adidas
Operational winner
COST OPTIMIZATION Tightening the belt
INDUSTRIAL PROPERTY Picking up the pieces
FM Logistic
ROCKWOOL
Building on value
MARCH/APRIL 2009
Insulation specialist
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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
The Female Link in the Supply Chain 供应链中的巾帼
THEWORD
On the economy:
Will China’s economy continue to grow fast and steady? Some people may have doubts about it, yet I can give you a definite answer. Yes, it will, we are full of confidence.
biggest challenge to China is unemployment. Chen Deming China’s Minister of Commerce
Wen Jiaobao China’s Prime Minister On social unrest:
I don’t worry a lot about the GDP growth, however the
MAKING BUSINESS FLOW
On intellectual property:
China is using foreign technology that was supplied on condition that it not be used outside of China. Philippe Mellier Alstom’s CEO
On the stimulus package:
CEVA designs, implements and operates complex supply chain solutions on a national, regional or global scale for medium to large enterprises. With more than 56,000 dedicated professionals CEVA maintains 614 warehouses globally with a combined space of approximately 8,6 million square meters and operates an extensive global network in over 100 countries.
The bailout will help to enlarge the country’s logistics market, and speed up the industry’s development. China’s logistics industry is lagging behind, so hopefully the bailout will help reduce the costs. He Dengcai Vice Secretary of China Federation of Logistics and Purchasing,
021-5302-9988 www.cevalogistics.com info@cn.cevalogistics.com
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FROM THE EDITOR Managing Editor & Publisher Russel Beron Editor Peter Bachmann Art Director How Xu Graphic Designer Acco Fang Finance Manager Jenny Kim Circulation Manager Carl Pan
Researcher Carl Pan Event Manager Giselle Yang Photographers Grant-Oh! Buchwald Jackson Lowen Contributing Writers Robert Barrett, Warwick John Fahy, Tielman Nieuwoudt, Dennis Wagaman
CHaINA Sponsorship For information on sponsorship opportunities with CHaINA Magazine, please contact: Russel Beron rberon@supplychain.cn DISTRIBUTION We distribute CHaINA free by direct mail to subscribers in Greater China who are involved in all aspects of supply chain management, manufacturing and logistics. Our target subscribers are logistics, warehousing and transportation directors and managers; sourcing, procurement and purchasing directors and managers; and manufacturing executives at foreign and domestic Chinese companies. For subscription inquiries, please contact: subs@chainamagazine.com. Contact us to receive a free digital or print edition of the magazine. CHaINA Magazine is distributed through selected locations in Shanghai, including hotels, restaurants, business centers, airport lounges and other key locations.
Comments and Feedback We welcome feedback and comments about our content or any issues relating to supply chain management or trade in China. Please email any comments to: comment@supplychain.cn
You’ve got to be glad that both the Western and Chinese New Year have finally started. It seemed that over this extended period, many companies were in a holding pattern, but now there’s no excuse but to make decisions and move forward. Heading into the second quarter the news is mixed. Some gold-diggers are packing up their picks and pans and heading back to more safe and predictable turf. Others are laying-off, cutting costs and struggling to survive. Still others, Like Ericsson, which recently won part of the 3G telecommunications contract are hiring. Our Industrial property feature takes a close look at ProLogis, a company that arrived in China in 2004, invested heavily, signed a lot of deals with government officials and has now pulled out, only to resurface under the same management and a new name. For Chinese workers, reinventing themselves will not be so easy. Especially for those with rudimentary skills, like the 200 million or so migrant workers; pickings are slim. Apparently some 20 million went home early for Chinese New Year and many didn’t come back. This combined with factories closing and a grim 12 month outlook has the powers that be concerned. Revolutions were made by social unrest in this country and that’s not part of anyone’s five year plan. On a softer and brighter note, for this issue we decided to take a look at some of the women driving the global supply chain. Women are rare flowers in this industry, but it seems their numbers are increasing and they’re holding their own. No question the profession of supply chain is changing in only a positive direction as the demands for talent increase and supply chain becomes a top issue in the boardroom.
Russel Beron Publisher and Managing Editor CHaINA Magazine
Chaina magazine’s sponsors:
CHaINA Magazine (ISSN 1992-9668) is published jointly by Painted Horse Media Limited (Hong Kong) and the China Supply Chain Council Limited (Hong Kong). There is no charge for qualified readers to receive subscriptions. Send subscription requests or address changes to subs@chainamagazine.com. The contents of the magazine may not be reprinted in whole or in part without the permission of the publisher. The publisher is not responsible for product claims and representations. CHaINA is a registered trademark of the China Supply Chain Council.
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MARCH/APRIL 2009
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FEATURE STORIES
The female link in the chain
27
COMPANY PROFILE
40
Interview with Aldo Spaanjaars, Vice President Operations, adidas China
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MARCH/APRIL 2009
52 Interview with Eric Gielen, International Procurement Manager, Rockwool International
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THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS
MARCH/APRIL 2009
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CONTENTS
Industrial property focus
THE WORD 4 Recent comments
EVENT UPDATE 48 Logistics property workgroup
THE NUMBERS 8 Containers pile up with economic slowdown
48 Sourcing leader’s lunch
EXECUTIVE PROFILE 10 Interview with Jack Zhou, National Lighting Buyer, B&Q
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AMERICAN VIEW 14 Chinese exporters face debt collection challenges NEWS ROUNDUP 16 The Big Picture – A roundup of news relevant to operations in China 20 Supply Chain Management – A roundup of supply chain news 24 India – A roundup of news relevant to operations in India 25 Vietnam – A roundup of news relevant to operations in Vietnam EXECUTIVE INSIGHT 42 Interview with Troels Persson, Director of Marketing & PR, ECCO Shanghai PRODUCT RECALLS 42 Consumer product recalls in the U.S.
49 Future of the Supply Manager profession SOFT SKILLS 51 Retaining talent on a shoestring INSIDE VIEW 54 Strategies to survive in a downturn VIETNAM VIEW 56 The state of ERP in Vietnam MOVERS & SHAKERS 58 Executive movement BOOK FOCUS 59 Made in China: Secrets of China’s Dynamic Entrepreneurs INFRASTRUCTURE 60 Rail receives stimulus boost 62 CLASSIFIED LISTINGS 66 COMPANY INDEX 66 EVENTS CALENDAR
SCM GADGETS 44 An electric delivery vehicle
3PL FOCUS
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SPECIAL FEATURE 46 Cutting the fat in your supply chain
Interview with Gilles Faure, Asia General Director, FM Logistic
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Containers pile up to record levels at Yantian Port in Shenzhen (pictured) and other ports across the globe. In January, volume through Shanghai, the world’s second-busiest container port, fell 15 percent and Shenzhen fell by 17.5 percent.
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THENUMBERS
PARKING SPACE IN SHORT SUPPLY FOR WORLD’S CONTAINERS The world’s oceans are quieter this year as a record number of container ships are anchored outside major shipping ports such as Singapore. The reason behind the rapid decline is in part due to carriers consolidating or eliminating east-west routes due to a global slowdown in traffic and a dramatic drop in rates.
$0 303 800,000
The price to send a container from Asia to England as a result of “negative freight.” The number of container ships idle due to the global drop in trade volume between Asia and the world.
The amount of container TEU’s (Twenty Foot Equivalent units) that represent excess capacity due to low trade volumes. In October 2008, only 150,000 TEU’s were idle.
21% 400,000
The drop in trade between Asia and Europe. US/Asia trade has fallen a relatively lower 9 percent.
The number of containers sitting empty and idle at Shenzhen’s Yantian terminal, and in Hong Kong.
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MARCH/APRIL 2009
9
EXECUTIVEPROFILE
Sourcing a career at B&Q
I
n this section, CHaINA interviews people who work in Supply Chain to understand what they do and how they got there. For this interview, we interviewed Jack Zhou, National Lighting Buyer for B&Q China. How many people do you have in your team? Jack Zhou (JZ): We have more than 10 people as a cross-functional team. Including four regional buying offices and other supporting teams like QA and logistics and admin. We also work closely with our marketing team. Who’s your boss? JZ: I report to the Senior Director of Merchandise. What were you doing before joining B & Q? JZ: Prior to B&Q, I was working for OBI from Germany which was acquired by B&Q in 2005. I used to be in charge of Garden, Lighting, Furniture and other products.
thing you need to use and decorate inside/outside your home, from bulbs and fixtures to decorative lighting. We also carry a little bit of commercial lighting which can be used for small commercial project like shops and restaurants. Where are most of your suppliers located? JZ: Currently China is the largest place for lighting manufacturing. Many suppliers are located in the Zhongshan area in Guangdong. There are also many factories in Zhejiang Province, around the Hangzhou area. Many new graduates don’t understand the types of opportunities involved in Supply Chain. What would you recommend for someone to do if they wanted to get into sourcing? JZ: According to my experience, it doesn’t matter what kind of background you have in order to work in the sourcing field. What they do need though, first of all, is to be interested in communicating and negotiating with deferent kinds of people. Then, they need to have passion and curiosity to know different products and the market. Once they have these characters, they can learn the rest of the skills and gain experience on the job.
According to my experience, it doesn’t matter what kind of background you have in order to work in the sourcing field.
What makes your job interesting and challenging? JZ: Sourcing and knowing different kinds of products is certainly an interesting job, however for a buyer, what makes it more challenging is you need to think about the total cost-savings across the supply chain. You need to continuously improve things like logistics costs, the way you plan the distribution of your goods to stores or outlets and other ways to optimize the business model. What products do you primarily source? JZ: We focus on consumer lighting and we source every-
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MARCH/APRIL 2009
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www.supplychains.com
Is your supply chain “one-size� fits all or is it right for you? Today, executives are challenged to think and make decisions about an ever-wider set of concepts and strategies. Among the most important is the choice of supply chain. Choosing the right supply chain requires thinking strategically about how your business operates, where your company is going and which markets offer the best opportunities. Introducing www.supplychains.com, the new global portal from Asia's leading professional organization. We make supply chain decisions easier for you.
