SCMAP Perspective #238

Published in Port Calls, March 29, 2010

KEY LOGISTICS DECISIONS 3 & 4

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By Ed Sanchez
SCMAP Executive Director

SCMAP Perspective #237

Published in Port Calls, March 15, 2010

KEY LOGISTICS DECISIONS 1 & 2

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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 Perspective #236

Published in Port Calls, March 1, 2010

SCM TRAINING OPPORTUNITIES

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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

SCMAP Perspective #235

Perspective  (#235)

Published in Port Calls, February 1, 2010

LOGISTICS STRATEGIES

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By Ed Sanchez
SCMAP Executive Director

Logistics Strategies

Supply Chain Management continues to evolve, and with it, Logistics Management also continues to evolve, since the latter is part of the former. In addition to the effects of changes in SCM, technological developments and the unfolding business scenarios have their influences.

Every now and then, we spend space for technical publications. This is another one of them. Of course we avoid technical details and attempt to simplify the discussion.

“As the logistics discipline continues to mature, it is relevant, if not crucial, to periodically assess the current state of the field in terms of its classification of key concepts, activities, and events.” This is a direct quote from a research article in the Journal of Business Logistics, Vol. 29 No. 2 2008, entitled “A Logistics Strategy Taxonomy”.

Co-authors of the research are Chad W. Autry (Texas Christian University), Zach G. Zacharia (Lehigh University) and Charles W. Lamb (Texas Christian University). The research makes use of statistical tools: a survey and statistical techniques. The main result of the research is as follows.

The research identified 11 clusters of activities in the discipline of logistics, and measured the importance of each cluster to two types of Logistics Strategy, namely (1) Functional Logistics Strategy and (2) Externally Oriented Logistics Strategy..

As examples, below are the items listed under two out of the 11 clusters of activities.

4. Logistics Social Responsibility

• Environmentally conscious packaging
• Packaging of hazardous materials
• Recycling
• Reusable packaging
• Waste management

3. Inventory & Order Management

• Distribution Requirements Planning
• Inbound freight cost analysis
• Inventory order management .
• Inventory value analysis .
• Manual order transmittal
• Material Requirements Planning
• Order planning for demand smoothing

The importance of each activity cluster to each strategy (two columns) was rated on a scale of 1= not at all important, to 7= extremely important. Significant difference in importance to the two strategies at below 0.01 probability is marked “sig*”, and also in boldface.

The two logistics strategies are described by the authors as follows.

Strategy 1: Functional Logistics Strategy

The primary goal is to achieve maximum logistics efficiency. This is accomplished by focusing on inventory and order management; order processing; and procurement and storage activities, as well as by addressing common functions related to customer service, operational controls, and transportation management.

Strategy 2: Externally Oriented Logistics Strategy. The primary goal is to emphasize the ability to respond quickly and efficiently to changing customer needs, outbound delivery, support and services. This is accomplished by focusing on Interfirm Coordination and Collaboration Activities, logistics social responsibility, Strategic Distribution Planning, and by leveraging supply chain technology and information systems, as well as addressing common functions related to customer service, operational controls, and transportation management

Managers can examine their strategy and look at the activity clusters to determine which are being emphasized by the company, and also look at the company’s performance compared to industry or competitors or internal benchmarks. Based on these comparisons, managers can fine-tune their strategy.

“Managers who are able to identify their current logistics strategy as either FL or EOL (or mostly FL/EOL) can use the activity clusters … and the items that comprise these clusters [shown only in the research article] to prepare a logistics strategy audit form for use during periodic strategic evaluation sessions, i.e., strategic benchmarking versus internal goals. Such a form can then be used to assess which of the activity types and specific activities are being emphasized by the firm and the firm’s performance on these dimensions compared to their industry or major competitors, or versus pre-established internal benchmarks.

“The results of these comparisons can then be used to fine-tune or enhance the latent strategy, and provide strategic direction for the firm’s logistics planning function. Using this technique, it is also possible that some managers who perceive that their firm logistics strategy is unique or innovative may find that their focus is closely aligned with one of the two strategies identified in this study. As a result, they too may find that the activities and clusters that represent alternative strategy types are useful for auditing and fine-tuning their strategies, and for creating greater differentiation based on logistics strategy versus competitors

Soft Skills Seminar Reformatted

SCMAP’s second seminar offering for the year will be a soft skills seminar. Instead of a public seminar, one company has expressed interest in hiring the services of Prof. Ninoy Rollan of Ateneo de Manila, professor in Leadership and Human Resources for an in house seminar.

