents)

Damages, breakages, spoilage

11

Lack of space / crowded

7

Lack of employee training

5

Pilferage

3

Poor inventory record accuracy

3

High cost of space rental

2

High employee turnover

2

Accidents, lack of safety

1

Indications gleaned from the above, as compared to our past surveys, are:

  • Selective pallet racks and pallet jacks continue to be popular
  • Some companies still rely on block stacking. This represents opportunities for rack suppliers.
  • Some companies still rely on periodic counting
  • There has been improvement in inventory record accuracy. This is obviously the effect of the use of bar codes, RF and cycle counting
  • There is increasing use of bar codes for logistics (bar codes on racks, pallets, cartons, as opposed to bar codes on the retail pack).
  • More companies are doing cross docking
  • Pick to light or other picking technologies have not made inroads.

2010 SCMAP Conference

2010 Supply Chain Conference – It is all systems go for this year’s supply chain conference and exhibit, with its theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24. This is SCMAP’s biggest event of the year. Sponsorship and advertisement packages are still available. Those interested are urged to book early or now in order to be included in the initial brochure.

Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com.  Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

July 2, 2010

SCMAP Perspective #241

May 11, 2010 by carlo  
Filed under SCMAP Perspective

perspectivelogo

Published in Port Calls, May 10, 2010

LOGISTICS GLOBAL COMPARISON

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

World Bank Logistics Performance

Supply Chain Asia magazine publishes Supply Chain Indicators as a regular feature. In the latest issue (March / April 2010), the magazine featured the World Bank Logistics Performance Index and Indicators 2010.

The report rates countries according to their overall logistics performance index (LPI), which is a number ranging from 0 (lowest) to 5 (best). Apart from the overall LPI, countries are also rated on six components of logistics performance. These are

  1. Customs
  2. Infrastructure
  3. International shipments
  4. Logistics competence
  5. Tracking and tracing
  6. Timeliness

One hundred countries are rated, with Germany landing at the top (4.11) and Nigeria at #100 (2.59). The top 20 countries are listed below. The Philippines is not among them.

  1. Germany
  2. Singapore
  3. Sweden
  4. Netherlands
  5. Luxembourg
  6. Switzerland
  7. Japan
  8. UK
  9. Belgium
  10. Norway
  11. Ireland
  12. Finland
  13. HK, China
  14. Canada
  15. US
  16. Denmark
  17. France
  18. Australia
  19. Austria
  20. Taiwan
4.11
4.09
4.08
4.07
3.98
3.97
3.97
3.95
3.94
3.93
3.89
3.89
3.88
3.87
3.86
3.85
3.84
3.84
3.76
3.71

Out of the top twenty, 13 are from Europe and only 4 are from Asia, the rest being Canada, US and Australia. None are from Latin America and Africa. The bunching of European countries at the top is not unexpected, as they are basically one compact land mass, and they use similar systems. No doubt the formation of EU has contributed to this. Our new logistics management mentor, Japan, is #7 (3.97).

Other East Asian countries are:

23. Korea, Rep.

27. China

29. Malaysia

35. Thailand

44. Philippines

47. India

53. Vietnam

75. Indonesia

79. Bangladesh

3.64

3.49

3.44

3.29

3.14

3.12

2.96

2.76

2.74

Curiously, Latin American countries are rated low, the best performers being

41. Brazil4

8. Argentina

49. Chile

50. Mexico

51. Panama

3.20

3.10

3.09

3.05

3.02

Costa Rica, Dominican Republic, Peru, Honduras, Ecuador, Colombia, Venezuela, El Salvador are even much worse. This is despite Latin America basically being one connected land mass, although not as compact as Europe, and also having basically one language, Spanish-Portuguese. Likewise, African countries are rated low

Of the six components of the Logistics Performance Index, the Best (Top 20) countries rated highest in Timeliness

  1. Timeliness
  2. Tracking and tracing
  3. Infrastructure
  4. Logistics Competence
  5. Customs
  6. International Shipment

Overall LPI (Top 20)

    4.279
    4.068
    4.027
    3.936
    3.764
    3.551

    3.924

    The overall rank of the Philippines indicates that we are not hopeless on a global comparison; however we are only #9 out of 13 in our part of the world.

