2010 Jan-Feb Issue

零件短缺

Missing Parts

Page 42

JANUARY/FEBRUARY 2010

THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS

一本为全球供应链管理人士倾力打造的专业杂志

Risk R 警惕公路偷窃

Land of Opportunities Offshore Sourcing and Supply Chain Management

机会之地 海外采购和供应链管理

China has emerged as one of the leading low cost markets for global sourcing. However, the recent economic downturn has created unprecedented risk for businesses and their supply chain managers.

Companies that are sourcing offshore have always needed to consider procurement holistically to be successful. Today, supply chain managers must be cognizant of a large number of risks that are difficult to detect in any market – but even more so in less developed markets. Gaining insight to and mitigating risks in this market requires a different set of tools than in a past. However, if managed effectively the opportunities and benefits remain achievable.

中国是全球采购重要的低成本市场之一。然而，当前全球金融危机 给公司及其供应链经理带来了空前的风险。 实施全球采购的公司必须通盘考虑以确保采购成功。当今，供应链 经理必须认识到在任何市场都存在大量难以觉察的风险，尤其是在 发展中国家的市场中。洞悉和管控风险需要用与以往不同的方法， 同时有效管理仍然可以带来吸引人的机会和收益。 普华永道利用其全球视野和本土知识经验，为企业提供创新的，切 实可行的解决方案，并为企业拓展业务和实现可持续发展提供新的 机遇。

With our global insight and local knowledge, PricewaterhouseCoopers provide innovative and practical solutions to address these key business challenges and turn them into opportunities to expand your business and result in sustainable growth.

了解更多的业务范围，请访问普华永道网站：pwccn.com，或联系：

To find out more on how we can address your needs, please visit pwccn.com or contact:

Damon Paling 电话:+86 (21) 2323 2877 电子邮件:damon.ross.paling@cn.pwc.com

Robert Barrett Tel: +86 (21) 2323 3818 Email: robert.barrett@cn.pwc.com Damon Paling Tel: +86 (21) 2323 2877 Email: damon.ross.paling@cn.pwc.com © 2009 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the China firm of PricewaterhouseCoopers or, as the context requires, the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

Robert Barrett 电话:+86 (21) 2323 3818 电子邮件:robert.barrett@cn.pwc.com

Publisher: China Supply Chain Council Ltd. (Hong Kong) CHaINA Magazine is a FREE bi-monthly publication for the members of the Council. There is no charge for members and qualified readers to receive subscriptions in China. For your free subscription, extra copies or address changes, please email subs@supplychain.cn 出版商：China Supply Chain Council Ltd. (香港) CHaINA杂志是为Council会员准备的免费杂志。我们协会会员 和高质量的读者都可以免费订阅。为了及时收到我们的杂 志，额外订阅或地址变更请发邮件至subs@supplychain.cn

Office and Team: Publisher Max Henry Editor Monica Liau Art Director How Xu Graphic Designer Acco Fang

Photographers Kim Jin, Stephan Yang Contributing Writers Bob Dodson, Calipe Chong, Barry Elliott, Chis Catto-Smith, David Henshall, George Sun, John Van Fleet, Michael Jiang, Richard Brubaker

CHaINA Magazine is the only bilingual supply chain and logistics magazine in Asia with a strong focus on Greater China. In every issue, we write about the news, trends and best practices that will help manufacturers, retailers and distributors make better business decisions with their sourcing, production, logistics from, to or within Asia.

CHaINA是亚洲地区唯一一本专注于中国的供应链和物流行 业的双语杂志。在每一期，我们通过刊登新闻，行业动向 和实践经验来帮助制造企业 零售商和发行商进行亚洲内 外的采购 生产和物流形式的选择。

Distribution: 10,000 copies 6 times a year CHaINA Magazine is offered FREE of charge by direct post mail to qualified readers in Greater China who are involved in all aspects of supply chain management. It is also distributed through selected locations in major Chinese cities, including hotels, restaurants, service offices/apartments, business centers, airport lounges and other key locations. 发行量：一年六期，一万本 CHaINA杂志通过直接向中国各供应链管理的专业读者发送 邮件来提供免费的阅读机会。同样也分发到中国的主要城 市并在酒店 服务楼，商务中心，机场大厅或其他中心地 带免费赠阅。

Target Readers Our target readers are R&D, sourcing, procurement, manufacturing, logistics, warehousing, transportation, retail, distribution and operations managers, directors, vice presidents and decision makers. A majority of our readers are end-users shippers, mainly foreign-invested and local manufacturers and retailers. 目标读者 我们的目标读者有来自采购 制造 物流 仓储 运输 零售和分销的运营经理 总监 副总裁 或总裁。大部分 读者是物流的需求者，外资或国内的制造企业和零售商。

Subscription for Overseas Readers If you are located outside China, you can subscribe to this independent and insightful magazine today with full online access for only US$ 50 for 6 issues per year. For subscription inquiries, please contact: subs@supplychain.cn Stories Ideas, Comments & Feedback If you have an idea for a story, interview or case study, please contact the editor. We welcome feedback and comments about our content or any issues relating to supply chain management in Asia. Please email editor@supplychain.cn Previous issues of the magazine can be found at: http://www.chainaonline.com/archives 反馈和意见 如果您有任何新闻故事 采访或实践 案例，请与我们主编联系。如果您就 杂志内容或亚洲供应链管理有任何的 意见 建议或新鲜资讯，请发邮件 至 editor@supplychain.com 与我们取得 联系。

THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS

With the ending of any year, it seems to be the duty of an editor to reflect on the past while giving pithy insights into the future. Without adhering too much to this cliché, I will say that 2009 in China seems to have been a year of extremes. Companies cut way back on personnel and capacity due to the continuation of the economic slow-down. However, the latter part of this year found many companies scrambling to meet orders as parts for manufacturers and cargo space on carriers seem to be in both short supply and high demand.

In terms of hiring power, new reports show that China remains a powerhouse for emerging jobs; but factories in Southeast China find themselves unable to find enough laborers. China has shown continuous growth, propping up the rest of Asia through this hard time; but the world is passing out more protectionist measures against China. Perhaps not surprising as China is currently showing an ominous overcapacity in products like steel and concrete, a threat that could glut the global market if domestic demand cannot keep up.

Looking at this push and pull of governments and markets, 2010 promises to be a year full of movement, if not economic improvement. A lot of the seeming contradictions of 2009 are signs that the global economy is in the process of rebalancing and reshuffling itself. For manufacturers and distributors, a key point in getting things off the ground will be figuring out the new relationship between consumers and providers, as well as the ability to find a sense of equilibrium in their business models in relationship to the economy. As to how this will happen, I will do my best to keep you updated.

Happy New Year ! 年末将至，编辑们似乎都会在这个时候回首今年，展望来年，并提出一些精辟 的见解。撇掉那些陈词滥调，我想说中国的2009年似乎是异常艰难的一年。由于 经济发展放缓，公司裁员并减低产能。不过下半季度却有许多公司争先恐后地接 受厂家的零件生产订单，而货运仓位对供应商又日趋紧张。从劳动力角度来看， 最新的报告表明中国还有足够的劳动力来满足新兴市场的人力需求；但是中国东 南沿海的工厂却遭遇了人力短缺的情况。中国的持续增长支撑着整个亚洲渡过这 个困难的时期；而同时世界经济却对中国采取了更多的贸易保护措施。这一点也 并不奇怪，因为中国目前的钢筋和水泥产能过剩的情况，如果无法及时拉动内 需，很可能会威胁到全球市场供求平衡。 盘点政府一些促进和拉动市场的宏观政策，我们可以 预见2010年的经济发展必然会有一个大的变动。09年许 多看似矛盾的状况实际上是全球经济在自我复苏与平衡 的迹象。对制造商和分销商来说，要出奇制胜的关键就 在于弄清消费者与供应商的关系，并能在他们各自的商 业模式中找到保持经济稳步发展的平衡点。至于如何做 到这一点，我会尽我最大的努力让您在最新的信息中找 到属于您的答案。 新年快乐！

Monica Liau Editor CHaINA Magazine

DISCLAIMER Editorial and advertising are independent and do not necessarily reflect the views of the Council, the board, its members or the staff. While every efforts has been made to ensure accuracy, the publisher is not responsible for any errors. Views expressed by writers or contributors in this magazine are not necessarily those of the publisher. The publisher is not responsible for product claims and representations. @ Copyright China Supply Chain Council Ltd. (Hong Kong). All rights reserved The contents of the magazine may not be reprinted in whole or in part without the permission of the publisher. No part of this publication may be reproduced without written consent of the copyright holder. CHaINA is a registered trademark of the Global Supply Chain Council.

JANUARY/FEBRUARY 2010

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FEATURE 19

4

37

Avoiding Risks on the Road: Is highway robbery a

growing trend on the major trucking arteries of China?

iPhone Error: Q&A with analyst Shaun Rein

JANUARY/FEBRUARY 2010

24

42

Missing Parts: Company

inconsistencies leads to back up in parts; many unable to meet demand

Growing a Coffee Chain: Interview with Bernard Chiew, Costa Coffee

46

Cargo Crunch: Airfreight remains backlogged and on the ground

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THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS

January / February 2010

www.chainaonline.com

CONTENTS FIRST

8 Fish Frenzy Chinese seafood exports have decreased for the first time in 26 years, but the domestic market may pick up the slack.

News Roundup

30 Smoothing Things Over Interview with Gilles Thierry, Nivea

11 Key stories impacting logistics and supply chain management in the Asia region

34 Bring in New Systems Interview with Yangli, Goodyear

14 What the English Media missed A look at what the Chinese media is saying about logistics and supply chain management

50 Kuaidi it!: The Method Behind the Local Shanghai Express Madness

Columns

16 Indignant Postman Wait a Minute

Feature - Logistics

sponsored Feature

52 Don’t Get Caught on your Heels: Why spare parts matter

something Different

17 Navigating Uncertainty Corporate Purchasing Practices

54 Dell: Bamboo Baby Steps

18 Carbon and You One Step Ahead of Green

56 Gadgets and Gizmos

Executive Appointments

21 With talent at a premium, CHaINA keeps an eye on which executives are moving where.

Focus China

22 Job Hunting: Why China May be a Good Place to Send Your Resume

www.chainaonline.com

Profiles

28 Managing Change with Intuition Interview with Jessica Bo, DuPont Chemical

Life

57 Hotels 58 CLASSIFIED 61 COMPANY

LISTINGS

INDEX

Final

62 Pay Attention Stealing and corruption in your warehouses

JANUARY/FEBRUARY 2010

5

LETTERS

C

– Ports hina’s

ow? e to N Wher

R 2009 TOBE e com R/OC lin EMBE a naon ch www

SEPT

40 RM HK$ 0 S $9 EUR 5 U $6

S ADER AIN LE专业杂志 的 LY CH SUPP士倾力打造 BAL 人 R GLO 链管理 NE FO 全球供应 ZI A G 为 一本 E MA

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I am an ex-Steelcase Supply Chain Manager who experienced several supply management engagements with Frank and his team in China and in Malaysia. He explains the situation well. The challenges of serving such broad geography with available resources is very demanding. Frank failed to mention that most of this staff are China nationals who are experienced with doing business in-country. They provide invaluable source selection and qualification, RFQ, bid analysis and supplier relationship man.

Centralization (or risk pooling) is certainly the way to go. There are, however, trade offs in being able to sustain promised customer service levels. It will be a challenge to meet the needs of that supply chain considering adidas’ playing field. Given China’s population and increasing affluence, it is very much self-sustaining as both a consumer-producer market are present. Perhaps China has anticipated this to begin with and all this is just part of the plan.

Opportunities for supply chain efficiency improvements in India

a Chin ment o the M

0

JANUARY/FEBRUARY 2010

Cracking the Retail Code

Jim Hogan, United States

LY T C TA 009 H NG OR CRises to

6

Sourcing for Seats in Asia

Niak Wu Koh, Singapore Vietnam’s Textile Industry: Opportunity & Challenge in Asia

It is true that if retailers has to gain competitive edge in this fast growing organized sector, it needs to have an efficient supply chain and with outsourcing professional expertise can be called for.

Very well conducted and presented. I am convinced to visit Vietnam to explore textile market and opportunities, for seriously implementing my experience, knowledge to sell textile products to my worldwide customers.

VSS Shetty, India

K.B. Safdar, Pakistan

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LETTERS Dear Editor,

Robert Lawrence Kuhn Author How China’s Leaders Think In reference to his book review published in November 2009

Send your comments and feedback to: editor@supplychain.cn

I appreciate the review of my new book How China’s Leaders Think: The Inside Story of China’s Reform and What This Means for the Future, but I must correct the misimpression that this book was in any way censored. At all times I had absolute, 100% editorial control, and no one in China ever thought otherwise. Prior to publication, no one in China ever even asked to see the manuscript, much less censor it. The book, in whole or in part, was neither read nor reviewed. There was no censorship in any form whatsoever.

An earlier Chinese-language book, published on the Mainland a year before, was censored. Roughly 15-20% of that manuscript was cut, but nothing I wrote, even when differing from the “Party Line,”

was changed. Here’s the deal for any Chineselanguage translation of my books: I can be cut but not altered. It is never the case of changing what I write (unless I make factual errors). In fact, considering the political sensitivity of my postcensored Chinese book, the Chinese publisher felt compelled to insert a disclaimer stating that “THE AUTHOR has rather good understanding of China’s history, national conditions, and social conditions, but as a Westerner, his understanding has certain differences from ours. We believe our readers will understand and grasp this.” That my uncensored English book differs markedly from the earlier Chinese book is known widely in China, and many Chinese look forward to reading it.

We reserve the right to edit the content of letters in order to achieve clarity and meet space requirements. We may also use them in all electronic and print editions. Writers should consider any connection or relationship in terms of the subject of their comments before submitting them to the CHaINA.

High Quality Facilities and Land for Lease and Sale Lingang Logistics Park, Shanghai

Yangshan International Trade Center for Lease

Yangshan Bonded Warehouses for Lease and Sale

Land in Lingang Logistics Park

• Located in Yangshan Free Trade Port Area • Total GFA of 85,000 sqm (17 stories) • Enjoys unique policies and tax incentives that are exclusive to the Yangshan Free Trade Port Area

• Located in Yangshan Free Trade Port Area • Six single-story warehouses with a total GFA of 123,985 sqm • Eight double-story warehouses with a total GFA of 201,048 sqm

• Located in Lingang Warehousing and Transshipment Area • Approximately 330,000 sqm of available land area, ready for construction • Ideal for built-to-suit projects or land acquisition

For further information, please contact

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Ivan Yang +86 21 6133 5406 +86 130 0325 9526 ivan.yang@ap.jll.com

www.joneslanglasalle.com.cn

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JANUARY/FEBRUARY 2010

7

Lu Zifa dries fish at a processing facility in Sanbaitan village, Renhe town, Yuhang district, Hangzhou city

8

JANUARY/FEBRUARY 2010

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FIRST Word

Fish Frenzy Earlier in the year, Chinese customs announced the first drop in seafood export seen for 26 years. However, an answering market may come from domestic Chinese consumers, as it seems they are developing both the will and the means to eat more aqueous animals. While the annual seafood consumption in China is currently 26 kilos per capita, this number is expected to increase by 40% over the next decade to 36 kilos per capita.

34.43

million metric tons of seafood gets

produced in China annually. This makes up 67% of the world’s seafood output, making China the seafood capital of the world for nine years running.

India comes in a far-behind second, making up just 6% of the world’s seafood output.

30,000

Chinese f i s h i n g vessels are

projected to be scrapped in 2010, as an effort from the Chinese government to reduce the environmental impact of overfishing. China plans to reduce its fishing fleet to 160,000 vessels by 2020. If this seems like a lot, China had 220, 390 fishing vessels in 2002.

$4.69

billion USD worth of seafood was exported from China in the first half of 2009, which translates into 1.19 million kilograms. The seafood export industry accounts for over 25% of China’s total aquaculture and agriculture exports.

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JANUARY/FEBRUARY 2010

9

NEWS Roundup

Due to its perceived health benefits, the prices of garlic have hit top dollar

Garlic prices up 40% in China The price of garlic has shot up 40% in China, partly due to the belief that garlic can prevent H1N1 flu. Garlic farmers began slashing supply in late 2008 after the financial crisis reduced consumer demand for the bulb.

However, demand, has skyrocketed unexpectedly in the past few months as traditional Chinese medicine believes that garlic can help protect one from the H1N1 flu.

In November, wholesale prices of garlic in eastern Shandong province rose to RMB 9 per kilo from RMB 0.2 one year ago. Shandong is China’s largest garlic-producing area.

Bad Logistics makes Coal Price Surges Spot coking coal prices could rise 25% to USD$ 200 per ton FOB in 2010 should China continues to import at its current rate. Due to of lack of

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logistics capacity, coal supply will not be able to keep up with demand.

Chinese steel plants, particularly the large new plants in coastal regions, are seeking higher quality imported coking coal, and Chinese buyers are paying far higher prices than their Indian competitors.

Over 30 vessels are queuing outside Dalrymple Bay and Gladstone ports, Australia’s main coking coal terminals, but they cannot get enough coal to load ships as there is not enough rail support in Australia.

AMB Signs New Tenants Nationwide

FedEx Enters India’s Express Logistics Market FedEx has launched a next-business-day service for the domestic Indian express market. The company offers two products for shipments weighing up to 32kg, with delivery available to 50 Indian cities from 14 key central cities. The service comes with a money-back guarantee, a real-time online tracking facility and oncall pick up. FedEx is extending its portfolio to cater to the rapidly growing courier, express and parcels (CEP) business through the launch of this service.

Taobao kicks off Partner Program

Express Prices Rise for Websites

Alibaba’s online shopping subsidiary, Chinese B2B e-commerce group Taobao.com, formally launched the Taobao Partner Program in December in order to attract e-commerce outsourcing suppliers from a wide range of sectors. This new launch is an effort from Taobao to gather a group of products and services which are customized to their needs, including technology, services and logistics. Ever popular, Taobao attracted over 20 partners in its first week of operation.

Several domestic private couriers upped the prices of their express delivery services, including Shentong Express, Shanghai Yuan Tong Express, Yunda Express and ZTO Express. All have announced a RMB1-2/kg price hike. The price adjustment directly affects the profits of millions of online store owners in China who largely rely on domestic logistics firms to deliver their goods. According as these domestic carriers, high commodity prices, oil price increases and higher labor costs are to blame.

AMB has recently leased 100,100 square feet to a premier automotive distributor in Tianjin and 70,500 square feet to two logistics service providers in Kunshan.

In addition, about 24,200 square feet were leased to a 3PL in Ningbo and 12,400 square feet were leased to a 3PL in Dalian.

JANUARY/FEBRUARY 2010

11

NEWS Roundup

Unilever Sued for Smuggling Unilever is facing serious penalties for smuggling chemicals into China. Unilever China purchasing department and Bronson and Jacobs (Shanghai) International Trading, an importing agent of Unilever, were taken to court in October. Early in 2008, the parties were accused of intentionally using the wrong HS code in the declaration of lanolin alcohol, using instead the code for sterol. While their chemical composition is similar, the tariff of lanosterol stands at 27% while sterol is 5.5%.

In total, Unilever is accused of evaded RMB 3.17 million (US$ 460,000) in tax payment since 2002 with the help from the Shanghai Zhaoheng Industrial Company, Bronson & Jacobs and NK Chemicals (Nanjing). Verdict is pending, with the corporate defendants liable for fines and individuals facing imprisonment. China prescribes sentences of up to three years, three to ten years and more than ten years in smuggling cases, depending on the degree of the offense.

联合利华在进口原料的过程中“偷梁换柱” Unilever cheated when importing raw materials

27%

317万元

3.17 Million RMB

5.5% 原料使用于生产 羊毛醇 联合利华旗下 关税税率 Tariff of “多芬”品牌 lanolin 沐浴露 Raw materials is used alcohol in "Dove" bath wash of Unilever

固醇 关税税率 Tariff of sterol

6年共计逃税 Unilever tax evasion in six years

被告 Defendants

联合利华采购部

保信捷公司

Unilever and its Sourcing Department

Bronson & Jacobs Ltd

Goodman Develops New Hong Kong Warehouse and Distribution Center Goodman Group and Goodman Hong Kong Logistics Fund announced that they will commence construction of their Interlink warehouse and distribution development in Hong Kong. Located at Tsing Yi in the ports district, the 222,000 sqm (2.4 million sq ft) development over 24 levels will repre-

12

JANUARY/FEBRUARY 2010

sent one of Hong Kong’s largest and most versatile warehouses. The development is expected to have a total cost of HK$3,010 million (US$430 million ) and deliver a forecast yield on cost of 9%. Interlink is one of the first major warehouse and distribution centres to be developed in HongKong in almost

a decade. Construction is expected to commence in December 2009, to be completed

by January 2012.