Asia
China
India
Vietnam
3PLFOCUS
French 3PL builds value on domestic asset ownership
FM Logistic is a privately owned French based global logistics service provider with about 600 million Euros in annual revenue. The company entered China in 2004, investing in both trucking and warehousing. CHaINA Magazine spoke with Gilles Faure, FM’s Asia General Director at the company’s new warehouse in Taicang, Jiangsu province.
FM Logistic China Founded 2004 Team: 300 employees Owned fleet: 30 Volvo trucks model FH13 (Euro 3) Warehouses: Two in Shanghai area, one under construction in Beijing Services provided: Domestic transportation, warehousing and distribution SCM optimization Copacking offered on site
: Please tell us what you consider to be FM Logistic’s strong points in serving the China market. Gilles Faure (GF): FM offers high value added transportation and warehousing to customers across industries, with particular strength in the FMCG sector. Our customers trust us for our reliability, on time delivery and overall quality control. Unlike some 3PLs that are asset light, we own portions of our fleet outright— we have invested in Volvo trucks for their efficiency, reliability and environmental soundness. And we design our own warehouses to meet our exacting process standards. We were founded in France in 1967 and took our proven processes international starting in the 1990’s, going to Poland and Russia. Our major investments here prove our long-term commitment to China, where we also maintain a focus on domestic logistics. We understand you personally led the expansion into Russia. How does your experience there relate to your startup experiences here? GF: When I arrived in Russia, there were virtually no 3PL companies—almost no market at all. So while it was easy to get going as a business, we had no infrastructure to rely on, and costs were high—sometimes as much as in Western Europe. When we entered China, the 3PL sector was already established and cost pressure was already intense, although service levels were lower than those we had worked to develop at home. So here our initial challenge was to prove the value of a higher service level, whereas in Russia the infrastructure limitations restrict the range of services we can provide.
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Since your focus is on offering higher value added service, you must find it a challenge to sell in a market that is so price sensitive. How do you educate the market about the incremental value of the quality you offer? GF: Well, we have to prove that the cost of providing non-quality service is higher than the cost of our level of quality. That being said, it has been difficult to get a good sense of what the non-quality cost is for specific sectors. But we’ve been growing precisely by proving the value proposition, though it’s a lot of work for our team. One example: we won a substantial contract in 2007 from a global brand precisely because we were able to show the incremental value of the reliability we were able to deliver because of our direct ownership of trucks. Another aspect to cost and quality is that, because we are asset-heavy relative to 3PLs who sub-contract, we must ensure our assets are generating sufficient revenue. For example, we know that our owned fleet must run an average of 700 kilometers per day, much higher than the industry average. By applying our proven process control, we can achieve that average, though we also know that we must work with customers that value such productivity themselves, and therefore manage their own warehouses to minimize driver waiting time. Our warehouse solutions also offer added value since they are multi-customer warehouses, which allows us to create some synergies and structural costsharing. So in the end we are able to offer our higher value added solutions, at prices that aren’t the lowest in the market, but are at least in the neighborhood.
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3PLFOCUS Do you see China is moving in the same direction as your other global markets? GF: Yes. In China, we are now at about 30 percent direct ownership and 70 percent dedicated subcontractors. Actually, in Poland, we operate 100 percent on subcontract, but we’ll maintain some ownership here, because of the value it brings us in market understanding. 100 percent ownership was the right initial step; with what we’ve learned, we now know we can provide FM quality services with a fleet that is largely subcontracted. The win-win nature of this approach is proven. 3PLs have a core competency of organizing logistics. A small transport company is better at truck maintenance and driver management, since someone who owns two or three trucks really cares about maintenance and driver efficiency and is close enough to manage it well. Your new warehouse is impressive, but also represents a major cost, not just because you own it, but because of the design features enhancing materials flow and security and the like. How do you manage to deliver services to customers without being vastly more expensive than others in the market? GF: A similar principle applies. We must use our assets most effectively. And our design ensures that we can. In terms of warehousing, we need to continue educating the market. Often we are asked, “How much do you charge per square meter?” On a square meter basis, we are more expensive. But on a delivered solutions basis, such as pallet throughput, we are competitive on price and outperform on quality. We are always seeking to change the terms of the discussion from per square meter to per delivered solution.
After the economic turmoil in recent months, some sectors like low cost manufacturing for export have been crushed, while others seemed to be promising. Which sectors of the market do you see as having most potential? GF: In China as well as Western Europe, 70-75 percent of our business is based on the domestic food markets, cosmetics, healthcare and retailers. We see all these sectors as continuing to grow in China, despite the global downturn. A few months back, the government announced a massive stimulus package to support the economy. What specific effects do you see it having on logistics infrastructure and how will it affect FM? GF: When we launched four years ago, we offered trucking between Chengdu and Guangzhou. But due to the road conditions at the time, which created too much wear on brakes and tires, we stopped. We’ve started it again more recently, since the roads are much better now. We see the government’s infrastructure investment as a major opportunity for transportation development, and we expect to be able to offer a wider range of services as a result. Where do you see your biggest opportunities in terms of geographical locations in China? GF: We are developing in four key geographical areas: Beijing, Shanghai, Guangzhou/Shenzhen, and Chengdu/Chongqing. We are looking at the other large metropolitan areas, where markets drive our potential customers to require the level of service we provide.
Thanks for your time. Who are your customers in China? GF: Thank you – I hope my comments bring some value to your GF: In China our customers include Unilever, P&G and Wal-Mart. readers. We also ensure the daily distribution to hypermarkets such as Carrefour, HuaLian, LianHua and others. For these Mr. Gilles Faure, Asia General Director kinds of customers, our long relationFM Logistic ships and global quality standards creStarted with FM Logistic in 1989 ate a strong value proposition. Asia Executive Director and Board member What do you see as your competitive advantage in China? GF: We see that a number of foreign competitors consider the domestic market in China as a less important part of their total solutions to customers. These companies subcontract exclusively. By focusing on the domestic logistics business, and with the quality control that ownership of our assets allows, we believe we can offer a stronger solution. Potential customers who meet us for the first time often challenge us on the subcontractor issue, and we have a strong counter-argument.
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General Manager, Russia: 1994 – 2004 General Manager, China: 2004 - present
MARCH/APRIL 2009
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AMERICANVIEW
C
hina exporters face increasing overseas debt collection challenges
Chinese exporters currently are running bad-debt-to-sales ratios ranging from a frightening 5 percent to a mortifying 30 percent. In contrast, U.S. companies average a 1 percent bad-debt-to-sales ratio. China’s exporters face growing pressure to upgrade financial management practices if they are to generate sustainable profitability that permits enhanced competitive advantage via meaningful reinvestment in research, development, plant and machinery, and human talent. For many, however, the issue of receivables management collides with ingrained Chinese sensibilities that often leave senior exporter management confused or uncomfortable. Even in the best of economic times, much less in today’s trying business environment, rigorous and disciplined receivables management that begins with customer credit checks prior to order writing is a critical success factor for Chinese exporters. Like any business discipline, receivables management is a multi-faceted art and science that warrants detailed, in-depth examination. For our purposes today, however, this discussion focuses on cataloging the warning signs that indicate a buyer may be contemplating or actively planning to forego payment. These warning signs include: a) Debtor payment already 90+ or 120+ days past due b) Changes in payment pattern from “on-time payer” to “late payer”
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Dennis Wagaman CEO, SCJ, Inc.
c) Debtor breaking payment promises d) Debtor ignoring payment demands e) Debtor asks for renegotiated payment terms f) Debtor makes partial payments without seller approval g) Debtor skips payments h) Debtor pays with cheques with “not sufficient funds” (“NSF”) i) Debtor claims payment delay due to bank or government problem j) Debtor claims they do not have money to pay k) Debtor claims they cannot pay until they are paid by their customer l) Debtor claims a major customer loss and thus cannot pay m) Debtor threatens bankruptcy if payment demanded n) Debtor avoids contact, does not return calls or emails o) Debtor executive responsible for authorizing or executing payment is “unavailable” p) Debtor requests patience due to new investors q) Debtor claims payment will be forthcoming once their company is sold r) Market rumors of debtor in financial trouble s) Market rumors of debtor being purchased t) Debtor buying from exporter competitors without paying existing debts u) Competitor calls asking for credit reference for debtor v) Debtor seeks discount after receipt of merchandise w) Debtor seeks to return merchandise long after delivery has been made x) Debtor falsely claims defective merchandise was received y) Debtor refuses to cooperate with reasonable / appropriate payment enquiries z) Debtor lies about payment
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AMERICANVIEW
Quiet patience often is an underrated virtue in many facets of our personal and professional lives. However when it comes to accounts receivables, time is the enemy. The longer an exporter waits to action collection efforts, the less likely payment will ever be received. The bad debt warning signs help exporters identify a potential payment problem before it spirals out of control in to unrecoverable bad debt. By way of illustration, this chart clearly shows the adverse impact of time on debt collection: Probability of Collecting Payment 100%
98.2%
85.4%
80%
While it may seem obvious, a sale is never completed until payment is collected. But regrettably, delinquent overseas accounts receivables are an unfortunate reality for many exporters in China today. Knowing the warning signs of bad debt, in and of itself, is no guarantee of avoiding their crippling affect upon a business. Ignoring those warning signs, however, is a sure-fire recipe for lost revenue and possible business failure.
When it comes to accounts receivables, time is the enemy.
73.1%
60% 40%
40.4%
20% 0%
10.0% Current
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60
90
270
720
Dennis Wagaman is CEO of SCJ, Inc., an established corporate debt recovery and receivables management consultancy headquartered in Delaware, U.S.A. From its China office in Beijing, SCJ, Inc. is active in helping Chinese exporters recover accounts receivable in North and South America, Europe, Asia, Africa and Australasia.