    Comparing RP with the Best (Top 20), overall we are 0.78 point behind. The worst components are no surprise, Infrastructure (1.46 behind), followed by Customs (1.09 behind). We are close to being at par in International shipments (only 0.15 behind).

    ComponentCustomsInfrastructure

    International shipments

    Logistics competence

    Tracking & tracing

    Timeliness

    Overall LPI

    Top 203.764.03

    3.55

    3.94

    4.07

    4.28

    3.92

    Phils.2.672.57

    3.40

    2.95

    3.29

    3.83

    3.14

    Gap1.091.46

    0.15

    0.99

    0.78

    0.45

    0.78

    Our Asian neighbors (excluding Middle East) fall into 3 groups

    • Top 4, those in the Top 20 – Singapore, Japan, Hongkong, Taiwan
    • Second group, not in the Top 20, but rated higher than RP – Korea, China, Malaysia, Thailand
    • Third group, rated lower than RP – India, Vietnam, Indonesia, Bangladesh

    Comparison with the Top 4 is like comparing with the Best above. With the Third group (not shown), RP proves to be superior in all components except Infrastructure, (RP 2.57) vs. Third group 2.62. Our Infrastructure belongs to the bottom.

    Below is a comparison with the Second group. Our poor infrastructure shows, as well as Customs, whereas International shipments comes as a mild surprise.

    ComponentCustomsInfrastructure

    International shipments

    Logistics competence

    Tracking & tracing

    Timeliness

    Overall LPI

    2nd Grp3.163.46

    3.39

    3.41

    3.53

    3.87

    3.46

    Phils.2.672.57

    3.40

    2.95

    3.29

    3.83

    3.14

    Gap0.480.88

    (0.01)

    0.46

    0.24

    0.04

    0.32

    Amb. Cesar Bautista and the rest of the NCC have a clear target. We need to improve on the low rated components – Infrastructure and Customs. Basically these are areas where the government must take the lead. A third area needing improvement is Logistics competence. Here the private sector, including SCMAP, can take the lead. Tracking & tracing and Timeliness are also areas for the private sector.

    Upcoming Activities

    • Logistics Immersion Course – an enhanced version of the erstwhile Shipping Immersion Course; includes topics in basic shipping and beyond, such as a snapshot of the Japan logistics system, infrastructure developments, Philippine economic performance and forecasts for 2010, May 13 – 15.
    • Warehousing Seminar I – a 2-day seminar on basics plus advanced topics (wms, lean warehousing), with warehouse visit, June 17 – 18
    • Sustainable Manufacturing Forum – a Marcus Evans organized event endorsed by SCMAP, June 28 – 29
    • 2010 Supply Chain Conference – SCMAP’s biggest event of the year. A 2-day conference and exhibit, with this year’s theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24. Sponsorship and advertisement packages are still available.

    Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com.  Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

    May 8, 2010

    SCMAP Perspective #240

    May 11, 2010 by carlo  
    Filed under SCMAP Perspective

    perspectivelogo

    Published in Port Calls, April 26, 2010

    CHAOS

    Fax 551-3207

    Email lizaalmonte@yahoo.com.ph

    By Ed Sanchez
    SCMAP Executive Director

    North Harbor Chaos

    The drama continues at the North Harbor. For its part, SCMAP has taken the following positions

    • Objection to the 5% concession fee on ancillary services (letter to PPA Board, March 31, 2010)
    • Grave concern over the slow service at the North Harbor starting with the takeover on April 12 (letter to PPA Board, April 19, 2010).

    Delays are being experienced in both outbound and inbound shipments, as a consequence of the inadequate and dilapidated equipment of MNHPI, and new systems and procedures not properly cascaded.

    Delays will increase shipping cost and affect the distribution and availability of products in the Visayas and Mindanao. Out of stock situations will lead to lost sales, and are bad for the economy as a whole. SCMAP joined PLSA, PSB, cargo handlers and port labor in a press conference last Friday.

