Published in Port Calls, October 24, 2o11

NEWSBITS

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

GMM Guests

The fourth GMM of 2011 held last Oct. 21 marked the first time many guests (more than 10) were invited. This is a new direction aiming to expand membership by exposing possible members to the workings of SCMAP.

Seen at the last GMM were guests and friends from Port Calls, Gothong Southern Shipping, Manila North Harbour Port Inc., OOCL Logistics, BPI Family Bank, SPL Tech, Ideamorphosis.

Election

SCMAP elections will be held at the last GMM of 2011. To be elected are the ten Directors and ten Committee Chairpersons who will serve in year 2012. The ten elected Directors will elect among themselves the six officers – President, Vice President, Secretary, Treasurer, Auditor, PRO.

SCMAP enjoins all member companies to review the name of their official representative for year 2012, as the official rep is eligible to be elected director or committee chairperson. Official representatives can be designated up to just before the actual election on Nov. 25.

DILG MC  on Illegal Fees and Taxes

A recent development carries good news for organizations, companies and other entities involved in transport of goods and people.

DILG Secretary Jesse Robredo issued last Oct. 12 DILG Memorandum Circular 2011-1500 suspending LGU imposition and collection of illegal fees and taxes.

The MC enjoins local chief executives to:

(a)   refrain from enforcing any existing ordinance authorizing the levy of fees and taxes on inter-province transport of goods, regulatory fees from passengers in local ports, and other additional taxes, fees or charges in any form upon transporting goods and passengers; and

(b)   cause the immediate repeal of the ordinance imposing the abovecited fees and taxes

I detect a little ‘weakness’ in the use of the word ‘enjoins’; however the last paragraph of the MC mentions the institution of appropriate cases against violators.

To be sure, this prohibition is not new. The problem is the implementation. At the last GMM Vice President Cora Curay said to those present to report all cases of violations, together with evidence s and details, so that SCMAP may take these up with Sec. Robredo.

Corporate Greed

Over a week ago, protests swept across certain spots on four continents over the widening gap between the rich and the poor, and the global recession. These troubles are being traced to corporate greed. The protests started on Wall Street in New York City and spread to different cities. The protests have been short-lived because of the efficient law enforcement agencies. But more because these protests have not been planned and sufficiently organized, and not yet internationally connected. These protests could increase when different peoples in different parts of the globe see a strong connection to corporate greed.

P-Noy was quick to downplay local corporate greed, citing the transparency of six local oil companies. Bt for sure, corporate greed is here and goes beyond the oil companies.

The protests over corporate greed are similar to the rash of rebellions and revolutions in various countries in the Middle East and Africa. The complaints are generally against overstaying dictators and despots.

Some time ago, I wrote about greed and supply chain cost (January 19, 2009).

Competition Law

I wrote about competition law some months ago. Last week the Joint Foreign Chambers of the Philippines issued a statement that the enactment of a competition law would help spur business activity. Yes, a competition law would also help level the playing field and help stem corporate greed.

Last June the current administration issued EO 45 designating DOJ as Competition Authority, with an Office for Competition as operating arm to enforce relevant provisions of existing laws. A good step.

Enactment of a competition is supported by SCMAP.

Soft Skills Training

Our last training for the year will be a 2-day training on soft skills. The schedule has been changed and will be announced shortly.

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.

October 22, 2011

Published in Port Calls, October 10, 2o11

DELAYED VICTORY

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Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Conference Notes

SCMAP wound up activities in this year’s annual conference and exhibit last September 23 at the cocktails. While this year’s event did not improve on last year’s attendance numbers, as is usually the case, SCMAP achieved two firsts.

• The first Roundtable discussion by a dozen CEOs and CSCOs, on how supply chain management systems should progress, gven the dynamic changes in consumer preferences, complexity in channel distribution and advancement in technology. The discussion was moderated and the output fed to the plenary session by Olive Ramos of DHL, Committee Chair on Best Practices and Standards
• The first Salute to Excellence awards for exemplary company SCM projects and excellence in TPL service, won by Integrated Commissary and DHL Supply Chain respectively. Past president and Consultant Ana Rose Ochoa managed the year long activity to its fruition.

The quality and mix of speakers was overall better than last year, and the number of exhibitors about the same. President Dennis Llovido (Nestle) and Conference Chair Cora Coray (XVC), and the rest of the team, deserve credit for another successful conference and exhibit.

Delayed Court Victory

Early last month, just before the conference, the Supreme Court released a long delayed decision on a case filed against DMAP by some shipping lines, members of the Domestic Shipowners Association (DSA). DSA replaced CISO in the early 1990s and was later replaced by PLSA. The case was filed in the second half of 2002 and was for indirect contempt of the Supreme Court. It was filed specifically against then DMAP President Lorenzo Cinco (Pure Foods) and past president Cora Curay (XVC). That was nine years ago!

DMAP had just lost a case at the Supreme Court appealing a ruling by the Court of Appeals on the constitutionality of EO 213 and MC 153. The Supreme Court dismissed DMAP’s appeal based on a technicality. DMAP failed to file within the reglementary period and to pay the deposit for sheriff’s fee and clerk’s fee under the rules.