The newly planned Goodman warehouse will be one of Hong Kong’s largest and most versatile logistics facility

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NEWS Roundup Li & Fung and Hudson’s Bay announce Partnership

Hong Kong based exporter and consumer goods supply chain management firm Li & Fung (Trading) Company and the Hudson’s Bay Trading Company have announced a global sourcing strategic partnership for Hudson’s Bay’s four main retail banners, the Bay, Zellers, Home Outfitters and Lord & Taylor.

Li & Fung Limited is the world’s leading consumer goods supply chain management company, managing the supply chain for retailers.

Suning Appliance starts 2nd Beijing logistics project Suning Appliance, one of the largest privately-

owned electrical appliance retailers in China, has started building its second logistics project in the Tongzhou District of Beijing. The facility will cost RMB300 million and has a potential floor area of 81,461 m2.

The center is expected to provide services to more than 100 planned stores in Beijing and its suburbs and to realize RMB 11 billion in sales revenue in 2012. Suning Appliances will have opened 41 new stores and re-opened 37 renovated stores in December.

Greater Air Cargo Capacity for China Southern China Southern Airlines, currently the largest fleet in China, has added two Boeing 777 jets to it’s brood, each plane with

the capacity of carrying 105.9 tons of goods, to its cargo fleet. This increases their capacity by 92%. They have also added new routes to Europe and the US, one from Shanghai to Frankfurt and one from Shanghai to Chicago. Southern announced plans to introduce four more Boeing 777s by 2011.

DDS Logistics takes over Narval Logistic Software French TMS leader DDS Logistics has taken over the team and products of international transport software specialist Narval Logistic Software. TMS’s offer will include their four flagship products including the Narval sales

FM Inaugurates New DC On December 3, FM Logistic held an inauguration ceremony for its new DC in Taicang, northwest of Shanghai. The initial phase of the DC features 25,000 square meters of warehouse space, cross docking,

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state-of-the-art IT and safety systems, and an overall design supporting global-quality DC performance (through-put, accuracy, security). For its largest client in the new DC, Unilever, FM distributes to retail destina-

manager, Orca Traction, Dolphin incvoicing and Narval Transit. DDS says with this takeover, they will expand their services for carriers and forwarders. DDS will open a logistics branch at the Le Havre Port where Narval is currently based.

tions around the east China region. Unilever now enjoys faster delivery from its factories to the DC (because they avoid intra-city traffic), and because the DC is located near key highways, Unilever also maintains lead time for deliveries to retailers. FM will eventually build another 100,000 square meters of capacity on the site.

JANUARY/FEBRUARY 2010

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NEWS Roundup

New bridge to link HK and Macau The new planned six-lane expressway will span nearly 50km and cost an estimated RMB73 billion.

Slated to be finished in 2016, it will be longer than the 38.4kilometre Lake Pontchartrain Causeway Bridge in the southern United States, which is often billed as the world’s longest.

The bridge will cut the driving time between Zhuhai and Hong Kong to 30 minutes from the current 3.5 hours and between Hong Kong and Macau to less than 1 hour from 3 hours.

What the English Media Missed Gree Electric Appliances wins Prestigious Award in Brazil for the 6th Time

Bertelsmann establishes their Call Center in NanChang

Shanghai New Huashi Medicine Logistics Center In Service.

As part of an project implemented by the Brazilian government to conserve energy, Gree Electric Appliances not only exhibited outstanding performance and compliance but was also awarded the “Level A Energy Label Certificate” and “ Energy Saver Star”.

arvato services announced on November 23rd that they have chosen NanChang for their call center, henceforth this will be a big step forward for the outsourcing industry of NanChang.

The Shanghai New Huashi Medical logistics center went into service on Dec 3. The opening of this center marks an effort by Huashi to integrate the resources of the company. Huashi is also working to merge all of its product information and distribution systems.

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19

columns

Indignant Postman Wait a Minute

O

Bob Dodson is a principal of TrendsAsia Ltd, based in Shanghai, which researches and analyzes socioeconomic and market trends that can disrupt or benefit business operations in China. He can be reached at wdodson@trendsasia.asia.

Right now groups like DHL or Fed-ex cannot cost effectively compete against local players in the expressletter delivery business.

16

n October 1st, 2009 the Chinese government enacted a law declaring that any parcels delivered using express services weighing 50g or less within a city, or 100g packages between cities, must be controlled exclusively by State-owned post offices. This explicit citation means foreign companies cannot invest in this part of the postal segment, and was met with a great deal of protest from major international players like DHL Worldwide Express Inc., FedEx Corp., and the United Parcel Service Inc. A lot of this debate has been spent on whether or not China is violating WTO rules of National Treatment, which states that member countries present a level playing field to domestic and foreign entrants. But does the implementation of this new law really affect the big boys?

Despite their objections, this segment of the business represents a small sliver of revenue for the major international carriers.

Their strength domestically lies in getting larger packages to their destinations quickly, securely, transparently and at a consistent price level. Right now groups like DHL or Fed-ex cannot costeffectively compete against local players in the express-letter delivery business, given the price sensitivity of the average Chinese consumer, whether private or commercial.

Before the enactment of the new law, the Stateowned service already controlled about 20% of the express letter market, which grew 21% in 2007 and 27% in 2008, according to the Wall Street Journal.

The move actually seems more a part of an overall trend toward guojinmintui - literally, “the state advances as the private sector recedes” - than a specific jab at foreign-invested companies in the logistics sector. The State wanted a piece of the fast-growing action.

In reality it is local express carriers that will be hardest hit by the new law, which requires capitalization amounts that will literally close hundreds of small, domestic express services. In 2008 China

JANUARY/FEBRUARY 2010

had nearly 2,500 express delivery services supporting nearly 230,000 employees, many of whom ride scooters to deliver parcels as small as a letter to as large as - well, many of us have seen the elephantine-sized loads scooters in China are capable of carting.

Other, more mature delivery services, though, have provided real competition to the Chinese post office. “I’ve been really impressed with domestic carriers, especially Shunfeng,” said Bhavesh Mistry, Managing Partner of EastWind Precision Engineering, based in Suzhou. “In the last eight months they’ve really grown rapidly and become quite reliable and professional.” According to Mistry, groups like Shunfeng have computerized in the same way as the international carriers and have formed partnerships with small local players in towns so out-of-the-way that it is prohibitively expensive to use a Fed Ex. These carriers can also cost a fraction of what the international carriers charge in China.

Nevertheless, rising salary and fuel costs are already forcing domestic carriers to increase their rates. With the further development of inter-city infrastructure, customer requirements for quality of service and delivery time will imply further domestic industry consolidation. In two to four years, this actually may translate into new opportunities, as a greater number of mature domestic companies will be ripe for acquisition by foreign players who want to penetrate more deeply into the inland express market.

It will be during the acquisitions of these mature domestic companies that large international carriers will come up against another of China’s new regulations: the anti-monopoly law. Already, Beijing has made judgments against Coca-Cola, Panasonic and General Motors which have deeply troubled multinationals across industries. When the major express carriers get to the point of wrangling with Beijing’s idiosyncratic interpretations of the antimonopoly law, they may remember their earlier frustrations with the new postal law as just a walk in the park.

www.chainaonline.com

columns

Navigating Uncertainty

Corporate Purchasing Practices

U

ncertain times, for the foreseeable future, are the ‘new normal.’ In light of this fact, CEO’s will need to rethink their business strategies, which are usually based on certain unchanging business assumptions or the “indisputables” that are driving growth. All of these assumptions are being tested, but none more so than the answer to the question ‘how do consumers spend’.

The balance on consumer demand is undeniably shifting. At a conference in Singapore on November 11, Robert Zoellick, president of the World Bank, said that the role of U.S. consumers in the world economy will stay low. “It’s hard to believe that US consumers will play the role they played in past recoveries,” said Zoellick. “The US consumer will be too distracted by de-leveraging and rebuilding their savings.”

More recently (and bluntly), Lawrence Summers, director of the White House’s National Economic Council, said that “there is no way our import-led growth is going to be the driving force for the rest of the world’s export-led growth going forward.” Summers called for a “rebalancing” of the world economy in which U.S. consumers play a less significant role.

For many Asian companies who have relied on the US consumer an “indisputable” driver, taking the Americans out of the game will have significant impact upon strategy. The real question in the ‘new normal’ is; how do you move from over-reliance on US consumer demand, to find better balanced multi-polarity growth?

Options Strategic options include developing new products, new markets, mergers and acquisitions or a combination of these. However, companies are coming out of this recession with very different

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balance sheets, so their available range of options is very different. Asian companies must also expect that the global recovery is not going to be symmetrical so markets will need to be targeted systematically to secure additional poles of growth.

While no one can predict what 2010 will bring, the environment in which CEO’s are setting strategy has become more complex. Furthermore, the rapid pace of economic events is challenging CEOs in their efforts to focus on the long term, and to keep the organization and its processes well aligned with shifting strategic priorities. The key to success in this environment is ‘agility’. Driving agility into their business requires CEO’s to balance long term strategy with market changes. So instead of preparing the budget and then not changing it much over the course of the year, companies must review priorities at least quarterly and make the necessary adjustments to balance the long term outlook with shorterterm flexibility.

The CPO can play a key role when managing in uncertain times through: > Cost Management – by keeping cost down until the “indisputables” have been tested. > Market scanning - converting uncertainty into knowledge which managers can use to make strategic adjustments and speedier decisions. > Risk management - to identify risk, quantify, investigate causes, and manage and monitor its effects. > Collaborating with suppliers to drive innovation that in turn drives growth.

CPO’s must ensure that they maintain organizational alignment in order to keep on track. So if strategy drives structure and structure drives processes CPO’s must guarantee changes in corporate strategy are reflected in their structure and that their processes support where the CEO wants to go strategically.

David Henshall is founder of Purchasing Practic (www.purchasingpractice.com), a niche consultancy specializing in procurement. Contact him at dhenshall@purchasingpractice.com )

Taking the American consumers out of the game will significantly impact the strategy of Asian Companies.

JANUARY/FEBRUARY 2010

17

columns

Carbon and You

One Step Ahead of Green

A

Richard Brubaker is the Founder of Collective Responsibility (www. collectiveresponsibility.orrg), Visiting Professor of Sustainability at CEIBS, and Editor of Cleaner Greener China (www.cleanergreenerchina.com).

In reality, the COP15 conference results are unlikely to have much direct impact on those of us outside the negotiating rooms

18

t the 15th United Nations Climate Change Conference (COP15), analysts and negotiators were citing China and the United States as the primary actors who would create a binding climate change agreement. In reality, the COP15 conference results are unlikely to have much direct impact on those of us outside the negotiating rooms. However, the results of these negotiations are really a moot point, as the supply chain already faces serious issues far more tangible to business models when compared to carbon trading, emission caps, or polar bears.

Plans to address such economic and environmental sustainability issues in relation to material usage, energy efficiency, labor standards, waste management, and product life cycles should not wait for the next climate change symposium. Organizations risk seeing their brands diminished through increased consumer awareness, fines as a result of increased law enforcement, and shutdown as government policies changed from GDP at any cost to high value GDP. So, what is a firm to do?

How should firms re- act in the face of an emotional argument (over carbon) that is basically indefinable in their business model or typical set of constraints?

First, firms need to understand that outside of market pressures to “green” processes and facilities, pressure will also come from governments at all levels looking for answers to problems they face.

This will increase the regulatory risk that firms are exposed to. Low hanging fruit for some may be the auto industry and disposable products. 18 months ago when China changed the law and banned ultrathin plastic bags, retailers had to change the way they did business. This changed the entire marketing scheme of companies – from Carrefour to the local Kedi; even though they no longer had to spend money purchasing bags to give away, customers

JANUARY/FEBRUARY 2010

were also no longer carrying around branded bags either. Obviously, some groups compensated by putting out their own brand of material bags. Taking that a step further, one needs little imagination to understand how a ban on paper cups would impact the likes of McDonald’s or Starbucks, which is perhaps why Starbucks has under their “Shared Planet” campaign begun to advertise that by 2015 they will have an answer for the paper cup. They hope this will put them ahead of the curve, when disposable cups incur the wrath of a political ban.

Second, while the recession may have eased price pressures on raw inputs, it is important to remember that little more than a year ago prices for energy, commodities, and labor were at all time highs, and will return to those levels again. So, with that in mind, by leveraging sustainable practices and looking at sustainable materials, many firms will find themselves capturing costs in materials, labor, and transportation. Process firms like Nike, Haworth, Xerox, and Interface flooring have all embedded into their supply chain from the design phase by looking at how the materials and processes they use to produce their goods with lower environmental footprints, and in ways that their products can be reused and recycled more easily.

While for many managers the current conversations on carbon may be intangible, and easy to ignore, the real drivers going forward will be more substantial. It will take the form of higher direct costs as regulations induce higher standards, and fines grow in size and frequency. It will take the form of reduce revenues as consumers walk away from firms whose profits do not meet their expectations, rational or not. And finally, it will take the form of higher indirect costs, as firms are forced to retool themselves and their products should they fail to understand that while this is an emotional topic for some, it will clearly translate into an economic impact for others.

www.chainaonline.com

columns

iPhone Errors

Q&A with Shaun Rein

T

he Apple iPhone made quite the buzz in November with its rocky official entry into the Chinese market. Shaun Rein talks about the source of Apple’s less than rave numbers, and the lessons that can be learned from it all.

What were the mistakes that iPhone made when entering the market?

Quite simply, Apple did not localize their offerings enough for the Chinese consumers. A lot of successful companies like Apple, including WalMart and EBay, take successful models and experiences from the US and move it to the rest of the world. This doesn’t always work.

It’s important for companies to understand particular consumer trends and characteristics of the market they are entering. Apple did not do that enough in China.

They are so successful in the US they don’t want to change their model to fit other countries.

Apple also tried to sign customers up for year long contracts in China but people in China like to buy charge cards because it’s less paperwork and they only want to pay for what they use.

They don’t like being tied down to multiyear contracts. Also, consumers in China want the newest technologies. Because iPhone didn’t release in China for years, the Chinese bought cracked versions. Apple made some of these same mistakes in India, which has similar consumer demands.

You have been criticized for your analysis – many say you’ve overlooked other issues such as Wi-Fi restrictions. Response?

Many people blame the Chinese government for the iPhone’s difficulties because of its restrictions on Wi-Fi. The lack of Wi-Fi definitely had an impact, because consumers could just buy a cracked version that included Wi-Fi. But many of my biggest critics don’t get how Chinese consumers use mobile phones. While I do agree that Wi-Fi was a contributing factor, at the end of the day all of the

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handsets have the same problem, and companies like Nokia have found a way around it.

What about Unicom’s role in all of this?

Partnering up with China Unicom was also a mistake. China Mobile (CM) controls over 70% of the market. CM has a wealthier consumer base, they have a trendier image, and they have a reputation for better service coverage. Apple apparently tried to negotiate with them first, but my guess is that Mobile played hardball because they have such a dominant position.

Using Unicom was a problem because consumers would have to change phone numbers if they wanted to get the official iPhones because there is no carrier protability in China. Many consumers were like -- Why change for Unicom? There are also rumors that China Mobile will put out the iPhone within 6-12 months. This is still just a rumor, but it affected consumer’s decisions on whether to buy now or wait.

Unicom has also been weak in their iPhone marketing. They advertised 3G but there was little that mentioned iPhone. It was a little better in Guangzhou, where at least they had iPhone on the poster. We did one study and asked people what the posters were advertising and people often just had no idea.

It comes down to this - China Unicom said they would sell several million when the market opened, and they sold 5000.

Well, in your view does iPhone even have a future in China?

Everyone who wants an iPhone already has it – and when people’s current cracked phones die they might go buy an iPhone, but it will take a while. iPhone does have a future because it’s a great product, and people who own one love them. However, the future just may not as big as analyst’s hope, especially if Apple doesn’t change some of its marketing methods. It’s too early to call iPhone a failure in China, but when you look at the numbers, there is obviously something is going wrong.

Shaun Rein is that Managing Director of China Market Research Group (CMR), a strategic market intelligence firm headquartered in Shanghai, China. For more information, please visit their website at www.cmrconsulting.com.cn

Companies like Apple are so successful in the US, they don’t want to change their model to fit other countries

JANUARY/FEBRUARY 2010

19

movers

Executive Appointments

With talent at a premium, CHaINA keeps an eye on which executives are moving where.

Changed jobs in the past month? Hired someone new recently? editor@supplychain.cn Angela Yang, Managing Director Asia-Pacific Region Penske Logistics

Mathieu Renard Biron Regional Vice President, Asia Pacific Geodis Wilson

Thomas Peikert Global Senior Vice President, Sea Freight, Agility

Yang was promoted to Managing Director for the Asia Pacific Region. She will head Penske’s AP operations and will continue working from Shanghai. Yang joined Penske’s Asia-Pacific operations in 2007 as Operations Director. Before joining Penske, Yang was Associate Director – Procurement for Pfizer, and held senior roles with Deloitte and Capgemini.

Freight management provider Geodis Wilson has appointed Mathieu Renard Biron as their new Regional Vice President for Asia Pacific. He will be responsible for spearheading Geodis Wilson’s drive to capture a greater market share of business in this fast expanding region. Mathieu has spent 19 years based in the Asia Pacific area.

Thomas Peikert was appointed Agility’s global SVP for sea freight. He was previously the SVP of business development for the Asia Pacific region has over 30 years of experience in the industry. He will be responsible for driving and delivering Trade Lane volume growth and from the third quarter of 2010 will be based at the GIL Headquarters in Baar, Switzerland.

Henk Westerhoek Managing Director, China Logwin AG

Fabian Poh Director, Head of Agency Services Knight Frank Shanghai

Raymond Chai Greater China Supply Chain Director Kohler Co.

Mr. Westerhoek, who joined Logwin in early 2008, has been appointed Managing Director of Logwin China. Earlier this year, Mr. Westerhoek was also awarded the Magnolia Silver Award by the Director General of the Shanghai Municipal Government Foreign Affairs Office, in recognition of his long, outstanding contribution to the development of the city.

Fabian a seasoned real estate executive with over 20 years experience in commercial real estate in Singapore, China and Dubai has joined the Shanghai team as Director, Head of Agency Services. Fabian will lead the tenant representation, office marketing, industrial, logistics and business park teams in East China as well as deliver corporate real estate services to global clients.

Raymond Chai has recently been appointed the Greater China Supply Chain Director for Kohler Co. From 2006-2009 he was the China Supply Chain Director at Goodyear. Before that he was the Head of China’s Supply Chain for GlaxoSmithKline where he worked for 15 years.

www.chainaonline.com

JANUARY/FEB

www.SCMjob.com

FOCUS China

Job Hunting?

Asia is a good place to be

M

anpower new survey shows that China is a good place to be for those on the job hunt, projecting that 19% of the 4,137 Chinese company’s surveyed expect to increase their workforces in Q1 2010. Manpower says that with China driving the hiring numbers in the Asia Pacific, the area is expected to return to pre-recession pace while job prospects improve move slowly in the Europe and the Americas.

The report also indicates that emerging cities may be where the most jobs open up in the first 3 months of 2010 (see below). While all 14 regions surveyed anticipate head count growth, the strongest hiring climate is in Chongqing where the Net Employment Outlook is +22%. There are also upbeat hiring prospects in Shenzhen,with an Outlook of +20%. Xi’an, which improved its employment outlook by notable 11 percentage points, and Qingdao employers report hopeful Outlooks of +19%.

The government’s four trillion RMB stimulus package is almost certainly one of the instruments behind this new wave of talent demand, and hiring intentions could indicate some positive indications in the global economy. However, whether these numbers are sustainable in the coming year will depend on China’s ability to continue it’s expansion and innovation.