    Logistics Immersion Course

    SCMAP reels off with its first Logistics Immersion Course. The enhanced seminar covers an expanded range of topics beyond just shipping. Topics are:

    • Recent MARINA Initiatives, Arhleen Romero, MARINA
    • Recent PPA Initiatives to Enhance Port Operations & Services, Hector Miole, PPA
    • Role of Shipping in Philippine Logistics & Its Impact on Transport Cost, Cora Curay, SCMAP Vice President & President XVC Logistics
    • A Snapshot of Japan Logistics System, Dennis Llovido, SCMAP President & AVP-Transport Head, Nestle Phils.
    • New Developments in RO-RO, Jet Acena, Deputy Team Leader, RO-RO, REID Foundation
    • Infrastructure Development in the Philippines, Raffy Hernandez, Deputy Team Leader, PPP, REID Foundation
    • Philippine Economic Performance and Forecasts for 2010, Ronilo Balbieran, Economist – UA&P, Deputy Team Leader, REID Foundation

    The itinerary and schedule are: Manila – Cebu – Manila, May 13 – 15, 2010

    Manila – Cebu is via Superferry 1 and Cebu – Manila is by PAL

    Fees are SCMAP – P12,999, Non-SCMAP – P16,249.

    2010 Logistics Conference

    SCMAP is inviting supply chain service providers, suppliers of logistics products, equipment, software and other technologies, and other companies to display their products and services at the 2-day annual supply chain conference with the following theme and schedule.

    • “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”
    • September 23-24, 2010
    • EDSA Shangri-la, Mandaluyong City

    Sponsorship and advertisement packages include

    • Special Principal Sponsor (P105,000)
    • Principal Sponsorship (P90,000)
    • Regular Sponsorship (P45,000)
    • Cocktails Sponsorship (P220,000)
    • Luncheon Sponsorship (P220,000)
    • Break Sponsorship (P110,000)
    • Advertisement: P9,000, P4,500 & P2,250

    Global Logistics Performance

    Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com.  Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

    April 23, 2010


    SCMAP Perspective #239

    May 11, 2010 by carlo  
    Filed under SCMAP Perspective

    perspectivelogo

    Published in Port Calls, April 12, 2010

    2010 Conference

    Fax 551-3207

    Email lizaalmonte@yahoo.com.ph

    By Ed Sanchez
    SCMAP Executive Director

    SCMAP Conference

    SCMAP President Dennis Llovido recently announced the theme for its annual conference and exhibit for 2010: “Supply Chain: Key to Driving and Sustaining Operational Excellence,Business Growth and Profitability”

    As in past years, the venue will be the Isla and Palawan Ballrooms of EDSA Shangri-La Hotel in Mandaluyong City. The schedule is September 23 – 24, 2010.

    Around 250 participants from various sectors – manufacturers, distributors, service providers, logistics equipment suppliers, software vendors, and the academe, are expected to attend this year’s conference. Leading supply chain experts in the Philippines and abroad are scheduled to share their supply chain expertise on driving and sustaining operational excellence, leading to business growth and profitability.

    SCMAP is inviting companies to partner with SCMAP in this undertaking by way of sponsorship or advertisement. This conference can offer companies an excellent opportunity to network with the industry decision-makers and movers, while promoting their products and services.

    Reservations will be accepted on a first come first serve basis, by submission of the signed contract form to the SCMAP Secretariat.  Deadlines are:

    • Confirmation of reservation
    Aug 9 (Monday).
    • Payment of sponsorship contribution or advertisement fee
    Aug. 27 (Friday).
    • Assignment of booths will be based on date of payment.