At one of its GMMs, DMAP provided its membership with the usual advisory on what was happening, called Sea Transport Update. An unknown DMAP member provided a copy of the advisory to the shipping lines, and this became the fuel used by DSA members to charge Lorie Cinco and Cora Curay before the Supreme Court. See below some details about contempt of court.

In its long delayed decision the Supreme Court absolved DMAP of contempt regarding some statements it released to its members on an earlier Supreme Court decision. After all, DMAP was merely informing its members of what was happening when it said DMAP’s petition was dismissed by the Supreme Court based on a technicality.

Actually Cora Curay was the president in 2002, but had to resign her post when she left her company Coca-Cola and formed her company XVC Logistics. Still as Sea Transport Committee chair, Cora was named as a Consultant in the case papers. Cora might have been charged by herself if she were still with Coca-Cola and president of DMAP.

At any rate, that is how things happened

The above illustrates the kind of sacrifices some DMAP / SCMAP officials might have to make. Congratulations and hooray for Lorie Cinco and Cora Curay!

For your better appreciation, I quote from the release.

“Contempt of court, broadly defined as a disregard of rules or orders by a legislative or judicial body or interruption of its proceedings by disorderly behavior, has two kinds: direct and indirect. The former is committed in the presence of or so near the judge as to obstruct him in the administration of justice; while the latter consists of willful disobedience of the lawful process or order of the court. Among the acts of indirect contempt under Sec. 3, Rule 71 of the Rules of Court, are, following a charge in writing has been filed: disobedience of a lawful court order; improper conduct tending to impede or degrade the administration of justice; assuming to be an officer of the court and acting without such authority; and failure to obey a subpoena duly served. DMAP had been charged under the foregoing provision”.

The Supreme Court’s First Division, through Justice L. Bersamin, unanimously dismissed the indirect contempt case. Chief Justice R Corona, and Justices T. Leonardo-De Castro, M. Del Castillp, and M. Villarama all concurred.

So, why did it take this long to make this decision? Don’t ask me.

Activities, Rest of 2011

Soft Skills Training, Thursday-Friday, for re-scheduling

• Warehouse Management Seminar, Friday-Saturday, for re-scheduling
• General Membership Meeting, Oct. 21
• General Membership Meeting and Election, Nov. 18
• Christmas Fellowship, December 2

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.

October 8, 2011

Published in Port Calls, September 12, 2o11

FORMULA FOR SUCCESS

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Conference

Just 10 days to go till the opening of the 2011 Supply Chain Conference and Exhibit at the EDSA Shangri-La Hotel. At this time, registration is in full swing. Registration fees are P10,980 for employees of member companies, and P13,725 for employees of non-member companies.

A few slots are still available for those interested in being a sponsor / exhibitor in the next two days.

Earlier choice for keynote speaker Customs Commissioner Lito Alvarez, for an obvious reason, has been replaced. The new keynote speaker is Francisco Sebastian, CEO of First Metro Investment Corp.

Seminars, and Other Activities, Rest of 2011

• Soft Skills Training, Thursday-Friday, October 20-21, 2011 (tentative)
• Warehouse Management Seminar, Friday-Saturday, November 25-26, 2011
• General Membership Meeting, Oct. 20
• General Membership Meeting and Election, Nov. 17
• Christmas Fellowship, December 2

Formula for Success

Today we touch a bit of history. This could be boring reading for many, but I find it necessary and useful to review and understand why and how DMAP / SCMAP has met with a good measure of success in its first two decades.

• The decision to go DMAP (Distribution) instead of LMAP (Logistics). The ten charter members who formed DMAP jn August 1989 all voted to go for DMAP. As they were all focused on fighting large sea freight rate increase petitions, setting up LMAP would have been a case of biting off more than it could chew. It could have disintegrated had it done so. At that time the US based Council of Logistics Management was still refining its definition of Logistics.

• Allowing only manufacturers and distributors to become members.. Since its first activities were opposition to shipping rate increase petitions, it was obvious that shipping lines could not be allowed as members. The early years were also spent in opposition to rate increases for cargo handlers and truckers.. This consistent stand vs. unjustified cost increases strengthened the unity among members

DMAP did make a mistake once when it allowed a cargo handler to join even though DMAP attended hearings on cargo handling rate increases. DMAP realized its mistake and deleted the cargo handler from its ranks, displaying a willingness to admit and correct a mistake – a big one

• Consistent stand against disadvantageous impositions also strengthened unity. Disadvantageous impositions included proposals for odd-even traffic scheme, 15-hour Manila truck ban, TRB truck ban in the expressways converted to load limits, pass-on of payment of port workers benefits to cargo owners

• Disallowing reelection of the president. Another correct move was the cautious restriction in the early (first six) years that no individual can repeat as president, This was to protect against the possibility of a “wrong” president staying in power and leading DMAP to the wrong path. With a still small org, this was clearly possible. After six years there were already 50 members

• Consistent stand vs. monopolies (EO 59), cartels (CISO, DSA) and regulatory capture (PPA, MARINA) strengthened links with other groups

• Allow LSPs with conditions. At around the turn of the century DMAP allowed the entry of logistics service providers. It adopted a cautious stance and restricted LSP members to 20% of thr membership. This was to guard  against a majority of LSPs whose prime interest might be selling their services

• Expanding the scope to SCM. In 2007 DMAP took this bold step which expanded the scope and broadened the horizon. The group was ready for bigger things

• At around 2009 SCMAP allowed individual membership, but again cautiously. Individual members had no voting power. This is to protect SCMAP from being taken over by a group of individuals from a single organization or group.