Projected Growth by City Beijing Chengdu

16 14

Chongqing

22

Dalian Guangzhou Hangzhou

13 15 13 19

Qingdao Shanghai Shenzhen Suzhou Tianjin Wuhan Xiamen Xi’an

13 20 17 9 17 14 19

Net Employment Outlook

5%

10%

15%

20%

Sector Breakdown Manufacturing +15 (12)%* First tier cities like Beijing, Shenzhen and Guangzhou are showing the highest number of hiring intentions, as well as second tier cities like Qingdao, Xi’an, Wuhan and Suzhou.

30% 20% 10% 0% 2008

2009

2010

Seasonally Adjusted Outlook Net Employment Outlook No bar indicates Net Employment Outlook of zero. * +15 = Net Employment Outlook

22

JANUARY/FEBRUARY 2010

Growing Sectors > Communication equipment > Computers and other electronic equipment > Chemical materials and products > Electrical Machinery and Appliances

(12)% = Seasonally Adjusted Oulook

www.chainaonline.com

FOCUS HR

Do Your

Resume Right IT is a prosperous sector and is showing signs of growth in China.

According to Manpower’s raw data, hopeful hiring intentions by IT employers reported a +15% outlook.

Western and Central China, including Chengdu, Wuhan, Chongqing and Xi’an, are showing the strongest hiring environment, with a Net Employment Outlook of +26%.

Northern China comes in second with a rising employment outlook of 20% for Q1 2010.

Modest headcount growth is forecasted, with employers reporting a Net Employment Outlook of +5%. Hiring intentions have improved slightly both quarterover-quarter and year-over-year, by 4 and 2 percentage points, respectively.

In addition to the logistics sector, numbers also include telephone communications, electric, gas, water and sanitary utilities as well as cable television, radio and television stations.

With a Net Employment Outlook of +8%, employers anticipate a moderate hiring climate in Quarter 1 2010. The Outlook has improved slightly both quarterover-quarter and year-over-year, by 2 and 4 percentage points, respectively.

Retail employers anticipate a respectable headcount growth in the upcoming quarter, reporting a Net Employment Outlook of +12%, which is 4 percentage points higher than the wholesale sector.

www.chainaonline.com

M

IT Services +16 (14)%

30% 20% 10% 0% 2008

2009

2010

Seasonally Adjusted Outlook Net Employment Outlook No bar indicates Net Employment Outlook of zero.

Transportation & Utilities +8 (5)%

30% 20% 10% 0% 2008

2009

2010

Seasonally Adjusted Outlook Net Employment Outlook No bar indicates Net Employment Outlook of zero.

Wholesale & Retail Trade +9 (8)%

30% 20% 10% 0% 2008

2009

2010

Seasonally Adjusted Outlook Net Employment Outlook No bar indicates Net Employment Outlook of zero.

onique Rupert, Vice President of Professional Services for Kinaxis, recently responded to a Linkedin question: Why are supply chain professionals having so much difficulty marketing themselves in the job market? She says maybe candidates should be marketing themselves a little better.”

Here are 6 tips from Rupert for job seekers in the supply chain 1. Candidates must list specific business accomplishments at each job, not just general job duties.

2. List which business problems/processes they have been working on. It’s easy to say inventory reduction of X, but how did you accomplish it?

3. Don’t under-emphasize technical skills: these should be brought to the forefront, most SCM business problems require some type of technology to assist in solving the problem.

4. Industry expertise is nice, but not required.

I find that 90% of supply chain business problems are consistent across industries, with minimal uniqueness per industry.

5. Candidate location is not that important, but they should be close to a major airport.

Many of the candidates don’t want to travel.

If they aren’t willing to relocate or travel, it will be difficult to find a match.

6. Entry level jobs are hard to come by in the consulting world and in private industry as customers do not want to pay top dollar for someone who doesn’t know more than they do. The key for entry level jobs is to be very flexible. Willing to live anywhere, relocate on your own and willing to travel. We can have more junior people learn on bigger projects and then grow from there. Entry level candidates really need to demonstrate drive and ambition.

They key to success is indicating all the right skills and points so your resume is not passed over.

For more from Monique Rupert, visit www.kinaxis.com

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Headquarters Started in China Global Revenue (US$) Stores (worldwide) Stores in China CafĂŠ Latte, small (RMB)

Costa London 2006 350 Million 1347 52 25

Starbucks Seattle 1999 10.4 Billion 15,000 700 22

profiles

Growing a Coffee Chain

Bernard Chiew Vice President of Operations Costa Coffee China

Bernard Chiew, whose job includes overseeing everything from rental of property, to cold chain supply to consumer satisfaction, talks about what defines Costa in China’s growing coffee market.

You helped Costa Coffee enter China in 20XX. What was the hardest part about breaking into the Chinese coffee shop market?

It undoubtedly had to do with understanding our consumer. This goes with entering any market as a foreign company, but the culture here is so different from any other market that we know – even the Middle East was easier to figure out.

What are the alterations made on Costa’s China menu?

We haven’t changed much with the drinks; our guests are actually looking for strength and bitterness of coffee. However, our food was changed several times. The portions here are smaller and we’ve majorly cut the sugar content compared to our shops in Europe.

This was actually a very important move. When we first launched, we used a sweetness level similar to Europe. Our guests came back and told us our products were too sugary. We find our consumers here are very health conscious and the interpretation of health to them means things that are less sweet and involve some sort of fruit topping.We also changed the concept of our food. In the United Kingdom, where we originate, our food is all about having a homemade look and taste. Consumers in China don’t want down-to-earth home-cooking, they want food with a “professional finish” – in other words, it has got to be gourmet.

Where is Costa brand food made?

Right now, Costa coffee shops are only located in two general regions: Beijing and Shanghai. We have two joint venture factories, one to serve each local region, located right outside of Beijing and Shanghai. This means that we deliver fresh from each factory every day.

Doesn’t this make your supply chain more complicated?

Our consumers want freshness, which always is complicated. In small countries like the UK, it’s normal to have daily deliveries from one facility, but China is so incredibly big this method is a challenge – if we were to service all stores from one place, we’d have to freeze products. Manufacturing locally lets us serve better quality food. However, having two food manufacturers is also tricky when we want to change recipes or add new food because we still have to meet the guest’s expectations that they will get pretty much the same food in any of our 52 shops in the Beijing or Shanghai areas.

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Where does Costa bring its coffee in from?

All of the coffee needed for the 25 countries that Costa is in is roasted in Lambath London. Every week, China alone serves over 50,000 cups of coffee. To supply our global stores, the Costa Roastery must put out over 15,000kg of roast coffee beans. This is enough coffee to serve 2.5 million cups everyday!

What is more difficult; shipping coffee to China from Lambath or delivering food everyday to all the stores?

Shipping the coffee overseas is easier because the process is routine and has less volatile variables. However, I will say that shipping within China has gotten far better in the last few years. One of the best things I’ve seen in the supply chain is a lot of younger companies coming in and really pushing competition and BP’s. It started out as all mom and pop carriers, but eventually investment power grew. Initially CEVA’s came in and started in a very small warehouse and now two years later we work with them and they deliver what we expects out of a UK 3PL –the speed of change is amazing. Also, two years ago, the costs of logistics were around 20% more expensive.

How does Costa Coffee differentiate itself from other big name coffee brands (that remain nameless)?

If you look at our shops, we’ve created a very distinctive, warm environment that makes you feel like you’re coming home – A lot of people use our place to get out of the office or to have meetings. We’ve also changed our seating to include more sofas and soft chairs – so people lounge longer. By the nature of these surroundings, Costa is all about calm and really enjoying a coffee moment. Therefore, if you look at our customers, we tend to draw an older, more mature crowd, aged 25yrs. Our customers tend to be more mature, affluent and of the professional working class. This is in comparison to a younger, louder 18-25 year old demographic which consists of a lot of students.

One of the best things I've seen is a lot of young companies coming in to China and really pushing competition

How often do you visit your stores to check up on them?

I don’t “check on” shops, but I do go in to help and support them – although I generally try to keep invisible to the coffee shop because I don’t like them to think they’re being watched. I visit stores on average 3-4 days a week. I have all my meetings in Costa coffee, and I spend time here just hanging out – I obviously have huge attachment to this brand.

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profiles

发展咖啡连锁店

Bernard Chiew 咖世家咖啡，中国运营副总裁

Bernard Chiew 的工作是监督运营过程中的所有事宜 —比如物业租金，冷链供应，以及客户满意度。他将和 我们讨论Costa在中国这样一个新兴咖啡市场中的定位与发展。

您帮助咖世家咖啡在 20XX 年进驻中国，那么当时突破 中国咖啡市场最困难的问题何在呢？ 最难的当然是去了解中国的客户。这是外企进驻任何一个新 市场都务必要做的事，不过这里的文化和我们熟悉的相去甚远。 在我们看来中国甚至比中东市场更为复杂。 那么咖世家咖啡在中国各门店的菜单上都有些什么不同呢？ 我们在饮料部分并未做太大的变动，我们的客户还是比较喜 欢重口味的略微苦涩的咖啡。不过我们供应的食品菜单修改过许 多次。与欧洲门店相比，这里的分量要小一些，所以我们主要减 少了食物中的糖分。这个变化实际上是至关重要的一步。当我们 刚开始营业的时候，使用的是和欧洲相同标准的糖分含量，于是 许多顾客就会来告诉我们，食物中的糖分过高了。之后我们才了 解到中国消费的健康意识很强，而健康的定义告诉他们食物中的 糖分要尽量的少或者加入一些水果才会对他们的身体无害。 我们还改变了我们对食物的定义。在品牌的发源地英国，我 们的食物一般有着像家庭制造的外观与口感，而中国的客户并不 喜欢像在家里做出来的菜肴，他们喜欢“看起来很美”的食物—

也就是说我们要以美食家般专业挑剔的眼光来准备我们的产品。 如果你了解美食在西方国家的演变，你就会发现这种顾客需求是 有道理可循的—从家庭制造到一个较为正式的用餐场景，继而有 了方便食品，最终又会回到最原始的家庭制造。中国的消费者正 是从家庭制造到正餐过渡的这个过程。对我们咖世家咖啡的消费 群体来说，进咖啡店其实是对他们梦寐以求的生活方式的追求。 那么Costa的咖啡都是在哪里生产进口的呢？ 所有销往25个国家的Costa咖啡豆都是在伦敦的Lambath烘烤 而成。每周单单中国的咖啡销量就超过五万杯。为了满足全球门 店的需求，Costa的咖啡豆加工厂就要烘烤15多吨的咖啡豆。这 才能满足全球每天250万杯的需求！ 咖世家咖啡的食物都是哪里生产制造的呢？ 目前，咖世家咖啡的门店主要集中在北京和上海两个地区， 我们所有食物都是分别由当地两家不同的合资工厂制作供应的。 从Lambath将咖啡豆运往中国和将咖啡配送到各个门店相比， 哪个会更加困难些呢？ 将咖啡豆从海外运往中国会更容易一些，因为这是已是个迈 上轨道的安排，并没有太多不可预知的变数。不过在中国境内的 运输和前几年相比已经改善很多了。在供应链的发展中最让我欣 慰的是越来越多的年轻企业加入，推动了竞争朝良性循环的方向 发展。这些企业一开始大多是夫妻运营的货运企业，不过最终投 资力度都大大加强。就比如CEVA’s一开始只是一家小仓库，而 两年之后就迅猛发展成了我们所期望的英国第三方物流服务商— 发展的速度的确令人惊讶。此外，我们的物流成本还比前两年减 少了20%。 咖世家咖啡与其他咖啡品牌相比有哪些区分战略呢？ 你如果进过我们的门店，你就会发现我们营造的是一种独 特的，温馨的，宾至如归的氛围—许多客人都喜欢来我们店里以 缓解在办公室的烦闷与压力，或者作为商务会面之用。我们还在 餐区的软装上加入了更多的沙发和软椅—这样人们还会延长留下 休憩的时间。鉴于这些装饰因素的影响，咖世家咖啡变得更加适 合安静的沉思，享受咖啡时刻。因此，你可以看到我们的客人 与其他品牌相比通常是更为成熟的群体，年纪在25岁以上。我们 的客人往往是处在收入颇丰专业的工作岗位。这和年轻而张扬的 18-25岁的年轻学生群体形成了一定对比。 您多久视察一次这些门店？ 我不“视察”门店，但我会去店里帮助和支持员工们—虽然 我通常不在咖啡店里出现因为我并不希望员工们有一种被监视的 感觉。一般一周会有 3-4天去走访各个门店，我在咖世家咖啡店 里进行我所有的会议，其他闲暇时间都只是闲逛—显然我和这个 品牌有着太多不可分割的联系。

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profiles

直观应对变化 Jessica Bo 在2003年开发了亚太地区第一个功能完善

的氟化合物供应链。今天她将和我们一起探讨组建一个 供应链团队对她工作所带来的变化。 Jessica Bo 供应链管理区域经理 杜邦中国控股有限公司 对我们普通人来说，似乎大部分都不认得这个专业名称，什么是 氟化合物呢？ 氟化物是所有含有碳氟化合物的物质。包括冰箱的氟利昂 制冷剂，以及炊具，电缆和机械上用到的聚四氟乙烯。我们还有 PVFM（一种光伏氟材料），这些化学物质的用处或许你们都想 不到，比如飞机，汽车还有手机上，都会用到这种材料。 您在这个供应链已经工作了七年多的时间，那么在中国供应链行 业中您遇到过最大的挑战是什么呢？ 2003年我从澳洲回到中国，当时中国还没有成熟的供应链 与物流概念—他们认为供应链管理与物流管理是同一回事—而 实际上供应链是从需求管理开始的并延伸到客户配送的管理体 系。2003年的时候我是中国为数不多持有APICS CPIM（生产库 存管理认证）的一员。但如今，一夜之间APICS就在中国大范围 设立了办事处—对我来说这几年发生的变化是十分巨大的。越来 越多的机构提供专业的针对供应链管理的培训，这很大程度上促 进了管理水平的提高，供应链就是卡车车队的概念不复存在了。 那么您在杜邦都经历了哪些变化呢？ 当我到了这里后，杜邦委派我设立氟化合物的供应链团队。 我的工作是设立区域的供应链体系来支持全球业务的发展。在这 一点上，杜邦正处在战略转变阶段，他们需要评估哪些产品是需 要生产和购买的。他们旨在找到在中国发展的最佳选择—而我的 职责就在于推出一个区域性的供应链体系来支持全球业务的发 展。我从一个人的团队做起，经过6年半的发展，我们的化工品 出口来实现了七倍的增长，并有亚太地区20人的团队与我共事。 当您一个人为这个供应链成立团队的时候，是什么工作情形呢？ 当我刚开始着手组建团队时，工作内容很简单，我只要购买 和出口—我在出口方面有着丰富的经验，并且我的工作更加简单 直接。我现在的工作范围已大大扩展，虽然还只是在亚太地区， 但我负责的供应链管理范围和业务单位从一个增加到了三个，同 时我还负责中短期的战略规划执行和供应链各环节的发展，日程 安排，订单处理，仓储物流，交通规划和配送。 那您工作中最困难的部分是什么呢？ 随着近期的经济衰退，最困难的部分是如何以敏锐地把握各 种消费需求，同时最大程度降低存货风险。在目前经济形势下， 我们产品的生命周期变得越来越短。相应的供应链也需要变得更 灵活以便对市场变化做出及时的反应—需求管理是一门艺术，你 可以用各种软件管理需要，但最终它的真谛还是在于人的直觉。

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那么您是如何增强您的直觉呢？ 其实这个大部分要归功于和销售团队的充分沟通。销售团队 需要在第一时间了解市场，并洞悉市场的任何微妙变化，他们和 我们的需求规划团队一样，都需要从这些信息中筛选有价值的， 淘汰掉那些可以被忽略的。 虽然处在萧条期，我们还是把市场需求研讨会从每月一次增 加到每周一次。我们会讨论所有细节—比如客户兴趣，供应与需 求等—每月至少四次。这样做是为了始终处在一个居安思危的高 度。如果仍旧做每月一次审核，我们也许可以安然过到下个月， 但却错失了这个月许多有价值的机会—或许这些历史的数据，或 者月数据并不能让我们完全掌控市场变化，但这肯定能很大程度 上提高企业应对需求的灵活性。 你们部门在过去的一年中遇到最大的障碍是什么呢？ 在2008年的第四季度，我们看到需求的锐减，像悬崖般直转 而下—我们现在面临的挑战是如何保持良好的现金流来确保企业 整体正常营运。这也是股东们最关注的一点。我们正积极地将存 货率降低30-35%，这个过程始于去年10月并延续至今。我们已清 理了许多滞销存货—这在萧条时期是很十分困难的，但这是我们 取得更多现金和保证现金流的唯一方式。 这个举措是否能让你们的发展略为轻松点呢？ 这很难说，明年的发展很难预测—经济发展是停滞不前还是 继续攀升我们不得而知—我们只能不断努力，保持领先一步的状 态。如果我们领先十步，我们就走得太快，并可能堆积过多的存 货—如果落后太多我们就会被甩在后面。处理这个问题的时候， 我往往会用辩证的思维—一方面由于经济衰退影响复苏阶段的需 求增长会比较缓慢，另一方面我还需要保证足够的周转资金。不 过，杜邦知道，未来市场和资本投入在亚洲的潜力是巨大的，并 且我们在亚洲受的冲击与世界其他市场相比已经要小的多了。

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profiles

Managing Change

with Intuition

Jessica Bo Regional Supply Chain Manager DuPont China Holding

Jessica Bo developed the first full-function fluorochemical supply chain in the Asia Pacific region in 2003. She started out as a supply chain team of one but her job has changed with the years.

For those of us who may not recognize the name…

What exactly is a fluoroproduct?

Fluoroproducts are everything that contains fluorocarbons. This includes refrigerants like Freon®; the Teflon® coating on cookware, cable, machinery. We also have PVFM (photovoltaic fluoro material) – There are a lot of applications for this product that you may not think about – airplanes, cars, mobile phones.

You’ve been working in this supply chain for over seven years.

What is the biggest change you’ve seen in the supply chain in China?

When I returned to China from Australia in 2003, China had no developed supply chain or logistics concepts – they thought supply chain management was the same thing as logistics – but really, supply chain starts with Demand Management and extends all the way to customer delivery. In 2003 I was also one of very few people in China with an APICS CPIM (Certification in Production and Inventory Management). But now, all the sudden, I think APICS has offices all over China – this is a huge change in the past few years. There are more institutes to provide professional training specifically targeting supply chain management – there has been a big push for better management – supply chain is not all about those truck fleets anymore.

How about changes you’ve seen at DuPont?

In 2003, DuPont offered me a job to establish a supply for fluorochemicals. My task was to launch a regional supply chain in Asia to support global business growth.

At that point, DuPont was in the stage of having their strategy change and they were really evaluating which products should be manufactured vs. bought. They were truly working to figure out the best option for growth in China – my task was to launch a regional Asia supply chain to support global business growth. I started out as a team of one, but over the course of 6.5 years, the volume that we export (for chemicals) increased by 7x and I now have over 20 people around the Asia Pacific working with me.

What was it like working as a team of one for this supply chain?

My task was actually really simple at the begining – I just had to buy and export – I had tons of experience with export work and my job was actually more straightforward. My job now has expanded significantly – I still just cover the Asia Pacific, but the scope of Supply Chain Management and business units I am responsible for increased from one to three. I am also responsible for

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profiles

What is the hardest part of your job now?

Recently, with this economic recession, the hardest part is answering this question -- how do you capture all the demand as opportunities while at the same time mitigating the risk of having too much inventory? In the current economy, our product lifecycle is becoming shorter and shorter. Our supply chain actually needs to be really flexible in order to quickly respond to market dynamics – Demand management is a true art – you can have all kinds of software to help you do a job, but at the end of the day its really comes down to human intuition.

So, how do you sharpen your intuition?

I actually rely a lot on my communication with our sales team. The sales team has got to understand the market place in order to detect market changes – and then both they and my demand planning team have to filter this market knowledge into which part is meaningful information and which parts can be overlooked.

While in recession, we’ve also increased our market review from every month to every week. This means we look at everything -- consumer interests, supply and demand – at least four times a month.

