SCMAP Perspective #251

Published in Port Calls, September 27, 2010

More Logisitics Rule of Thumb

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Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

More Logistics, Rules of Thumb, etc.

Today we quote more from “Logistics, Rules of Thumb, Facts & Definitions”, a handy desktop reference for logistics and supply chain professionals, compiled from various sources by Dick Morreale and Bob Elliott. Today we have selected from another of the twelve chapters of logistics and supply chain information, that on Warehousing.

Warehouse Storage Capacity Source: Dick Morreale

A warehouse should have a full rack or floor stocking ratio of 85-90%. Anything over this ratio starts having a negative effect on productivity, damage and errors. Anything below this ratio could mean you have more space than you require. Productivity is estimated to decrease by 25% when you exceed the 85-90% level.

Origins of Warehousing Source: Chapter 14 of Genesis

The granaries of Ancient Egypt were used to store agricultural surpluses for future use in famine years. This is man’s first recorded use of warehousing

Warehousing Defined Quoted from: Howard Way

Warehousing is sometimes called “transportation at zero miles per hour

Pallet and Freight Damage Source: Don Prichard, Tompkins Associates

Pushing pallets of product on the floor with a forklift causes excessive damage to both product and pallets.

Carton Strength Source: Don Prichard, Tompkins Associates

Cartons should always be palletized with the vertical corrugated flutes in the vertical position to maximize carton strength.

DC Network Analysis Issues Source: Tompkins Associates

A complete network analysis will resolve these issues:

1. How many DC’s

2. Where to locate the DC’s

3. Amount of inventory at each DC

4. Establish acceptable service levels

5. Customer frequency

6. Customers to be served from each DC

7. Order profile from vendor to DC

8. Transportation modes

Breakdown of Employee Types in a Warehouse Source: Warehouse Mgt. Magazine

10% superstars

80% consistently good employees

10% problem employees

*Where is it written that when I get rid of one of my 10% problem employees, another employee feels the requirement to fill their shoes?

Rack Layout Quoted from: Don Frazier, Chairman Frazier Industrial

Always lay out racks with the length of the rack on the long dimension of the building in order to save 5% of the building’s storage capacity.

Rack Orientation Quoted from: Don Frazier, Chairman Frazier Industrial

Never have racks oriented in two dimensions, with parts of the rack going north and south and the rest going east and west.

2010 SCMAP Conference Post Script

Supply Chain anagement is alive and well!!! Last week’s supply chain conference and exhibit (“Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”), was a rousing success, even bigger and better  than last year’s then biggest and best. Attendance was highest (well over 300); there were more exhibit booths (over 40), and the keynote speakers and lineup of powerful local and foreign speakers gave interesting talks on a wider base of topics. The conference was a true bargain for the participants.

SCMAP wishes to extend its sincere thanks to the following sponsors and advertisers at last week’s conference :

• Luncheon Sponsor – Hyundai Alabang
• Break Sponsors – IBM, Motorola
• Special Principal Sponsors – Boeing Material Handling, DHL Supply Chain Phils., Globe Business, Handling Innovation Inc., ICTSI, Journey Tech
• Principal Sponsors – AsiaGlobal Technologies, Fast Logistics, GAC Logistics, HID Global GmbH, Loscam Phils., Manly Plastics, Nestle Phils., NMC Container Lines,  Prime Sales, Questronix Corp., Snaptech Inc., SSI Schaefer Systems, Unilever
• Regular Sponsors – ANSI Information Systems, Dennis International, Intermec,, Lionapex Phils., Lorenzo Shipping Corp., MHE-Demag (P), Negros Navigation, OneStop Logistics Solutions, Oroport Cargohandling Services, PLDT, Primepack Technologies, Solid Shipping Lines Corp., VLink MS, Webcast Technologies, XVC Logistics, Zuellig Pharma
• Cooperating Organizations – PCCI, Port Calls, Epson, Cold Chain Assn. of the Phils., De la Salle University
• Other Advertisers – 2GO, Bureau Veritas, EHD Logistics, Technofreeze, Inc., Transworld Brokerage Corp., Ansuico Inc., Warehouse One Systems & Services, Agro Freight Services, SKMTI, Transpecial, TRakwell Transport Link, Argo International Forwarders, Tri-Bar Warehousing and Distribution System, ILTC Trucking, Batangas Coast Construction Corp., Cesar Ramirez Construction and General Services, GD Matienzo Transport Services, Phoenix Material Handling

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

September 25, 2010

SCMAP Perspective #250

Published in Port Calls, September 13, 2010

SCMAP

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Logistics, Rules of Thumb, etc.

A handy book called “Logistics, Rules of Thumb, Facts & Definitions” has been serving as a desktop reference for logistics and supply chain professionals for years. The version I have is the 5^th edition and dates back to 2002, but many of the entries remain valid.