Thus, over the years, DMAP / SCMAP has achieved success with the following formula

• Consistency
• Willingness to change
• Cautiousness

Now SCMAP has started to expand its activities in form, substance and directions, under the leadership of Nestle’s Dennis Llovido, and the reliable support of multi-year president Cora Curay. But that story is just beginning. Yet, a lot has already been done.

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.

September 10, 2011

Published in Port Calls, August 29, 2o11

CONFERENCE 2011 HILITES

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Schedule and Fees

This year’s annual conference is just over three weeks away. Below are the key info.

• Date                            Sept. 22-23, 2011
• Venue                       EDSA Shangri-La Hotel, Isla and Palawan Ballrooms
• Theme                        Always Moving Ahead in Supply Chain
• Conference Fees     Members – P10,980 // Non-Members P13,725 vat inclusive

Speakers

• Keynote (govt)          Customs Commissioner Angelito Alvarez
• Keynote (private)      Francisco Sebastian, Chairman First Metro Investment Corp.
• Conference speakers
  • Nicasio Rollan III      New Breed of Supply Chain Leaders
  • Daniel Belbis                        Beyond E-Procurement & Strategis Courcing
  • Francisco Claravall Control Your Business Your Way
  • Rommel Co               ULP Manufacturing Key Driver of SC Efficiency
  • Milet Ismael               Understanding the Supply Chain Security in the Phils.
  • Raymond May          Sales & Operations Planning
  • C C Cheah                Plastic Pallets Taking Care of the Environment Whilst

Benefitting Your Business

• • Ronilo Balbieran      Logistics Beyond Metro Manila
  • R Vaidyanathan       Value Chain Transformation with Beyond ERP &

Collaborative Applications

• • Deah Eichorn           The Next Level of Distribution & Logistics Efficiency
  • Jenny Ligones         ERP Mobility & Business Intelligence Dashboard in

View of the Changing Business Landscape

• • Ike Castillo                Bringing Logistics Outsourcing to the Next Level
  • Arnel Gamboa          Learnings from Japan Logistics System
  • Gabby Patag             Learnings from Japan Logistics System

Innovations

This year’s conference has two innovations

• Pre-conference roundtable forum for CEOs / CSCOs (chief supply chain officers), wherein a select group of CEOs and CSCOs has been invited to discuss the changing landscape of supply chain processes in he Philippinrs. The forum will be held on Sept. 21, the eve of the conference. The output of the discussion will be distilled and presented to the plenary session of the conference the next day.
• Winners of the first Salute to Excellence competition will be announced and presented their awards. There are three categories in the competitions – Supply chain operational excellence, 3PL supply chain provider of the year, Supply chain practitioner of the year.

Sponsors

The following have signed up as sponsors and exhibitors.

• Luncheon sponsor – Globe Telecom
• Special principal sponsors – SPL Tech, DHL Supply Chain
• Break sponsors – Prime Sales, Fast Cargo
• Principal sponsors – Handling Innovation, SSI Schaefer, NMCCLI, Loscam Phils., Nestle, Messe & Handel, Boeing Material Handling Corp., FPT Software Enterprise
• Regular sponsors – Lorenzo Shipping, MHE Demag, Zuellig Pharma, One Stop Logistics, XVC Logistics, Dennis Intl. Merchandising, Manly Plastics, Solid Shipping Lines, Mustard Seed Systems, PLDT, Aboitiz Transport System, Oroport Cargo Handling, SMITS, Lionapex, Manila North Harbor Port, Asian Terminals, F2 Logistics Phils.
• Cooperating Organizations – Port Calls, Epson Corp., PCCI

Sponsor / Exhibitor Slots and Advertisements Still Open

For those interested in being sponsors / exhibitors, the following slots are still open for donations.

Type                           Total               Slots Taken               Slots Available

Cocktails                        1                                0                                  1

Luncheon                      1                                1                                  0

Break sponsor             2                                2                                  0

Special principal        6                                5                                  1

Principal                      14                                8                                  6

Regular                        21                             17                                   4

Cooperating org         3                                3                                  0

Advertisers may still book their advertisements for full page, half page and one fourth page.

SCMAP has sweetened the benefits for sponsors in this year’s supply chain conference and exhibit, promising an even bigger conference this year. The increased benefits include year round values.

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.