You have to do this in order to stay on top of things. If we were to still stick to

a monthly review, we’d be safe for next month but would miss several opportunities within the month – things that you can’t detect from historical data, or monthly data. It’s a lot more work, but it definitely improves our company’s flexibility.

What’s the biggest obstacle your department had to hurdle last year?

During Q4 of 2008, we saw demand decrease sharply -- like a cliff -- and the challenge we faced was how to maintain a healthy cash flow and secure the health of our company as a whole. It was a major shareholder concern. What we’ve been doing very aggressively is reducing our inventory by 30-35%. The project started last October and continues to date. We’ve cleared a lot of slow moving inventories out – This is very difficult especially during recession time, but that is the only way we can generate more cash and keep the cash flow healthy.

Will this make it easier to move forward?

Well, it’s hard to say if it’s going to be easier next year – there is a debate on the whether the world economy is going to plateau or continue to climb – we just have to keep working to be one step ahead of the trend. If we’re 10 steps, we’re too far ahead and build up too much inventory – too far behind and we’re behind the curve.

When I’m looking at this issue, I have to look at both sides of the coin – one side shows a growing demand during the recovery period that has been postponed since the recession, the other is keeping my working capital healthy. However, DuPont knows that Asia is where a lot of future business and capital lies, and we have certainly not been hit here as hard as in other places of the world.

You can have all sorts of software, but it really all comes down to human intuition

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s nt ou 17 isc arch t D lM Ge Unti

short and mid-term strategy planning, execution and continuous improvement of leveraged supply chain processes, which includes demand management, inventory management (raw, semi-finished and finished), scheduling, order handling, warehouse logistics, transportation planning and distribution.

4th Indirect Spend China Summit Renaissance Hotel, Shanghai March 17, 2010 For many companies in China, services account for one-third of every purchasing dollar spent. And yet, few companies have standardized procedures specifically designed for the complexities of services procurement. Often, the result is excessive costs, drawn-out purchasing cycle times, and inconsistent workflow procedures.

By attending this summit, you will be able to: Learn how to translate your knowledge of buying physical goods into the service arena.

Hear how leading companies are managing travel and entertainment (T&E) as well as marketing expenses.

Uncover and manage “hybrid” or “bundled spend” e.g. services purchases bundled with goods.

Develop formal supplier management programs across all service categories.

Integrate key distributors to optimize your indirect spend across China.

Evaluate new solutions, tools and services that can help your services procurement and management.

Join the debate with China’s leading procurement experts from:

Network with industry peers in an intimate gathering of senior procurement executives Organized by:

Media Partner:

THE MAGAZ NE FOR GLOBAL SUPPLY CHAIN LEADERS

Web: www.supplychains.com Call: +86 (21) 62081232 Email: info@supplychain.cn

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profiles

Smoothing Things Over Gilles Thierry talks about the meticulous methods of his German headquarters and China’s “wait until it’s a problem” mindset.

You’ve built factories all over the world, most recently the new one in Qingpu, right outside of Shanghai. How do your experiences in China compare?

Building a factory is a really long journey in any country, but it’s an even bigger job when you work with a German company in China.

Western cultures like Germany’s want to plan everything and want to be able to anticipate all risks. The Chinese likes to work more reactively - they are trained to solve problems when the problems arise – with my French roots I am a little more flexible because I’m used to a more Latin way of life – but getting these two groups to work together can come to real clashes in perspective. However, my Chinese colleagues like the support because the Germans bring new tools and new skills.

Also when building there is always try to balance building fast with being organized – it is so essential for be organized, but if you’re not quick then you loose out. In China, it’s difficult to know how to deal with a big construction company and suppliers and it’s difficult to get a reliable supply from suppliers, to ensure effective quality checks on the construction –things like concrete quality, size of the walls, basement depth – these are very important to get right the first time to avoid massive losses later.

How do you deal with quality control now that your factory is in full operation?

I organize a weekly meeting with my management and I absolutely always follow the decision of my quality managers – I will never go against their decisions. It is so important for international brands to be especially clear with our rules, and in Beiersdorf, we have international rules, requirements and systems. The products you find here in China must be made in exactly the same conditions as they are all over the world.

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there is never one completely sustainable improvement – we’ve made a bunch of improvements but nevertheless, there are problems.

Two years ago, Nivea acquired C-BONS, a Chinese hair care company, any big changes happening there?

In the first 2 years, we have changed nothing over at C-BONS - no management has switched - nothing. This is because we wanted to first understand their Chinese market and their way of working – we are convinced that the western recipe (in terms of behavior) can not be completely copied in a Chinese company, so we will be managing any changes very carefully – we want to first understand C-Bons before acting in a any sort of deep way – of the four brands Slek and Maestro will be the most key.

Chinese consumers are demanding – if a cosmetic product is less than one year, no one will buy it on the shelf

Is this difficult to ensure?

In China it is more difficult and I don’t understand why. Chinese people are very used to following the rules, they get taught in school to follow the rules very strictly. But when it comes to quality control, we train the factory. They can follow the rules for a week or two – then at the end of the 3rd week, they don’t follow the rules anymore.

This means you have to repeat and repeat our policies in order to ensure the rules are always being followed– which in turns means that

Gilles Thierry Supply Chain Director Nivea (Shanghai)

How do you see your supply chain changing in the future?

Logistics has definitely has a big future in China for a lot of different reasons – it’s a huge country that is developing more and more infrastructure –at the same time the requirements of the customers like Carrefour and Tesco is moving in the same direction as western countries. People are starting to want very short lead times for deliveries – they don’t want stock – they want fresh products – I mean, we’re not even the food industry, but consumers still want fresh products. The life of our products is 3 years, but retail doesn’t expect the product to sell if the remaining shelf life is less than a year.

In fact, Chinese consumers are even more demanding – if the cosmetic product is less than one year, no one will buy it on the shelf– that means that we must be very flexible in order to fill supplies.

The year 2010 – good, bad, average?

I think it will be a very difficult year for us in China because all the big cosmetics brands are in China now and they are investing a lot in advertising, promotions.

Some of these players like P&G and Unilever are much bigger than Beiersdorf– Our strengths are that we will be more flexible and reactive than they will be – so the main point for next year is that we are facing a lot of competition. Another point of difficulty deals with the threat of oil price increases – we do cosmetics obviously, but a lot of our raw materials and packaging materials could be directly affected by the oil prices – for example, all of our plastic tubing and bottles.

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profiles

统筹兼顾

Gilles Thierry 供应链管理总监，妮维雅（上海）有限公司

Gilles Thierry 谈论他在德国总部惯用的细致谨慎的思维方式与中国“等到问题出现再解决”的心态。 您已经在世界各地都建立了工 厂，最近又在青浦新建了一家，请问与其 他区域相比，在中国建厂有什么特别的经 验之谈吗？ 在一个国家设立工厂可以说都是一场 持久战，尤其是在一家德国公司要进驻中 国时，更是一项浩大的工程。德国这样的 西方文化是习惯于规划好一切事宜并预见 出所有可能的风险。而中国人的行事方式 则相对被动—他们只在问题出现的时候才 想办法去解决。不过我的法国血统让我能 以更加辩证灵活的方式看待这两种思路。 但是当两个团体真正一起共事的时候，都 不可避免地在观念上发生冲突。令人欣慰 的是，我们的中国同事还是很支持我们 的，因为德国人带来了新的工具与技术。 在建设工厂的时候我们也尽力平衡效 率与管理的问题—有效的管理是必不可少 的，而如果效率没有跟上，那么团队就会 松懈。在中国，和一家大型的建筑公司与 供应商打交道并非易事，我们很难处理很 他们之间的关系，并从供应商获得可靠的 供应来有效保证工程的质量—比如水泥的 质量，墙面的尺寸，地基的深度等，这些 都是要在最开始就要反复确认，以避免工 程后期的漏洞与亏损。 当工厂在运营阶段时，您是如何进行质量 控制的呢？ 我会与管理层召开每周例会，并完全

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服从质量监控管理经理们的决策，绝不违 背他们的决定。对国际品牌来说，规矩是 非常重要的。在拜尔斯道夫，我们有国际 同一的标准的规定，要求与制度。你会发 现在中国销售的产品与销往世界各地的产 品是完全一样没有任何差别的。 这种高度的标准化是否难以保证做到？ 在中国达到这个标准的确是有点难 度，我也不明白究竟原因何在。中国人应 该是惯于遵守规则的，他们从小受到的教 育就是严格遵守纪律与规则。但在质量管 理方面，我们给工厂人员做好培训之后， 他们能坚持遵守 1-2周，然而到第 3周快要 结束时，他们就不再遵守规定了。这就意 味着我们必须反复强调这些制度来确保他 们时效甚短的遵守。这一点说明对员工的 管理从来不会有一劳永逸的效果。尽管我 们已有了一些改善，但问题依旧存在。 两年前，妮维雅收购丝宝，这家中国洗发 用品公司在被收购后是否发生了新的变 化？ 在头两年，我们对丝宝并未作任何改 革，没有管理层的转化，可谓一成不变。 这是因为我们想要先了解他们的中国市场 和工作方式—我们认为西方的行为准则不 能完全复制到中国企业中去，所以我们谨 慎地进行着管理上的变动，我们希望在进 行彻底的改革前充分了解丝宝—在丝宝旗

下的四大品牌中舒蕾和美涛是最重要的。 您是如何看待您的供应链未来的发展呢？ 物流在中国有着很大的发展潜力， 原因有很多—中国正在发展越来越多的基 础设施，同时像家乐福和乐购这样的客户 对物流的要求也和西方国家的步调日趋一 致。人们越来越需要尽可能短的交货期— 他们不想有存货，他们要的是最新生产的 产品。即使我们不是食品行业，但客户依 旧想要新的产品。我们产品的保质期一般 是3年，但是零售商并不希望在他们货架 上的产品离过期只有不到一年。实际上， 中国的消费者则更为苛刻，如果货架上化 妆品还差一年就要过期，他们是绝不会购 买的—这就意味着我们必须有灵活弹性的 供应链管理来调整产品的供求。 您对2010年的展望—是好，是坏，还是稳 步前进？ 我认为这是我们在中国异常艰难的一 年，所有进驻中国的化妆品大牌都在广告 和促销上狠下功夫。与规模大于拜尔斯道 夫的宝洁和联合利华相比，我们的优势在 于我们在处理问题上比他们更加灵活和主 动—因此明年的关键在于如何应对激烈的 竞争。此外还有石油价格上涨的压力—虽 然我们做的是化妆品，但是我们原材料与 包装材料（如塑料管状包装与包装瓶）的 价格都会受到石油价格的直接影响。

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profiles

引进新系统

Yang Li 固特异，供应链亚太地区，战略规划经理

固特异公司最近开始使用SAP APO软件(高级规划优化工具)，这是一款高级电脑软件专用于终端供应链的管理 和解决方案。杨丽将和我们一起探讨如何优化如此复杂的供应链管理。 您目前在固特异需要做的是推动SAP APO系统的使用， 那么您是否有IT业工作背景呢？ 实际上我完全不是从事IT专业的。我的第一份工作是在施奈 德做营销工程师，一年后有机会让我跳槽到物流相关的行业并从 最基层的订单处理开始做。从那个起点开始我一步一步往上爬。 如今，我离开了业务操作而转向SAP APO系统管理，因此我的 工作和IT经理往往有着密不可分的联系。我的职责需要规范，优 化，定义和重新定义我们的业务流程和产品管理，还必须确保在 应用SAP系统时，产品能准时安全地到达。我喜欢把自己看做是 商业解决方案的设计师。 在实施SAP APO的过程中那个环节是最为复杂的呢？ 许多环节都比较困难，尤其是在这么大规模的企业中更是如 此。 APO的规划需要一个坚实的基础来支持系统。这就意味着 历史信息，交易记录和规划的主数据需要IT强有力的基础设施支 持，这样软件的使用对每位用户才有实际操作意义。从业务操作 角度来说，APO要求所有的信息准确录入。每一个单独的步骤都 要输入相应的操作指令，这样我们就需要学习如何将想法输入系 统并得到我们需要的结果。虽然固特异只要一种类型的产品，在 某种程度上降低了输入的难度，但由于我们在生产过程复杂的限 制条件，这样从开始到结束的过程就很难进行管理。

固特异在亚太地区有13个办事处，但我们通常不能一次性完 成软件的更新与运用，由于地理位置不同和商业模式的复杂性， 整个工程会被分成几个不同阶段。为亚太区域的第一阶段站点国 编写数据程序也是整个工程中最复杂的一部分，因为我们要考虑 到整个亚太区域的需求。还需要考虑其他区域的发展目标与长期 战略整合。我们现在设定程序后就很难做出改变，也就是说我们 需要同时清楚宏观和微观的各种因素。我们现在设计和使用的系 统并不只为满足当前需要，同时还要能预测5-10年内发展趋势。 APO系统面临的另一个挑战在于其复杂性让用户培训和再培 训的过程更耗时。我们必须时刻准备应对岗位调动和无法预见的 员工流动所带来的影响，并坚持对不熟悉该系统的员工做培训。 哇，原来有这么多复杂的因素，让你们是否有想过放弃这个复杂 的程序，干脆就用更加简单点的像excel那样的程序？ 的确，有很多企业对 APO的使用非常感兴趣，但往往在一 两个月之后，就对繁琐的数据输入和数据保存步骤感到厌烦和气 馁—于是他们就开始觉得，与其花时间去下载和保存所有的数据 到APO，还不如直接在电子表格中完成这项工作—或者会觉得， 这些工作以前已经做过无数次了，为什么还要再做一次呢？如果 有这种情况，就说明这个系统太过复杂了，也在很大程度上降低 了实用性。 固特异公司是如何克服这些困难？ 我们有一个从业务部和IT部人员调配组成的优秀工程 队伍，同时还聘请了熟悉我们当前需要的专家顾问团。每 当我们到一个新的国家或一个新的区域来推广 APO 系统 时，拥有一个优秀的熟悉当地商业文化的本地团队对引导 我们的微观前景是至关重要的。 为什么在世界经济尚未好转的时候去投资一个复杂的供应 链？ 以往固特异都是充当着一个传统制造公司的角色，但 是我们正在从一个制造商向顾客导向的市场转移。因此， 供应链的发展就变得越发重要。虽然过去的一年我们遇到 了前所未有的困难，固特异始终坚信想要得到更多的市场 份额，我们不能让客户的满意度下降，为了保持和改善我 们的服务质量，我们需要一个更好更强大的供应链。 当设立新的SAP APO系统时，最重要的因素是什么呢？ 这个问题的答案十分明确—那就是让系统尽可能简 单。不过你何时调查用户，他们都会表示希望在新系统里 能涵盖所有内容，那是因为他们知道这样会让他们的工作 轻松许多。不过他们没有意识到的是如果把所有信息都放 入系统，这将变得过于复杂以致用户的挫败感和失望会让 数据的保存更有难度。因此作为一个系统供应商就必须先 弄清楚系统最重要的是哪个部分，也就是当用户表示某个 信息只是“最好要有”的时候，必须否决掉他这个想法。

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profiles

Bringing in

New Systems Yang Li Strategic Planning Manager, Supply Chain Asia Pacific Region Goodyear

Goodyear recently started using SAP APO (Advanced Planner Optimizer), a computer-based planning tool that supports end to end supply chain solutions. Yang Li discusses how complicated strengthening her supply chain can be.

You currently help drive Goodyear’s initiative to switch over to an SAP APO user system. Do you have a background in IT? I’m actually not IT focused at all. My first job was with Schneider as a marketing engineer. I jumped at the chance to move into the logistics side of things one year later and basically started at the bottom doing order processing. From there, I moved my way up the ladder. Right now, I leave the business process to the SAP APO changeover, which means I work very closely with our IT manager. My job is to standardize, optimize, define and redefine our business processes and product managements, while making sure that as we use SAP, the products are still arrive on time and completed. I like to think of myself as a business solution architect.

put our ideas in a way that gives us our required results. Even though Goodyear is simple in that we only really have one type of product, we face a very complex set of manufacturing constraints – It’s not easy to manage from start to finish.

Goodyear Asia-Pacific has 13 countries in our area alone and we normally do not do it all in one shot due to its geographical position and business models complexity, so the whole project has been broken down into different phases. Writing the first base business plan for one cluster of our countries is one of the other hardest parts of this program because we need to consider all the requirements of the entire Asia-Pacific region. We also have to consider the business goals and long term integrity of other sister regions. What we set down can’t be easily changed later, which means we have to think about the micro and macro all at the same time. The system we design and implement is not only for today’s current needs, but we also but we have to be able to predict the situation 5 or 10 years ahead.

Another challenge with APO is that, because it is so complicated, it takes a longer time to train and re-train users. We constantly have to be prepared for people changing positions and unexpected employee turnover, and we are constantly working with people who are not familiar with this system.

Companies start to think to themselves I have done this a million times before, why do I have to do it again?

What is the most complicated part of implementing SAP APO? A lot of it is hard, especially on such a large scale. APO planning requires a very strong foundation to support the system. This means that historical information, transaction data and planning master data all must have a strong IT infrastructure in order for this program to make any sense to the users. From the business processing perspective, APO also requires that all information is in place. In order to get every single process; we need to input every single activity, and we have to learn how to in-

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profiles

Lots of intricacies. Ever face the temptation to throw in the towel and go back to a simpler program, like excel?

It’s true that some companies get really excited about the idea of using APO but a couple of months later, many get frustrated because so much data input and master data maintenance is needed. They start to think to themselves -- I can do this on spreadsheet instead of taking the time to load and maintain all this data into APO – or -- I have done this a million times before, why do I have to do again? – But the reason we switched over to SAP APO in the first place is to advance our supply chain. At the end of the day, manual spreadsheets are overall more time consuming. We’d rather spend our time doing the strategic thinking rather than doing manual work.

How does Goodyear overcome these difficulties?

We have an excellent project team from both business and IT and we have hired a consultant group who is well versed in our specialized needs. Whenever we move to another country or cluster of countries to implement this APO system, it is also essential that we have a good local team who understands the business culture of the country and are able to guide our micro outlook.

Why invest in a complicated supply chain while the world is still facing economic difficulties?

In the past, Goodyear has acted as a traditional manufacturing company, but we are shifting from manufacturing to a customer oriented market. Because of this, supply chain is becoming even more important than before. Even though last year was one of the hardest we’ve ever faced, Goodyear knew that to gain more market shares, we couldn’t allow customer satisfaction to drop. In order to maintain and improve our customer services, we needed a better and stronger supply chain.

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What is the most important thing to conGoodyear uses SAP APO instead sider when setting up a new SAP APO of manual system? spreadsheets to The answer to this is very, very clear; make advance their the system as simple as possible. Whenever supply chain you are surveying the requirements of your users, they say that they want everything included into the new system, because they think it will make their life easier. What they don’t realize is that if you put every piece of information into the system, it becomes way too complex and the users will end up frustrated and maintenance will also be a lot more difficult. Your role as the system provider means you have to really select what the most important parts of the system are. This means that when a user says a certain aspect would be a mere “nice to have,” you veto it.

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Feature Risk

Avoiding Risks

on the Road

H

ighway banditry has been a problem in China for as long as people have moved goods down the dusty roads of the country. In the early 1100’s, the legendary Song Jiang and his crew of 36 bandits were the scourge of northern China and the bane of carriers everywhere. The story of his career and his eventual surrender to the government is the stuff of legend.

Today, modern incarnations of SongJiang are striking on the asphalt highways that connect China to international ports. According to Sam Chao of McClarens, these thieves usually make their hits at night with a gang of two or three vehicles. One blocks the truck in front by driving at very low speed while another tails the back of the quarry. With the ease that comes from nothing to lose, burglars are able to take cargo loads of goods from moving trucks, leaving behind empty pallets. They hook on, climb over, cut open

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By Monica Liau the tarpaulin, and find the valuable cargo.

Oftentimes truck drivers know it’s happening but can do nothing to stop it.

Despite these dramatic scenes that lead to loss of inventory and revenue, there remains a degree of debate as to whether highway banditry is a significant threat to all carriers everywhere in China. Dow Chemical, who manufactures almost all of its thousands of chemicals in China, says they have not experienced any sort of highway robbery at all when shipping goods here. In fact, Dow says it has more problems with banditry in Southeast Asia.