    Sponsorship contributions and benefits are maintained from last year

    A. Special Principal Sponsor Donation PhP 105,000
    • One 10 sq. m. (2.5m x 4m) exhibit booth for products/services.
    • Two (2) participants can attend the conference free-of-charge.
    • Corporate AVP (30 sec) shown 8 times during break or plenary session
    • Company logo in the newspaper advertisement
    • Flyers and Brochures in the conference kits.
    • One page advertisement in the souvenir program
    • Unlimited hand-outs for distribution during the 2 day conference.
    • Acknowledgement as Principal Sponsor in the posters, streamers, conference brochure and souvenir program
    B. Principal Sponsor Donation PhP 90,000
    • Same entitlements as Special Principal Sponsor, except for size of the booth, which is 9 sq. m. (3m x 3m), in Isla Ballroom
    C. Regular Sponsor Donation PhP 45,000
    • One 6 sq. m. (3m x 2m) exhibit booth for products/ services in Palawan Ballroom.
    • One (1) participant can attend the conference free-of-charge.
    • Company Name in the Newspaper Advertisements
    • One page advertisement in the souvenir program.
    • Unlimited hand-outs for distribution during the 2-day conference.
    • Acknowledgement as Sponsor in the posters and streamer, conference brochures and flyers.
    D. Cocktails Sponsor Donation PhP 220,000
    • Entitlements same as Principal Sponsor, plus
    • Option to conduct a 45-minute product/service presentation during cocktails.
    • Option to display materials indicating cocktails sponsorship during cocktails.
    E. Luncheon Sponsor (2 slots available) Donation PhP 220,000
    • Entitlements same as Principal Sponsor, plus
    • Option to conduct a 45-minute product/service presentation during sponsored lunch break.
    • Option to display materials indicating luncheon sponsorship during sponsored lunch break.
    F. Break Sponsor (3 slots available) Donation PhP 110,000
    • Entitlements same as Principal Sponsor, plus
    • Option to conduct a product/service presentation during the sponsored morning or afternoon break.
    • Option to display materials indicating break sponsorship during the sponsored morning or afternoon break.
    F. Advertiser Fee P2,250 to P9,000 vat incl.
    • Advertisement in the souvenir program, whole page P9,000 / half page P4,500 / one fourth page P2,250, all amounts VAT inclusive

    SCMAP Training Activities

    SCMAP-DLSU Certificate Program in SCM

    Module 1 (Intro to SCM) of the SCMAP-DLSU Program in SCM is being offered now. The module will start on April 17 and run up to June 5. As with past offerings of Module 1, the facilitator will be Ike Castillo of Avon Cosmetics, an experienced practitioner and also a past SCMAP president. The fee is P12,000 for participants from SCMAP member companies and P15,000 for non-members..

    Shipping Immersion Course

    This year’s shipping immersion course will be right after the elections, on May 13 to 15. The activity will include port observation of both RORO and containerized cargo, and a seminar on board Superferry 1 as it sails to Cebu. The seminar will include speakers from MARINA, PPA, SCMAP and UA&P. After a stay in Cebu, the return trip will be by PAL. The invitation flyers will be released anytime.

    Warehousing Seminar 1

    This is a 2-day seminar scheduled for June 17 – 18. The seminar includes basic functions of warehousing, principles of materials handling and storage, lean warehousing, local practices, trends, with a warehouse visit and critique. Speakers include tested facilitators and experienced practitioners Malou Santos and Norman Adriano, plus a bar coding expert. Both Malou and Norman are past SCMAP presidents.

    Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com.  Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

    April 9, 2010


    SCMAP Perspective #238

    May 11, 2010 by carlo  
    Filed under SCMAP Perspective

    perspectivelogo

    Published in Port Calls, March 29, 2010

    KEY LOGISTICS DECISIONS 3 & 4

    Fax 551-3207

    Email lizaalmonte@yahoo.com.ph

    By Ed Sanchez
    SCMAP Executive Director

    Key Logistics Decisions

    In the last issue, I discussed a portion of a talk on logistics that I gave sometime in the second half of 2007. I discussed two key decisions that companies make that have a major effect on their logistics processes. These were:

    • Key Decision #1 – Global / regional factory vs. a factory in every country. Where shall I locate my factory or factories?
    • Key Decision #2 – Customer focus. Which customers shall I directly deal with? Here the choices include (a) one national distributor (b) several regional distributors (c) many small accounts..