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NEWSROUNDUP
The Big Picture A roundup of news relevant to operations in China
CSR HSBC publishes 2008 CSR report The report details HSBC China’s CSR practice in many areas in China, including consumer finance education, ethical banking, protecting the environment, supporting education, social development promotion, and protecting employee’s interests. It also shows the commitment of the company’s staff to CSR and charitable giving, HSBC said in a statement.
Tesco opens 3rd energy-saving store Tesco has opened its third Chinese energy-saving store, in Tieling, Liaoning province. The British supermarket chain is using high-tech energy management systems, including advanced ventilation technology, high-efficiency draught fans and electronic ballasts to reduce power consumption. Tesco said it expects to cut energy costs by up to 25 percent and save 760,000KW hours per year. It also announced plans to upgrade all of its 59 stores in China with energy-saving systems.
Legal & Policies Software-counterfeiting syndicate jailed over Microsoft fakes On December 31, 2008, the 11 offenders who were involved in counterfeit software were sentenced to prison terms of up to 6.5 years by Futian District Court in Shenzhen. The pirates were selling fake Microsoft products valued at over USD 2 billion, to 36 countries and in at least five languages.
Sony Ericsson wins trademark dispute over abbreviated name In an appeal against a decision of the Trademark Review & Adjudication Board (TRAB), Beijing First Intermediate People’s Court decided in favour of Sony Ericsson. Sony Ericsson had opposed the registra-
China’s exports to the U.S. Rise to USD 337.7 billion Trade between China and the United States grew 5.8 percent to USD 409.1 billion in 2008. The 5.8 percent represent the smallest increase since China joined the World Trade Organization in 2001. Exports to the U.S. hit USD 337.7 billion, up 5.1 percent year-on-year while imports from the United States stood at USD 71.4 billion, an increase of 9.5 percent. In January 2009, China’s global trade surplus widened to USD 39.1 bn, the third-highest month on record after exports fell 17.5 percent and imports plummeted by 43 percent.
tion by a local PRC businessman of an abbreviated version of its name “索爱” (“suo ai”, combining the first syllable of Sony and Ericsson in Chinese).
Harley-Davidson wins trademark infringement case Harley-Davidson won a trademark infringement case against Chrome Horse and various related parties before the Bejing No. 2 Intermediate People’s Court. The court ruled that the defendants in the case had committed trademark infringements, false advertising and other acts of unfair competition. The court ordered respective defendants to stop using “哈 雷” (or “Ha Lei”, Harley in Chinese) as an enterprise name and to cease its false advertising activities. -Bakernet.net
(in Billion USD)
45 0
409.1
360
270 266.3
180
0
337.7
360
270
90
(in Billion USD)
45 0
85.3
90
56.9
1998
Total Trade
180
0 2008
Trade Balance
71.1 71.4
14.2
1998
2008
Exports to U.S.
Imports from U.S.
Sources: U.S. Census Bureau.
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NEWSROUNDUP Neoplan wins China IP lawsuit Germany’s Neoplan Bus GmbH has won an intellectual property lawsuit against three Chinese companies. The No. 1 Intermediate People’s Court of Beijing ordered Zhongwei Bus & Coach Group, its parent company Zonda Industrial Group and its agent Beijing Zhongtong Xinghua Vehicle Sales Co to pay Neoplan RMB 20 million. Neoplan, a subsidiary of the MAN conglomerate, accused the Jiangsu-based busmaker of copying its “Starliner” model.
Fujian local court convicts Chinese brake pad counterfeiter Fujian Xiapu County Court recently issued a landmark criminal conviction and heavy penalties against the Xiapu Huafeng Factory after finding the factory and its legal representative guilty of counterfeiting Honeywell’s “Bendix” trademark. The conviction carries a criminal fine of RMB 1.15 million against the factory and a sentence of three years in jail and four years of probation against its legal representative.
Corrupt airport chief sentenced to death A court in China’s Shandong province has sentenced a former chief of 30 airports including Beijing International to death for bribery and embezzlement in excess of RMB 100 million (USD14.6 million). - Xinhua News
Jack Ma, founder of Alibaba which owns online shopping and auction website, Taobao.
China’s Taobao.com gets tough on fakers
China’s 2008 customs revenue rises to a record high
According to information from Chinese Internet auction website Taobao.com, the website is currently cooperating with local commerce departments in China to fight sales of fake and shoddy products. Users who are found selling fake products in their online shops on Taobao.com will have their accounts permanently disabled.
China’s customs revenue increased by 20.8 percent over the previous year to a record high of RMB 916.11 billion (USD134.03 billion) in 2008, according
Freight firms offered zero percent finance Transport firms in Beijing that take out bank loans to finance the purchase of low-emission vehicles can now apply for subsidies from the municipal government to cover their interest payments. The economic construction section of the municipal finance bureau said the firms will be able to claim up to two years’ worth of interest.
Customs More trade in free trade zones The total value of imports and exports in its specially-supervised areas, mainly bonded zones, increased 17 percent yearon-year to almost RMB 300 billion in 2008. Exports grew 21.7 percent to USD 152.6 billion and imports rose 12.2 percent to USD 146.9 billion. The total value of imports and exports in these special areas accounted for 28 percent of the country’s processing trade volume last year. - China Daily
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to the General Administration of Customs. The export revenue increased by 23.6 percent to RMB 177 billion, while that from imports grew by 20.1 percent to RMB 739.11 billion.
Infrastructure Stimulus package boosts Yangtze traffic volumes Accelerating investment in transport infrastructure in China’s interior has halted the recent sharp declines in cargo throughput at ports along the Yangtze River, according the latest official figures. In January 2009, the major ports along the Yangtze reported a year-on-year cargo throughput increase of 5.7 percent to 80 million tons, the first monthly rise since last August. Container throughput increased 19.6 percent to 550,000 TEU, compared with 8 percent in November and 14 percent in December.
MARCH/APRIL 2009
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NEWSROUNDUP
China executive
ranks shuffled
The sudden weakness in the Chinese economy has created a raft of changes among the country’s top executives. Lenovo has fired its American chief executive, William Amelio. Bank of China, Air China, Chongqing Beer, Beijing Hualian Department Stores, Pacific Securities and Baida Group have all announced the departures of key executives. Electrolux, China Eastern Airlines, Toyota, Samsung, Hilton Hotels and Marks & Spencer have also reshuffled their top management. Haier, the white goods manufacturer, demoted six vice-presidents. Lenovo replaces CEO William Amelio Lenovo Group Ltd. said CEO William Amelio resigned as sales in the U.S. and China plunged. Amelio will be replaced by Chairman Yang Yuanqing, while founder Liu Chuanzhi returns as chairman. The maker of the Thinkpad laptop posted a 20 percent decline in sales, dropping the company further behind Hewlett-Packard Co. and Acer Inc. The departure of Amelio, a former Dell Inc. executive, returns Lenovo’s management to Chinese control and signals a renewed focus on its home market. M&S fires China boss after flagship store disaster Marks and Spencer has fired its managing director in China, just three months after launching its flagship 40,000 sq ft store in Shanghai. Richard Sweet, who had been with M&S for more than 20 years, left after the retailer’s disastrous debut. Chinese customs officials blocked M&S goods and poor supply chain management resulted in rows of bare shelves at the store. Simeon Piasecki, who manages M&S in Hong Kong, will now also run it in China.
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Boeing appoints new heads for Australia and India The Boeing Company has announced the appointment of Ian Thomas as president of Boeing Australia and South Pacific, and Dinesh Keskar as vice president of Boeing International and president of Boeing India. Mr Thomas, who was formerly president of Boeing India, will coordinate all Boeing activities in Australia and across the South Pacific region. Ericsson Hiring In China For 3G While some companies around the world are responding to the financial crisis with job cuts, the newly
issued 3G licenses in China have caused Ericsson to plan a hiring spree. Ericsson’s technology department in China will hire several hundred new employees this year. Ericsson is one of the major winners in China Unicom’s 3G network construction tender.
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20 million migrant workers are unemployed in China. Jobless migrant workers such as these workers at an employment fair, are everywhere in China. Chinese leaders are increasingly worried about the slowdown of their economy and the growing risk of protests by disgruntled workers. Gross domestic product grew only 6.8 percent between the fourth quarter of 2008 and a year earlier. Growth for all of 2008 was 9 percent, down from 13 percent in 2007. Indications are that expansion will continue to slow.
Photo by ImagineChina
NEWSROUNDUP
Supply Chain Management A roundup of supply chain news
R&D Largest wind power facility R&D planned China’s Northern Locomotive and Rolling Stock Industry Group is investing RMB 6 billion to build the largest wind power facility research center in Xi’an. In a first phase, the company will spend RMB 4 billion for six wind power manufacturing projects. In a later stage, RMB 2 billion will be invested to build railway transportation and develop a wind power system.
Bayer to invest USD129 million in China drug R&D center German pharmaceutical company Bayer said it would invest EUR 100 million within five years to set up a research and development center. Bayer Schering Pharma AG, a division of Bayer HealthCare, will build the center, making China the third country after Germany and the United States to host a global R&D center for the company. - Xinhua
only about 100 employees at its Wangjing offices. The company has not confirmed the number of employees that were laid off, although a spokesperson for Motorola announced that there had been job cuts. At the end of last year, the company laid off 600 employees out of 2,600 from Motorola China’s research and development team. - Xinhua
Sourcing Starbucks sources coffee beans from Yunnan American coffee company Starbucks Corp. said it is signing an agreement with China’s Yunnan provincial government to upgrade the local coffee bean quality. “Under the agreement, we’ll work with the local government as well as crop growers to raise the quality (of beans), and based on this, we hope to increase our purchase (from the region),” spokeswoman Caren Li said.
Xerox offers purchasing solution to US based companies Motorola lays off 1,000 in China R&D Motorola is reported to have cut 1,000 jobs from its Chinese R&D facility, leaving
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It was recently reported that Xerox will launch a new service to help US businesses find appropriate suppliers in Asia. Xerox spends USD 6.7 billion annually on goods and services and almost half of that is with
Starbucks will source more coffee from Western China’s Yunnan province.