Contents of the book have been compiled from various sources by Dick Morreale and Bob Elliott. There are twelve chapters of logistics and supply chain information. I have selected six items from the chapter on Inventory as examples.

Inventory Levels for Multiple Locations Source: Peter A. Crosby

A single inventory level that is required to service a given geographic area will increase proportionately, as shown below, when subsequent warehouses are added to that same geographic area.

No. of Warehouses             Inventory Level               % Increase

1                                                            1.00                                0%

2                                                           1.41                              41%

3                                                           1.73                              73%

4                                                           2.00                            100%

Inventory Turns – A Broad View Source: James E. Morehouse, AT Kearney

A broader view of inventory turns – The turns of the typical total pipeline inventory, from Mother Earth to the ultimate consumer, are about one year, and that’s what counts. Unfortunately many programs simply move inventory to somebody else in the supply chain, and that “solution” is not going to change your fundamental competitive position.

Inventory Reduction Methods Source: Inventory Reduction Report

1. Periodic inventory review
2. Better usage, lead times and safety stock management
3. Cycle counting
4. Put inventory performance on display
5. Shift inventory back to suppliers
6. Delay ownership of inventory
7. Application of the ABC classification technique
8. Benchmarking

In-Stock Source: Thomas E. Foster Esq. Distribution Magazine

Each weekend, I gathered the major chains’ sales brochures. I then went to the stores to see how many of the items on sales were actually in stock. Just about every retailer failed my test – some miserably.  For any given sale flyer, an average of about 25% of the items were not in stock on the day the sale started. Retailers are losing too many sales simple because they are unable to have right merchandise available when it is needed.

Inventory Forecast and Replenishment Source: John Bly

A sophisticated inventory system, including demand forecasting and suggested replenishment, will reduce inventory levels by one-fifth if the implementation team has achieved similar results elsewhere.

Inventory Carrying Costs Source: ProLogis, State of Logistics Report

Carrying costs are the expenses associated with holding goods in storage (inventory at rest). These costs totaled $377 billion in 2000. That represented 3.7% of GNP. The three components of carrying cost wre:

• $95 billion for interest expense
• $78 billion for warehousing expenses (public and private)
• $204 billion for taxes, obsolescence, depreciation and insurance

2010 SCMAP Conference – Last Call

Just over one week to go for this year’s supply chain conference and exhibit, with its theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24, 2010 at the EDSA Shangri-La.

Participants are urged to register early because of an expected heavy turnout. A deadline of Sept. 13 has been announced. Call the SCMAP secretariat for clarification.

Sponsorship Opportunities

Very few sponsorship packages are left.

• Special Principal Sponsor                                                 all slots taken
• Principal Sponsor                                                                 all slots taken
• Regular Sponsor (only 3 slots left)                       Donation         PhP 45,000
• Cocktails Sponsor (1 slot available)                     Donation         PhP 220,000
• Luncheon Sponsor (1 slot available)                   Donation         PhP 220,000
• Break Sponsor                                                                        all slots taken
• Advertiser                                                                                  Fee         P2,250 to P9,000, vat incl.

Among those who have signed up as sponsors are:

• Luncheon Sponsor – Hyundai
• Special Principal – ICTSI, Handling Innovation, Globe Business, Boeing Material Handling, DHL Express
• Break Sponsors – IBM, Motorola, Questronix
• Principal – Fast Logistics, NMC Container Lines, Loscam Phils., SSI Schaefer, Nestle Phils., AsiaGlobal Technologies, HID Global GmbH, Manly Plastics, GAC Logistics, Unilever, Prime Sales, Snaptech Inc.
• Regular – MHE-Demag, Oroport, One Stop Logistics, Lorenzo Shipping, Victor Hardware, ANSI Info Systems, Webcast Technologies, Zuellig Pharma, XVC Logistics, Primepack Technologies, Solid Shipping, Negros Navigation, Intermec, PLDT, Journey Tech
• Cooperating Organizations – PCCI, Port Calls, Epson, Cold Chain Assn. of the Phils.

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

August 28, 2010

SCMAP Perspective #249

Published in Port Calls, August 30, 2010

SCMAP & CSCMP CONFERENCES

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

2010 SCMAP Conference

Just over three weeks to go for this year’s supply chain conference and exhibit, with its theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24, 2010 at the EDSA Shangri-La.