    Today’s column continues with #3 and #4.

    Key Decision #3 – Design of distribution network. The question asked is how many depots or satellite warehouses and where?

    In the 1970s to 1980s the trend in the Philippines was to increase the number of depots. Unilever increased from 5 to 14 during my time (1980s). The dominant thought was stocks must always be available for and near the markets. Sales Dept. had the loudest voice and always argued that we were at a severe disadvantage where competition had a warehouse and where we did not.

    The upper 1980s to mid-1990s was a period of mixed directions. Many companies began to realize the high cost of warehousing + cost of inventory. Unilever was one of them. But certain companies continued with the uptrend, notably SMC, Nestle, URC. Nestle reached a maximum of maybe 30+ depots. SMC reached a maximum of around 140 warehouses The dominant belief was that there should be beer on every island.

    The upper 1990s up to now is a period of decreasing depot numbers. There are companies with only one warehouse, notably Colgate and P&G.

    But the debate is not over, even in the US. There are two schools of thought.

    • Warehouse networks are too expensive. They never really work. Stocks committed to a field location become unavailable for other areas, except at great expense
    • Warehouse networks allow faster service to customers because the stocks are nearer

    Considerations in the decision on the number of depots are :

    • Service time to customers
    • Total logistics cost (warehousing, transport, money tied up in inventory, admin, customer service)

    In a way the issue is analogous to the one factory vs. many factories decision.

    Key Decision #4 – Do your own logistics or hire a TPL provider. Own logistics means own warehouse, own transport truck fleet, or direct management of a rented warehouse and of truckers. Using a TPL means leaving the logistics to the experts.

    The trend in the 1970s to 1980s was to do your own logistics. Some big companies owned large truck fleets, such as SMC, PLDT, Coca Cola, Pepsi, and also operated or managed their warehouses. No one could entrust their own operations to another party, because of fear of loss of confidentially, and lack of faith in the TPL company’s capability to adhere to company standards in packaging, handling, quality, etc.

    In the early 1980s, FCTC (Fast Cargo Transport Company, a subsidiary of William Lines) pioneered what is now known as TPL. At Unilever, I “experimented” with using FCTC to bring finished goods from the Unilever warehouse in Paco all the way to Samar Leyte customers. This arrangement included pickup of stocks from Paco warehouse, shipment to a warehouse in Tacloban provided by FCTC, and delivery of goods to Unilever customers using FCTC trucks.

    Since the 1990s, confidence in TPLs has increased. The trend is worldwide and appears irreversible.

    Considerations in the decision to go the TPL route include:

    • Fear of loss of confidentiality
    • TPL provider’s capabilities
    • Price
    • The issue of national TPL vs. regional TPLs.

    Workshop – Quantitative Tools for Logistics Planning

    Speaking of distribution networks (Key Decision #3 above), UniMaC-SCMAP offers a workshop on two technical tools that can assist companies in logistics planning. One of these tools is mathematical programming for warehouse site selection. The technique uses cost optimization to suggest a distribution network configuration that minimizes total cost. The other tool offered in the workshop is forecasting.

    The workshop utilizes computer examples in optimization and forecasting, via Excel. Originally offered in April, it will be re-scheduled in July. The workshop is also available as an in-house seminar where 10 or more participants can be assembled.

    Shipping Immersion Course

    This year’s shipping immersion course may undergo a facelift (change of name), or even a complete change (air or land trip and change of content). As soon as the change is finalized, we will announce it in this column. The initial schedule is May 14 – 17, immediately after the election.

    Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com.  Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

    March 26, 2010

    SCMAP Perspective #237

    May 11, 2010 by carlo  
    Filed under SCMAP Perspective

    perspectivelogo

    Published in Port Calls, March 15, 2010

    KEY LOGISTICS DECISIONS 1 & 2

    Fax 551-3207

    Email lizaalmonte@yahoo.com.ph

    By Ed Sanchez
    SCMAP Executive Director

    Key Logistics Decisions

    Sometime in the second half of 2007, I gave a talk, Logistics : An Overview, at an event jointly sponsored by the Japan Transport Cooperation Association and DOTC. I was asked to make it very basic, and so it was.