Asian vendors. The experience that Xerox has accrued is now available to companies for a fee.
Manufacturing Half of China’s toy factories close after exports slump The country started the year with 8,610 factories producing and exporting 70 percent of all the world’s toys. By the end of 2008, only 4,388 remained — a decline of 49 percent, figures from the customs office showed. The blow has been particularly hard-felt in the southern province of Guangdong, which borders Hong Kong, and which is responsible for producing the majority of the toys made in China. - Jane Macartney in Beijing
China auto sales exceed U.S. Sales in China’s auto industry exceeded the U.S. for the first time in January. Chinese consumers bought 790,000 vehicles the first month of this year, according to General Motors Corp. In the U.S., total car and light-truck sales were just under 657,000 that month, according to Autodata Corp. 80 domestic and foreign producers compete in China’s auto market.
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Logistics Tianjin’s largest logistics park to be completed by May
Intel closes Shanghai plant U.S. chipmaker Intel Corp will close its assembly and test plant in Shanghai and shift operations to central China, state media reports. Some 2,000 people will lose their jobs. Sichuan province’s capital Chengdu was singled out as the new home for the plant, a city that offers lower labour costs than Shanghai. Intel called the move a result of “recent economic conditions”.
Electrolux Changsha
closes
factory
in
Sweden-based Electrolux has decided to close down its refrigerator manufacturing facility in Changsha, Hunan province. Since entering the Chinese market in 1997, the company has not made any profit, state media reports. Closing the Changsha facility is in-line with the company’s repositioning as a vendor of high-end products, Gunilla Nordstrom, the newly appointed head of Electrolux’ China division said. - BizChinaUpdate
Manufacturing contracts at a slower pace
The Tianjin BLOGIS Logistics Park is under busy construction and is expected to be fully completed by May 2009, when it will become the largest and most advanced logistics facility in the city, Logistics Week reported. The Shenzhen Chiwan Petroleum Supply Base Co., Ltd. Is investing RMB 350 million (USD 51 million) to build the facility that will cover 32 hectares and have 186,000 square meters of floor space, including 145,000 square meters of warehouse space.
Nepal enjoys lower transportation costs for Chinese goods China is allowing more trade traffic by land to and from Nepal, Nepali newswires report. The price for a truckload from Khasa in Tibet to Kathmandu has reportedly decreased from RMB 21,300 to RMB 3,000. China is allowing 60 truck loads per day to enter the country, this is twice as many as in the past. As a result, prices for imported Chinese products are expected to drop 15 percent.
New Asia-Pac FedEx hub opens in Guangzhou Fedex Express has announced the start of operations at its new hub facility at Guangzhou Baiyun International Airport. There will be 136 flights per week into and out of the new hub, providing access to more than 220 countries and territories
served by FedEx, a company statement said.
Maersk closes offices in China Maersk Line, the world’s largest container shipping firm, has closed its Greater China headquarters in Beijing and halved the number of its mainland sub-regional offices. The reorganisation had largely been completed and no significant lay-offs were involved. Maersk’s six sub-regional offices, in Qingdao, Shanghai, Xiamen, Guangzhou, Shenzhen and Hong Kong, would be merged into three.
Hong Kong’s Great Ocean Container Lines shuts down Hong Kong’s Great Ocean Container Lines (GOCL) has withdrawn Asia-Europe services as the 9-month-old start-up goes out of business, its recently resigned managing director Chris Bauermeister said. Having launched its first Asia-Europe service less than a year ago, Mr Chris Bauermeister said the company was “winding up its affairs” and bankruptcy was expected. - Hong Kong Shipping Gazette
China bans new shipyards China plans to introduce a new measure banning new shipyard builds and the expansion of existing shipyards for three years. The government also plans to implement a ban on support domestic-vessel purchases until 2012. Shipyard orders are expected to sink by up to 66 percent, totalling between 20 million and 30 million deadweight tons this year, compared to 58.2 million in 2008.
A business survey showed that manufacturing activity in China contracted in January, but at a slower pace than the month before. Economists say this could be an early sign of recovery for the Chinese economy. The Purchasing Managers Index issued by the China Federation of Logistics & Purchasing came in at 45.3 in January, compared with 41.2 in December. A PMI reading above 50 indicates growth in activity, while a number below 50 indicates contraction. The index has come in under 50 for six of the past seven months and has stayed there since October.
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Retail Suning looks to dethrone Gome After living in the shadow of archrival Gome for years, Suning, China’s second largest consumer electronics retailer, now sees its best chance yet to capture the first spot. With founder and chairman Huang Guangyu detained by police in an investigation of alleged wrongful share dealing, Gome is in no position to react. In early December 2008, Suning announced it will open at least 200 new stores in addition to its existing 850. -China Daily
7-Eleven to enter Shanghai in April 2009
Ingvar Kamprad, Ikea’s founder and one of the world’s richest people is betting on China.
According to the Taiwan-based President Chain Store Corporation, it will open three to four 7-Eleven convenience stores concurrently in Shanghai at the end of March or the beginning of April. It is the first time for the world’s largest convenience store brand 7-Eleven to enter the Shanghai market. It will focus on high-end consumers and select sites in business
areas, with the aim of opening 100 outlets within three years.
Ikea to open second store in Shanghai in 2010 Home supply retailer Ikea continues to expand in China. The company’s vice president for China, Gillian Drakeford, said a new 47,000-square-meter store in Dalian
recently opened and added that two other large centers in Shenyang and Shanghai will open in 2010. Ikea currently operates ten stores in China.
Retail sales during Spring Festival hit RMB 290 billion Retail sales from January 25 to January 31, the Lunar New Year holiday season,
A roundup of logistics related news Midea Group drops prices on central air-conditioner products
Survey shows graduate employment rates as low as 35 percent
Xinyu Liu, Guangzhou Daily
Xiaohong Yan, www.Chinanews.com.cn
Southcn.com
Midea Group recently decreased its prices for a series of central air-conditioner products by 15 percent. The company revealed that its price dropping strategy is aimed at changing the current situation where prices are abnormally high in the product range for central air-conditioning. They also want to further expand on domestic air-conditioning companies’ competiveness in central air-conditioner products.
A survey conducted by the Social Survey Institute of China (SSIC) among 1,000 college seniors in Beijing, Shanghai, Shenzhen, Wuhan and other 7 big cities in China recently, showed that around 35.6 percent will be unemployed in 2009. As career objectives, 28 percent of the interviewees were looking to the public sector while others see SOEs and academic institutes as opportunities. Last on their list for consideration is the private sector.
A recently released report by Kingfield Management, 2008 Pearl River Delta Layoffs and Pay-cuts Report suggested that relatively few companies would be laying people off and others will be offering pay raises. According to HR Managers and Directors surveyed, 75 percent of companies in the Pearl River Delta (PRD) have no plan to cut jobs, while 40 percent of companies said they plan to increase employees’ salaries.
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Pearl River Delta still going strong?
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reached RMB 290 billion, according to new statistics of the Ministry of Commerce. In Shanghai, sales climbed 8.4 percent yearon-year and hit RMB 4.27 billion.
Beijing’s first H&M specialty store Opens The international apparel retailer Hennes & Mauritz has announced that the company plans to open 225 new specialty stores around the world in 2009, and its
first specialty store will be opened in Beijing this spring. Founded in 1947, H&M is the largest apparel retailer in Europe by sales. At present, it owns about 1,700 specialty stores in various major cities in the world, including Shanghai and Hong Kong, providing working opportunities for about 55,000 employees worldwide.
IT Software-as-a-service solution for China’s retail distribution unveiled IBM and China’s eFuture Information Technology announced the launch of a Software-as-a-Service solution for the retail distribution industry in China. The two companies have successfully completed the deployment of the solution at select Beijing Wangfujing Department Store Group stores in Beijing.
HighJump software purchases insight distribution software HighJump Software, a global provider of supply chain execution solutions, has an-
from the Chinese Media Best-Buy completes acquisition of Five-Star Appliance
Descartes acquires Oceanwide’s logistics business Global on demand software-as-a-service (SaaS) logistics technology provider Descartes System Group recently announced it has acquired the logistics business of Oceanwide Inc., a Canada-based provider of enterprise software for the global marine insurance industry, for USD 8.4 million.
Inovis launches social network for supply chain collaboration Inovis, a provider of business community management services, announced general availability of a social networking service for supply chains modeled after popular consumer websites such as Facebook and LinkedIn.
Compiled by Carl Pan
DHL restructures, moving some divisions to Chengdu
International Finance News
Bin Li, Securities Daily
Electronics retailer, Best-Buy announced recently that it would purchase the remaining shares of Five-Star Appliance, a Jiangsu company. The recent announcement follows an equity investment made by Best Buy into Five-Star in 2006. According to the agreement, Five-Star Appliance will be wholly owned by Best-Buy, and will now become one of the larger retailers in the China market.
Under the impact of the global economic slowdown, DHL is slashing another 800 jobs in China and shifting some divisions to Chengdu. The logistics giant told a reporter in February there’s no job cutting, only internal re-organization. “They are trying to save costs by laying-off employees and replacing them with recent graduates,” said one employee under condition of anonymity. DHL is recruiting employees in Beijing, Shanghai, Suzhou and Tianjin for 400 positions.
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nounced the purchase of Insight Distribution Software from Coaxis Inc. This move comes just two months after it acquired Beltek Systems Design, strengthening HighJump’s role as a leading software provider in the direct store delivery market.
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General Motors sales in India are declining rapidly
India A roundup of news relevant to operations in India Indian ports see encouraging growth in 2008 Jawaharlal Nehru Port’s three terminals handled a total of nearly 4.2 million TEU during 2008 with its newest facility run by APM-Terminals-backed, Gateway Terminals India, set the record as the busiest unit with 1.52 million TEU handled.