Last Thursday, SCMAP released the conference brochure at its August GMM. The brochure is also available at SCMAP’s website. The lineup of keynote speakers is

• From the government, Usec. Anneli R. Lontoc, Undersecretary, Department Of Transportation & Communications
• From the private sector,
  • Mr. Carlos V Cabochan – President, CVC Supermarket and Phil. Retailers Asociation    -     Retailer’s perspective
  • Mr. Ali Gokcelic – VP-Supply Chain, Unilever Phils.  -  Manufacturer’s perspective

This is SCMAP’s biggest event of the year. It will feature a 2-day conference with high powered speakers from local circles and abroad, as well as exhibit booths displaying products and services of providers and vendors in the field of SCM. Over 40 booths are expected

The conference will also announce the launch of a Certified Logistics Master Program and SCMAP’s Salute To Excellence Awards

Sponsorship Opportunities

Sponsorship packages are going fast.:

• Special Principal Sponsor (all slots taken)         Donation        PhP 105,000
• Principal Sponsor (1 slot left)                                  Donation         PhP 90,000
• Regular Sponsor (6 slots left)                                  Donation         PhP 45,000
• Cocktails Sponsor (1 slot available)                     Donation          PhP 220,000
• Luncheon Sponsor (2 slots available)                 Donation         PhP 220,000
• Break Sponsor (1 slot left)                                        Donation          PhP 110,000
• Advertiser                                                                             Fee              P2,250 to P9,000, vat incl.

Among those who have signed up as sponsors are:

• Special Principal – ICTSI, Handling Innovation, Globe Business, Boeing Material Handling, DHL Express
• Break Sponsors – IBM, Motorola
• Principal – Fast Logistics, NMC Container Lines, Loscam Phils., SSI Schaefer, Nestle Phils., AsiaGlobal Technologies, HID Global GmbH, Manly Plastics, GAC Logistics, Unilever, Prime Sales
• Regular – MHE-Demag, Oroport, One Stop Logistics, Lorenzo Shipping, Victor Hardware, Snaptech, ANSI Info Systems, Webcast Technologies, Zuellig Pharma, XVC Logistics, Primepack Technologies, Solid Shipping, Negros Navigation, Intermec, PLDT
• Cooperating Organization – PCCI, Port Calls, Epson, CCAP

Participant Fees

SCMAP is maintaining participant fees at last year’s rates, making the conference another great bargain.

• SCMAP members                P10,980
• Non-members                       P13,725

2010 CSCMP Conference

The annual global conference of the CSCMP is scheduled for Sept. 26 – 29, 2010 in San Diego. This is right after the SCMAP annual supply chain conference. CSCMP is the Council of Supply Chain Management Professionals, the largest organization of SCM practitioners in the world, numbering in the vicinity of 9,000. The CSCMP conference is the largest gathering of SCM professionals worldwide.

The entire program is too long to present here. Highlights are given below.

Pre-Conference Events include

• SCM Educators’ Conference
• Doctoral Symposium
• Newcomers’ Welcome and Orientation
• Welcome Reception in the Supply Chain of the Future
• Student Interview Day
• Student Showcase
• Pre-Conference Workshops

Supply Chain of the Future (with 24 new sessions). This is showcased in 100,000 square feet. CSCMP boasts that “it will take you to a world of automated innovation where you will see, first hand, the technologies, processes, and solutions provided by high performing supply chains. This is no movie but a hands-on real-time operating supply chain where technical experts will answer your most difficult questions  Only at CSCMP’s Annual Global Conference 2010 can you explore the world’s largest and most innovative exhibit showcasing the future of supply chain innovation.”.

Activities besides the educational sessions include:

• General Sessions (3 sessions)
• Current Issues in SCM (6 sessions)
• Wednesday Mega Sessions (3 sessions)
• Share Groups (5 sessions)
• 2010 Supply Chain Innovation Awards
• Facility Tours (5)

Educational Tracks and Sessions (20 tracks with typically 6 sessions per track)

• Track 1. Accelerating SC Transformations (6 sessions)
• Track 2. Best Practices in Managing and Optimizing Inventory (6)
• Track 3. Breaking Thru the Barriers : Winning the SC Challenge Together (6)
• Track 4. Current Research and Surveys (6)
• Track 5. Excellence in Warehousing (6)
• Track 6. Fundamentals of SCM (6)
• Track 7. Global Sourcing (6)
• Track 8. Leadership (5)
• Track 9. Lean and SC Excellence (6)
• Track 10. Managing in Turbulent Times (6)
• Track 11. Sales and Operations Planning (5)
• Track 12. Security, Recalls, and Compliance Regulations (6 sessions)
• Track 13. Supply Chain and Finance (6 sessions)
• Track 14. 2010 SC Innovations of the Year (6 sessions)
• Track 15. SCM Metrics (5 sessions)
• Track 16. How to Create a Sustainable and Successful SC (4 sessions)
• Track 17. Technology and the SC (6 sessions)
• Track 18. The Changing World of Supply Chain Risk (6 sessions)
• Track 19. Third Party Logistics – Getting the Strategy Right (6 sessions)
• Track 20. Transportation (6 sessions)

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

August 14, 2010

SCMAP Perspective #248

Published in Port Calls, August 16, 2010

CONFERENCE PROGRAM

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

2010 SCMAP Conference Speakers

Just over one month to go for this year’s supply chain conference and exhibit, with its theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24, 2010 at the EDSA Shangri-La. This is SCMAP’s biggest event of the year. It will feature a 2-day conference with high powered speakers from local circles and abroad, as well as exhibit booths displaying products and services of providers and vendors in the field of SCM. Over 40 booths are expected

SCMAP has released the lineup of speakers.  Keynote speeches will be delivered by the following: on Day 1 – Sept. 23, 2010.