Nivea, which transports midpriced cosmetics across China, also declares that they have never been tar-

geted by highway robbery.

However, Tijn Van Amelsfoort, who helped launch the Transported Asset Protection Association (TAPA) Asia Incident Information Service in November 2009, has recorded several proven highway banditry cases that have happened around the country.

“So far over 20 recent major incidents have been reported to us, with total losses equaling over US$1.5 million,” he says. “While our data is still preliminary, China definitely has the highest number of incidents right now as compared to the rest of Asia.” The Guangdong-Jiangxi and the Beijing - Zhuhai expressways’ combined losses alone exceeded RMB 100 million (US$14.6 million) in the last two years.

Differing opinions

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Feature Risk

Bigger Numbers in India When talking about highway robbery in Asia, it is impossible not to spotlight India’s problem, which may be greater than the rest of Asia combined. India recently discovered that in addition to common banditry, highway checkpoint policemen are taking bribes from truckers. These bribes account for over USD$4.5 billion annually. None of the world’s 11 other trillion-dollar economies, including China, face this magnitude of police corruption.

your firms products don’t fall under these categories John So, Director of Crisis and Risk Consulting for Control Risks Greater China, cautions against complacency.

“Armed highway robbery is definitely an increasing concern for businesses in southern Routes and Retail Value Central to the debate is the fact that certain China, especially those in apparel and meditypes of goods are in much higher demand cines,” he says. “However, in our experience, by bandits. While chemicals are considered banditry cases are certainly not restricted to these sectors.” high risk products, the Also potentially ones that Dow ships encouraging to are generally too raw highway bandits is to be sold off immeChina’s fragmented diately. “Dow chemipolice force, which cal products are often helps determine intermediate chemicals certain hotspots for that have very limited robbery. Some of use until converted to the biggest highway its final form,” says Jane Tijn Van Amelsfoort robbery hotspots Zhang, Logistics Leadin China include er for Dow in North the Jinzhu, Ganyue, China. “This means our Beihai and Shaanxi products are not well expressways as well received by robbers.” as the Nanhai cloItems that can be verleaf. The fact easily resold immedithat most of these ately in markets or on targeted areas cross websites like Taobao, provincial and disincluding foodstuffs, trict borders also apparel, medicine, scrap mean that trucks metal, and technology can travel though like PC’s or cell-phones several districts and are especially vulnereven several provable. However, even if and data begs the question; do these sensational stories of highway robbery belie the actual scope and amounts of risks that companies who ship their good by truck take?

So far over 20 recent major incidents have been reported to us, with total losses equaling over $24 million

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inces at very high speeds. There is no nationwide highway task force in China, so as soon as get-away vehicles drive over district lines, they become the responsibility of the another district.

In spite of the fragmentation technology has helped. A recent report by Xinhua announced that a police force in Hubei recently recovered a hijacked truck with over 251 boxes of Wuliangye brand liquor worth over RMB75 million (US$110 thousand) The stock was coming from Sichuan and was stolen on the Anhui expressway. Apparently, the police force found these thieves due to posts that people had put up online. The introduction of CCTV cameras on highways has also changed the way bandits steal goods. “With CCTV cameras along highways, it’s really difficult for bandits to make off with an entire truck,” say Chao. “But obviously cameras can only do so much.”

Another reason that instances of theft may be going up could simply be because highway robbery is seasonal and cyclical. The months leading up to Chinese New Year, when both consumerism and desperation are at a peak, are always times when robbery and instances of theft go up across the board. “These kinds of cases always happen close to Chinese new year,” says Chao. “People need money to take back to their village in order to look after their families and they have to find some way to get money.”

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Feature Risk Inside jobs When highway banditry does occur, they are sometimes random hits, which generally occur when trucks travel through poor regions of the country, especially Henan Province. Often, these types of raids result in a lot of ripped canvas and the thieves, finding nothing of value, sometimes leave without taking anything at all. More often though gangs of highway bandits know exactly what they are looking for when they go into the back of a truck. According to Daniel Kong, Export Sales Manager at RedBox (Chaoan) Stationary, most high-value robberies are inside jobs, where robbers research truck routes in very systematic ways.

This often means a gang has a source inside a company’s warehouse, sometimes even the drivers themselves. “There are definitely cases of drivers collaborating in such theft,” says Gideon Ong, VP of Logistics, Asia Pacific Regional Service Center at Bayer Material Science Ltd. “Who you use to ship your products matters a great deal.” When the tracking companies notices some kind of shortage in stock, they always blame the truck drivers first because there are common cases – oftentimes the truck driver is related to whoever is stealing the merchandise. “It’s surprising how few companies understand that malfeasance can occur within their supply chain.” says So. “This is a greater cause for concern than external burglary because insiders are in the best position to circumvent exiting loopholes in the supply chain and plan for the best time to strike.”

To mitigate this threat, companies will often change the routes that they take, as well

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Gideon Ong

There are definitely cases when truck drivers are collaborating in the theft of their own vehicle. as the drivers, and companies who are hiring shippers must keep a close eye on the people they use as a 3PL. “You get what you pay for,” says Ong. “Better quality companies have their reputation at stake and must know how to work with locals to resolve or mitigate this. The lower the price you pay... the higher the risk.”

Bigger Fish to Fry In spite of these facts, there are many who remain unconvinced that highway robbery

is a growing threat to their goods. Robert Jiang, of Shanghai Dajin Logistics Co. Ltd says that his company actually experiences more financial losses from police fines due to overweight vehicles. “In November we had a truck caught by the policemen and fined RMB50, 000 because we loaded 5.7 tons on a 5 ton truck,” says Jiang. “We find that the highway police here are highly efficient.”

Mr. Sau Kheong Yeoh, Senior Supply Chain Operation’s leader for Dow’s operations in the Asia Pacific region agrees that China has done a good job with its highway law enforcement. “China has actually done pretty well in keeping things under control,” says Yeoh. “The fact that China is the factory of the world means that we ship everything here that we ship in the rest of the other countries in Asia – which means that there are even more opportunities to steal.” In fact, Yeoh says counterfeit, mimicry and the relabeling of their products is a bigger safety and financial threat, more so than menace of transit raids.

Whether or not cases of highway robbery is a growing threat in China is still difficult to say, as many cases actually go unreported due to lack of knowledge, company negligence, lax police organization or the embarrassment of companies. “There are some people who think that the TAPA database will never be a success because people are not reporting their losses,” says Amelsfoort. “If we can convince people to report all of their problems anonymously then the real situation will come out in terms of highway robbery condition in China.”

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警惕公路偷窃

当

商品刚开始在中 国出现并在尘土 飞扬的乡间小路 上来往运输时， 拦路抢劫就成了 一个问题。早在公元 1100 年，传说中的 宋江和他的 36 名土匪部下就是中国北方 货物运输的一大祸害，他的生平和最终 向政府投降的结局绝对是一个传奇。如 今，现代宋江的化身也在中国通向国际 各大港口的道路上频频露面。来自 McClarens的Sam Chao说到，这些窃贼一般 在夜间行动，且通常是团伙作案，自备 2-3辆交通工具。首先由一辆车低速行驶 在目标车辆面前，另一辆紧追其后。这 种轻而易举不劳而获的揽财手段让窃贼 们肆无忌惮地从货车上卸下有价值的货 物，只留下空空如也的货盘。这种情况 货车司机其实都能预见到其发生，但却 不采取任何行动去制止。 尽管这些戏剧化的场面会导致货物 和经济损失，但是定论中国无处不在的 公路劫匪是否对货运构成了重大的威胁 尚存争议。制造中国数以千记化学产品 的陶氏化工声称他们在中国的运输活动 并未遭遇过任何形式的道路抢劫行为。 实际上，陶氏认为在南亚这种抢劫行为 反而更加猖獗。专营中档化妆品的妮 维雅也表示他们从未成为劫匪的下手目 标。然而，TAPA的指定运营和维护代理 商Tijn Van Amelsfoort，却表明有多项高 速公路被抢记录。他说：“到目前为止 我们已收到 20 多起被抢事件报告，损失 总额超过 2400 万美元，而这些报告数据 都还只是暂时的保守估计，中国的道路 抢劫发生率比亚洲的其他 国家明显要高出许多。” 根据最新的调查数据表 明，广东至江西路段和北 京至珠海的高速路段上在 这两年发生的抢劫事件造 成的损失就要超过1亿元人 民币（约为 1460 万美元） 。各方不同的意见和数据 引出了这样一个问题，这 些耸人听闻的高速公路抢 劫事件是否掩盖了公路货 运企业的实际风险呢？

路线和零售价值 争论的重点还在于被抢种类的货物 往往是劫匪们十分需要的。化学品作为 高危货物，陶氏公司所运输的产品都属 于原材料性质且需要在加工后才有销售 价值。陶氏公司中国北方大区物流经理 Jane Zhang提到：“陶氏的化工产品的使 用范围比较有限，除非作为最终产品的 时候才有更多实际使用的价值。也就是 说劫匪们不需要我们的产品。”而那些 可以直接在淘宝网等网络平台售卖的商 品，包括食品，服装，医药，金属废料 和电脑手机等电子产品往往难逃厄运。 风险咨询公司风险控制大中华区经理 John So则表示这些分类并不具有实际意 义，劫匪对中国南方的兴趣依旧不减， 尤其是对服装和药品，在他们的经验看 来，抢劫案件并不拘泥于这些分类。 还有一点让劫匪如此大胆的是中国 分散的警力，这些让劫匪们可以轻易圈 定警力较薄弱的范围作为势力盘踞点。 这些抢劫案件高发地包括金珠，北海和 陕西省高速公路以及南海苜蓿叶。这些 劫匪的目标区域一般在省和区域的边 界，也就是说货车可以高速穿越几个区 域或省市。在中国并没有全国性的高速 公路管理部门，因此劫匪一旦穿过区域 边界，就属于该区域或省的管辖范围内 了。 然而，尽管警力的确分散，但新华 社最近的报道显示湖北警方最近刚查获 了251箱的五粮液酒，价值约7500万元人 民币（约为109,840,17.00美元）。该批货 物从四川发出，在经过安徽高速的时候 被抢。很明显，经法是根据有人在网上

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Feature Risk 发布的照片抓获劫匪的。 CCTV 摄像头在高速上的应用才浮出水 面，这一定程度上改变了劫匪作 案的方式。 Michael 认为，在高 速上装了CCTV的摄像头之后， 劫匪就很难偷去整个车的货物， 不过摄像头的作用也仅限于此。 劫匪可能增加的另一个原因 还和季节有关。春节将近，紧迫 的消费需求和现实的压力都让劫 匪宁愿铤而走险。Michael认为这类抢劫的 案件往往都在临近新年的时候发生，因为 人们需要带着钱回到他们的家乡，来照顾 他们的家人，所以他们必须找到某种赚钱 的方法。 内部作案 这些公路抢劫有时候是随机作案，当 货车经过像河南那样的贫困区域时风险就 比较大。通常这类袭击事件中，如果劫匪 们在帆布包裹的车厢里没有发现任何有价 值的货物，很可能什么都不拿就放行。然 而团伙作案的劫匪就很清楚他们需要的是 什么，他们只要一打开车厢就能轻易找到 目标。红盒文具公司的出口部经理 Daniel Kong说道，许多损失价值高的抢劫案都和 企业内部有关，这样劫匪就能非常系统地 研究货车的行车路线。 也就是说劫匪团伙中往往在公司的仓 库中有内部接应人员，或者往往就是货车 司机自己。拜耳材料科技有限公司亚太地 区服务中心的物流部副总裁Gideon Ong说 到：“司机在内部接应劫匪的情况的确是

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存在的，选择 运送这些货物 的人是至关重 要的。”当货 车公司发现存 货记录与实物 不符的情况，他 们一般第一个责怪的就是货车司机。这是 很正常的道理—因为司机必然和劫匪有着 脱不掉的关系。John So说：“不过奇怪的 是很少有公司认识到这种看似巧合的抢劫 事件会和内部员工的失职有关。这应该引 起高度的重视，甚至比那些抢劫行为更令 人忧虑，因为内部员工是引起供应链漏洞 中最薄弱的环节，而且可以轻易找准最佳 的袭击时机。” 为了有效规避这种威胁，企业往往 会改变行车路线，更换司机，而用第三 方物流的企业更会密切关注他们的路线和 动态。 Ong说“你的付出和回报是正正比 的，优质的公司为了保持良好的声誉，会 积极配合企业解决问题并有效规避这种风 险，而当你付出低价时，你所要承受的风 险就越高。

更大的威胁 尽管存在这些事实，依旧有许多人 不愿意承认拦路抢劫已对他们的货物构成 了威胁。上海大金物流有限公司的Robert Jiang认为，他的公司遭受最大的损失时在 于超重载货的罚款上。“在11月我们的卡 车被查获并银超重 0.7吨而被罚款 5万元人 民币。”Jiang说到，“这里的公路警察效 率非常高。” 陶氏亚太地区供应链操作高级主管 Sau Kheong Yeoh承认中国在道路法律规 范和执法上做的不错。他说道：“中国在 执法和监管上表现不俗。实际上中国作为 世界工厂，在这里运输的一切在亚洲的其 他地方也差不多就是这些东西—也就是说 在那里被抢劫的机率就更大。Yeoh还说， 那些假冒伪劣，仿冒产品和重贴标签的产 品反而是一个更大的安全 和经济隐患，风险甚至高 过了过境抢劫。 究竟拦路抢劫是否 对中国的货运构成越来 越大的威胁还很难说，因 为许多案件的发生并没有 记录，企业的管理松懈， 过于宽松的政策管理或内 部尴尬都一定程度上隐瞒 了事实真相。 Amelsfoort 说：“许多人认为 TAPA 的数据永远不会是真实 的，因为许多人并不愿意 报告他们遭受的损失。而 如果我能说服所有人都将 他们的问题匿名地开诚 布公，那么中国公路抢劫 的真实情况就能真相大白 了。”

JANUARY/FEBRUARY 2010

41

Feature Procurement

Missing Parts

By Monica Liau

I

t was only recently that manufacturers, warehouses and retailers were complaining about excess inventory, but unfortunately for some, the recent promise of recovery has created a new problem: today some sectors are experiencing global parts shortages.

The automotive industry was especially hard hit, with big names like India’s Tata Motors, Chevy and GM all announcing delays and temporary shutdowns in certain factories due to lack of parts. Another hard-hit sector is the Graphics Processing Unit (GPU) business, where both nVidia and ATI, AMD’s graphics division face severe production

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JANUARY/FEBRUARY 2010

shortfalls due to the inability of their overseas supplier to provide enough parts. What happened?

Given the ongoing economic slowdown, it may seem strange that suppliers are unable to keep up with demand, and some have already identified culprits. For example, Ritesh Bijoria, a head supply chain director based in Bangalore, says that origins of the problem are widespread and originate in the way many companies reacted to the economic recession. “The deliberate compromise on quality of service and high focus on cost reduction of manufacturers is the reason behind the clog,” he says. “With the current fluctuations

in the market, it may not be a problem that can be resolved soon.”

Origins The problem originates in the fact that certain industries decided or were forced to cut back on capacity and employees in order to survive the economic recession. Especially

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Feature Procurement ticipate sales also led to stress on his production in the West, slashing costs often meant fullcycle. “The complete lack of forecasting and time and part-time employees were tossed unrealistic demands from the automotive inrapidly overboard like so much excess baggage dustry definitely did not help,” he says. “When on a sinking ship. “The recent financial crisis they want parts, they demand a 2-week delivery caused a lot of suppliers, from upper-end raw on an 8-week product cycle.” materials to the near-end factories, to restrucGaurav Munjal, Chief Executive at Hero Cyture,” says Frank Zhang, Commodity Mancles Ltd. thinks that big companies, especially ager for the APAC sourcing of Honeywell those located in Europe, the US or Japan have international. “They cut down their capacity, squeezed on margins so much that their Asian decreased the payroll list, peeled up backup Frank Zhang suppliers debate whether to work to meet their resources and transferred investments - all of APAC Sourcing demands at all. “I don’t think Asia is short or which makes it difficult to recover normal caHoneywell Intl material,” says Munjal. “I just think everyone is pacity when order demands come suddenly.” being cautious and is squeezing the small venThis meant remaining staff had to do the dors.” company’s exact same job with less people on board, less fall back revenue and less time to Over Capacity in 2010? fill panicked orders when the inevitable wave While many companies struggle with being of restocking began. unable to meet demands, a recent report from a To add insult to injury, when exports and China state planning agency warns that at least demand showed signs of recovery, manuhalf-dozen industrial sectors are already expefacturing companies in China couldn’t seem riencing massive overcapacity issues in 2009. to hire their employees back. In Guangdong Anticipating future stimulus-drive construction province, several manufacturing companies projects, cement makers, have already added reported massive labor shortages due to com600 million tons to their existing 1.9 billion tons peting markets. A manager for a plastic-moldof annual production capacity. Whether this ings manufacturer Vaupell in Guangdong, says that when they went out to hire laborers in Shenzhen, they found that will get filled eventually is speculation, but in some cases the verdict many of the bigger companies had already hired everyone they could is already in. Aluminum smelters are running at only two-thirds capacity down from nearly four-fifths last year. Sustainable technology find in a effort to meet demand.

Many suppliers also began to switch and broaden their receiver production capacity is also spiking: the number of Chinese compabase as certain industries they served began to flounder. Lawrence nies making wind power equipment has quadrupled to more than 80.

In fact, some of China’s leading largeGavin of Adelphi says that his automoscale wind power businesses have been tive company was competing with IT lobbying the government to slow the manufacturers for the same services growth of the industry because of alof a single company. “There are only leged overcapacity. so many suppliers in the world,” says Both issues have wide-ranging imGavin. “Many suppliers simply didn’t pacts.

Lack of supply means nothing to want to have to work with the indusPERCENT 120 sell, which puts people out of business. tries that were having trouble.” The UTILIZATION RATE OF INDUSTRIAL Over capacity and market glut means competition for supply within sectors CAPACITY IN CHINA that factories will eventually run idle, or is also fierce, with cell phone makers in 07 `08 `09 EST. work at a decreased profit margin. Both particular experiencing cutthroat com90 of the problems come from extremes petition for products from a small list that define this uncertain period of of chip suppliers. Already, Nokia has economic recovery; a combination of announced losses of over USD$834 60 over optimism or extreme pessimism, million due to competition with Iphone perhaps best described by early 1900’s for chips. economist John Maynard Keynes as “an Inconsistent, small orders coming urge to action rather than inaction.” The from businessmen who see the future as 30 future of the global supply chain, and unpredictable is perhaps one of the bigperhaps the world economy itself, will gest problems contributing to the back rely on both governments and businessup in parts. Zack Zebrivious, Product/ 0 men figuring out how to find a balancProcess Engineer for SSI Technologies STEEL ALUMINUM CEMENT ing force in the face of fluctuations.