India January car sales fall in
fourth straight decline India’s domestic car sales fell for the fourth straight month in January as high borrowing costs and fear of job losses in a slowing economy hurt sales at the local units of General Motors Corp., Honda Motor Co. and Hyundai Motor Co. Sales fell 3.2 percent in the past month to 110,212 cars from 113,894 cars a year earlier, new data shows. It was the sixth fall in monthly car sales in seven months. -Wall Street Journal
Indian exporters expect 10 million job cuts Indian exporters expect to cut about 10
million jobs by March as the global recession prompts overseas buyers to cancel orders. “The year 2009 is going to be the worst year in history,” A Sakthivel, president of the Federation of Indian Export Organisations, told reporters in New Delhi.
China “seriously concerned” that India is blocking its exports China said it was “seriously concerned” about India’s decision to block Chinese imports. India’s use of sanctions may have “a serious impact on bilateral trade relations,” Ministry of Commerce spokesman Yao Jian said in a statement. India imposed a six-month ban on imports of Chinese toys last month. -Bloomberg
C.H. Robinson enters Ho Chi Minh City
A ship loading at Jawaharlal Nehru Port
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U.S.-based third-party logistics provider C.H. Robinson announced it has expanded operations into Ho Chi Minh City, Vietnam. Mark Hong, Robinson’s managing director of Asia, said the company will use the expansion into Vietnam’s largest city as our launching point for further movement into the region.? He added that the move deepens the Minneapolis company’s commitment to the development of inter-regional logistics for Asia. Robinson has 18 offices in Asia, including China, Hong Kong, India, and Singapore and has over 200 offices worldwide.
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NEWSROUNDUP Minneapolis company’s commitment to the development of inter-regional logistics for Asia. Robinson has 18 offices in Asia, including China, Hong Kong, India, and Singapore and has over 200 offices worldwide.
MOL, Hanjin to build box terminal in Cai Mep, Vietnam Mitsui Osk Lines Ltd has signed a contract to establish a joint venture with Saigon Newport Company, Hanjin Shipping Company and Wan Hai Lines to build and operate a container terminal in Ba RiaVung Tau Vietnam’s Cai Mep region.
Vietnam is introducing it’s own stimulus package to support the economy
Vietnam A roundup of news relevant to operations in Vietnam Gazprom to form joint venture in Vietnam Russian energy monopoly Gazprom received a license for four blocks in gas fields located in the waters off the coast of Vietnam. Gazprom and PetroVietnam signed bilateral agreements to develop four blocks in October following meetings between high-level officials. The license for the four offshore south Vietnamese fields
is in place for the next three decades, with the option for five-year extensions, the Platts news agency reported Monday. -UPI
C.H. Robinson enters Ho Chi Minh City U.S.-based third-party logistics provider C.H. Robinson announced it has expanded operations into Ho Chi Minh City, Vietnam. Mark Hong, Robinson’s managing director of Asia, said the company will use the expansion into Vietnam’s largest city as our launching point for further movement into the region.? He added that the move deepens the
The Ho Chih Minh City People’s Committee introduces stimulus programme To stimulate investment, the city will help enterprises access soft loans for renovating production technologies and expanding production to meet export orders.The city said that it will also give priority in its budget disbursement to major public projects in an effort to resume construction which previously stalled due to the high price of building materials. The capital for the programme will come from various sources, including the city’s urban bonds, bank loans and the Government fund for stimulating investment and consumer spending.
Office space market hit as firms downsize A year ago in Vietnam when the real estate market was hot, all office space for lease in Hanoi was occupied, but 2009 has seen a 10 per cent fall in demand, according to Pham Thanh Hung, deputy director of Cen Group. In the past, some banks were willing to pay US$15,000 per month to hire one office. Lessors are now reducing rents by 15 to 20 per cent compared to last year’s prices.
PetroVietnam is cooperating with Russian energy giant Gazprom to develop gas fields.
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FEATURESTORY
the
Female link in the chain Times have changed. Not long ago women weren’t allowed to vote, much less hold senior positions in multinational companies across the planet. Manufacturing and supply chain are especially not traditionally female dominated fields. However more women are now entering the field. This article takes a look at some of those women. By Russel Beron
I
t could be that factories, warehouses and industrial parks are not places where women feel comfortable. Compare for example advertising, public relations or human resources – all female dominated. But this could be changing as supply chains becomes more of a critical priority for companies looking at efficiency and reducing costs. These days lower inventory, effective forecasting and an efficient supply chain can make or break companies. Much of Wal-Mart’s success for example can be attributed to the efficiency and leanness of the giant’s supply chain. Traditionally supply chain has not been the sexiest of fields for graduates of either gender. Finance, marketing, consulting are all areas prospective MBA grads will choose before supply chain. Why? Part of the reason we think is the lower profile of the sector and the lack of information about it. While selecting candidates for this profile of women in supply chain, we discovered that there are a range of women at diverse companies and links in the supply chain, many in senior positions. Many of them said that gender is not really an issue, competence and hard work are key attributes. Most of these women “fell into” supply chain accidentally and developed a passion for the diversity and challenge offered by the field. The women we profiled have an average of 11 years of experience in supply chain and while predominantly Chinese, come from countries across the globe.
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FEATURESTORY
If your target is to become an expert or a high level leader in the field, you need to think smartly, learn broadly and challenge positively. Jie Di
Tami Seguin
Tami Seguin Strategic Sourcing Director, Worldwide Operations Checkpoint Systems “Supply Chain influences the top line & bottom line of a company in so many ways,” comments Tami Seguin of Checkpoint Systems, a leader in security software and solutions. “After some years as an accountant I was looking forward to actually act on the company performance rather than ‘just’ analyzing it.” Seguin finds it exciting that, being close to the vendor market, her team can drive innovation, introduce new product ideas to their internal customers and ultimately to the end customer. “When I first joined there was no organized strategic sourcing team, processes or technology. In the 2 years I have been working here, I was able to drive the organization capabilities by introducing a new organization, processes and most importantly a culture of continuous cost improvement. I see myself as a change agent. We still have a long way to go but we are moving in the right direction.”
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I think professionalism and capability at your job will almost always outshine gender but maybe I have been lucky.
Jie Di
Gemma Stuart Young
Senior Category Supply Chain Manager Philips China Investment
Director Positive Purchasing Asia
Jie Di is a specialist in production planning, supply planning & procurement management. She has been recognized by Philips’ Management for outstanding performance for consistent delivery of high performance and contribution & leadership to the DE Global Product and production relocation and transfer project, which resulted in significant cycle time reduction at suppliers. Jie Di has 8 years of experience in the field and a Bachelor degree in Chemistry. “I wanted to try something other than Chemicals. I found Supply Chain by luck, then I just continued and I still enjoy it a lot,” says Ji Di.
One of Gemma Stuart Young’s career highlights was moving to China in 2003 to set up and run the Global Purchasing Organization for a major British car maker. This was one of the first automotive companies to take Global sourcing seriously. Young ‘fell’ into Supply Chain when she started in the BMW Graduate Training Scheme at Rover Group after University. “Purchasing was just becoming strategic and high profile and I felt it was an exciting function to be part of. The thought that my work directly impacted the bottom line of a company interested me and offered me job satisfaction.” With 11 years of experience in supply chain, Young has a BSc in physics and business studies.
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FEATURESTORY
Jean Regan
Jessica Bo
President Tranzact Technologies, Inc.
Regional Supply Chain Manager, Asia Pacific, Fluoroproducts DuPont China Holding Co. Ltd.
A 20 year supply chain veteran, Jean Regan observed early in her career the impact that computers and information technology would have on supply chains. “Shippers were looking for qualified resources to help them navigate through all the changes and provide them with forward thinking input.” When she joined her husband who was a minority shareholder in a logistics company called Transzact Systems Ltd. They determined that there was great opportunity for growth and consummated a buy-out of the majority shareholder. Regan has never felt challenged being a woman. “I think this is due to a few reasons. First, I always had the utmost confidence in my own capabilities. Second, I always presented myself as a professional and acted in a professional manner. Last, I always worked hard.”
Lidia Bartczak General Manager Ocean freight Operational Excellence, China Schenker Int’l (HK) Ltd. “It was a coincidence really,” says Lidia Bartczak of how she got into the logistics business 15 years ago. “I got a job in a
Lidia Bartczak
freight forwarding company and found it really interesting so decided to study the field and ended up graduating from The Maritime University of Szczecin [Poland] with a Master of Science. I consider myself very fortunate finding the perfect industry right from the start.” Bartczak finds her chosen career interesting in that it gives her the ability to work almost anywhere in the world. “Asia is a very dynamic environment and no matter how much experience and knowledge you have there is always something new to learn.” As for being a woman in the field, she feels that it’s more about your professional skills than about your gender.
While doing her MBA in Australia in 1999, Jessica Bo noticed the trend of more and more manufacturing moving to China. However, China did not have many professionals working in Supply Chain which she noticed as a big opportunity. Also given her perception that that Australia is very strong in Supply Chain management, she decided to focus her career in that area. One of the challenges Bo has found as women and a mother working part of a global supply chain team from Asia Pacific region, is that time differences involved intra-regional coordination in day time and inter-regional conferences at night. This makes it hard to have dinner with the family. Bo has received several awards from Dupont for her work, including an Award of Excellence in Integration of two M&A and SAP “go-live” projects.
Supply Chain management is not just clerical work. It needs vision and excellence in execution. Jessica Bo
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FEATURESTORY
Lily Xie
J.P. Sexton
Christel Costagli
Logistics Director adidas
Director, Regional Sourcing Office Chrysler
Head of Supply Chain and Logistics Kingfisher Asia
Lily Xie was drawn to the field of supply chain management for three reasons: the excellent career prospects due to globalization and a shift in the manufacturing base; the cross-functional nature of the field, which fit her background in R&D, Business Development, Marketing & Sales Management along with her organizational and project management strengths; and her family planning at the time which required less travel and more control of her schedule. Except for one incident where she ran into a Plant Manager in Japan who did not feel comfortable dealing with a female in a decision making role, Xie has not run into any issues as a women in her field. She advises women entering the field to “build up subject-matter expertise, know your business, know your customers and embrace the unpredictable nature of constant change.” Of course, she adds, having a supportive husband helps. With 18 years of experience, Xie has an MBA from Wharton and a PHD in Chemistry.