• The Role Of Government In Supply Chain Management

Usec. Anneli R. Lontoc, Undersecretary, Department Of Transportation & Communications

• Supply Chain Perspective From The Point Of View Of A Retailer & A Manufacturer
  • Mr. Donnie Tantoco – President, Shopwise Chain Of Supermarkets     -     Retailer (Still For Confirmation)
  • Mr. Ali Gokcelic – VP-Supply Chain, Unilever Philippines  -  Manufacturer

Technical Sessions on Day 1 will include:

• Enhancing Supply Chain Infrastructure
  • Mr. Enrico Basilio, President REID Foundation & Faculty, UA&P School Of Economics

• A Successful Supply Chain Management Strategy For Filipino Companies In The Face Of The New SCM Agenda
  • Mr. Charlie Villaseñor – President & CEO, Transprocure Corporation & Chairman & CEO, Procurement & Supply Institute Of Asia (Pasia)

• Integrated Business Management/Sales & Operations Planning Process
  • Mr. Enrique C. Castillo – Director, Regional Distribution & Logistics – Asia Pacific, Avon Cosmetics

• Empowerng The Individual, Transforming The Enterprise – Together
  • Mr. Philip Leong – Business Development Director (Asia Pacific), Motorola

• Supply Planning In A Chaotic Recession World
  • Mr. Joe Davies – Regional Logistics Manager, Zuellig Pharma Philippines

• Talk by SAP

• Securing Your Distribution Network
  • Mr. Francisco Claravall IV – VP For Sales, Globe Business

Day 2 – September 24

• Strategic Sourcing To Fuel Growth And Profitability
  • Mr. Walter Buckzynski – Senior Trainor &
  • Mr. Mark Mojares – VP, Global Delivery Services & Technology, Transprocure Corporation

• Distribution Network Analysis And Its Relevance To Supply Chain Management
  • Mr. Rolando D.  Dela Cruz, Logistics Director, Jollibee Foods Corporation

• Better Decision-Making With Supply Chain Analytics
  • Mr. Olegario G. Villoria Jr. – General Manager
  • o Mr. Samuel B. Cruz – Senior Manager, Supply Chain Solution Center, IDS International

• Lean Supply Chain Management
  • o Ms. Arlene Azul – VP, Supply Chain Management, Dsp Dept Head, Nestlé Philippines Inc.

• Real World RFID: How Companies Have Achieved Operational Excellence & Profitability
  • Mr. Tony Hilder, Sales Director APAC Identification Solutions, HID Global GmbH (Singapore Branch)

• Talk by PLDT SME

• Making Supply Chains Smarter In Logistics
  • Mr. Raymond Moy, Market Segment Manager -For Consumer Products, Wholesale & Logistics Industries (Asean), IBM Sales & Distribution

• Greening The Supply Chain
  • Mr. Jesus Reyes, AVP Corporate Head SHE, Nestle Philippines, Inc., Chairman – Environment Committee, Philippine Chamber Of Commerce & Ind.

• Creating A More Relevant Supply Chain Dashboard
  • Ms. Joyce Ramos – Senior Demand Manager, Johnson & Johnson Philippines, Inc.

The conference will also announce the launch of SCMAP’s Salute To Excellence Awards

Sponsorship Opportunities

Sponsorship packages are going fast.:

• Special Principal Sponsor (1 slot left)

Donation PhP 105,000

• Principal Sponsor

Donation PhP 90,000

• Regular Sponsor

Donation PhP 45,000

• Cocktails Sponsor (1 slot available)`

Donation PhP 220,000

• Luncheon Sponsor (2 slots available)

Donation PhP 220,000

• Break Sponsor (2 slots left)

Donation PhP 110,000

• Advertiser

Fee P2,250 to P9,000 vat incl.

Among those who have signed up as sponsors are:

• Special Principal – ICTSI, Handling Innovation, Globe Business, Boeing Material Handling
• Break Sponsors – Fasttrack Solutions, Motorola
• Principal – Fast Logistics, NMC Container Lines, Loscam Phils., SSI Schaefer, Nestle Phils., AsiaGlobal Technologies, HID Global GmbH, Manly Plastics
• Regular – MHE-Demag, Oroport, One Stop Logistics, Lorenzo Shipping, Victor Hardware, Snaptech, ANSI Info Systems, Webcast Technologies, Zuellig Pharma, XVC Logistics, Primepack Technologies

Participant Fees

SCMAP is maintaining participant fees at last year’s rates, making the conference another great bargain.