    Today I would like to devote space to a portion of that talk, pertaining to key decisions that companies make which have a major effect on their logistics.

    I mentioned four decisions in that talk. Today I will deal with the first two. Next issue I will deal with the other two.

    Key Decision #1 – Global / regional factory vs. a factory in every country. Where shall I locate my factory?

    If you are the logistics director of an MNC, you would be grappling with questions such as : Should I have a factory in every country in Asia / South East Asia, or should I consolidate my factory in one country? And where should it be?

    This is sometimes referred to as the regional sourcing decision. Since the turn of the millennium, MNCs have been consolidating manufacturing in one or a few factories. For example, Colgate consolidated manufacturing outside of the Philippines. Nothing is produced anymore on J. P. Rizal, Makati.. Unilever has also closed down most of its factories, but chose to produce deodorant here. P&G chose to stay in the Philippines. Avon chose to stay here. Nestle has stayed and is even expanding its plants. Three years ago Uniden closed its cordless telephones factory here and chose China. I believe Toyota transmission is still being manufactured here? I believe Texas Instruments has decided to stay here.

    So the trend has been to consolidate manufacturing in one or a few factories, with some decisions unfavorable to the Philippines, and others favorable.

    .

    Considerations in deciding which country are :

    • Total cost to serve all countries, i.e., total manufacturing cost + logistics cost
    • Service lead times
    • Taxes, tariff, government regulations
    • Political issues

    Key Decision #2 – Customer focus. Which customers shall I directly deal with? Here the choices are (a) one national distributor (b) several regional distributors (c) many small accounts..

    The trend here has been from many small accounts to a few distributors, in order to cover the market. As an example, Unilever up to the mid-1980s had 5,000 customers on credit, excluding retailers on cash basis. Imagine how complicated that was. Especially since computers then were of low capacity and slow. Since then Unilever has divided the country and appointed regional distributors. It awarded them to retiring salesmen. The scheme was not successful at first.

    Considerations in deciding which set-up include:

    • Capability of distributors
    • Logistics capability t handle many accounts / big accounts
    • Distance from smaller customers
    • Complexity in systems, communication

    In the next issue we will deal with the other two decisions.

    Strategic Procurement Seminar

    SCMAP is issuing a last call for this seminar. The seminar is a one-day seminar on Strategic Procurement, with the following schedule.

    Date : Friday, March 19, 2010

    Time : 8:00 to 5:00 pm

    Venue : Astoria Plaza, Escriva Drive, Pasig City

    Fees are P5,500 for SCMAP members andP6,875 for non-members. Both figures are VAT included.

    The seminar also targets suppliers and logistics service providers, and will encourage them to

    • Understand how customers categorize their company and services
    • Improve value and competitive advantage to their customers

    Target participants may come from the following functions

    • Supply chain, Materials, Logistics, Procurement managers and staff
    • Finance managers and other corporate executives
    • Marketing and Sales professionals

    Seminar topics include

    • Supply chain and strategic competitiveness
    • Clerical, commercial and strategic level of SCM operations
    • Prioritizing your efforts
    • Understanding your supply market
    • Strategic framework for analysis :
    • Generic strategies to reduce supply risks and improve value

    Seminar speaker will be Augusto Arguelles, Prof. in Operations & SCM at the Ateneo Graduate School of Business, with over 30 years of consulting and managerial experience in several companies and an Advanced Certificate in SCM, UN Intl. Trade Center

    Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com. Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

    March 10, 2010

    SCMAP’s 2nd General Meeting

    April 22, 2010 by carlo  
    Filed under Highlights

    SCMAP’s 2nd General Meeting

    Thursday April 22, 2010

    Astoria Plaza Hotel, 3/F Chelsea Room

    1:00 – 5:00 p.m.

    AGENDA

    ** What’s New?

    ** President’s Report – Dennis Llovido

    - Latest developments

    - Major Projects for the Year

    ** Welcome our newest member

    - Sandoz Phils.