With 19 years of experience, including a period of time at chemical company, Grace, J.P. Sexton joined Chrysler in 2008. She first started working in purchasing around 1995 when she was approached by the management to support her then employer’s China growth. They needed someone with a background in both western and Chinese cultures. Sexton sees little difference for women in supply chain versus other fields, except that “women need to be more diligent, more aggressive, more results oriented than perhaps a male counterpart would be, for achieving same level of recognition and accomplishments.” Sexton has a BS in Optical Engineering and an MS in Physics.
“Supply chain came to me! I was given the opportunity to explore the world of international supply chain, directly after my Masters Degree, when I joined Maersk Logistics,” says Christel Costagli. Originally from Marseille, she first visited a container vessel at twelve years of age. Interestingly, the majority of Costagli’s team at Kingfisher, Europe’s leading home improvement retail group, are women. “The role of supply chain at Kingfisher sourcing has evolved in recent years, from a focus on ensuring that products are delivered on time at the right place and in the right quantity,” says Costagli. “Now, we are seen as a real added value function, providing solutions that maximize the benefits of direct sourcing by reducing cost and inventory and supporting different routes to market.” Costagli was recently awarded the title “Manager of the Year” by her colleagues at Kingfisher Asia.
Do not try to be the smartest person in a meeting room. Stay cool and professional. Lily Xie
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J.P. Sexton
FEATURESTORY
Pilar Dieter
Kathleen Lee Supply Chain Operation Senior Manager Microsoft Kathleen Lee began her career as a consultant for large MNCs, providing services to manufacturing companies on business reengineering and process improvements. “Supply Chain, whether it is procurement, inventory management, quality assurance, or fulfillment distribution, is very differently applied across industries/business. I find this part of the manufacturing process particular interesting,” Lee says. In her current position, she manages the Microsoft software supply chain for OEM channels in Asia, working with 3rd party supply chain partners to distribute Microsoft products to their OEM customers. “Looking into the future, we will be focusing on a digital supply chain model. It will be very interesting and rewarding to be engaged in the transformation process.” With 12 years of experience, Lee has a Master’s Degree in Information Systems.
is a male dominated environment,” says Dieter, “But once you can prove to be professional and savvy on the topics affecting the industry, its slightly easier to penetrate the male circle and become accepted (to a degree) as “one of the boys.” Pilar Dieter Chairs the Logistics and Transportation Committee for the American Chamber of Commerce in Shanghai.
Pilar M. Dieter
Fanny Xu
Director Alaris Consulting
Direct Purchasing Director Mary Kay Cosmetics
As the daughter of a US Diplomat Pilar Dieter was drawn to a profession that involved international networking and found supply chain to be the optimal combination of business and foreign policy. Earlier in her career she managed a global team of engineers and business analysts between Kuala Lumpur, the UK, San Francisco and India developing a web based supply chain visibility tool. It seemed a natural step then to make the shift into the strategic consulting role she performs at Alaris Consulting in Shanghai. “The reality is supply chain
Fanny Xu was drawn by a personal interest in the supply chain area. “The complexity of the job makes the supply chain management challenging and attractive,” she says. Also, the growing market in China created a lot of learning opportunities in the supply chain field.” Xu sees women and men as facing the same challenges in working in the supply chain field. With an MBA and 17 years in the field, including a period at Johnson and Johnson, Fanny Xu has won numerous awards for her work. Her Mary Kay Direct Purchasing Team was recently featured in Corporate Esprit de Corps Magazine.
Kathleen Lee
Look at the whole picture, think big, keep learning and always listen to the voice of customers. Fanny Xu
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FEATURESTORY
The female face of top Asian talent Asian women are represented in top positions, in a wide range of industries at major multinational corporations across the globe. We showcase some of these women, in no particular order of rank.
Sun Yafang , Chairman Huawei Technologies
Known as the “market killer” by her rivals, Sun leads the telecom network company’s ambitious international strategy. Global contracts nearly doubled in 2006, bringing revenue to $11 billion, about 65 percent of it from outside China. Her focus has been on R&D, marketing, and developing internal talent.
Indra Nooyi CEO PepsiCo
Indra Nooyi, 51, a former management consultant, is driving Pepsi’s growth across the globe. Now a U.S. citizen, she is helping position PepsiCo for growth in China, the Middle East and her native India. Her international background is key since Pepsi gets about 40 percent of its $35.1 billion in sales of beverages, food and snacks from beyond the U.S. and most of the company’s growth is overseas.
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Wei Christianson Managing Director & China CEO Morgan Stanley
Andrea Jung Chairman & CEO Avon Products
Jung is renowned as an expert on direct sales strategies and the buying habits of women which has helped drive Avon’s success. She has been with Avon since 1996, and before that was executive vice president of high-end retailer Nieman-Marcus. Last year she become Apple’s eighth member of its board of directors.
Christine Poon Vice-Chairman Johnson & Johnson
As a member of the executive ranks of this pharmaceutical giant, Poon is one of the most respected women in the industry. She is responsible for managing the pharmaceutical, consumer pharmaceutical and nutritional businesses of the company, in addition to overseeing its expanding R&D pipeline. Before joining J&J in 2000, Poon spent 15 years at rival Bristol-Myers Squibb.
One of investment banking’s most soughtafter dealmakers, 51-year-old Christianson has advised on many landmark transactions in China, including the public offerings of China Life, aluminum company Chalco, and China Oilfield Services. As Chinese companies demand more banking, her responsibilities are likely to expand.
Cheung Yan President Nine Dragon’s Paper
Cheung, 50, is a former accountant who lost her job but then capitalized on China’s export boom by importing scrap paper from the U.S. and Europe and turning it into cardboard boxes that are exported and packed with Chinese-manufactured products. The company is now public and worth billions – even with a recent dip due to the global economic climate.
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FEATURESTORY
B
ubble bursts on industrial property in China As foreign and domestic companies cut budgets and postpone expansion plans, demand for industrial property has weakened considerably in recent months.
By Peter Bachmann
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FEATURESTORY
S
“
hanghai recorded a 25.8 percent year-on-year decline in en bloc investment transactions for all property sectors in the whole year of 2008,” says Andrew Hatherley, executive director of CBRE’s Industrial & Logistics Services in the Greater China region. Industrial property markets in first and second tier cities started to slow down in October of last year. It all changed so quickly. CBRE research shows that, for the first half of 2008, total en bloc investment transaction volume grew 25 percent year-on-year. But since the fall, logistics developers have been re-accessing their construction pipeline for the delivery of new facilities in light of the global situation. “With many International development companies halting or postponing projects, the supply of ‘A grade’ logistics buildings is reducing at a time when demand is weakening,” says Hatherley. CBRE believes that rents for logistic facilities have eased in the last 3 months. “However we expect rates to stabilize during the next quarter and be on the increase again towards the end of 2009” Hatherley concludes. Dennis Yeo, managing director of Colliers International, North Asia, agrees. “We can expect some stability in the second half of this year; with some recovery later in 2009 or early 2010.”
dropped by 3.1 percent, due to a sharp 6.23 percent decrease in factory rents as well as the weaker demand in warehouse and R&D facilities. HingYin Lee, director of research and advisory at Colliers, thinks that “prices will continue to drop in 2009.” He believes first tier cities will see bigger falls than second tier cities because prices in Beijing, Shanghai or Shenzhen “have risen much faster in the last years than in smaller cities.” Danny Ma, director at CBRE Research for the Greater China region, confirms that it is not only Shanghai that is currently facing a demand and supply decline. “We see fluctuating markets all over China. As manufacturing declines so does the export and shipping business. This impacts cities in the east including Hangzhou and Ningbo.” Ma says that the east is likely to be hit harder by the downturn than other regions because “that’s where a drop is recorded first.” Central China and smaller second and third tier cities have less exposure and lower prices. Yeo thinks the A shifting market east is going But right now, inthrough a difficult dustrial property wittime but there are nesses a downturn in also opportunities. Andrew Hatherley land prices and facility “As the market rents. In Shanghai, for consolidates, deexample, fourth quarter average industrial velopers and their clients opt for quality land price dropped 5.03 percent quarterand proximity. Shanghai and other first tier on-quarter to RMB 1,085 per square mecities have better infrastructure in place ter and average industrial facility rents and that’s what the companies want. They
We expect rates to stabilize during the next quarter and be on the increase again towards the end of 2009
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Andrew Hatherley, CBRE
Dennis Yeo, Colliers International
Hingyin Lee, Colliers International
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FEATURESTORY
will get rid of everything else before they close or sell their best warehouses and distribution centers.” As prices go south, domestic and foreign companies are hoping a part of the governmental USD 586 billion stimulus package would help the market. “The government tries to stabilize the economy
tion solutions, it is clear what is happening noticed the downturn. “We saw 3PLs busiin 2009. “Our clients sign contracts with ness drop 30 to 40 percent in the final us at least one year before construction quarter of 2008, which resulted in a much starts,” says business development direclower demand in warehousing. Neverthetor Arnaud Sebban. “We therefore know less, Yupei, a joint venture between Shangwhat to expect from this year. Clients have hai Yupei Investment Holding and U.S.been very confident about the future when based Equity International, has currently they signed up with us in 2008.” One of an occupancy rate of “nearly 90 percent the projects for existing warehouses.” 50 percent of that has been newly developed projects are pre-leased. contracted Pan says the company will continue to and started in expand aggressively. “This year, we will 2008 includes add 200,000 sqm as two warehouses in Alstom’s new Shanghai and one in Chengdu are hitting 150,000 sqm the market.” boiler manuRealty Vailog, a major Italian real estate Arnaud Sebban, GSE facturing site in development and investment company, Wuhan, Hubei finds itself in a very special situation. In the and rebuild market confidence with the province. It is the largest site developed middle of this year, its first two logistics stimulus package, higher export rebates in China by GSE. parks in Jiading and Songjiang will hit the and VAT refunds, as well as the improveSebban knows that the economic downmarket. “We managed to rent out already ment of the infrastructure system,” says turn will eventually impact GSE’s business. 75 percent of our total GFA of roughly Ma. But this does not have a direct impact “We see companies postponing projects 160,000 sqm,” says regional director Walon this particular industry. “Rather,” notes and delaying new site developments. But ter Qian. Vailog has seen demand shrinkMa, “it would benefit the industry in a more indirect way, either by reassuring the market confidence, or by creating a better investment environment.” Yeo believes the government has other means to support the industry. “Useful policies for industrial properties should focus on the end user demand. Lower labor cost, a favorable currency exchange rate Peter Pan, Yupei Group and lower business and income tax could be very effective tools.” this is not a surprise. That’s how the maring due to the economic situation but Qian Mixed outlook ket works in an economic downturn.” thinks this is just a temporary setback. For GSE, a French engineering firm spePeter Pan, the director of corporate “We are happy with the current occupancy cializing in the delivery of turnkey construcmarketing of Yupei Group, has already rate and we expect to sign lease agreements for the remaining 25 percent before the end of June.” Vailog has committed itself to three other projects in Shanghai, which will increase the company’s total infrastructure size to 330,000 sqm by 2010 or 2011. And despite the recent market turbulences with the bankruptcy of New City and the sale of ProLogis China to GIC, Qian thinks its current lease ratio “will not decline in the next three to five years”.