August 27, 2011

Published in Port Calls, August 1, 2o11

SECOND HALF ACTIVITIES

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Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Donation to Japan

SCMAP ended the first half of 2011 with its Transportation Management Seminar, punctuated by a cash donation to the victims of the Japanese triple disaster of earthquake-tsunami-nuclear accident. On the second day of the transport management seminar SCMAP briefly halted seminar proceedings for a 15-minute ceremony as President Dennis Llovido handed over a check to the Philippine Red Cross representative, Ms. Anacletz Bandril.

The donation came from member companies and SCMAP itself. Most of these companies were themselves beneficiaries of Japanese generosity, as many of the AOTS (Association for Overseas Technical Scholarship) contingents in 2010 and 2011 came from these companies.  In fact the second contingent of AOTS scholars were concluding their training in Yokohama when the earthquake struck. The donor companies are Benby Enterprises, Fast Cargo Logistics, Integrated Commissary, Jugro Transport, Omni Logistics, XVC Logistics, Messe & Handel, and Ana Rose Ochoa as individual

Second Half 2011 Events

Below is a rundown of the most important events and activities for the second semester.

• Release of the first issue of Supply Chain Philippines, mid-August
• Inventory Control Seminar, August 5
• Strategic Procurement Seminar, August 26 (tentative)
• First roundtable forum of CEOs and CLOs on the changing landscape of the retail industry, Sept. 21
• 2011 Annual Supply Chain conference and exhibit, Sept. 22-23
• Salute to Excellence Awards, Sept. 23 (at the conference)
• Soft Skills Seminar, Oct. 13-14
• Start of first Certified Philippine Logistics Master program, October
• Warehousing Management Seminar, October
• Election, November
• Christmas Fellowship, Dec. 2

Last Call for Inventory Control Seminar

SCMAP’s next seminar is its one day Inventory Control Management Seminar, as usual conducted by UniMaC Business Consultancy, Inc.

• Date                Friday August 5, 2011
• Venue            Astoria Plaza, Escriva Drive, Pasig City

The seminar is taken from the SCMAP-DLSU module of the SCM certificate program, and harmonized with the new CPLM (Certified Phil. Logistics Master Program) module

Seminar topics

• Importance of inventory and inventoy management
• Cost implications of inventory
• Inventory categorization techniques
• Inventory control systems
• MRP, DRP, JIT
• Inventory reduction techniques

The lone speaker/facilitator is Al Lagera of PLDT and also from CPLM Program and SCMAP – DLSU Program

Fees – P5,500 for SCMAP member, P6,875 for non-member

Annual Supply Chain Conference – Biggest Event

On Sept.n22-23, 2011 SCMAP will hold its biggest activity of the yearat the EDSA Shangri-La Hotel, with the theme “Always Moving Ahead in Supply Chain”.

Around 350 participants from various sectors – manufacturers, distributors, service providers, logistics equipment, software vendors, and the academe, are expected to attend in this year’s conference. Leading supply chain experts in the Philippines and abroad are scheduled to share their expertise about how supply chain can be re-calibrated to survive today’s harsh economy.

SCMAP is inviting companies to partner with it by way of sponsorship or advertisement. The conference offers companies an excellent opportunity to network with the industry decision-makers and movers, while promoting their products and/or services.

• Special Principal Sponsor                                              Donation                PhP 105,000

• Principal Sponsor                                                              Donation                PhP 90,000
• C. Regular Sponsor                                                           Donation                PhP 45,000
• D. Cocktails Sponsor                                                        Donation              PhP 220,000
• E. Luncheon Sponsor (2 slots available)                 Donation              PhP 220,000
• F. Break Sponsor (3 slots available)                          Donation                PhP 110,000

·         F. Advertiser                                                                  Fee          P2,250 to P9,000, vat incl.

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.

July 30, 2011

Published in Port Calls, July 18, 2o11

DRIVERS & CUSTOMER PURCHASE

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Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Research on Drivers and Customer Purchases

I recently came across an article in the Journal of Business Logistics (Volume 32 No. 1, 2011) that sounded different from the usual articles published in this journal.

I have in the past discussed a few articles from this journal, and those who might remember will know that the journal, like a typical scientific journal, handles articles with mathematical and statistical rigor, using statistics jargon and mathematical symbols.

The title of the article I am writing about is “Driving Trucks and Driving Sales? The Impact of Delivery Personnel on Customer Purchase Behavior”. Curiously I began to read, and after a few pages, I began to realize that the article did not make for easy reading, and was like typical scientific research work, difficult to read and not for the average logistics practitioner. I will try to provide the gist of the research

The authors, Christoph Bode, Eckhard Lindemann, and Stephan  M. Wagner, are from the Swiss Federal Institute of Technology. They seek to answer the question – What kind of impact do delivery personnel on customer purchase behavior?

The research setting involved a single supplier firm that owned a truck fleet that is used to deliver its products to its customers. The firm is a medium-sized (500 employees) manufacturer located in Germany. At the time of the research the firm had about 2,500 customers in 7 countries, with 99% of them in Austria, Germany and France. Most of the customers were small and micro firms (10 or less employees). The largest customer accounted for 3% of total sales.

The research listed four hypotheses.