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

January 15, 2010

SCMAP Perspective #233

Published in Port Calls, January 18, 2010

EDUCATION, INDUCTION

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By Ed Sanchez
SCMAP Executive Director

Last Call – Intro to SCM Seminar

SCMAP is making a last call for its first seminar offering this year. This is the 2-day seminar on Intro to SCM. Readers please note the schedule

• Schedule       : Jan. 25-26, 2010 (Monday – Tuesday)
• Time               : 8:00 am to 5:00 pm
• Venue                        : Astoria Plaza, Escriva Drive, Ortigas Center
• Fee                 : SCMAP members P11,000 VAT included

non-members P13,750 VAT included

• Please make check payable to UniMaC Business Consultancy, Inc.

The 2-day seminar is a capsulized version of the SCMAP-DLSU certificate program in SCM (which is 42 Saturdays long). Facilitators will be the same as the faculty handling the DLSU program. Their topics are:

• Ike Castillo (Avon Cosmetics) : Intro to SCM, Transportation and Distribution Mgt., Strategic Purchasing & Procurement Mgt.
• Al Lagera (PLDT) : Inventory Planning & Control
• Gabby Patag (TNT)  : Warehousing Mgt., Material Handling & Inventory Mgt., Supply Chain Governance

SCMAP-DLSU Certificate Program

Meanwhile the SCMAP-DLSU certificate program in SCM is back on stream. There are 3 modules currently ongoing or about to go on. All schedules are on Saturdays, from 9:00 am to 4:00 pm. Each module is seven Saturdays long. These modules are the following.

• Module 6 – Supply Chain Governance, Faculty Gabby Patag, Dec. 5, 2009 to Jan. 30, 2010
• Module 1 – Intro to SCM, Faculty Ike Castillo, Jan. 16 to Mar. 6, 2010
• Module 2 – Transportation and Distribution Management, Faculty Ike Castillo or Al Lagera, Mar 13 to May 15, 2010

Module 1 – Intro to SCM. This module provides an overview of SCM as a business philosophy and a corporate strategy to drive or turn around the business. The course includes a study of supply chain evolution, a thorough discussion of its scope, and its strategic role in the business and economy today.

Module 2 – Transportation and Distribution Management. This module provides a comprehensive review of transportation and distribution management and its role in SCM. This course includes a thorough description and discussion of the different modes of transportation, pricing methodologies, standards and performance The course dwells heavily on the practices relative to the Philippine setting, while touching as well on global transportation concepts, and best practices in all modes of transportation, as they are applied in distribution channels and distribution management.

Module 6 – Supply Chain Governance. This module tackles special topics and issues in SCM. These include environmental, ethical and social responsibility concerns, governance, change management, creativity and relationship management for effective customer service.

Soft Skills Seminar

SCMAP’s second seminar offering for the year will be the Leading Winning Teams seminar, one of SCMAP’s seminars in the soft skills area. The schedule is Feb. 12, 2010. Venue will be at the Astoria Plaza. The facilitator will be Prof. Ninoy Rollan of Ateneo de Manila, professor in Leadership and Human Resources. Fees for this one day seminar will be P5,500 for SCMAP members and P6,875 for non-members.

Induction

SCMAP’s officials, including directors and committee chairpersons for year 2010, will be inducted on January 29 at the EDSA Shangri-La. To be tapped as keynote speakers / inducting officers are PISA Chairperson Doris Magsaysay-Ho and NCRPO PNP Chief Roberto Rosales. Attendance for non-members is by invitation only.

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

January 15, 2010

SCMAP Perspective #232

Published in Port Calls, January 4, 2010

COLLABORATION, SCM SEMINAR

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By Ed Sanchez
SCMAP Executive Director

Collaboration

The Volume 30 No. 2 issue 2009 of the Journal of Business Logistics included an article entitled “An Analysis of Supply Chain Collaborations and Their Effect on Performance Outcomes”. This particular research work aims to assess the relationship between SC collaboration and business performance. The authors are Zach Zacariah (Lehigh University), Nancy Nix (Texas Christian University) and Robert Lusch (University of Arizona).