We see companies postponing projects and delaying new sites
We saw 3PLs business drop 30 to 40 percent in the final quarter of 2008, which resulted in a much lower demand in warehousing
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FEATURESTORY
Jeffrey Schwartz, former CEO of ProLogis is now Chairman of Global Logistics Properties, a re-branded entity which has acquired ProLogis operations in China and Japan.
ProLogis bails on China In December 2008, American industrial property giant, ProLogis sold all its assets in China and a 20 percent interest in property funds in Japan to Singapore’s state-owned GIC Real Estate for USD1.3 billion. ProLogis said it is using the money to reduce debt. “The decision to sell is not a market call,” assured ProLogis spokesperson Krista Shepard. “Business is softening everywhere, but the decision to sell assets in Asia was more a function of the scope of our exposure there and the ability to accomplish a significant portfolio sale.” However, in February, CEO Walt Rakowich said the sale of the China operation “saved us USD 239 million of future development funding obligations.” It is not clear whether GIC RE agreed to fund these developments in the future. The company refused to comment on the case. “We are [still] in the rebranding process,” said Lynn Chen, corporate communications manager at ProLogis China after the deal was officially closed on February 10. An official press conference was announced for March. The Chinese assets of ProLogis will
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be managed by SMG Limited, a 50-50 joint venture asset management company formed between GIC RE and Jeffrey Schwartz, the former chairman and CEO of ProLogis. The assets will be operated with their existing trademark ProLogis China, which includes more than 2.6 million square meters of complete and imperfect logistics infrastructure and over 6.1 million square meters of land, Chinese media reports. Ming Mei, ProLogis’ president of China operations, said the joint venture company will invest at least RMB 1 billion in China in the next three years. Payment due “later” The Singaporean investment company is paying the USD 1.3 billion in two phases. USD 500 million was received by ProLogis upon closing and the remaining USD 800 million will be funded upon completion of year-end audits of certain entities, which the company expects to provide “no later than early in the second quarter.” GIC RE reportedly agreed to reimburse ProLogis approximately USD 45 million
of development funding expended by the company in China since November 1, 2008. Jeffrey Schwartz will run SMG Limited from either Denver or southern California, the BizJournal reports. When asked why he didn’t plan to move to Asia again, Schwartz said the “scarcity factor” would give him more face time with Singapore government leaders during his weeklong visits each month. Clarifications needed Executives of ProLogis China couldn’t be reached for a statement and Jeffrey Schwartz didn’t respond to requests for comment. Sooner or later the parties need to inform the public what their plans are in China. Will GIC and SMG finance the USD239 million future development funding obligations ProLogis got rid of? Will SMG consider selling non-performing parks in the near future? How will SMG deal with provincial governments that agreed to provide ProLogis China land under preferential conditions? These are all questions that ProLogis partners, clients and observers are wondering.
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FEATURESTORY
Key Facts of the deal 2008
November: Jeffrey Schwartz is replaced by Walt Rakowich as CEO of ProLogis. Schwartz worked for ProLogis since 1994 and was appointed CEO in 2005. December ProLogis sells its China operations and 20 percent interest in Japanese property funds to GIC Real Estate for USD 1.3 billion. The proceeds are used to reduce its USD 11 bn debt. GIC RE says it will pay the USD 1.3 billion in two phases: USD 500 million upon closing the deal and the remaining USD 800 million upon completion of year-end audits of certain entities.
2009
January The company announces cost cuts, stops new developments, sells properties, lays off employees and restructures debt. SMG Limited, a 50-50 joint venture asset management company between GIC RE and Jeffrey Schwartz, will manage the China and interest in funds in Japan. February SMG plans to invest at least RMB 1 billion in China in next three years. Schwartz says he will run SMG from the United States. March At a press conference on March 3, ProLogis announces it’s new name in China, Global Logistics Properties, headed by Jeffrey Schwartz as Chairman and Ming Mei as President.
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ProLogis China Fact Sheet Denver-based ProLogis is the world’s largest owner, manager and developer of distribution facilities, with approximately 475 million square feet (51 million square meters) of industrial space in 136 markets across North America, Asia and Europe. ProLogis entered the Chinese market in April 2004. Its China division managed 1,865,400 sqm of property in China as of December 31. The Shanghai-headquartered company has established a comprehensive distribution system serving the seaports, airports, and industrial zones throughout the country. Cities: Beijing, Tianjin, Qingdao, Dalian, Nanjing, Suzhou, Shenyang, Wuxi, Shanghai, Hangzhou, Ningbo, Jiaxing, Guangzhou, Shenzhen, Foshan, Wuhan, Changsha, Chengdu, Chongqing and Zhuhai. Seaports: Shanghai Yangshan Deepwater Port, Dalian Dayaowan Port, Shenzhen Yantian Port, Qingdao Qianwan Port, Guangzh ou Nansha Port, Ningbo Beilun Port. Airports: Beijing Airport, Guangzhou Baiyun Airport, Nanjing Lukou Airport, Shanghai Pudong International Airport, Shanghai Hongqiao International Airport, Qingdao Liuting International Airport. Industrial zones: Shenyang Economic and Technological Development Area, Suzhou Industrial Park, Tianjin Economic and Technological Development Area, Hangzhou Economic and Technological Development Area, Guangzhou Development Zone, Chengdu High-Tech Zone, Chongqing Economic
GIC The Government of Singapore Investment Corporation (GIC) is managing “well above USD 100 billion” of the country’s foreign reserves. In the past two years, GIC has invested several billions USD in the banking sector. In December 2007, the investment arm invested USD 11 billion in Switzerland’s largest bank UBS and in January 2008, it spent USD6.88 billion for perpetual notes in Citigroup. The global stock market slump has eroded the value of both investments by more than 75 percent. The Singaporean government said in February that overall, GIC’s investments “declined” but the exact numbers were not disclosed.
Temasek Incorporated in 1974 by the Ministry of Finance, Temasek Holdings focuses on investment opportunities in Singapore and other Asian countries. In February, the Singaporean parliament revealed that Temasek’s net portfolio value dropped 31 percent between March 31 and November 30 last year, from USD 124 billion to USD 85 billion. In July 2007, it invested GBP 975 million in British bank Barclays and in December, it injected about USD 5 billion in Merrill Lynch. Temasek also spent heavily in China but exact figures are not made public. CEO Ho Ching, recently stepped down, after almost seven years, handing over the reins to Chip Goodyear, former head of BHP Billiton.
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O COMPANYPROFILE
perations make success possible for adidas in China As Vice President, Operations for adidas China, Aldo Spaanjaars oversees the company’s supply chain ensuring adidas continues its rapid development. CHaINA’s Editor, Russel Beron spoke with Mr. Spaanjaars recently about adidas’ China operations. I understand your position was created only a few years ago when you were promoted from Marketing Communications Director at adidas China. How did you make the shift to operations? Aldo Spaanjaars (AS): Before joining adidas I worked on marketing strategy for a Siemens mobile phone brand, Xelibri that was a tremendous success from a marketing perspective, but failed as a business concept and Siemens shut it down. I learned the hard way that you can have a great marketing plan but if the product fails, you are still not going to be successful. It also taught me the critical role of operations. When I had the Aldo Spaanjaars, opportunity to take on an operational Vice President, Operations role, people asked why I would give up for adidas China a sexy job in marketing to do what other people perceived as boring operational work. Obviously I look at it differently. There is actually a lot more creativity in operations than people give it credit for. Do you think operations will become more of a “sexy” type of job for people to enter in future? AS: Supply chain, especially in times like we are experiencing now, is very challenging and it gives tremendous
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opportunity for operations to shine. I expect that the role of operations will continue to grow in importance to every company and as such will become a more attractive career path for a broader group of people. Can you give a brief overview of adidas’ supply chain in China? AS: adidas in China is mostly a wholesale business; our customers own their own stores. If you compare a retailer like Foot Locker in North America, they are basically a catalogue of square meters with different brands including adidas. But here we operate one brand, you walk into the stores here and it’s 100 percent adidas. Does adidas own its own stores? AS: We recently opened the world’s largest adidas’ store in Beijing, and that is our own store that we manage by ourselves. We have a few of our own stores in Shanghai and various other cities as well. But the majority of our business is wholesale. What is the difference in adidas’ distribution in China versus other countries? Is it more complicated because of the number of franchises? AS: In many respects, the real difference here is the complexity involved in distribution across the country. There are 500 cities in China where there is at least one adi-
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COMPANYPROFILE
das outlet and we have more than 5,000 stores in cities across China. Getting our product to these stores is an interesting challenge. Is adidas’ mono-branded retail approach a strategy specific to China? AS: I think other parts of the world are probably more likely to become like us. The relationship with the consumer is fundamentally different in a complete adidas environment. We can tell them our marketing story and display a much broader selection of our products. So why not offer your consumer an opportunity?. Our monobrand retail strategy is successful in China because customers want to have the choice.