• SCMAP members                P10,980
• Non-members                       P13,725

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

August 14, 2010

SCMAP Perspective #247

Published in Port Calls, August 2, 2010

NEW FACES / CONFERENCE

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

New Faces at the Helm

President Noynoy’s appointees at the Transport positions are most welcome.

Jose ‘Ping’ de Jesus at DOTC Secretary was Secretary at DPWH during President Cory’s term. I remember him most for being the one who converted EDSA into a through street, For the first time, one could travel the length of EDSA from Magallanes to North Avenue without encountering a traffic light. It felt like riding a roller coaster traveling that length, but that was two decades ago. Today we are all used to that.

Atty. Juan ‘Boy’ Sta. Ana is back in the PPA as its General Manager. In his earlier stint at the PPA in the late 1980s, during President Cory’s term, to the mid-1990s, he was port district manager of Manila and also assistant general manager for operations. In 1995 he joined the FF Cruz group of companies.

At the MARINA, Emerson Lorenzo has been appointed as Administrator. As a career official IN MARINA, Emerson Lorenzo worked many years at MARINA in different posts, including posts at the Maritime Safety Office, the Shipyard Regulations Office and the Domestic Shipping Office.

All of the above appointments sit well with SCMAP officials.

Honor Roll Nominees

Over the years, from the founding of DMAP in 1989 up to the present, DMAP/SCMAP has benefited from actions / assistance / encouragement from certain outsider personalities. For sometime now, I have been playing with the idea of recognizing the contributions of these outsider personalities. “Outsider personalities” would include personalities who are / were never a representative from a member company.

Initially, I have come up with the following short list of nominees.

• Philip Tuazon – MARINA Administrator at the time of the founding of DMAP in 1989, and into the 1990s. He encouraged the growth of DMAP in order to help counter the power of the shipping lines block, then known as CISO, or the Conference of Inter-island Shipowners and Operators. DMAP’s successes in rate hearings in the MARINA court, from 1990 to the mid-1990s, was aided by an atmosphere of  fairness encouraged by Tuazon.
• Vicente Gambito – A former executive of Sulpicio Lines (therefore from “the other side”). Tet offered and provided research work, ideas and action. His biggest contribution is the idea of RORO where he pushed the idea that RORO would be a cheaper mode of shipping. He is the true father of RORO in the Philippines. Believe me, it is not 2GO, who opposed the very idea in 2001 and onwards, until some success was achieved and they turned around and latched on to the idea
• Enrico Basilio – A young professor from the University of Asia and the Pacific. Henry’s contribution is in various research papers, organization and facilitation of meetings. His contribution continues to this day and is far from finished.

Other names that come to mind are Meneleo Carlos, Rep. Ed Zialcita, Rep. J. Montemayor. DMAP’s first lawyer at the 1990 rate hearing also comes to mind, although I cannot remember her name, except that her first name is Rory and that she worked at DTI then. I think her last name is Timbol.

2010 SCMAP Conference

2010 Supply Chain Conference – It is all systems go for this year’s supply chain conference and exhibit, with its theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24, 2010. This is SCMAP’s biggest event of the year. It will feature a 2-day conference with high powered speakers from local circles and abroad, as well as exhibit booths displaying products and services of providers and vendors in the field of SCM. Around 40 booths are expected

Last call for sponsors prior to release of the brochure. Deadline for inclusion of your logo / name is August 6. Sponsorship packages available include:

Special Principal Sponsor (1 slot left)	Donation	PhP 105,000
Principal Sponsor	Donation	PhP 90,000
Regular Sponsor	Donation	PhP 45,000
Cocktails Sponsor (1 slot available)`	Donation	PhP 220,000
Luncheon Sponsor (2 slots available)	Donation	PhP 220,000
Break Sponsor (2 slots left)	Donation	PhP 110,000
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. Visit SCMAP’s website at:www.scmap.org

July 31, 2010

SCMAP Perspective #246

Published in Port Calls, July 19, 2010

QUANTITATIVE WORKSHOP / CONFERENCE

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Quantitative Approaches to Logistics Planning – Last Call

Last call for this five hour workshop on Forecasting and Distribution Network Planning, to be conducted at the Astoria Plaza. The schedule is on July 31 from 1:00 pm to 6:00 pm.

Target participants are

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

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

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

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

Fees : P5,000 for SCMAP members, P6,250 for non-members. 5% discount for 3 or more participants from the same company.