1. Personal contact quality has a positive effect on the customer firm’s purchase behavior
2. The larger the customer firm, the weaker the positive relationship between personal contact quality and the customer firm’s purchase behavior.
3. The older the relationship between the customer firm and the supplier firm, the weaker the positive relationship between personal contact quality and the customer firm’s purchase behavior.
4. The higher the frequency of contact between the driver and the customer firm, the weaker the positive relationship between personal contact quality and the customer firm’s purchase behavior.

Variablles used were:

• Personal contact quality – used a 4-point measurement scale referred to as Keller’s scale, which incorporated the driver’s friendliness, conscientiousness, helpfulness and knowledge of the customer
• Customer firm size – used the number of employees
• Relationship age – used the period of time that the supplier had worked together with the specific customer
• Frequency of contact – used the average number of deliveries per month during the 18 months preceding data collection
• Sales (the customer firm’s purchase behavior) – used the net operating sales earned by the supplier from a customer during the 18 month period

The research results show that all four hypotheses were supported. The authors state their output as follows. “Specifically, we have identified and tested the direct link between personal contact quality and purchase behavior, in addition to three moderator effects that explain under what conditions the direct link is operational.

Personally, I am a bit surprised with the result for hypotheses #2 to #4; however this is really debatable and the authors provide discussions to justify them.

The authors further say – “Our results suggest that truck drivers may, in fact, positively influence customer perceptions of service quality and the customers’ purchase behaviors. This finding provides support for recent research that stressed the importance of frontline employees inl logistics. We add to this stream of literature by highlighting the marketing potential residing in delivery personnel  in general, and truck drivers in particular”..

Inventory Control Management Seminar

SCMAP’s next seminar is its Inventory Control Management Seminar, as usual conducted by UniMaC Business Consultancy, Inc.

• Date                Friday August 5, 2011
• Venue                        Astoria Plaza, Escriva Drive, Pasig City

The seminar is taken from the SCMAP-DLSU module of the SCM certificate program, and harmonized with the new CPLM (Certified Phil. Logistics Master Program) module

Target participants are

• Practitioners with responsibilities in inventory management, warehouse management, and related functions in supply chain, logistics, planning, distribution and purchasing, including managers, trainees, new staff, or older staff requiring a new outlook
• Those with responsibilities other than the logistics aspects of supply chain, such as finance, sales, marketing and manufacturing

Seminar topics

• Importance of inventory and inventoy management
• Cost implications of inventory
• Inventory categorization techniques
• Inventory control systems
• MRP, DRP, JIT
• Inventory reduction techniques

The lone speaker/facilitator is Al Lagera of PLDT and also from CPLM Program and SCMAP – DLSU Program

Important registration info

• Fees – P5,500 for SCMAP member, P6,875 for non-member
• Registrants must pay before July 29, 2011.
• In case of any tax withheld, registrant must provide certificate of tax withheld, together with payment
• Cancellation fee P1,000 after August 1. Unused reservation not cancelled (‘no show’) will be billed in full.
• 10% discount if fully paid by July 22, 2011

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.

July 16, 2011

Published in Port Calls, July 4, 2o11

SCMAP ACHIEVMENTS

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

I had a long recent conversation with one of last year’s conference speakers, Raymond KM Moy, IBM’s ASEAN Regional Manager for the Distribution Industry and General Business.

His questions about how SCMAP started led me to recount the beginnings of the association, when I was in a unique position to call together in 1989 the first eight companies that formed the core group of DMAP (Distribution Management of the Phils.), the forerunner of SCMAP. I had retired a year earlier from Unilever and joined San Miguel Corp. The Soap and Detergents sub-group included Unilever, Procter & Gamble, Colgate and Johnson & Johnson. The San Miguel sub-group included SMC, Coca-Cola, Nestle and La Tondena.

DMAP was formed to counter the CISO cartel of shipping lines, the forerunner of DSA and now PLSA. After being granted huge freight rate increases by MARINA in 1989, the cartel again asked for an increase, this time +39%.

Actually DMAP was also formed to serve as a venue for information exchange by practitioners and to form a unifying group for diverse practitioners such as warehouse managers, distribution managers, transport managers, inventory planners, shipping managers, traffic managers, distribution planners, procurement managers, materials planners, etc, The term logistics was not even in use then. However the urgency of the onslaught of the CISO rate increases set the tone for the early years of DMAP.

There were also battles to be fought with the cargo handlers and the truckers groups with respect to rates. The government authorities in Metro Manila were imposing / proposing regulations on truck bans and other restrictions. Soon LGUs also began to impose their own ordinances on truck bans and parking fees / passing thru fees.

Thus the early years of DMAP were largely spent fighting high rates and disadvantageous impositions by the government.

Yet DMAP did not ignore its other role of developing, advancing and disseminating information on logistics. Barely two years after formation, DMAP began to organize seminars and forums, and workshops, and eventually the annual logistics conference.

This is why SCMAP became a “two-faced” organization. One face is being a cause-oriented organization, The other face is the role of information dissemination and training.