Inc., says that erratic orders from an Data: European Chamber of Commerce in China, Morgan Stanley automotive industry that could not an-

Companies cut back on everything; which makes it difficult to recover when orders start coming.

bigger servings, smaller appetite

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JANUARY/FEBRUARY 2010

43

Feature Procurement

遗失的零件 廖明琦

直

到最近，制造商，零售商的仓库方面才开始 抱怨过多存货的堆积。对许多厂商来说，经 济复苏的趋势反而引起了一个新的问题：如 今许多部门都经受着全球零件短缺的困境— 汽车工业尤为如此，诸如大名鼎鼎的印度塔 塔汽车，雪佛兰和通用都宣布由于零件短缺，部分工厂要暂时削减 产量。另一个受到零件影响的是图形处理器（GPU）的业务，诸如 nVidia 和 ATI, AMD’s图形处理部门都因为海外供应商无法提供足够 的零件儿面临严峻的生产短缺。到底发生了什么呢？ 目前经济虽然发展逐步放缓，而供应商却无法跟上需求的增 长，有的已经构成了严重违约。例如，一位班加罗尔的供应链主管 Ritesh Bijoria说到，这个普遍问题的根源在于企业对经济衰退的应对 方式—他们故意降低服务质量和生产成本是造成这样短缺的局面。 随着当今市场的频繁波动，这个问题恐怕一时无法解决。 起因 这个问题大多起因于这样一种情况—许多行业决定为了在经济 衰退中生存而被迫削减产能和裁员。尤其是在西方，削减成本往往 就是意味着迅速裁掉一定数量的全职和兼职员工，就像渐渐下沉的 船需要抛弃掉累赘的行李。霍尼韦尔国际亚太区商品采购经理Frank Zhang说道：“当前的金融危机导致许多原始材料和终端加工供应商 都面临重组，他们缩减产能，减少工资福利， 降低储备资源并转移 投资方向—这些都导致订单到来时无法恢复到正常的产能标准。” 这就意味着留下来的员工就不得不做几个人的工作量来满足无法预 计的复苏阶段订单到来时，能尽量及时地交货。 而雪上加霜的是，当出口和需求都出现复苏迹象时，厂商不可 能再把当初裁掉的员工请回来。在广东省，一些厂家在竞争激烈的 市场中面临劳动力短缺的压力。一家广东的塑料制厂的经理表示他 们会到深圳去招聘员工，因为几乎所有的剩余可用劳动力都被大公 司招去以满足旺季的需求。 还有许多供应商开始转移并扩大他们的客户，因为许多以往他 们服务的工业都逐 渐处在困难阶段。 来自Adelphi的Lawrence Gavin告诉我 们，他的汽车公司 正和一家IT公司竞 争同一家供应商的 服务。“现在全球 就只有这么多家的 供应商，其中还有 许多并不愿意和处 在危机中的企业合 作 。 ” Gavin 这 样 说到。行业内的供

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Feature Procurement 应商竞争也很激烈，手机 制造商尤为如此，经历了 不公正的竞争和排挤才能 从为数不多的供应商那争 取到芯片。 诺 基 亚 声 称 在 和 iPhone 芯 片 的 竞 争 中 已 损 失八亿三千四百万美元。 相反地，那些小订单的 客户对未来的不确定性恐 怕是零件短缺的最大原 因。 SSI 科技有限公司的 生 产 和 加 工 工 程 师 Zack Zebrivious 说到，汽车业 不稳定的订单式以为其无 法预见销售状况，进而反 过来也营销到他的生产进 度和周期。“汽车业缺乏 预测和不切实际的需求对 目前的危机实在于事无 补，”他还补充道，“当 他们需要零件时，却要求 我们把 8 周才能生产出来 的东西在2周内交货。” Hero Cycles 有限公司 的CEO Gaurav Munjal认 为，一些欧洲，美国和日 本的大公司产品的毛利太 少，以致于许多亚洲的供 应商都在争论是否要尽力 满足他们的要求。 Munjal 还说：“我并不认为亚洲 的市场狭小或是物料短 缺，只是每个人都保持谨 慎地态度并排挤那些小供 应商。

2010年将产能过剩？ 当许多企业垂死挣扎 无法满足买家需求时，中

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Frank Zhang APAC Sourcing Honeywell Intl

公司缩减缩 减所有开销 导致订单到 来时无法恢 复到正常的 产能标准。 bigger servings, smaller appetite 120

PERCENT

UTILIZATION RATE OF INDUSTRIAL CAPACITY IN CHINA 07 08 09 EST. 90

60

30

0

STEEL

ALUMINUM

Data: European Chamber of Commerce in China, Morgan Stanley

CEMENT

国国家规划局的报告警告 说，至少有五六个工业部 门已经在 2009 年内出现了 产能过剩的问题。预测未 来驱动的刺激因素有建工 项目，水泥生产，已经在 现有的年产能 19亿吨的基 础上有增加了600吨。这个 需求是否能被填满我们只 能猜测，但是一切案例已 经给出了答案。炼铝业将 其产量从去年的五分之四 缩减到了三分之二。可持 续技术产品的生产能力也 处在增长势头：中国制造 风力仪器的企业数量翻了 两番，已超过 80多家。实 际上，一些中国大型的风 力企业都一直在游说政府 放缓工业发展的步伐来适 当控制产能过剩的问题。 供求不平衡而导致 的这两个问题都具有广泛 的影响。供应缺乏意味着 没有商品可以销售，这将 导致人们停止营业。而产 能过剩和供过于求就会迫 使工厂设备闲置或降低毛 利。这两个问题都是经济 复苏时期在不稳定振荡的 市场环境中过度乐观和过 分悲观的极端例子；或许 20世纪的经济学家凯恩斯 说的最有道理--“有所行 动要好过无作为的应对” 。全球供应链发展的未来 和世界经济，将取决于政 府和企业是否能在振荡中 找到一个恰当的平衡点。

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45

Feature Logistics

Cargo Crunch

The air cargo dilemma

O

3,500 tons

(equivalent of 35 B747 freighters) Backlog at Hong Kong Air Cargo Terminals on Nov 20.

46

ver the past month a huge backlog in air cargo has developed that is affecting many Asian airports, leaving forwarders and exporters struggling for space, mainly on flights to Europe. The problem reflects surging demand for Chinese products which has outstripped the available air cargo capacity required.

After a year in which a depressed global economy has kept many businesses operating on minimal inventories, airlines had removed or consolidated cargo capacity. Now with increasing de-

JANUARY/FEBRUARY 2010

By Barry Elliott and Chris Catto-Smith

mand - particularly for products sourced in China - capacity across the region is in short supply.

No more space available: Most recently, all available air cargo capacity out of China has been backlogged until the New Year, creating opportunities for transshipment of cargo through other hubs such as Korea, Singapore and Thailand. According to several reports from Inforam Cargo and International Freighting Weekly (IFW), from which this article is largely drawn, rates out of Thailand have increased to around $4 per kilogramme during the last two months (almost

double that of the previous six months), as domestic shipments have competed for capacity with cargo originating in China.

Over the last two weeks there was a backlog of 3,500 tonnes at Hong Kong Air Cargo Terminals (HACTL), the equivalent of 35 Boeing 747 freighters - which meant freight was waiting seven to 10 days for uplift.

Surging volumes out of Thailand: “We saw volumes jump by 20% in October over September and November has been very busy and is projected to be 9% up on October,� said Stewart Sinclair, man-

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Feature Logistics aging director of Bangkok Flight Services, the leading ground handler at Suvarnabhumi, speaking to IFW. “September is usually the peak but this year it was flat, then October just took off. It’s mostly driven by China; there’s no capacity anywhere at the moment.” The cargo buildup that started in October has continued with demand spiking over the past weeks.

Embargoes on transshipments: At Bangkok’s Suvarnabhumi Airport, several carriers have placed embargoes on transshipment cargo in the last two weeks because Thai origin and destination demand is so great. However, according to another report by IFW, Thai Airways International’s cargo business has received a major boost from China’s air freight capacity squeeze over the last few months, with around 60% of the cargo shipped by THAI in the pre-Christmas rush to capitalise on freight originating in China, arriving as belly freight in passenger aircraft at Bangkok for onward shipment to Europe. THAI had even stopped accepting local bookings over the past weeks as it

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sought to clear its own backlog.

Air cargo as a barometer for global turnaround: Although the surge in demand for air cargo capacity is being seen a barometer or a turnaround indicator in the global economic crisis - it is causing serious impacts among the various industries competing for space. Having faced appalling financial results over the past 12 to 18 months, airlines have increased their freight rates in an attempt to recover lost revenue, so a deeper problem has arisen.

Carriers have focused on increasing volumes of dense hightech cargo (such as electronics) to increase revenue. There has been little or no space available for fresh produce which has been traditionally shipped in low-density expanded polystyrene boxes.

Fresh produce shippers squeezed out: Despite having sufficient and time to make necessary changes, many Thai fresh produce exporters have failed to change their packaging away from polystyrene, which could allow denser loading and more environmentally responsible packaging

methods.

International retailers are now shunning Thailand as sourcing location for one main reason - it is too hard to get operators here to change their uncompetitive logistics and packaging habits. At a time where fresh produce exports to Europe should be peaking, there is only limited activity with the major exporters. By adopting alternate packaging and improving cold-chain logistics, Thai fresh produce exporters could lower their costs of freight and compete for limited air cargo capacity more effectively.

Not a short-term solution: With air freight it is very difficult to book short-term capacity or to accommodate increased demand for products. Long-term cargo space is usually acquired by freight forwarders or shippers many months ahead on a contract basis, and usually the forecasted demand is unreliable. This results in highly volatile or ad hoc freight pricing during times of increased demand or where additional space is required.

7-10 days

Average waiting time before freight uplift in aircrafts.

US$ 4-6

per kilo Highest rates seen at Bangkok, Singapore and Chinese Airports

Much of China’s backlog was sent by belly freight in passenger air crafts to Bangkok.

JANUARY/FEBRUARY 2010

47

Feature Logistics

货物积压

过

去一个月许多亚洲机场航道 的封闭导致大量要运往欧洲 的空运货物积压，让许多货 代公司和出口商为舱位奔波 地焦头烂额。这个问题反映 了对中国商品突增的外部需求已经超过了现有的航 空货运能力。原因主要在今年许多企业都按最低库 存来经营，迫使一些航空公司取消或合并货运载货 量。而如今随着需求日益增加，特别是中国制造的 商品，在整个亚洲已经处于供不应求的状态。 紧缺的空间 最近，所有现有的从中国出口的空运货都遭遇 舱位紧张的情况，并可能持续到新年前夕。今年12 月的头两周，香港空运货站就有3500吨超额的积压 货滞留在货仓，这相当于 35架波音 747的载货量， 要等上7-10天后才能排班起飞。 这种货物拥堵的情况却为一些转运港提供难得 的机会，比如韩国，新加坡和泰国。根据 Inforam 货运和国际货运周刊（IFW）的几份报告显示，国 内出货商为争夺更大的货运量，引发激烈竞争，泰 国出口的空运价格在前两个月已经涨到了USD$4-6 每公斤（相当于前6个月的两倍）。 泰国遭困 曼谷航空服务公司（索万那普一流的地面操 作）的经理Stewart Sinclair对IFW说：“我们的十月 的货量比九月多了 20% ，而十一月 陷入了更加繁忙的旺季，货量又比 十月增加了9%。往年的旺季一般在 九月，而今年九月的货量平平，却 在十月激增。这很大程度上是中国 商品的拉动作用，因为这个时候别 的地方基本是没什么货的。”十月 份开始飞涨的货量还将随着需求的 增加继续上涨。 由于泰国作为始发和目的地的 空运需求增长，许多曼谷索万那普 机场的航空公司已从前两周起对转 运货物实施禁运。然而，根据 IFW 的另一份报告显示，泰国航空的国 际货运业务受到中国有限的空运载 货能力的影响而在前几个月就开始 忙个不停，中国产的 60% 的出口货 由泰航在圣诞前就通过头程从中国 运到泰国，再从曼谷的二程运往欧 洲。前几周泰航甚至为了清理仓库 内的积压货而拒绝新的舱位预定。 虽然货运需求的增加可以被看 做是全球经济复苏的转折点—可这

48

JANUARY/FEBRUARY 2010

Barry Elliott 和 Chis Catto-Smith

个问题还是引起各行业为争夺舱位而导致的激烈竞 争。受到过去 12-18月淡季的严重亏损影响，航空 公司不得不答应上调空运价格，试图最大程度地减 少损失，从而又引起了一个更严重的问题。 泰国落后 航空公司把更多的注意力放在增加高科技产品 等重货的货量上（比如电子产品），借此来增加收 入。因此一些泡沫塑料包装的新鲜食品往往就订不 到舱位。尽管还有时间可以为了满足航空公司的要 求做出改变，许多泰国新鲜食品的出口商还是免不 了要用到泡沫塑料，因为这种包装方便装载，并且 更加环保。 许多国际零售商现在都尽量避免在泰国采购， 有一个主要的原因在于—想要让这里的经营者们改 变他们完全没有竞争力的物流方式和包装习惯太难 了。当新鲜食品出口到欧洲的货量一度到达顶峰的 时候，只有几个主要的出口商能从事这种贸易。而 通过替代包装的采用和冷链物流的改善，出口商可 以有效地降低空运成本，并更灵活地应对空运载货 量受限下的竞争。 空运短期的货量是很难判断的，也无法根据产 品一时需求的增加而调整载货量。而长期的货舱预 定往往是被货代公司或发货人在几个月前就以合同 方式预定好了，预测的需求一般也不大可靠。这就 导致了在需求忽然增加需要增加舱位时的价格的变 动或特别定价。

3500

吨

超额的积压货滞 留在货仓，这相 当于35架波音 747的载货量

7-10

天

等待起飞时间

USD

4-6

/公斤

最高价中国机场， 新加坡和泰国出口 的空运价格涨到了

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Feature Logistics

最

近，上海的快递服 务网络引起了我的 关注。许多家庭和 企业都会频繁使用 这种服务网络来收 发信件和包裹。但是我以前并没特别注意 这一点，因为所谓的人们对快递的关注只 不过是“请在这里签收”，仅此而已。而 几年后当我在考虑为什么许多人忙碌在地 铁出口附近时，我才有新的发现。 每天上海地铁里流动的除了数百万计 的乘客，实际上还有许多上海快递服务的 骨干人员。那些在地铁口忙碌的人们实际 上是在收发和处理快递系统里的信件和包 裹。随着我乘坐地铁的次数增加，我发现 这其中各个过程的职能分配。首先是第一 阶段的快递员将包裹从始发地送到地铁， 接应的地铁站快递员就只要将 包裹再送到火车站或其他地铁 站接应人员手中继续流转。这 样蜂箱式的工作方式成本极 低，甚至有潜力运输至全国范 围。 在过去一星期的课程里， 我试图让员工们睁大双眼了解 一个真实的上海。于是我派了 两名当地工作人员去调查快递 公司的配送模式并如实汇报。 这样我才能发现这个服务网络 背后的物流支持（这是我最初 的兴趣所在），同时看到各个岗位上的快 递员的收入分配（我初步的设想是他们的 所得都是相互独立互不关联的），此外我 还要知道整个快递系统中流动着多少的现 金量。

上海快递配送网络

By Richard Brubaker

取件

分配

快递流转图表标释 快递配送系统

结构： 与我最初的想法相反的是，第一天的 调查表明这个服务系统是组织有序，并有 3-5家的公司控制着主要的包裹快件服务 （其中有一些是独立的）。和任何其他性

线路2

站点

线路6

站点

站点

分配

发送

发送

分配

发送

检查来跟踪快件到每个站点的最新情况。 快递公司一旦收到包裹，包裹就会 进入系统的第一类，之后由站点的工作人 员测算离目的地的远近。如果距离较近， 包裹会被送到相应的分站点来继续流转处 理，由下一个快递员送到该区 域。每个快递员都划分了相应 的领域，就像一个标准的配送 服务供应商。如果包裹要运送 到较远的区域（跨越省市）， 该快件就会被输进一个不同的 系统。（详见上表） 成本

质的公司一样，这些主要快递公司也在业 务密集处设立服务站。 地铁2号线是快递业务至关重要的一 条线路。虹桥，南京路，外滩，陆家嘴和 世纪大道等商圈都是快递货源的集中地， 从世纪大道延伸至娄山关路和中山公园。 而另一条同样关键的路线也 可以通过换乘1号线到达新天 地和徐家汇这两个商圈。所 中 国 以，那些主要的快递收发站 快 点都集中在东昌路，人民广 递 场，南京西路，中山公园等 服 务 枢纽站。 按 地 区 分 不 同 价 位

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站点

快递流转 在一个服务网络中，上 千件的包裹一天之内可能要 经过 15个人，这就需要一个 半开放的管理模式。与我当 初的预计不同的是，这个管 理过程主要依靠手工记录和

经常叫快递服务的人都知 道价格和快递的快慢都是可议 价的，这就是快递市场发展的 瓶颈所在。研究数年前的快递 市场，我们很想知道那些小快递公司是如 果游刃有余地发展业务。那时的快递服务 基本都依赖于口碑和手机联络。因此，最 优秀的快递销售都知道要给办公人员和白 领们最低的折扣。 超出可议价范围，快递服务就是一个 以位置为导向的系统（意料之中），距离 决定了快递的速度（这是理所当然的）。 对于本市区内的快递，午餐时间前发出就 能保证当天到达，但午餐以后的快件就要 看运气了（一些快递商可能会提供加急服 务，只要额外再付一些费用）。如果是送 往上海以外二级或三级城市的快递，通常 可以在隔天送到，但是其他因素的影响谁 都无法保证（我就曾经有过发往江西的包 裹3天后才到的经历）。 现在你应该有所了解，上海的快递网 络剖析到细节实际上就揭示一个复杂的网 络，一方面利用自有机动交通工具，一方 面有效利用了上海庞大的基础设施网络。

JANUARY/FEBRUARY 2010

49

Feature Logistics

Shanghai’s Express

Delivery Network

O

By Richard Brubaker

ne thing that has always fascinated me about Shanghai is its Express Delivery Network (kuaidi) service which is a mainstay of offices and households alike and used frequently to send letters and packages across town. However, little of my attention was paid to it, as the people running the kuaidi’s seemed incredibly decentralized and rarely cared to say anything more than “sign here”. Then, after a couple of years wondering why so many people seemed to hang out near the turnstiles of the metro station, I realized something.

In addition to handling millions of riders a day, the Shanghai metro system

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JANUARY/FEBRUARY 2010

was in fact the backbone for moving Shanghai’s express packages around.

The people hanging out by the turnstiles were in fact collecting and distributing packages and letters that were moving through the system. As my travel time on the metro increased, I began to see that there were more actors in play. You had runners who move packages from the originating office to the metro, dedicated metro runners who do no more than run packages from metro turnstiles to train carriages, and then persons who ride the metro all day long making the hand off. It is a hive of activity that was low cost and had the potential to move packages across the country!

Over the course of a week, as part of a program to shake things up and open

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Feature Logistics

Pickup

Branch

Station

Line 2

Station

Line 6

Station

Flow chart explaining Kuaidi delivery System

their eyes to Shanghai, I sent two of my local staff to check out the express delivery program and report back to me just how the system worked. To work out not only the logistics behind the network (my original interest), but to see how the various actors made money (my initial assumption was that they were all independents) and how much money was moving through the system.

Structure: Contrary to my initial thoughts, the first day showed that the system is quite organized, and that there are three to five companies who are largely in control of the majority of packages (there are some independents).

Much like any other firm, these groups have developed a networks of branches to service their high traffic areas.

Line 2 is the money line. Hongqiao, Nanjing Road, the Bund, Lujiazui, and Century

Station

Branch

Delivery

Delivery

Branch

Station

Ave. commercial districts produce volume from the line 2 start point at Century Avenue to its midpoint at Loushanguan Road/ Zhongshan Park areas. A decent majority also moves along line 1 to the Xintiandi and Xujiahui areas as well. So, what you have are major delivery hubs that are spread out along those stations including Dongchang Road, People’s Square, Nanjing West Road, Zhongshan Park, and so on.

its first sort, in which the office determines the package near or long distance. If near, the package is taken to the corresponding branch for processing, and then carried by another runner to that area. Each runner will have a territory much like a standard delivery service provider. If the package needs to be moved from the immediate area (across town or across China), it enters a different system (see flow chart).

The Flow: Moving a few thousand packages a day over a network of around 15 people requires a semi-manageable process. Contrary to my initial assumptions, this process is one that is actually tracked over the entire process through hand notes and a scan once it reaches the express branch.

Once received at the express office, the package essentially enters the system and hits

The Costs: Anyone who has used a kuaidi service provider knows that everything is negotiable from price to speed, and that this package delivery market is incredibly cut throat.

While studying the traditional express market several years ago, we were locally very interested in seeing how these smaller delivery groups worked so well. It ended up all relying on word of mouth and mobile phone conversations. Therefore, the best express salespeople always give secretaries and offices the best discount.

Outside of this bargaining, the kuaidi service is a geography based system (no surprise) and the distance determines the speed of delivery (no surprise there either). For intercity deliveries, sending before lunch will essentially guarantee a same day delivery, but anything after lunch will “depend” on a few different factors (you can pay extra for priority service with some providers). For service outside of Shanghai, it appears that any 2nd or 3rd tier city can be serviced next day, but anything beyond that was anyone’s guess (I once sent a package to the furthest reaches of Jiangxi province that took 3 days).

So there you have it. Shanghai’s kuaidi network exposed in detail as an intricate network that utilizes both their own motor power plus the vast resources of Shanghai’s vast underground network.