2010 SCMAP Conference Speakers

2010 Supply Chain Conference – It is all systems go for this year’s supply chain conference and exhibit, with its theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24, 2010. This is SCMAP’s biggest event of the year. It will feature a 2-day conference with high powered speakers from local circles and abroad, as well as exhibit booths displaying products and services of providers and vendors in the field of SCM. Around 40 booths are expected

Sponsorship and advertisement packages are still available. Those interested are urged to book early or now in order for principal sponsors to be included in the initial brochure. Choose from a variety of packages, with rates maintained at last year’s rates.

Being targeted as keynote speakers are a cabinet secretary from the government and a CEO of a major company from the private sector, but they have not yet confirmed.

Below is the tentative lineup of speakers in the technical sessions.

• The New Supply Chain Agenda – Mr. Charlie Villasenor, President & CEO, TransProcure Corp.

• Integrated Business Management / Sales & Operations Planning Process – Enrique C. Castillo, Director, Regional Distribution & Logistics – Asia Pacific, Avon Cosmetics

• Strategic Sourcing to Fuel Growth and Profitability – Mr. Walter Buckzynski (Senior Trainor) & Mr. Mark Mojares (VP Global Delivery Services & Technology), TransProcure Corp.

• Greening the Supply Chain – Mr. Jesus C. Romero, Head of Enterprise Segments, Globe Business

• Talk on Security

• Supply Planning in a Chaotic Recession World – Ms. Virginia Anselmo, VP Distribution, Zuellig Pharma Corp.

• Distribution Network Analysis and Its Relevance to Supply Chain Management – Mr. William Lorenzana, VP for Commissary and Corporate Supply Chain, Jollibee Foods Corp.

• Supply Chain Analytics – Mr. Jun Villoria, IDS US

• Enhancing Supply Chain Infrastructure – Mr. Enrico Basilio, President REID Foundation & Faculty, UA&P

• Lean Supply Chain Management – Ms. Arlene Azul, VP Supply Chain Management, DSP Dept. Head, Nestle Phils.

• Supply Chain IT – IBM

• Creating a More Relevant Supply Chain Dashboard – Ms. Joyce Ramos, Sr. Demand Manager, Johnson & Johnson Phils.

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

July 16, 2010

SCMAP Perspective #245

Published in Port Calls, July 5, 2010

QUANTITATIVE APPROACHES WORKSHOP

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Quantitative Approaches to Logistics Planning Workshop, July 31

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

Target participants are

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

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

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

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

and formerly Operations Research Manager at San Miguel Corp.

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

Mini-Survey in Warehousing

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

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

Storage equipment		(22 respondents)
	Selective pallet racks	11
	Block stacking	6
	Drive in racks	5
	Mobile aisle racks	2
	Shelving	4
	Bulk solids in piles on floor or yard	3
	Cantilever racks	2
	Storage drawers	0
	Flow racks	0
	Push back racks	0
	Carousels	0
	ASRS	0
Pallets		(18 respondents)
	Wood	14
	Plastic	6
	Metal	1
Lift trucks type		(11 respondents)
	Reach	6
	Counterbalanced	8
	Side loading	3
	Turret	0
Other equipment		(26 respondents)
	Pallet jack	18
	Conveyors	7
	Cranes	4
	AGVS	0
Inventory taking count procedure		(15 respondents)
	Periodic count	10
	Cycle count	10
Inventory taking accuracy		(23 respondents)
	Accuracy < 90%	3
	Accuracy 90-95%	3
	Accuracy 95-99%	8
	Accuracy 99-100%	11
Technology adoption		(24 respondents)
	Inventory records computerized	19
	Using WMS	11
	Using bar codes for logistics	10
	Using RF technology	6
	Doing cross docking	6
	Using sortation system	2
	Using pick to light system	0
	Other technologies	6
Problems		(24 respondents)
	Damages, breakages, spoilage	11
	Lack of space / crowded	7
	Lack of employee training	5
	Pilferage	3
	Poor inventory record accuracy	3
	High cost of space rental	2
	High employee turnover	2
	Accidents, lack of safety	1

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

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

2010 SCMAP Conference

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

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

July 2, 2010

SCMAP Perspective #244

Published in Port Calls, June 21, 2010

EFFECTIVENESS, EFFICIENCY

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Every now and then, we devote space to technical publications. Of course we avoid technical details and attempt to simplify the discussion. Here is another one of them, from the Journal of Business Logistics, Volume 31 Number 1 2010, “Logistics Performance: Efficiency, Effectiveness, and Differentiation”.

The joint authors are Brian Fugate (Colorado State University), John Mentzer (University of Tennessee) and Theodore Stank (University of Tennessee).

The article presents results which run counter to traditional thinking. Traditional thinking and some recent research suggest that logistics efficiency and logistics effectiveness are mutually exclusive. The tough choice for logistics managers is between efficiency and effectiveness. It is an “or” situation. You cannot have both.