The prior literature review mentions that a lot of research work has been done, but emphasizing four key areas. I quote from the article the four areas.

1. Reasons to collaborate or desired collaboration outcomes

• To share resources and combine knowledge, skills and physical assets to create strategic advantage and enhance profits

2.  Circumstances in which collaboration is beneficial

• Where the relationship cannot be controlled by formal systems, companies can create modular or sequential synergies, or to cope with environmental uncertainty

3. Inter-organizational or relationship characteristics facilitating collaboration

• Where firms are interdependent, where there is trust and commitment between them, and they have mutual credibility

4. Processes that influence collaboration outcomes

• Information sharing, knowledge acquisition, joint decision making, and the development of an alliance competence.

The article points out that there has been limited research on company business performance outcomes of a collaboration project. Being published in the Journal of Business Logistics, the article is typically highly technical and not easy to understand for non-techies. We just mention some of the highlights of the research.

• The focus is on collaboration projects between buyers and suppliers
• Out of 10,160 potential respondents (5,000 contacts from the Institute of Supply Management and 5,160 from a supply and value chain center of a university), after qualification and screening steps, the final useable sample numbered 473
• Types of collaboration project reported were

1. New product, service and packaging development                        29%
2. Process innovation                                                                                       26%
3. Supplier development                                                                                 13%
4. Problem resolution                                                                                        9%
5. Negotiation process                                                                                      7%
6. Technology implementation                                                                     5%
7. Relationship development                                                                         1%
8. Others                                                                                                               10%

• The authors developed a theoretical framework relating 6 constructs, namely:

1. Interdependence of knowledge and process
2. Understanding of supply chain partner
3. Collaboration level
4. Operational outcomes (cost, quality, cycle time, customer service)
5. Relational outcomes (trust, credibility, effectiveness of the relationship)
6. Business performance (organizational performance, asset utilization, competitive position, profit)

• A technique called structural equation modeling was used to analyze the data

The research project set up seven hypotheses to be tested:

1. The greater the interdependence of process and knowledge, the higher the level of collaboration among the firms
2. The greater the level of understanding of supply chain partner, the higher the level of collaboration among the firms
3. The higher the level of collaboration, the better the operational outcomes
4. The higher the level of collaboration, the better the relational outcomes
5. The better the operational outcomes, the better the relational outcomes between the collaborating firms
6. The better the operational outcomes, the better the business performance
7. The better the relational outcomes, the better the business performance

Testing of the 7 hypotheses would validate the theoretical framework. Statistical tests performed basically validated the hypotheses at the 99.9% level, except the 7^th hypothesis which was at the 99% level.

Part of the summary reads: Collaboration outcomes (both operational and relational) have a large impact on business performance (asset utilization, improved profitability and stronger competitive position). Finding interdependent supply chain partners, investing time and resources to understand them, and collaborating intensely are critical to achieving successful operational and relational outcomes, and therefore business performance. The above may sound obvious to some, but there is always value in doing research that has gone through the rigors of statistical testing.

Intro to SCM Seminar

SCMAP’s first offering this year is its 2-day seminar on Intro to SCM. Readers please note the change in schedule (formerly Jan. 21-22, 2010).

• Schedule       : Jan. 25-26, 2010 (Monday – Tuesday)
• Time               : 8:00 am to 5:00 pm
• Venue           : Astoria Plaza, Escriva Drive, Ortigas Center
• Fee                 : SCMAP members P11,000 VAT included

non-members P13,750 VAT included

• Please make check payable to UniMaC Business Consultancy, Inc.

The 2-day seminar is a capsulized version of the SCMAP-DLSU certificate program in SCM (which is 42 Saturdays long). Facilitators will be the same as the faculty handling the DLSU program. Their topics are:

• Ike Castillo (Avon Cosmetics) : Intro to SCM, Transportation and Distribution Mgt., Strategic Purchasing & Procurement Mgt.
• Al Lagera (PLDT) : Inventory Planning & Control
• Gabby Patag (TNT)  : Warehousing Mgt., Material Handling & Inventory Mgt., Supply Chain Governance

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

December 27, 2009

SCMAP Perspective #231

Published in Port Calls, Decembe r 21, 2009

SCM SEMINAR, OUTSOURCING

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By Ed Sanchez

SCMAP Executive Director

Is Outsourcing Going Out of Fashion?