As a cause-oriented organization, DMAP directly sought improvements in logistics and supply chain process by fighting rate increases, disadvantageous government  impositions, cartels, regulatory capture. True to its nature of cause-orientedness, DMAP utilized various tactics and “weapons” such as writing to legislators, participating in a newspaper advertisement letter to Erap, organizing, attendance in meetings, forums, even a march to Mendiola

An Achiever Organization

IMPROVEMENT OF SUPPLY CHAIN PROCESSES – DIRECT IMPROVEMENT IN SUPPLY

CHAIN COST

• Reduction and deferment of shipping rate increases (1990 to 2003), including abolition of

the 0.3% valuation charge in shipping rates in 1990. Achieved thru continued participation in MARINA hearings and filing of cases

• Opposition to shipping deregulation rules that pass on the burden from shipping lines having to prove the need for rate increase, to cargo owners having to disprove the need for rate increase
• Filing of cases questioning the legality of MC153 on deregulation
• Filing of cases vs. unilateral 20%, 6% and 7.5% increases imposed by shipping lines
• Reduction and deferment of cargo handling rate increases,achieved thru continued participation in PPA rate hearings, submission of position papers, inputs to  PPA on cargo hand
• ling rate structure
• Opposition vs. pass-on to cargo owners of funding for port workers social amelioration fund
• Trucking rates negotiation with INHTA
• Opposition to large unjustified toll rate increases

IMPROVEMENT OF SUPPLY CHAIN  PROCESSES – SERVICE IMPROVEMENT

• Opposition to implementation of EO 59 monopolistic provisions / no public bidding, and subsequent equivalent unsolicited proposal and single terminal operator
• Advocacy of revision of PPA charter which contains conflict of interest ; also advocacy of policy on competition
• Performance appraisal of domestic shipping lines
• Support for and inputs to EO170 and 170A on Road RORO Transport System and advocacy of shipping alternatives
• Conversion of TRB truck ban at expressways to load limits. Opposition to a 15-hour Manila truck ban . Opposition to a proposed odd-even traffic scheme
• Implementation of trucking service standards with INHTA

DEVELOPMENT, ADVANCEMENT AND DISSEMINATION OF SUPPLY CHAIN KNOWLEDGE

• Holding of various forums with government officials and private groups as speakers, on topics such as truck ban, hijacking, EVAT, shipping deregulation, RORO project, ports projects, road projects, trucking, shipping lines plans, bar coding, citizens’ crime watch seminar, etc.
• Annual logistics / supply chain conference & exhibit
• Annual shipping / logistics immersion courses on board vessel
• Seminars / workshops / forums – on warehousing, intro to supply chain mgt., logistics outsourcing, leadership, quantitative approaches to logistics planning, basic shipping course, forum on measuring logistics performance
• Speaker and participation in, and endorsement of, international logistics Conferences
• Surveys on distribution practices, shipping procedures, hijacking, trucking rates, pallets, third party logistics, warehousing shipping lines appraisal, benchmarking project
• Contacts and lectures with the academe (De la Salle, UA&P, MIT, TIP), SCMAP-DLSU program on SCM
• Cooperation with JETRO and AOTS on logistics conferences, consultations, training
• Development of a certified logistics master program under guidance of JETRO and in cooperation with PCCI
• Publication of a regular column – “SCMAP Perspective” in Port Calls newspaper
• Listing with the Council of Logistics Management as a trade and professional organization
• Participation in various conferences, congresses, council work with government and private groups (MARINA, PPA, PLSA, DOTC, MMDA, SPAC, PSB, DTI, PCCI, etc.) Key role in CSPM (Coalition for Shipping & Ports Modernization).

This year SCMAP is expanding its external activities, reaching out to more and more organizations. The new activities of SCMAP deserve a separate issue

Looking back, it is fair to say that had DMAP not been formed, shipping and cargo handling rates would be much much higher now. One cannot help but feel proud of SCMAP’s accomplishments

As Raymond Moy said to me, there is no similar or equivalent organization in Singapore. Probably true in some other countries?

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.

July 2, 2011

Published in Port Calls, June 20, 2o11

Conference Sponsor Slots

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

SCMAP has sweetened the benefits for sponsors in this year’s supply chain conference and exhibit, promising an even bigger conference this year. The increased benefits include year round values.

The SCMAP, a professional organization of companies committed to improving the quality of their supply chain processes and professionalizing their supply chain practitioners, will hold its Annual Conference and Exhibit 2011 with the theme:

“Always Moving Ahead in Supply Chain”

at the Isla Ballroom of EDSA Shangri-La Hotel, Mandaluyong City, on September 22 and 23, 2011.

Usual Benefits:

A. Special Principal Sponsor Donation                 PhP 105,000

¨     One 10 sq. m. (2.5m x 4m) free standing exhibit booth for your products/services during the 2-day conference.

¨     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

¨     One 9 sq. m. (3m x 3m) free standing exhibit booth for your products/services during the two-day conference.

¨     Two (2) participants can attend the conference free-of-charge.