The authors start with “The logistics function has long been under pressure to demonstrate its contribution to organizational performance. The authors propose a model which includes the following hypotheses.

1. Logistics effectiveness and logistics efficiency are positively related.
2. Logistics effectiveness and logistics differentiation are positively related.
3. Logistics differentiation and logistics efficiency are positively related.
4. Logistics performance is composed of three dimensions: (a) logistics effectiveness: (b) logistics efficiency: and (d) logistics differentiation (vs. competitors)
5. High levels of logistics performance are positively associated with high levels of organizational performance

The authors report that they used survey methodology and structural equation modeling analysis. There were 336 final respondents who averaged over seven years experience in their department. A broad range of industries was represented – automotive, medical / pharma, electronics, industrial, consumer, chemicals / plastics, appliances, apparel / textiles, agriculture, others.

The measures used in the research are listed below.

1. Logistics Performance (range: Strongly Disagree – Strongly Agree)

• Our overall logistics performance is well above industry average
• In general, our logistics performance is excellent
• We are outstanding at performing our logistics activities

2. Logistics Differentiation (range: Far Below Competitors – Far Above Competitors)

• Damage free deliveries
• Finished goods inventory
• Forecasting accuracy
• Line item fill rate
• Time between order receipt and delivery
• Time on backorder
• Total inventory turns
• On-time delivery

3. Logistics Efficiency (range: Poor – Excellent)

• Percent of orders shipped to customers from the primary location designated to serve those customers
• Line item fill rate (percent of order items the picking operation actually found)
• Percent of orders shipped on time
• Percent of shipments requiring expediting
• Inventory turns per year
• Average order cycle time (time in days between order receipt and order delivery)

4. Logistics Effectiveness (range: Much Worse – Much Better)

• Sales
• Transportation costs
• Warehousing costs
• Inventory costs
• Total logistics costs

5. Organizational Performance (range: Far Below Competitors – Far Above Competitors)

• Overall performance
• Market share growth in our primary market
• Sales growth
• Percentage of new product sales generated by new product
• Return on sales
• Return on assets
• Return on investments

The research results support the proposed hypotheses. All the positive relations and association contained therein are born out by the research. Thus the simultaneous pursuit of efficiency, effectiveness and differentiation is possible, and that pursuit contributes to logistics performance.

As far as I am concerned, this is a great result, going against traditional thinking. However the definitions of the measures need to be reviewed, particularly effectiveness and efficiency.

My simple minded view is that logistics effectiveness should be measured by the achievement of the objective of logistics, which is the satisfaction of customers requirements. On the other hand, logistics efficiency should be measured by the usage of resources in achieving the objective. Resources include people, equipment, inventories, systems, technology, etc. What good would achieving the objective be if too much resources are used to achieve it?

Logistics differentiation should be measured by what factors are responsible for the biggest differences in performance at a given time. This is less permanent than effectiveness and efficiency, and can change relatively frequently, esp. when competition is fierce.

Other Upcoming Activities

• Quantitative Approaches to Logistics Planning – a half day workshop on Forecasting and Distribution Network Planning, July
• 2010 Supply Chain Conference – SCMAP’s biggest event of the year. A 2-day conference and exhibit, with this year’s theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24. Sponsorship and advertisement packages are still available. Those interested are urged to book early in order to be included in the initial brochure.

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

June 19, 2010

SCMAP Perspective #243

Published in Port Calls, June 7, 2010

ACTIVITIES UPDATE

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Warehousing Seminar I – Last Call

SCMAP is issuing its last call for its Warehousing Seminar I, to be held on June 17 – 18, 2010. The seminar is a 2-day training covering basic and advanced topics in warehousing, such as wms and lean warehousing. It will be held at the Astoria Plaza in Pasig City, but will include a visit to a nearby live warehouse.

The seminar is conducted by SCMAP’s seminar arm UniMaC Biusiness Consultancy, Inc. Speakers will be SCMAP stalwarts Malou Santos and Norman Adriano. Both are past presidents of DMAP / SCMAP. Malou Santos has over 30 years of experience in SCM, logistics and distribution, notably at Johnson & Johnson. She is currently with IDS Logistics. Norman Adriano  has spent many years in several companies, including Avon Products Manufacturing, Phil. Batteries, Aboitiz Transport System and Sime Darby.. He is currently Vice President for SCM at Philippine Batteries.