This is the title of a short article in Supply Chain Asia Magazine. Nov./Dec. 2009. The article actually refers to another article in the Economist, which asserts that ‘big is back’, referring to the creation of giant corporations resulting from a number of trends.

The Economist article says that corporate giants are returning because companies are finding contracting to be too complex and too risky.

I remember my old days with Unilever in the 1970s. Unilever, a global company, was always bent on doing everything by itself, except what was obviously not for the company to do, like operating domestic ships for distribution. It had truckers under total control, almost like owning the trucks.

In those days, the term third party logistics was unheard of. But there were already the beginnings of outsourcing. Unilever started contracting toll manufacturers and packers. Other companies, like Johnson & Johnson were also into toll manufacturing.

Manufacturers were afraid of surrendering the distribution function. Reasons included fear of discovery of marketing secrets by competitors. Information on new products to be launched stored in a third party warehouse under third party control would be in the hands of non-employees and could be transferred to competitors. Also non-employees might not adhere to company standards for warehousing, handling and packaging.

The attraction of freeing capital by disposing of assets was not sufficient to overcome the advantage of total control. Likewise for the advantages of flexibility and access to new ideas. Third parties just could not be trusted enough.

Now, with the seeming move away from outsourcing, the Supply Chain Asia article says that actually the new corporate giants are different from those in the past. These companies are more agile, “nimbler, more entrepreneurial and more focused”.

Reasons for the growth of new giants include:

• Companies are finding the contracting process too complex and too risky
• Key suppliers of some companies have collapsed financially
• Companies find regulation too complex
• Companies find difficulty in overseeing the performance of external contractors

The article continues that the real problem is that companies lack the skills, systems and knowledge to manage non-owned resources. Companies have failed to develop their contracting competencies. “Far from going out of fashion, contracting needs a renaissance”.

Intro to SCM Seminar

SCMAP starts its year with its 2-day seminar on Intro to SCM. Readers please note the change in schedule (formerly Jan. 21-22, 2010).

• Schedule       : Jan. 25-26, 2010 (Monday – Tuesday)
• Time               : 8:00 am to 5:00 pm
• Venue                        : Astoria Plaza, Ortigas Center
• Fee                 : SCMAP members P11,000 VAT included

non-members P13,750 VAT included

• Please make check payable to UniMaC Business Consultancy, Inc.

The 2-day seminar is a capsulized version of the SCMAP-DLSU certificate program in SCM (which is 42 Saturdays long). Facilitators will be the same as the faculty handling the DLSU program. Their topics are:

• Ike Castillo    : Intro to SCM, Transportation and Distribution Mgt., Strategic Purchasing & Procurement Mgt.
• Al Lagera       : Inventory Planning & Control
• Gabby Patag : Warehousing Mgt., Material Handling & Inventory Mgt., Supply Chain Governance

Omissions

At SCMAP’s Christmas fellowship last December 10, names of the incoming directors and committee chairpersons were announced. However three names out of nine were inadvertently omitted among elected committee chairs, namely

• Arnel Gamboa          Benby Enterprises
• Gerry Ong                  Cheng Ban Yek
• Yhel Reyes               GAC Logistics

Of the above three, only Yhel Reyes is a newcomer. SCMAP apologized to the three.

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

December 19, 2009

SCMAP Perspective #230

Published in Port Calls, December 7, 2009

2010 ACTIVITIES

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By Ed Sanchez
SCMAP Executive Director

SCMAP will end the year with its annual Christmas fellowship this Thursday, December 10. The theme is “Let’s Simply Celebrate Christmas…Again”, after last year’s “Let’s Simply Celebrate Christmas”.

SCMAP has released its schedule for 2010. SCMAP will start the year with its planning session, involving the new Board and committee chairpersons on Jan. 13.

A 2-day seminar, Intro to SCM will follow on Jan. 21-22. The induction of 2010 directors and officials will be held on Jan. 29, 2010. The officials to be inducted are listed at the end of this column.

The rest of the year’s activities will include monthly Board meetings from March to November, and six general membership meetings, in February, April, June, August, October, and November.

Next year’s supply chain conference will be on September 23-24, while the shipping immersion course is tentatively scheduled on May 14-17.