    ** Join the Shipping Immersion Course

    May 13-15, Manila to Cebu via Superferry I

    ** Knowledge sharing from SCMAP AOTS participants after their training in

    Yokohama ,Japan

    ** Announcement of the Annual Conference theme and early bird theme winners

    ** Freshest updates

    - What’s up at the North Harbor?

    - Truck overloading

    - National Transport Policy

    ** PLUS Special Presentation on  RFID

    by Tony Hilder from HID Global GmbH

    ** Tokens for March – April Birthday celebrators / Early birds

    ** Raffle prizes / freebies

    Please confirm your attendance through SCMAP Secretariat via Fax 671-4793 or E-mail at SCMAP [scmap.org@gmail.com]

    Names of Attendees:   ______________________________

    Company:                   _______________________________

    Download GMM Invitation here

    Shipping Immersion Course 2010

    April 22, 2010 by carlo  
    Filed under Highlights

    CALLING ALL

    SCMAP members and other INTERESTED parties

    Let’s Learn and Have Fun as we Sail Away

    May 13 (Thursday) – 4pm to 15 (Saturday) – 5pm 2010

    Target Participants

    • Supply chain logistics, distribution or transport staff requiring an introduction to shipping
    • Other transport staff requiring a refresher and latest updates
    • Managers and non-shipping or non-transport staff in related and interface functions (warehousing, distribution planning, trucking, inventory management, purchasing, accounting, engineering,   QA, etc) who require a basic understanding of domestic shipping and the latest developments.

    Register now and participate in this informative LOGISTICS IMMERSION COURSE from May 13 Thursday-5PM to 15 Saturday-5PM, 2010 on board the Superferry 1 vessel to CEBU and back to Manila via airline.

    Know more about the shipping industry, its vital importance to our businesses and realize its impact to Distribution and Logistics.

    Seminar Topics and Speakers:

    SEMINAR TOPICS

    SPEAKER

    1. Recent MARINA Initiatives (Tentative)
    Ms. Arhleen Romero – Director, Domestic Shipping, MARINA
    1. Recent PPA Initiatives to Enhance Port Operations & Services
    Mr. Hector Miole – Port District Manager, PDO Southern Luzon, PPA
    1. Role of Shipping in Philippine Logistics & Its Impact on Transport Cost
    Ms. Cora Curay, Vice President, SCMAP & President XVC Logistics
    1. A Snapshot of Japan Logistics System
    Mr. Dennis Llovido,President SCMAP & AVP-Transport Head, Nestle Philippines
    1. New Developments in RO-RO
    Mr. Jet Acena, Deputy Team Leader, RO-RO, REID Foundation
    1. Infrastructure Development in the Philippines
    Mr. Raffy Hernandez, Deputy Team Leader, PPP, REID Foundation
    1. Philippine Economic Performance and Forecasts for 2010
    Mr. Ronilo Balbieran, Economist – UA&P, Deputy Team Leader, REID Foundation
    • Observation of port operation.  Know how your cargoes are handled at the port, and how the vessel moves them.
    • Recognize Aboitiz customer service initiatives for 2010 and acquire opportunities for better collaboration.
    • Take advantage of networking and benchmarking opportunities with SCMAP members and industry business partners.

    sic

    Download reservation form here

    SCMAP Perspective #236

    April 22, 2010 by carlo  
    Filed under SCMAP Perspective

    perspectivelogo

    Published in Port Calls, March 1, 2010

    SCM TRAINING OPPORTUNITIES

    Fax 551-3207

    Email lizaalmonte@yahoo.com.ph

    By Ed Sanchez
    SCMAP Executive Director

    Strategic Procurement Seminar

    SCMAP is offering its second public seminar for the year. The seminar is a one-day seminar on Strategic Procurement, with the following schedule.

    Date    : Friday, March 19, 2010

    Time   : 8:00 to 5:00 pm

    Venue : Astoria Plaza, Escriva Drive, Pasig City

    Fees are P5,500 for SCMAP members andP6,875 for non-members. Both figures are VAT included.