China’s Kuaidi Service has different district price ranges for delivery.

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JANUARY/FEBRUARY 2010

51

sponsored Feature

Don’t Get Caught on your Heels:

Why spare parts matter

C

hina is slowly throwing off its role as “factory of the world” and becoming an important market in its own right. The new demand for after-sales service can open up major opportunities to differentiate products, create competitive advantages and increase margins. However, with more and more products being sold in China, businesses have to deal with new service management difficulties. As China poses particular challenges in terms of managing service parts or spares, it is crucial to keep a business running through effective plans ensuring rapid repairs and maintenance.

Whether it is a customers’ business or your own, spare parts have to be stocked at appropriate locations in the supply chain to guarantee a high service level. As most of these parts are expensive, this requires large amounts of investment capital. For instance, one of our clients, a large wireless services provider had US$600 million in parts inventory for its China business. Other industries also have large inventories: One airline com-

52

JANUARY/FEBRUARY 2010

pany alone spends up to US$500 million in Maintenance, Repair and Overhaul (MRO) capabilities and one heavy equipment manufacturer invests up to $70 million in spares.

The value of spare parts inventories for these businesses is large and often a significant determinant of overall capital utilization and cash flow. If not managed rigorously both the financial and service performance of these spare parts inventories can suffer.

Management personal from all industries also face questions of availability, obsolescence, and limited network visibility. Local and international control barriers and the risks of violating governmental policy controls are also major concerns. As several enterprises are now seeking to establish China as a “repair centre of the world.” Enterprises are growing beyond simple “temporary importation for repair” of self-made goods and now wish to drive repair operations that are “large scale and routine” as fully-fledged MRO centers.

Unique characteristics of spare parts management Generally, spare parts are divided into the category of “repairables” or “non-repairables.” In China, the smooth repair services are not only related to the normal inventory management and supply chain efficiency, but also are limited to China unique customs and trade compliance boundaries. There are two types of repairable parts in China Repairable parts are divided into two categories, self-made and non self-made. Enterprises located within special customs supervised bonded zones or engage customs handbook processing trade operations are permitted, subject to approval, to conduct the repair of self-made finished goods and goods of Chinese origin. Limitations in respect of product coverage have applied to products like mechanical and electrical goods that were previously exported from China.

In most instances however, repair of goods of non-Chinese origin or capital equipment parts are still prohibited.

The regulatory basis for the bonded repair of non self-made and non-Chinese goods is less developed. One approach may be to establish global repair operations for non selfmade goods in selected bonded zones and under the auspices of a pilot program.

Non-repairables parts are removed and replaced by a new item if they become defective. China customs generally allows enterprises to dispose non-repairable parts for bonded manufacturing operations. For parts replacement, a “consignment warehouse” model could be taken into consideration to enjoy the free exchange of the parts with duty/Value Added Tax (VAT) exempt to maximize the supply chain efficiency and cost saving. The return of non-repairable parts generally face more supply chain costs, customs and trade compliance issues: For instance, it is sometimes compulsory for a US company’s subsidiary in China to return the

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sponsored Feature

US export control parts back to US due to the trade compliance requirement even the dysfunctional parts has not commercial value at all.

Solving Your Issues When controlling spare parts, managers face complex problems: spare parts are expensive, demand is erratic and hence hard to predict and delivery times are long and erratic. Customers often demand their spare parts quickly, but companies are stuck facing difficult local government customs, trade, foreign exchange markets and tax boundaries. Consequently, these unique characteristics have forced companies to fine ways to proper manage parts inventories and improve parts logistics cost efficiency and delivery performance.

We have helped our clients address their spare parts management issues. We observed that our clients often suffer from some typical parts management issues and actively looking for assistance to address them. Some of these typical issues include: low availability and limited network visibility due to local control barriers, parts obsolescence, risks of violations of governmental policy control, customs and trade compliance level challenges and repair and manufacturing operation integration difficulty.

How to get started to improve your spare parts management?

Effective spare parts management could bring significant positive impact on capital utilization and cash flow for the overall business, reduce cost and improve customer services. The first step is to assess your current service parts strategy and operations to identify opportunities. For instance, one of our clients, an electronic manufacturer, wants to improve its customer service. They performed a service parts benchmarking study to show them where their business was

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strong and weak, and what they could do to to meet your business requirements?

If you answer “yes” to any of the quesstrengthen the business. PwC assessed their customer service and cost of delivery. The tions above, you will have real opportunity to result of threat analysis revealed opportuni- deliver benefits to your business by improving your spare parts management. An opporties for them to be more competitive.

We developed a self-survey questionnaire tunity assessment could then be launched to and normally recommend out client to as- confirm opportunities and benefits, define sess their spare parts operations at the initial direction and investment roadmap. phase. Some basic quesSummary tions are: China is taking some steps towards be1. Is customer service dropping while inven- coming the “repair centre of the world”. tory investment is grow- Bonded MRO operations are gradually taking shape. As of now, bonded repair is more ing?

2. Does obsolete in- advanced for self-made goods rather than ventory account for 5% non self-made goods. In most instances, or more of gross inven- repair of goods of non-Chinese origin is still prohibited. Establishment of a bonded tory?

3. Does the business repair centre in a Customs supervised zone struggle with answering questions such as, and operating under the auspices of a ”pilot “what should my service levels be?”, “how program” is a potential way forward. Parallel much inventory do I need to support that repair and manufacturing operations outside service?”, “where should parts be stocked in of a bonded zone may be possible, but these the network?” and “what should we value the bring their own unique challenges.

Overall, whilst international repair centres recovered parts” 4. Has the business adopted a mindset are complex from a supervision and control that parts forecasting is too difficult to ac- perspective, there is possibility to establish an complish, and therefore has given up on a MRO that is cost and supply-chain efficient. demand planning capability?

Michael Jiang is a Director at PriceWaterhouseCoopers Worldtrade 5. Does the busiManagement Service. Based in Shanghai, he consults on customs, ness lack of confitrade, and supply chain issues. dence to ensure the George Sun is a Senior Manager at PriceWaterhouseCoopers Advisory. local regulatory enviBased in Shanghai, he consults on supply chain transformation and performance improvement. ronment and changes

JANUARY/FEBRUARY 2010

53

Something Different

Dell: Bamboo Baby Steps Dell has stuck one foot onto the road of environmental sustainability with the launch of their new packaging. In mid-November, Dell began using bamboo protective packaging to ship its Dell Inspiron Mini 10 and 10v Netbooks in place of the paper, foam and corrugate that is often used. Even though bamboo currently seems to be all the rage (you can find “green” bamboo boutique products that range from flooring to clothing) Dell is among the first major companies to use bamboo in their standardized packaging, and the first in the PC industry.

Jiangxi

Far from the Panda’s Lair Dell works with bamboo packaging supplier Unisource Global Solutions (UGS). Raw bamboo is sourced from a Forest Stewardship Council (FSC) certified area of Jiangxi Province, China - the company assures that it is located far away from pandas’ known habitats.

UGS also keeps track of working conditions and tracks the bamboo through the full chain of custody, from forest to Dells Chinese packing facility.

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JANUARY/FEBRUARY 2010

Why does Bamboo mean Sustainability? > It grows fast: Bamboo, a member of the grass family, can grow up to 24 inches per day and reaches full harvesting maturity in three to seven years, faster than most hardwoods. > It’s strong: Bamboo’s tensile strength is similar to that of steel, making it a reliable packaging material > It’s easy on the environment: The plant’s deep root systems protect against land erosion, and doesn’t require replanting after harvest.

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Something Different

The bamboo cushioning is another step in Dells larger plan, which was announced in December of 2008. Some of the promises include shrinking Dell’s packaging volume by 10% (about 20million pounds of material), increasing renewable and recyclable packaging content by 40% and making at least 75% of it’s packaging curb-side recyclable by 2012. Whether or not Dell will hit these targets is yet to be seen, but for now they can revel in the fact that they are currently number 1 in the packaging department.

Becoming a Cushion Raw bamboo is processed mechanically, not chemically, which enables the packaging provider to reclaim water used during processing.

Oliver Campbell, Dell’s senior manager of packaging worldwide, says that making cushions from bamboo instead of paper pulp takes a little longer, but the process costs less in the end. Dell plans to expand its use of bamboo packaging to more products in early 2010.

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The Problem with Going First Dell’s bamboo packaging is not yet certified as recyclable in many places across the globe, so for now, consumers who receive this ecofriendly packaging will have to toss it into the trash. Dell says that its department is working through the certification process, but it is a months-long trial that will probably come to fruition sometime in 2010.

JANUARY/FEBRUARY 2010

55

LIFE Gadgets

Mint Seal :

Security for Corporate and Personal Signatures

Grace E-Motorbike :

The World’s First Street Legal Motorbike A German based company named GRACE has created the world's first e-motorbike. While the name may conjure up images of futuristic hover-crafts, this motorbike is actually perfect to riding today's streets.

This handmade bike uses parts from Formula 1 Cars and European fighter planes, and will be ready to test drive later this year. The handlebar contains all the controls of the bike such as light, alarm system, battery management and other accessories. The indestructible frame gives the e-motorbike enough durability to sustain rough surfaces and bad weather conditions.

Mint Seal has restored faith in the security issues that personal or corporate seals have recently lost. This seal container has been designed with a locking case for the seal side and a combination lock at the other end for the print the seal. There is a red dot on the body of the seal which is the level where the secret numerical combination should be aligned. After setting up with the password, turn the knob 180 degrees to come out the seal from the casing.

After finishing with printing the seal, turn back the knob and disarrange your security number. Simple, isn’t it?

If you have an opinion on this concept, email us at: comment@supplychain.cn

Pour Your Cup of Tea with Ignotus Ignotus is a sleek metal container designed like a samovar that can boil water and make quality tea. It comprises an internal fire tank filled with coal or charcoal to generate heat without spending a huge amount on your electricity or fuel bill. The tank has a nozzle at the bottom, which improves the quality of the tea flavor. The double Ignotus casing keeps the water warmer for a longer period of time and protects the user from unwanted burns. This easy to operate, one-button controlled concept tea-maker offers great convenience and eliminates the hassle of using firewood.

56

JANUARY/FEBRUARY 2010

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LIFE Hotel apartment-style suites obviously designed with space, warmth, comfort, and style in mind.

The Opposite House also has three restaurants. Take your pick between Mediterranean cuisine, Asian Fusion and a simple café.

Stats: # of Rooms: 99, including the two-floor penthouse.

Rates: RMB 1,650 - RMB 8,000 (USD$235–640), includes breakfast; excludes 15% service charge.

Check-out- Midday (check-in, 2pm).

Both are highly flexible, subject to availability.

Facilities: Two spa treatment rooms, gym, free WiFi throughout the building, valet parking. In rooms: LCD TVs, Denon DVD/CD with iPod dock, French press, rain showers and deep oak soaking tubs in bathrooms.

Poolside: The hotel has a 20-metre pool lined in striking stainless steel and illuminated with a ceiling of tiny lights.

Get there

Intriguing Opposite For a quiet respite on your next business trip into Beijing, it might be worth considering the Opposite House; a hotel

located in the heart of central, chaotic Sanlitun district. Designed by Japanese architect super-star Kengo Kuma, the outside looks like an unassuming green

glass box, but the interior is full of floorto-ceiling windows, clever architecture and sleek, yet luxurious rooms (called studios). The rooms are all uncluttered

11 Sanlitun Road, The Village, Building 1, Chaoyang, Beijing, China 100027 tel. +86 10 6417 6688

R 2009 SEPTEM BER / OCTOBE

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JANUARY/FEBRUARY 2010

57

CLASSIFIED Listings

LOGISTICS SERVICES

LOGISTICS SERVICES +86 (21) 6445 1452 www.clasquin com

120/F Broadway Centre, 93 Kwai Fuk Road, Kwai Chung, NT, Hong Kong, China

香港新界葵涌葵福路93号 百汇中心19楼 +852 2211 8721 www.agilitylogistics.com www.alls-sh.com APL Logistics 5/F Raffles City Office Tower, 268 Middle Xizang Road, Shanghai 200001 上海西藏中路268号来福士办公楼5楼， 邮编：200001 +86 (21) 2301 2800 www.apllogistics.com Arvato Services B-1/F XingHong Science & Technology Industrial Park, Feng Huang Gang Village, Xi Xiang, Bao’an District, Shenzhen 200231 深圳宝安区，宝安西乡前进二路凤凰岗村星 宏科技园，邮编：518102 +86 (755) 3386 1666 www.arvatoservices.com.cn

Deret Logistics Asia Suite 1703 Shanghai Bund International Tower, 99 Huangpu Road, Shanghai 200080 上海市黄浦路99号上海滩国际大厦 1703室，邮编：200080 +86 (21) 6306 2592 www.trans-access com cn DHL Exel Supply Chain 3398, Xiupu Road, Shanghai 201315 上海市秀浦路3398号， 邮编: 201315 +86 (21) 3825 6585 www.dhl com DSV Logistics 38/F, 1 Grand Gateway, 1 Hongqiao Road, Shanghai 200030 +86 (21) 5406 9800 www.dsv com www.dsv com/cn Elee 375, Kefu Road, Nanxiang Town, Jiading District, Shanghai 上海嘉定区南翔镇科福路375号 +86 (21) 3912 4360 www.eleechina.com

3 West Guangzhou Road, Taicang EDZ Jiangsu Province.

BDP International Unit 2101-2110, Shanghai Bund Int’l Tower, 99 Huangpu Road, Shanghai 200080 上海市虹口区黄浦路99号上海滩国际大厦 2101-2110室，邮编：200080 +86 (21) 6364 9336 www.bdpinternational.com Ceva Logistics 19/F, Jiang Nan Shipyard Building 600 Luban Road, Shanghai 200023 上海鲁班路600号江南造船大厦19楼 +86 (21) 5302 9988 www.cevalogistics com Clasquin Room 203, Qingke Mansion, 138 Fen yang Road, Shanghai 200031 上海市汾阳路203号轻科大厦138室， 邮编：200031

3000 South Lianhua Road, Prologis Logistics Park, Minhang, Shanghai, 201109

上海莲花南路3000号， 普洛斯闵行物流园区内， 邮编：201109 +86 (21) 6309 8336 +86 (21) 3430 6999 www.dajin.com.cn

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江苏省太仓市经济开发区 广州西路3号 +86 (573) 8527 3072 www.fmlogistic.com

Havi Logistics 6 Xingsheng Jie, Beijing Economic & Technological Development Area, Beijing 100176 北京经济技术开发区兴盛街6号， 邮编：100176 +86 (10) 6788 3335 www.havi-logisitics.asia ID Logistics Room 19D, Dong Tai Plaza, 309 Tanggu Road, Shanghai 上海市塘沽路309号19D +86 (21) 6306 7083 www.id-logistics com IDS Logistics 8/F Tower Block, LiFung Plaza 2000 Yishan Road, Shanghai 201103 上海市闵行区宜山路2000号利丰广场 主楼8楼，邮编：201103 +86 (21) 2416 4700 www.idslogistics com Kuehne & Nagel Block 1, 11-16F, 1868 Gong He Xin Road Shanghai 200072 上海共和新路1868号大宁国际商业广场 第一幢11-16楼，邮编：200072 +86 (21) 2602 8000 www.kuehne-nagel.com

JANUARY/FEBRUARY 2010

LOGISTICS SERVICES Linfox Road Transport 26-F, Cross Region Plaza, 899 Ling Ling Road, Xuhui District, Shanghai 200030 上海市徐汇区零陵路899号飞洲国际广场26 楼F座，邮编：200030 +86 (21) 5150 6699 www linfox.com Linkstar Logistics 49A, 199 North Riying Road, Waigaoqiao Free Trade Zone, Shanghai 200131 上海市外高桥保税区日樱北路199号49A, 邮编：200131 +86 (21) 5046 1865 www linkstarlogistics com Logisfashion Transportation Tower, Room 1101 218, Hengfeng Road, Shanghai 上海市现代交通大厦恒丰路218号1101室 +86 (21) 5180 1781 www logisfashion.com Logwin 5/F & 6/F, Ocean Towers, 550 East Yan’an Road, Shanghai 200001 上海市延安东路550号海洋大厦5楼和6楼， 邮编：200001 +86 (21) 2326 2000 www logwin-logistics com Maersk Logistics 24/F, Tian An Centre, 338 West Nanjing Road, Shanghai 200003 上海黄浦区南京西路338号天安中心24楼， 邮编：200003 +86 (21) 2306 2666 www maersklogistics.com Menlo Worldwide Logistics 13/F Tower, Golden Eagle Mansion, 1518 Min Sheng Road, Shanghai 200135 上海浦东新区民生路1518号金鹰大 厦A座13楼，邮编：200135 +86 (21) 6160 1190 www menloworld.com Penske Logistics Room 20A, 567, Weihai Road, Shanghai 200041 上海威海路567号晶采世纪大厦20A， 邮编：200041 +86 (21) 6288 9226 www penskelogistics.com Schneider Logistics UC Tower,Suite 1605, 500 Fu Shan Road, Shanghai 上海浦东福山路500号城建国际中心1605室 +86 (21) 5058 7970 www schneider.com SDV International Logitics 20/F, East Building, New Hualian Mansion, 755 Middle Huai Hai Road Shanghai 200020 上海市淮海中路755号新华联大厦东楼20 楼，邮编：200020 +86 (21) 3395 0600 www sdvchina.com Sinotrans 7/F, Contract Logistics Division, Sinotrans Plaza A, A43, Xizhimen Beidajie, Beijing 100044 北京西直门北大街甲43号金运大厦A座7层 合同物流事业部， 邮编：100044 +86 (10) 6229 5600 www sinotransone com

LOGISTICS SERVICES ST-Anda Logistics 18/F, Times Plaza, 1 Taizi Road, Shekou, Shenzhen 518067 深圳蛇口太予路1号新时代广场1801室， 邮编：518067 +86 (755) 2681 9188 www.st-anda.com Werner Global Logistics 5/F South Harbour Building, 1 Fenghe Road, Shanghai 上海市浦东新区丰和路1号港务大厦南5楼 +86 (21) 3887 9520 www.werner.com Worldwide Group Room C-F 12/F and 16/F, Alison international Tower, 8 Fu You Road, Shanghai 200010 福佑路8号埃力森国际大厦12楼C-F座， 16楼，邮编：200010 +86 (21) 6132 2333 www.worldwide-logistics.cn Yatfai Logistics 39-H, Fortune Building, 88 Fuhua San Road Futian District, Shenzhen, Guangdong Province 广东省深圳市福田区福华三路88号， 财富大厦39楼H座 +86 (755) 3336 6898 www.yatfai com YRC Logistics Room 1307-08, Lan Sheng Building, 8 Middle Huai Hai Road Shanghai 200021. 上海淮海中路8号兰生大厦1307-08室， 邮编：200021 +86 (21) 6137 7668 www.yrclogistics.com PROFESSIONAL SERVICES Accenture 30/F, Central Plaza, No. 381 Huaihai Road, Shanghai 200020 上海市淮海中路381号中环广场30楼， 邮编：200020 +86 (21) 2305 3333 www.accenture cn Araia Shanghai Times Square Suite 1709, 93 Middle Huai Hai Zhong Road, Shanghai 200021 上海市淮海中路93号大上海时代广场办公楼 1709室，邮编：200021 +86 (21) 6391 8356 www.araia.com Arvato Services 20/F, Cloud Nine Tower, 1018 Changning Road, Shanghai 200042 上海市长宁路1018号龙之梦大厦20层， 邮编：200042 +86 (21) 6161 1866 www.arvatoservices.com.cn Baker & McKenzine Suite 3401 China World Tower 2 China World Trade Center,1 Jianguomenwai Dajie, Beijing 100004 +86 (10) 6535 3800 www.bakernet com Barkawi A 705,69 Dong fang Road, Eton Place, Pudong New District, Shanghai 200120 上海市浦东新区东方路裕景国际商务广场 A705室，邮编：200120 +86 21 6859 9686 www.barkawi com

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CLASSIFIED Listings

PROFESSIONAL SERVICES

PROFESSIONAL SERVICES 上海市延安东路550号海洋大厦20楼， 邮编：2000012 +86 (21) 5158 5700 www.lr org www.lloydsregisterasia.com