SCMAP will maintain its two-fold mission of

• To lead the evolving supply chain management profession in the Philippines by developing, advancing, and disseminating supply chain knowledge and research in the Philippines, and also
• To advocate government policies, rules, legislation and private sector activities that improve supply chain management processes

On the first mission, SCMAP will be conducting seminars. The schedule of seminars in 2010 includes the following.

• Intro to SCM (2 days), Jan. 21-22
• Leadership (1 day), Feb. 12
• Intro to Strategic Procurement (1 day), March 12
• Quantitative Approaches to Logistics Planning (6 hrs.), April 26
• Shipping Immersion Course (3 days), May 14-17
• Warehousing Seminar I (2 days), June 17-18
• Logistics Outsourcing (1 day), July 16
• Warehousing Seminar II (1 day), August 13
• SCM conference (2 days), September 23-24
• Inventory Management (1 day), October 15
• Transportation (1 day), November

The seminars utilize as speakers SCMAP luminaries, past presidents and officers, and industry experts. The seminars have been developed by UniMaC Business Consultancy, Inc.  Among the speakers are Ike Castillo, Malou Santos, Norman Adriano, Gus Arguelles, Al Lagera, Gabby Patag, Ninoy Rollan and Cora Curay.

SCMAP will continue its relationship with DLSU on its SCM program, and also pursue its discussions with UAP over a course in SCM.

To be inducted on January 29, 2010 are the following directors.

Dennis Llovido         Nestle                            Director and President

John Guillermo        Big E Food Corp.      Director and Vice President

Marilyn Lauron         Getz Bros.                  Director and Secretary

Elsie Oafallas           Sr. Marketing               Director and Treasurer

Cora Curay               XVC Logistics              Director and Auditor

Dina Pilapil               IDS Logistics               Director

Pio Bernardo                        Megavia            Director

Danny Cabrera        Zuellig Pharma           Director

Al Lagera                   PLDT                               Director

German Martizano   Unilever                     Director

Also to be inducted are the following committee chairpersons.

Lloyd Dizon               Koldstor                        Committee Chair

Gabby Patag             TNT                                  Committee Chair

Rene Casas              JG Summit Petro          Committee Chair

Remie Co                  Fast Cargo                      Committee Chair

Abbe Daza                Omni Logistics            Committee Chair

Max Yap                    Oriental & Motolite   Committee Chair

Yhel Reyes               GAC                                 Committee Chair

Gerry Ong                  Cheng Ban Yek          Committee Chair

Arnel Gamboa          Benby                           Committee Chair

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

December 4, 2009

SCMAP Perspective #229

Published in Port Calls, November 23, 2009

2010 LEADERSHIP

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Election

At the SCMAP general membership meeting last Thursday November 19, the members present elected the Directors and the Committee Chairpersons for 2010. The elected Directors elected the Officers from among themselves.

Elected were the following:

Dennis Llovido         Nestle                            Director and President

John Guillermo        Big E Food Corp.       Director and Vice President

Marilyn Lauron         Getz Bros.                   Director and Secretary

Elsie Oafallas           Sr. Marketing               Director and Treasurer

Cora Curay               XVC Logistics              Director and Auditor

Dina Pilapil               IDS Logistics                Director

Pio Bernardo                        Megavia             Director

Danny Cabrera        Zuellig Pharma            Director

Al Lagera                   PLDT                                Director

German Martizano   Unilever                      Director
Only four are incumbent directors, five are past directors and one is a first timer director but is also a past committee chairperson. All these translate to continuity.

Even at the committee chairperson level, only one is a newcomer, again reflecting continuity. Assignments to committees will be decided later.

Lloyd Dizon               Koldstor                      Committee Chair

Gabby Patag             TNT                                Committee Chair

Rene Casas              JG Summit Petro         Committee Chair

Remie Co                  Fast Cargo                     Committee Chair

Abbe Daza                Omni Logistics            Committee Chair

Max Yap                    Oriental & Motolite   Committee Chair

Yhel Reyes               GAC                                 Committee Chair

Gerry Ong                  Cheng Ban Yek          Committee Chair

Arnel Gamboa          Benby                           Committee Chair

The election of Dennis Llovido represents a change in leadership at the top. Finally, Cora Curay can take a break, after sacrificing her own time and resources for several years as President. SCMAP insiders are confident that incoming President Dennis Llovido of Nestle will be up to the challenge.