¨     Corporate AVP (30 sec) shown eight 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

C. Regular Sponsor Donation                 PhP 45,000

¨     One 6 sq. m. (3m x 2m) free standing exhibit booth for your products/ services during the two-day conference.

¨     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

Additional Benefits

The sweeteners listed below show that a small investment gives year-round benefits.

Cocktails, Luncheon & Break Sponsors

-          Monthly feature in our SCMAP website for new product & announcements (Oct 2011 to Jun 2012)

-          Monthly feature in our Facebook Account

-          Free 1 full page advertisement in our 2^nd (Nov 2011) or 3^rd (Apr 2012) issue of Supply Chain Philippines Magazine, a magazine that chronicles developments in PH SCM and features important events in the industry.

-          Entitled to 1 product showcase/presentation at our GMM with 3 free attendees

-          2 free guests at our 2012 SCMAP Induction of Officers, Feb 2012

-          A special product / leaflet insertion can be accepted in our magazine (Cocktails & Luncheon Sponsors only)

-          1 free participant in the 2012 Logistics Immersion Course – target venue: Puerto Princesa City, Palawan (Airfare & hotel accommodation included) – Cocktails & Luncheon Sponsors Only

-          Cocktails Sponsor will automatically be the sponsor for the Celebration Night, where the winners for the salute to excellence awards will be invited.

Special Principal Sponsors & Principal Sponsors

-          Quarterly feature in our SCMAP website for new product & announcements (Oct 2011, Jan 2012, Apr 2012)

-          Quarterly feature in our Facebook Account

-          Free 1/2 page advertisement or 50% off for 1 full page advertisement to our 2^nd (Nov 2011) or 3^rd (Apr 2012) issue of Supply Chain Philippines Magazine, a magazine that chronicles developments in PH SCM and features important events in the industry

-          Entitled to 1 AVP presentation at our GMM with 2 free attendees

-          1 free guest at our 2012 SCMAP Induction of Officers, Feb 2012

Regular Sponsors

-          One-time feature in our SCMAP website for new product & announcements (Oct 2011- Apr 2012)

-          One-time feature in our Facebook account

-          Free 1/4 page advertisement or 25% off for 1 full page advertisement to our 2^nd (Nov 2011) or 3^rd (Apr 2012) issue of Supply Chain Philippines Magazine, a magazine that chronicles developments in PH SCM and feature important events in the industry

-          Entitled to 1 attendee to our GMM

-          1 free guest at our 2012 SCMAP Induction of Officers, Feb 2012

Seminars

Lineup of seminars for the rest of the year is listed below.

• Transport Management Workshop, Friday-Saturday, June 24-25, 2001
• Quantitative Approaches to Logistics Planning, Saturday, July 30, 2011
• Inventory Management Seminar, Friday August 26, 2011
• Soft Skills Training, Thursday-Friday, October 13-14, 2011
• Warehouse Management Seminar, Friday-Saturday, November 25-26, 2011

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.

June 18, 2011

Published in Port Calls, June 6, 2o11

TM WORKSHOP & OTHER SEMINARS

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Transport Management Workshop

This is a new SCMAP seminar, conducted from the perspective of Supply Chain Management. The schedule and venue are

• Date                Friday-Saturday June 24-25, 2011
• Time               8:00 am – 5:30 pm
• Venue           Astoria Plaza, Park Avenue Room

The 2-day workshop is conducted by UniMaC Business Consultancy, Inc., with top talents from SCMAP as facilitators, namely three past presidents of SCMAP

• Cora Curay, XVC Logistics
• Ike Castillo, Fast Logistics
• Dennis Llovido, Nestle Phils., current SCMAP president

In addition two guest speakers will come from DHL and Oracle.

Workshop topics include the following..

• Logistics and SCM overview, role of transportation
• Principles & modes of transportation; distribution channels
• Customer service, transport performance mgt.                                                              .
• International transportation, international trade, Incoterms, customs
• Sea transport, Phil. setting, pricing, alternatives, deregulation, cabotage
• Air transport, overview, pricing, open skies
• Land transport, Phil. infra developments, pricing, overloading
• Transport management systems
• Security & safety, greening SCM, carbon footprint & transportation

Participants expected to attend are

• Transport and distribution managers, supervisors and analysts. SCM and logistics practitioners
• Staff in allied functions, with responsibilities involved in Supply Chain, other than the logistics aspects of supply chain, such as finance, sales, marketing and manufacturing.

Seminar fees are

• SCMAP members    P11,000 VAT included
• Non-SCMAP             P13,750 VAT included

Early bird 10% discount if fully paid by June 10, 2011

Deposit payment at any branch of the BPI, in the checking account of UNIMAC Business Consultantcy # 3191-0468-96. (TIN is 006-805-075 VAT)

Registrants must pay before June 16, 2011. In case of any tax withheld, registrant must provide certificate of tax withheld, together with payment

Cancellation fee P1,000 after June 21. Unused reservation not cancelled (‘no show’) will be billed in full.

Other Seminars

Lineup of seminars for the rest of the year, including the annual conference, is listed below.