17/F Lippo Plaza, 222 Middle Huaihai Road, Shanghai,

上海市淮海中路222号力 宝广场17楼 +86 (21) 5396 5600 www.e-bbk.com

Logistics Executive Suite 13G, Shanghai Ind’l Investment Bldg. 18 North Caoxi Road, Shanghai 200030 上海市徐汇区漕溪北路18号上海实业大厦 13楼G座，邮编：200030 +86 (21) 6427 6697 www.logisticsrecruitment.com.cn LowendalMasai 1505 Hai Tong Tower, 689 Guangdong Road, Shanghai 200001 上海市黄浦区广东路689号海通证券大厦 1505室，邮编：200001 +86 (21) 6341 1255 www.lowendalmasaichina cn

Control Risks Suite 1001 East Tower China Merchants Plaza, 333 North Chengdu Road, Shanghai 200041 上海市成都北路333号招商局广场东楼1001 室，邮编：200041 +86 (21) 5298 1800 www.control-risks.com

Michael Page International 601-603 Shanghai Kerry Centre 1515 West Nanjing Road Shanghai 200040 上海南京西路1515号嘉里中心601- 603 邮编：200040 +86 (21) 3222 4758 www.michaelpage com cn

Demand Management Systems PO Box 6180, Norwest Business Park, Baulkham Hills BC NSW 2153 +612 9659 4555

Positive Purchasing Lynher Building, Queen Anne’s Battery, Plymouth, PL4 OLP, UK +44 845 331 3312 www.positivepurchasing.com

Dragon Sourcing Suite 1502, Jin Tian Di International Mansions 998, Renmin Road Shanghai 200021 上海市人民路998号今天地国际大厦 1502室，邮编：20002 +86 21 61413955 www.dragonsourcing.com

Poyry Room 809, Silver Tower, Chaoyang District, Beijing 100027 北京市朝阳区东三环北路2号南银大厦809 室，邮编：100027 +86 (10) 6410 6550 www.poyry.com

easySOURC NG easySOURC NG Hong Kong www.easy-sourcing.com ET2C International 13A, East Tower, King World Hi-Tech Building, 668 East Beijing Road, Shanghai 200001 上海北京东路668号科技京城东楼13A室， 邮编：200001 +86 21 5308 1220 www.et2cint.com Ivie Asia Room 1507, You You International Plaza, 76 Pu Jian Road, Pu Dong New District, Shanghai 200127 上海市浦东新区浦建路76号由由国际 广场1507单元，邮编：200127 +86 (21) 6165 9100 www.ivieinc.com Korn/Ferry International Suite 3208, CITIC Square, 1168 West Nanjing Road, Shanghai 200041 上海市南京西路1168号中兴泰富广场3208 室，邮编：200041 +86 (21) 6256 7333 www.kornferryasia.com

Procur Asia Renheng Building, Unit 14A 58 Qindian Ave, Shanghai 200120 上海市钦殿街58号仁恒大厦14A室， 邮编：200120 +86 (21) 6875 4993 www.procurasia com

11/F PricewaterhouseCoopers Center, 202 Hu Bin Road, Shanghai 200021, China

上海市湖滨路202号 普华永道中心11楼， 邮编：200021 +86 (21) 2323 8888 www.pwccn.com

KLB Group Room 2205, Universal Mansion Building, 172 Yuyuan Road, Shanghai 200040 上海愚园路172号世界环球大厦2205室， 邮编：200040 +86 (21) 62480735 www.klb-group com

Resources Global Professionals Room 2705-06, Lippo Plaza, 222 Middle Huaihai Road, Shanghai 200020 上海市卢湾区淮海中路222号力宝广场 2705-06室，邮编：200020 +86 (21) 6386 8710 www.resourcesglobal.com

Lloyd’s Register Asia 20/F Ocean Towers, 550 East Yan’an Road, Shanghai 200001

Smart Sourcing 1210-1213 Guo-Li Plaza, 1465 West Beijing Road, Shanghai 200040

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PROFESSIONAL SERVICES

REAL ESTATE SERVICES

上海市北京西路1465号国立大厦1210-1213 室，邮编：200040 +86 (21) 5212 1200 www smart-sourcing.com Teamswork 23/F Citigroup Tower, 33 Huayuanshiqiao Road, Shanghai 200120 上海市浦东花园石桥路33号花旗集团大厦 23楼，邮编：200120 +86 (21) 6101 0486 www globalteamswork.com Tractus Asia Suite B, 22/F, Zhaofeng Universe Building, 1800 West Zhongshan Road, Shanghai 200235 上海中山西路1800号 兆丰环球大厦22楼B座， 邮编：200235 +86 (21) 6440 0990 www tractus-asia.com REAL ESTATE SERVICES AMB Property Suite 2908, Plaza 66 II, 1366 West Nanjing Road , Shanghai 200040 上海南京西路1366号恒隆广场二座 2908单 元，邮编：200040 +86 (21) 6135 1688 www amb.com Blogis International Logistics +86 (755) 2669 4211 www blogis.com.cn

Jones Lang LaSalle 25/F, Tower 2 Plaza 66 , 1366 West Nanjing Road , Shanghai 200040 上海市南京西路1366号恒隆广场2期25 楼，邮编：200040 +86 (21) 6393 3333 www.joneslanglasalle.com.cn Knight Frank Room 1206 Evergo Tower, 1325 Middle Huaihai Road, Xuhui District, Shanghai 200031 上海市徐汇区，淮海中路1325号，爱美高 大厦1206室，邮编：200031 +86 (21) 6445 9968 www.knightfrank.com Mapletree Suite A-D,14/F, Times Square Office Building, 500 Zhangyang Road, Pudong, Shanghai 200122 上海市浦东新区张扬路500号,华润时代广 场办公楼14楼ABCD单元，邮编：200122 +86 (21) 5836 7177 www.mapletree.com.sg

18 Duangong Road, Nanjing, Jiangsu, 211100 +86 25 6698 8988

CB Richard Ellis Suite 3201 K Wah Center 1010 Middle Huaihai Road, Shanghai 200031 上海淮海中路1010号嘉华中心3201室， 邮编：200031 +86 (21) 2401 1200 www cbre.com.cn

南京江宁区 端拱路18号 邮编：211100

+86 (25) 6698 8988 www.nsic.com.cn

Colliers International 16/F Hong Kong New World Tower, 300 Middle Huaihai Road, Shanghai 200021 上海淮海中路300号，香港新世界大厦16 楼，邮编：200021 +86 (21) 6141 3688 www colliers.com/china

Realty Vailog Room 702, City Gateway, 398 North Caoxi Road, Shanghai 200030 +86 (21) 6090 5292 www.realtyvailog.com

Gazeley Suite 805, Kerry Centre, 1515 West Nanjing Road , Shanghai 200040 上海市南京西路1515号嘉里中心805室， 邮编： 200040 +86 (21) 5298 6622 www gazeley com Global Logistic Properties Room 2708 Azia Center, 1233 Lujiazui Ring Road, Shanghai 200120 上海市陆家嘴环路1233号汇亚大厦2708 室，邮编：200120 +86 (21) 6105 3999 www.GLProp.com

Tongsheng Logistics Park 10/F, Unit B, Shanghai Deepwater Port Business Plaza, Luchaogang, Nanhui, Shanghai 201308 上海南汇芦潮港上海深水港商务广场B座 10楼，邮编：201308 +86 (21) 6828 1992 www.shtslp.com

Yupei Building, 2500 Jinchang Road, Shanghai 200331

Goodman Group 2107 - 2109, Shui On Plaza, 333 Middle Huai Hai Road, Shanghai 200021 上海淮海中路333号瑞安广场2107-2109 室，邮编：200021 +86 (21) 6133 2000 www goodman.com

上海市普陀区金昌路 2500号宇培大厦， 邮编：200331

GSE 27C Industry Building, 18 North Cao Xi Road, Shanghai 200030 上海市徐家汇漕溪北路18号实业大厦27C, 邮编：200030 +86 (21) 6090 1388 www gsegroup.com

+86 (21) 6627 7577 www.yupeigroup.com

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CLASSIFIED Listings

IT & SOFTWARE SOLUTIONS

CARGO OWNERS READ CHaINA Reach on affluent audience who buy logistics and transportation services To place your advertisement contact ads@supplychain.cn

Apprise Software 6009 Changjiang Science Building 40 Nanchang Road, Nanjing 210037 江苏省南京市南昌路40号长江科技园大厦 6009室，邮编：210037 +86 (25) 8345 5308 www.apprise.com ATMS Number One, Holt Court, Aston Science Park, Birmingham, B7 4EJ, UK +44 121 628 9000 www.atmsplc.com Barloword Optimus 15/F NCI Tower, 12A Jianguomenwai Avenue, Chaoyang District Beijing 100022 北京市朝阳区建国门外大街甲12号新华保 险大厦15楼邮编，邮编：100022 +86 (10) 8523 3103 www.barloworldoptimus.com BravoSolution 19F-08, Chinese Overseas Building, 129 West Yan’an Road, Shanghai 200040 上海市静安区延安西路129号华侨大厦19楼 08室，邮编：200040 +86 (21) 6145 8500 www.bravosolution.com Core Solutions Unit 2903, 113 Argyle Street Mongkok, Kowloon, Hong Kong +852 2378 6300 www.coresolutions.com Epicor Software 2008 Cross Tower, 318 Fuzhou Road Huangpu District, Shanghai 200001 上海市黄浦区福州路318号 高腾大厦2008单元，邮编：200001 +86 (21) 63912808 www.epicor com

IT & SOFTWARE SOLUTIONS JDA Software 2905 United Plaza, 1468 West Nanjing Road, Shanghai 200040 上海市南京西路1468号中欣大厦2905室， 邮编：200040 +86 (21) 6289 7979 www jda.com Manhattan Associates Software Unit 2110, 21/F, Shui On Plaza, 333 Middle Huaihai Road, Shanghai 200021 上海淮海中路333号瑞安广场21楼2110室， 邮编：200021 +86 (21) 6386 8800 www manh.com Seeburger 1409B Cimic Tower,800 Shangcheng Road, Shanghai 200120 上海浦东新区商城路800号斯米克大厦 14层1409B, 邮编：200120 +86 (21) 5835 4735 www seeburger.cn SoftBrands Asia 4/F, The TEDA Building 256, Jiefangnan Road, Hexi District, Tianjin 300042 天津市河西区解放南路256号泰达大厦第四 层，邮编：300042 +86 (22) 2320 2260 www.fourthshiftedition.com

EQUIPMENT PROVIDERS +86 (21) 6104 8156 www.loscam.com Schoeller Arca Systems Unit 5/A, Guangdong Development Bank Tower, 555 Xu Jia Hui Road, Shanghai 200023 上海徐家汇路555号,广东发展银行大厦5 楼A座，邮编：200023 +86 (21) 6390 1261/62 www.schoellerarcasystems com

No. 1018-A, Lane 999, Wangqiao Road, Shanghai 201201 上海市王桥路999弄， 1018-A室 邮编：201201

+65 6545-5454 www. techlinkstorageengineering. com

SupplyOn Suite 1508, Silver Centre, 1388 North Shanxi Road, Putuo District, Shanghai 200060 上海普陀区陕西北路1388号银座中心1508 室，邮编：200060 +86 (21) 6419 8042 www supplyon.com Tradecard F1101-02, Block A, Hailrun Complex, 6021 ShenZhen Blvd, ShenZhen 518040 深圳市福田区深南大道6021号喜年中心A 座，1101-02室，邮编：518040 +86 (755) 8830 9265 www tradecard com EQUIPMENT PROVIDERS

Suite 2605,26/F, Hong Kong Plaza, 283 Huaihai Road Shanghai, 200021 上海市淮海路283号香港 广场26楼2605室， 邮编：200021

+86 (21) 6103 5715 www.ddslogistics.com/cn GXS International Room 1602, 16/F, Grand Gateway Tower 1, 1 Hongqiao Road, Shanghai 200030 上海市虹桥路1号港汇广场1座1602室， 邮编：200030 +86 (21) 6120 1088 www.gxschina.com.cn INFOR 15/F Raffles City Office Tower 268 Middle Xizang Road, Shanghai 200001 上海市西藏中路268号来福士广场15楼， 邮编：200001 +86 (21) 5359 9666 www.infor.com

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Anwood 3F-D4 Jiacheng Mansion, 128 Jinjihu Road, Suzhou 苏州市金鸡湖路128号加城大厦3F-D4 +86 (512) 6761 5558 www anwood.com.cn Chep 40/F, Suites 8-10, 2 Grand Gateway, 3 Hongqiao Road, Shanghai 200030 上海市虹桥路3号港汇二座40楼08-10室， 邮编：200030 +86 (21) 6127 2488 www chep.com Hormann Door Production 13 Zhong He Street, BDA, Beijing 100176 北京经济开发区中和街13号， 邮编：100176 3/F, Qing Shui Wan Hotel Wing Office Building, 1309 North Kaixuan Road Shanghai 200063 上海市凯旋北路1309号清水湾大酒店综合 楼3楼，邮编200063 +86 (10) 6788 8371 +86 (21) 5251 3216 www hoermann.cn Loscam Packing Equipment Room 508, 707 ZhangYang Road, Pudong, Shanghai 200120 上海市浦东新区张扬路707号508室， 邮编：200120

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COMPANYINDEX

Agility ����������������������������������� 21 Alibaba ��������������������������������� 11 AMB ��������������������������������� 11,15 AMD ��������������������������������� 42,44 Apple ����������������������������������� 19 Arvato Services �������������������� 14 ATI ����������������������������������� 42,44 Bangkok Flight Services �� 46,48 Barloworld Optimus �������������� 15 Bayer �������������������������� 29,39,41 Bronson & Jacobs ���������������� 12 Capgemini ���������������������������� 21 Carrefour �������������������� 18,31,32 C-BONS ��������������������������� 31,32 CEVA ������������������������������� 25,26 CMR ������������������������������������� 19 China Mobile ������������������������ 19 China Southern Airlines �������� 13 China Unicom ����������������������� 19 Coca-Cola ���������������������������� 16 Control Risks ������������������� 38,40 Costa �������������������������� 24,25,26 Dajin �������������������������������� 39,41 DDS Logistics ����������������������� 13 Dell ���������������������������������� 54,55 Deloitte ��������������������������������� 21 Delphi ������������������������������ 43,44 DHL �������������������������������������� 16

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Dow Chemical ������������ 37,38,40 DuPont �������������������� 5,27,28,29 EastWind Precision �������������� 16 EBay ������������������������������������� 19 FedEx ������������������������������ 11,16 FM Logistic ��������������������������� 13 FSC �������������������������������������� 54 GE ��������������������������������������� 29, General Motors ����������� 16,42,44 Geodis Wilson ���������������������� 21 GlaxoSmithKline ������������������� 21 Goodman ������������������������� 10,12 Goodyear ������������ 5,21,33,34,35 GRACE ��������������������������������� 56 HACTL ����������������������������� 46,48 Hero Cycles �������������������� 43,45 Home Outfitters �������������������� 13 Honeywell ������������������������ 43,44 Huashi Medicine ������������������� 14 Hudson’s Bay ����������������������� 13 IFW ����������������������������� 46,47,48 Inforam Cargo ����������������� 46,48 Interlink ��������������������������������� 12 Jones Lang Lasalle ���������������� 7 Kinaxis ���������������������������������� 23 Knight Frank ������������������������� 21 Knorr-Bremse ����������������������� 29 Kohler ����������������������������������� 21

Li & Fung ������������������������������ 13 LinkedIn �������������������������������� 36 Logwin ���������������������������������� 21 Lord & Taylor ������������������������ 13 Manpower ������������������������ 22,23 McClarens ����������������������� 37,40 McDonald’s �������������������������� 18, MHD ������������������������������������� 57 Michelin �������������������������������� 29 Narval Logistic Software ������� 13 Nivea ������������������ 5,30,31,32,37 NK Chemicals ����������������������� 12 Nokia ������������������������������������ 19 nVidia ������������������������������ 42,44 P&G ��������������������������������� 31,32 Panasonic ����������������������������� 16 Penske Logistics ������������������ 21 Pfizer ������������������������������������ 21 Philips ����������������������������������� 29 PricewaterhouseCoopers �� 2,53 RedBox Stationary ���������� 39,41 Schneider Logistics ��������� 29,34 Zhaoheng Industrial �������������� 12 Shentong Express ���������������� 11 Shunfeng ������������������������������ 16 Siemens ������������������������������� 29 SSI Technologies ������������ 43,45 Starbucks ������������������� 18,24,26

Steelcase �������������������������������� 6 Suning Appliance ������������������ 13 Taobao ������������������������ 11,38,40 TAPA ���������������������� 37,39,40,41 Tata Motors ���������������������� 42,44 Teck-Link �������������������������������� 6 Tesco ������������������������������� 31,32 Thai Airways ������������������� 47,48 the Bay ��������������������������������� 13 the Opposite House �������������� 57 TrendsAsia ��������������������������� 16 Twitter ����������������������������������� 36 Tyco �������������������������������������� 29 UGS �������������������������������������� 54 Unilever ����������������� 12,13,31,32 Vaupell ����������������������������� 43,44 WalMart �������������������������������� 19 World Bank ��������������������������� 17 Yuan Tong Express ��������������� 11 Yunda Express ��������������������� 11 Zellers ����������������������������������� 13 ZTO Express ������������������������ 11

JANUARY/FEBRUARY 2010

61

FINAL Word

Dealing with stealing and corruption in your warehouses

By Calipe Chong

I

n my experience, stealing and corruption is a bigger problem in foreign companies as compared to local ones, often because foreign companies have not changed their human resource and management policies to suit the Chinese environment. In local enterprises, it is common to find purchasing and financial managers who self scrutinize the purchasing process, receipts, employee travel and all other expenses like a hawk. Often, expatriate managers leave this work to trusted employees, giving excuses like “Dealing with this is too much work,” “I could not do it, “or “I did not understand the process.” However, lax control will make expatriate managers lose money at the end of the day.

Many Chinese workers and staff are honest. The problem is that not all of them are so. When you have one worker stealing from the company with ease, others will follow. While I do not condone installing window grilles, which turn dormitories into death traps, companies must take extreme, perhaps anal retentive measures in order to prevent large losses on money and inventory.

Protecting your Warehouses Frequent physical inventory (PI) count is not sufficient to counter theft. The count is either surprisingly “correct” or the results have such wide variances that a company writes them off as an error.

I learned about conspiracy deals between buyers and storekeepers in my early years in China. My buyer would release a purchasing order (PO) to a supplier and the quantity delivered ended up being far less than quantity printed on the delivery order (DO).

In reaction, I began running ad hoc inspections for incoming goods. I had a policy among all my managers and supervisors, including myself, that if we passed by the in-coming staging area, we would randomly pick an item to count. If there was a variance on the physical count with the DO, the storekeeper better be able to explain. All measuring scales in the warehouse were periodically calibrated and the casings were sealed in order to prevent tempering. I also held the warehouse manager fully responsible for the upkeep of the scales. I also often stood on the weighing scale in the receiving area to check my body weight. This was not because I was on a diet, but actually ensured that the work scales were kept accurate to my bathroom scale at home. This also acted as a signal to my storekeepers that I was watching the scale and that they had better not temper with it.

As for the production line, all moving materials, except C items, had to be accounted for between shift changes. We also had weekly PI

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on items randomly selected by our computer system. Even with all these measures, I still had 1% of inventory unaccountable for in the quarterly and annual PI. Tough Love Avoiding theft in your warehouses means you have to abide by one important rule: never give the same person the opportunity to control and manage inventory at the same time.

Showing your interest and willingness to check on details in order to prevent fraud will help warn off any employee who is tempted to cheat.

However, if an employee is caught cheating, managers cannot show reluctance in terminating them, even if the employee is a star performer or a key contributor. Ignoring the evidence or handing out a reprimand is detrimental. Once leniency is showed, it will be very difficult to take action on other employees found committing similar crimes.

Punishment must be fair and apply to all personnel; otherwise the command and control of the company will tumble.

Calipe Chong is the Managing Director of vIPO Asia (http://www.vipoasia.com) providing supply chain and management services. He has 30 years of experience with US companies in Asia, focused on engineering, operations and supply chain management.

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