Target participants are:

• Warehousing staff requiring basic training, trainees, new staff, or older staff requiring a refresher or update.
• Non-warehousing staff in other logistics functions and interface functions (distribution, transport, shipping, inventory management, purchasing, production, accounting, engineering, QC, etc.)
• Managers requiring a more detailed and up to date understanding of warehousing, as well as practices and trends

Seminar topics include

• Introduction to SCM, logistics and warehousing
• Nature and characteristics of a warehouse
• Warehouse procedures, Safety, GMP     .
• Warehouse layout guidelines, performance measures
• People aspects, organization
• Materials handling principles
• Technology in warehousing
• Warehouse visit & workshop
• Warehousing trends & developments

Seminar fees

• P11,000 VAT included for SCMAP member companies
• P13,750 VAT included for non-member companies
• Special discount of 5% for 3 or more participants from the same company

How to enroll. Obtain and fill up registration form from scmap.org@gmail.com , or 671-8670, or 0918-914-1689.

Two ways to pay. Make cheque payable to UNIMAC Business Consultancy, Inc.

• Deposit cheque payment at any branch of BPI, checking account of

UNIMAC Business Consultancy, Inc. # 3191-0468-96. Fax the validated deposit slip with your company name to UNIMAC Business Consultancy c/o Ed Sanchez to 631-7042 or 671-4793. OR will be given at the seminar.

• For selected areas only (Manila, Makati, Mandaluyong, San Juan, Pasig, Marikina). Arrange pickup date and time.

Sustainable Manufacturing Forum Postponed

This forum, an event organized by Marcus Evans for June 28 – 29, 2010, and endorsed by SCMAP, is postponed until further notice. The postponement is due to numerous delegate cancellations as a result of unforeseen circumstances..

Other Upcoming Activities

• Quantitative Approaches to Logistics Planning – a half day workshop on Forecasting and Distribution Network Planning, July
• 2010 Supply Chain Conference – SCMAP’s biggest event of the year. A 2-day conference and exhibit, with this year’s theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24. Sponsorship and advertisement packages are still available. Those interested are urged to book early in order to be included in the initial brochure.

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

June 5, 2010

SCMAP Perspective #242

Published in Port Calls, May 24, 2010

UPCOMING ACTIVITIES

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Upcoming Activities

• Warehousing Seminar I – a 2-day seminar on basics plus advanced topics (wms, lean warehousing), with warehouse visit, June 17 – 18
• Sustainable Manufacturing Forum – a Marcus Evans organized event endorsed by SCMAP, June 28 – 29. This is described below.
• Quantitative Approaches to Logistics Planning – a half day workshop on Forecasting and Distribution Network Planning, July
• 2010 Supply Chain Conference – SCMAP’s biggest event of the year. A 2-day conference and exhibit, with this year’s theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24. Sponsorship and advertisement packages are still available.

Sustainable Manufacturing Forum, 28-30 June 2010

SCMAP is again endorsing a Marcus Evans workshop.

Marcus Evans presents the Sustainable Manufacturing Forum to be held on the 28^th, 29^th and 30^th June 2010 in Manila, Philippines.

The Sustainable Manufacturing Forum offers constructive discussions on strengthening the manufacturing processes and methodologies on radically improving processes throughout the organisation while reducing cost in order to boost earnings without putting more people on the payroll. Attendees will gain knowledge on how to put the right measures in place to stay ahead of the competition and take full advantage of the upturn.

Do not miss the opportunity to be a part of this thought provoking and innovative gathering of lean manufacturing experts from Ingram Micro, Kraft Foods Philippines Inc, JG Summit Petrochemical Corp. Philippines, Merck Sharp Dohme (Singapore), Ramcar Battery International Ltd. and so on.  Take this chance to ensure the organisations are adopting strategic lean and sustainable manufacturing tools that would effectively remove waste and improve production processes while accurately forecasting production!

The main issues to be addressed in the conference include:

• Constructing and executing lean transformation projects to align with business development
• Steering a recipe for a holistic approach to increasing productivity using lean, six sigma and other strategies
• Taking the global perspective of moving out of reactionary mode and into long-term sustainable growth
• Protection of intellectual property
• Advancing lean six sigma results and making change stick
• Selecting, designing and managing LSS projects using financial valuation

For event brochure, please contact Ms. Chew Wan , Telephone: +603 2723 6748, Email: LeeC@marcusevanskl.com

Interested parties from SCMAP member companies should advise the SCMAP Secretariat and book thru Ms. Chew Wan to avail of the special discount for SCMAP members.

SCMAP Board Changes

This is a belated report on changes in the SCMAP Board. As a result of the resignation of Vice President John Guillermo from his company, Big E Food, a vacancy was created in the Board. Next in line to become a director was Rene Casas of JG Summit Petrochemical. His move created a vacancy in one committee chairman position and Allan Bergado of Colgate was next in line to become a committee chairman.

Meanwhile, the vacancy created in the VP position was filled up by multiple past president Cora Curay of XVC Logistics, and her previous position of Auditor was filled up by Dina Pilapil of IDS Logistics.

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

May 21, 2010

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