• Quantitative Approaches to Logistics Planning, Saturday, July 30, 2011
• Inventory Management Seminar, Friday August 26, 2011
• Annual Supply Chain Conference, Thursday-Friday, Sept. 22-23,2011
• Soft Skills Training, Thursday-Friday, October 13-14, 2011
• Warehouse Management Seminar, Friday-Saturday, November 25-26, 2011

Annual Supply Chain Conference

On the annual conference, SCMAP has already announced the theme – Always Moving Ahead in Supply Chain.

SCMAP is currently finalizing the lineup of speakers. The Conference Committee is still open to awarding some speaking slots.

At the same time, the Committee has announced that it is enlisting sponsors at the same levels as last year, cocktails sponsor, luncheon sponsor, break sponsor, special principal sponsor, principal sponsor and regular sponsor. Sponsorships include the usual benefits of exhibit booth, free participants, free advertisement, etc. This year, however, there will be additional benefits of year round exposure to the membership.

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.

June 4, 2011

Published in Port Calls, May 9, 2o11

Competition Law 2

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Domestic Shipping Cartel

In the last issue I wrote about the increased attention to competition law in recent weeks.

SCMAP has had its share of conflict with cartels and monopolies and would-be monopolies. To be sure, the last straw that caused the formation of DMAP (the fore runner of SCMAP) was the cartel activities of CISO (Conference of Inter-island Shipowners and Operators) in the late 1980s. CISO was the fore runner of DSA and PLSA.

Prior to the 1990s, the shipping lines always got the increase in rates they desired. Although there were rate hearings at the MARINA, there were no oppositors, except an old consumer advocate, whose only complaint was cockroaches and bedbugs. In 1989, the shipping lines received hefty increases in rates, ranging for different items, from +25% to +100%. Shippers felt helpless. As if that was not enough, in 1990, the shipping lines asked for an additional +39%.

That was the last straw! I had just joined San Miguel after retiring from Unilever. It was relatively convenient for me to get companies together, willing and wanting to oppose – four SDAP companies (Unilever, P&G, Colgate, J&J), four “San Miguel group” companies (SMC, Coca-Cola, La Todena, Nestle), and two battery companies (Eveready, CC Unson). I was DMAP’s witness at the 1990 hearings.

The rest is history. For the first time, the shipping lines did not get what they wanted. MARINA awarded +25% and the fork tariff at plus or minus 5%, by virtue of MC57. At the same time the 0.3% valuation surcharge was eliminated.

From then on, up to the late 1990s, DMAP did battle with the CISO cartel at the MARINA court hearings. Typically CISO was awarded around half of what they asked for. My basis for describing CISO a cartel was the word of the late Boi Balbon himself. Boi Balbon was the president of CISO who was later appointed MARINA Administrator. Boi Balbon referred to CISO as a cartel in a private conversation.

The young organization, DMAP, immediately declared that it was against monopolies and cartels. This declaration was of course consistent with the, then, new constitution.

Over the years, CISO and later DSA, remained true to form as a cartel. In the rate hearings, the individual shipping lines used identical arguments and the same lawyer. It can be said that the MARINA recognized the cartel because the calculation for the return on rate base (RORB) of the shipping lines combined the FS of the individual shipping lines. The MARINA rate hearings later disappeared with the enactment of deregulation

Cargo Handling

A similar situation existed to some extent, with the domestic cargo handlers, but perhaps more pronounced with the international cargo handlers, ICTSI and ATI. The rate hearings for cargo handlers at PPA were less formal; there was no judge or hearing officer. PPA seemed to act as a sponsor for the cargo handlers, reading out the position papers and arguments of the cargo handlers. Comments were solicited from attendees and these were “noted”, but somehow they had no effect on the rate increase decision because the cargo handlers got what they wanted.

EO59

A threat of a giant cartel / monopoly loomed at the turn of the century under the presidency of Erap. Erap signed the infamous EO59 in the lull between Christmas Day of 1999 and New Year’s Day. EO59 sought to create a “unified contractor” at the North Harbor that would take care of all cargo handling services and ancillary services at the North Harbor. “Unified contractor” was a new term invented to replace the terms cartel and monopoly to make them sound more palatable. The members of the proposed unified contractor included the giant cargo handlers and some shipping lines. The unified contractor would later expand to the rest of the country.

I remember being tipped off by Vic Suazo who was then with a private group. DMAP enlisted the support of various groups in leading opposition to EO59. Among the groups we contacted were UTAP, SPIK, FPI, AISL FSA, PSAA, UA&P. It was a difficult battle, which included letters to senators and congressmen, a newspaper advertisement, attendance at meetings of DTI and other agencies, and even a march to Mendiola.

The specter of EO59 finally disappeared when Erap rescinded it in October 1999 as part of a televised speech around two months before his downfall.

Seminars

Initial seminar offerings include

• Logistics Immersion Course (on board vessel and plane)       May 13-15
• Transport Management Workshop (2 days)                                June 24-25
• Strategic Procurement (1 day)
• Quantitative Approached to Logistics Planning (1 day)

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.

May 7, 2011