Christmas

SCMAP’s annual Christmas fellowship will be held on December 10. The theme is “Let’s Simply Celebrate Christmas…Again”, after last year’s “Let’s Simply Celebrate Christmas”.

Most companies will be very glad that 2009 will soon be over.

Top Companies.

Based on Business World’s Top 1000 Companies publication, 28 member companies of SCMAP were listed among the top 200. These are the following, with their rank in revenue.

Top 50 (12 SCMAP members)

2-Pilipinas Shell Petroleum, 5-Chevron Phils., 6-Nestle Phils., 7-PLDT, 8-Smart Communications, 14-Zuellig Pharma, 18-Coca-Cola Bottlers, 20-San Miguel Foods, 24- San Miguel Corp., 30-Philip Morris Phils., 31-Unilever Phils., 39-United Laboratories

No. 51 to 100 (8 SCMAP members)

60-Samsung Electronics Phils., 63-Del Monte Phils., 69-Ginebra San Miguel, 70-Wyeth Phils., 79-Metro Drug, 82-Bristol Myers Squibb, 90-IDS Phils., 100-Purefoods-Hormel Co.

No. 101 to 150 (5 SCMAP members)

116-Megavia Corp., 119-San Miguel Yamamura Packaging, 120-Colgate-Palmolive, 139-GSK, 140-Kraft Foods Phils.

No. 151 to 200 (3 SCMAP members)

151-All Asian Countertrade, 179-RFM Corp., 198-Solid Cement

Total SCMAP members in the top 200 = 28. Note that the above list is for 2008, not 2009. It would be interesting to see for 2009, but that would be a year away.

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

November 20, 2009

SCMAP Perspective #228

Published in Port Calls, November 9, 2009

MANDATORY WEIGHING

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

PPA MC 23 – 2009

PPA MC No. 23 – 2009 mandates the weighing of all outbound containers and RORO vehicles before loading onto a vessel.

SCMAP acknowledges that this MC is a good measure to “ensure safety not only in the handling of outbound containers, but also to mitigate risks to the port facilities, cargo handling equipment and the carrying vessels”. In addition, this can minimize damage to roads and bridges leading to the port of loading, and to roads and bridges leading out of the destination port, or ensure compliance to weight limits in destination countries.

The MC, published in the Manila Standard on October 22, 2009, and effective 15 days later, should have taken effect last November 6, 2009.

SCMAP basically shares the concerns expressed by the PLSA, in a letter from PLSA Executive Director Joy Maitim, to PPA GM Atty. Sevilla, with respect to the North Harbor.

PLSA asks – are the cargo handling operators ready to implement the weighing operation with a minimum risk of queuing?

On the absence of a set fee or guideline thereof, PLSA expects “bickering between cargo owners and service providers”, implying delays.

Guideline no. 6 of the MC says “Payment for the use of the weighbridge / truck scale shall be the rates as agreed upon by the service provider and the owner of the cargo / vehicle and as approved by PPA, until such time that the Authority shall have established a standard weighing rate nationwide”.

So, the PPA is deliberately not setting a rate at the start, or even a guideline for the rate. Under the above guideline no. 6, there are four parties at the start – the provider of the weighing service, the cargo owner, the vehicle owner, and the PPA. Not only is the rate not set. It is not clear who will pay for the weighing; the cargo owner or the vehicle owner.

It is like PPA saying let the market decide the weighing fee. Let the (three) parties negotiate. However, the PPA has stated that the rate must be approved by PPA?!!!

In addition, guideline no. 7 prescribes a share of the weighing fee for the PPA, and also of the permit fee required of the weighing service provider. Another source of income for the PPA!!!  We wonder about the logic of this PPA share.

The third concern of PLSA is about a 30 day notice that the PPA must observe. We go along with this.

Since I am writing this on November 6, I have no feedback yet on what happened on day 1.

Election and Fellowship

SCMAP’s election of 2010 directors and officers will be held during its general membership meeting on November 19, 2009. To be elected are 10 directors and 9 committee chairpersons. The 10 directors will elect among themselves the 6 officers

Following that, the annual Christmas fellowship will be held on December 10, 2009. This year’s theme is “Let’s simply celebrate Christmas … again”.

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

November 6, 2009

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