    The seminar targets companies procuring goods and logistics services, and will encourage these companies to

    • Raise their level of procurement practice from clerical or commercial to strategic
    • Analyze their “spend” to identify what needs most management attention
    • Develop appropriate strategies to provide the company the assurance of reliable and value-for-money suppliers and service providers

    The seminar also targets suppliers and logistics service providers, and will encourage them to

    • Understand how customers categorize their company and services
    • Improve value and competitive advantage to their customers

    Target participants may come from the following functions

    • Supply chain, Materials, Logistics, Procurement managers and staff
    • Finance managers and other corporate executives
    • Marketing and Sales professionals

    Seminar topics include

    • Supply chain and strategic competitiveness
    • Clerical, commercial and strategic level of SCM operations
    • Prioritizing your efforts
    • Understanding your supply market
    • Strategic framework for analysis :
    • Generic strategies to reduce supply risks and improve value

    Seminar speaker will be Augusto Arguelles, Prof. in Operations & SCM at the Ateneo Graduate School of Business, with over 30 years of consulting and managerial experience in several companies and an Advanced Certificate in SCM, UN Intl. Trade Center

    Gus Arguelles is one of the original group of 10 that established DMAP (Distribution Management Association of the Phils., the predecessor of SCMAP) way back in August 1989.

    As with other SCMAP seminars, this one is conducted for SCMAP by UniMaC Business Consultancy, Inc.

    Other seminars coming up for SCMAP follow.

    Quantitative Approaches to Logistics Planning

    This is a 6-hour workshop intended to teach the basics of two tools that might be used to re-design a distribution network and improve a company’s demand forecasts.

    Workshop topics

    • Forecasting Techniques – Basics of forecasting, types of forecasts, forecasting approaches, ‘recommended techniques’, estimating probable forecast error, steps in preparing a forecast, importance in logistics planning
    • Warehouse Site Selection Using Optimization – Issues involved, cost items considered, relevant constraints and other factors, modeling the problem, using Excel to solve the problem, interpretation of model results

    Tentative Schedule is on Saturday, April 17, 2010. Fees P4,000 for members / P5,000 for non-members.

    Target participants include

    • Logistics staff, supply chain analysts
    • Managers of logistics and other SCM functions
    • Other supply chain and logistics staff, or staff in related and interface functions (finance, distribution planning, inventory management, transportation, etc.) who could be involved in a review of the company’s SC processes

    Speaker / Workshop Leader will be Sam Cruz, Operations Research Expert / Consultant, and former OR Manager, San Miguel Corp.

    The teaching method uses hands on computer examples in Excel.

    2010 Shipping Immersion Course

    This is a seminar on board a vessel, covering topics on shipping, ports, maritime issues and other logistics issues. Speakers will be experts from the government and the private sector, from the ranks of service providers, users and the academe.

    Tentative schedule : May 14 to 17 (weekend after election). Destination is likely to be Boracay or Cebu. Finalization will depend on ship schedules.

    In House Seminars

    Meanwhile SCMAP offers in house seminars to companies that have 10 or more participants in a given seminar or workshop.

    In house seminars may be on soft skills or technical skills

    An in house seminar could be the preferred format if a company wants to cover certain topics more in depth, say warehousing issues. Another example might be the quantitative approaches to logistics planning mentioned above, if focused on the company’s distribution network. In this case the company would want to have the seminar exclusive to the company.

    An in house seminar may be the only choice in the case of certain soft skills training, for example teambuilding.

    Prof. Ninoy Rollan of the Ateneo de Manila Graduate School of BUsiness, professor in Leadership and Human Resources, handles SCMAP – UniMaC soft skills seminars. The argument for soft skills is that technical skills are not enough and need to be augmented with soft skills (leadership, priority setting, time management, team building, coaching, etc.)

    SCMAP-DLSU Certificate Program in SCM

    SCMAP-DLSU offering continues. All classes are on Saturdays at DLSU in RCBC Building in Makati.

    Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com.  Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

    February 27, 2010

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