speed to get the product somewhere. Do you use foreign or local companies 3PL’s? AS: It’s a combination of both. The main contractors are obviously larger companies, but of course we use local companies as well. We currently work with 4 partners a mixture of local and international and in addition the international companies all have local partners as well. What about fake products; is that a big issue for adidas? AS: Actually we have a large intellectual property team here in Shanghai. They work with the local security bureaus, customs and so on to discourage the practice. Although quite widespread, within China, its impact on
I understand that adidas does not own factories, but relies on subcontractors. Where are the factories located? AS: Our suppliers are located in various parts of China, but most of them are concentrated in Southern China. In Suzhou we have our own manufacturing site. Indirectly, adidas employs 300,000 people in China. 50 percent of our global demand is produced in China. We also have manufacturing centers in Vietnam, Indonesia, India and Turkey, among others. What about your distribution centers, are they also subcontracted? AS: No, we have one 60,000 square meters facility for the whole country located in Suzhou. The building is leased, but the operation is completely managed in-house. Why only one distribution centre? In a country as big as China wouldn’t it make sense to have more DCs around the country? AS: With us being predominantly a wholesale business, one site offers a lot of advantages. Having said that, with retail focused operations gaining in importance, over time we probably will expand that footprint and having more locations would make more sense. At this time, the need for quality of delivery is higher than the need for
our brand is manageable. Consumers really see the difference between real products and fakes.
adidas China distribution center in Suzhou
At this time, many companies are going through cost cutting. Have you had to implement any cost cutting measures in your operations? AS: Sure, we have to assure that our operations will meet our financial targets. Globally, there’s an economic slowdown that’s affecting consumers but we feel that the sport business is relatively resistant to slowdown because consumers still like to play sports and still need sports gear. That being said we spend a lot of efforts to rationalize the expenses that we can control. We also try to find ways to do things better. In the company, globally there’s a lot of focus on eliminating inefficiencies. Of course, we are cutting cost where possible, and we try to optimize efficiencies where they relate directly to costs. Our last year’s results were good and for this year, I hope they will continue.
We have heard a lot in the last 6 months about textile companies suffering with rising labor costs and a shift to cheaper manufacturing centers. Does it still make sense to manufacture textiles in China? The adidas brand center in Beijing offers customers AS: Yes, China will remain our most important source for an option to customize their own sneakers. global production.
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EXECUTIVEINSIGHT
Staying afoot of the shoe business Currently based in Shanghai, Troels has exposure to a broad range of business functions from sales distribution through to the implementation of marketing and public relations campaigns. Aside from his role at ECCO, Troels is also Chairman of the Danish Design Network China which is based in Shanghai.
Troels Persson is Director of Marketing & PR for ECCO (Shanghai) Co. Ltd – a leading global brand for innovation and comfort footwear. Troels has been working at ECCO for the past 10 years, focusing on business development in regions that include China, Europe and the Middle East.
DANGER! Fisher-Price Recalls Simplicity Rainforest™ Portable Play Yards The CPSC announced a voluntary recall of about 200,000 units of Rainforest™ Portable Play Yards manufactured by Simplicity Inc. and SFCA Inc. While Simplicity Inc. and SFCA Inc. were unresponsive to consumers via their Hotline and Web site, at least 1,350 reports of one or more rails collapsing and numerous injuries were received. Manufactured in China, the product was sold at retailers in the U.S. from January 2007 through January 2009 for about $100.
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What are some of the factors that have made your career successful? Troels Persson: I have been fortunate to work for a company during a period of business growth. When I began work with ECCO 10 years ago it was in a phase of development which suited my own career goals. There were opportunities for people with a “can-do” attitude and since I’ve always has that pioneering spirit it was a very good cultural fit for me. In many ways my career has grown and matured alongside the company I have worked for. Being ambitious and not being afraid to take on new tasks has been the foundation on which my career has progressed. If you demonstrate your willingness to take on more responsibility
The U.S. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products. Below are just a few of those products. Milestone AV Technologies recalls television wall mounts Milestone AV Technologies, of Savage, Minn. has recalled about 140,000 units of LCD television wall mounts. Manufactured in China, the wall mount poses a hazard of cracking when used with televisions 26 inches and larger or with televisions that include a DVD player. The product was sold at Best Buy stores in the U.S. from June 2007 through December 2008 for between $60 and $90,
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EXECUTIVEINSIGHT then the opportunities will come. Apply the knowledge you have learned in previous areas to new tasks and keep pushing yourself to acquire new skills. It is also important to take an open minded approach to your work. In today’s global business environment you are likely to work with people from different cultures and backgrounds. Be open to these differences and learn from the ways in which people approach tasks. What do you look for when hiring new staff? This will of course depend on the position, but in general the three main areas I look for when interviewing are diversity, attitude and knowledge.
are passionate about what you do it shines through. Knowledge/qualifications: The relevant knowledge and qualifications are the foundation.
Being passionate about your job is a big driver for me personally and I think if you are passionate about what you do it shines through.
Diversity: What does this person bring to the table which will help the team to complete tasks it isn’t capable of doing today? Unless I am just hiring to increase output I always look for people who bring new skills on board – people who add another dimension to the team. Attitude/personality: As a hands-on person myself I appreciate working with people who are willing to take on new tasks and suggest improved ways of doing things. Besides that I enjoy working with people who are not afraid of making a mistake when trying something new, but will do their best to avoid it. Being passionate about your job is a big driver for me personally and I think if you
Can you give some advice on how to progress to the top? Be clear and focused about what you want and don’t be afraid to communicate this to your employer. Develop a career development plan and follow it, revising your goals periodically as conditions change. This also helps you in evaluating the various offers which might come along – how does this help me reach my current goal or do I need to review my goal or its time horizon? Have ambitions and don’t be afraid to show that you are capable of progressing to a senior level.
What are some of the changes and trends in the procurement & supply chain profession? The current retail environment is demanding faster deliveries and shorter lead times because of the financial situation – nobody wants to sit on too much stock at the moment. This trend is likely to continue so we will see an increased demand for day to day deliveries and higher stock turns.
For further advice on career development or for general information on current employment opportunities, please contact Josh Hollway at Michael Page International: joshhollway@michaelpage.com.cn.
JAKKS Pacific Recalls Spa Factory Aromatherapy Kits In cooperation with Spa Factory Aromatherapy Kits, the CPSC recently announced a voluntary recall of about 516,000 units of Spa Factory™ Aromatherapy Fountain & Bath Benefits Kits. Manufactured in China, the product was sold at Sam’s Club, Wal-Mart, Target, and toy stores in the U.S. from August 2008 through January 2009. JAKKS and CPSC have received 88 reports of exploding jars, including 13 injuries. True Value recalls wheelbarrows True Value Co., of Chicago, Ill. announced a voluntary recall of 17,000 units of Green Thumb Twin Wheelbarrows. Manufacturer by Qingdao Huatian Hand Truck Co. Ltd., of China, True Value has received two reports of the plastic rim breaking. The product was sold at True Value stores in the U.S. from September 2008 through October 2008 for about $80.
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Viking Range Corp. recalls toasters In cooperation with Viking Range Corp., of Greenwood, Miss. The CPSC recently announced a voluntary recall of about 10,000 units of Four-Slice Electric Toasters. Manufactured in China, Viking has received five reports from consumers who experienced minor shock when touching the outside of the toaster. The product was sold at culinary products retailers, online dealers, and Viking’s web site from April 2005 through November 2008 for about $300.
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SCMGADGETS
A zero emission vehicle, driven by an electric engine
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obody can predict the future. However, one thing is for sure, if in the future we do not want to travel to the office with an oxygen mask, then we will have to resort to cleaner technologies that impact less on the environment and don’t impede our fast paced lives. Keeping up to the promise of a green future, Tristan Hipps has come up with a vehicle concept that is designed for maximum transport efficiency. Relay is an urban delivery Vehicle that uses four direct drive electric motors connected to the wheels that convert forward motion back into electric power when under deceleration. The relay is also designed with space on the body for client’s to express their corporate identity. Hipps’ concept car is designed to travel at a maximum speed of 40mph.
If you have an opinion on this concept, email us at: comment@supplychain.cn.
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DON’T MISS OUT!
List your company in the most comprehensive directory of supply chain & logistics related services in China, India and Vietnam
VENDORS’ DIRECTORY •Logistics Services
• IT & Software Solutions
•Professional Services
• Equipment Providers
•Real Estate Services A comprehensive bi-lingual listing of vendors, service and equipment providers, consultants and IT solutions providers for the supply chain and logistics industry Companies are listed according to their specific service offering In-depth company profiles including contact details and full description of services and solutions Free and complete online access at www.supplychains.com
Who should list in the VENDORS’ DIRECTORY? Any company that provides services, solutions, equipment in the fidd of supply chain and logistics, procurement should be listed.
How much does a company listing cost? A 12-month company listing costs only RMB 5,000 (or RMB 3,000 for Council members). Because the directory is re-printed every 6 months, we give companies the opportunity to update their profile online, meaning your company information will always be up-todate.
Who reads the VENDORS’ DIRECTORY? The Directory is read and used by key decision-makers in companies that regularly buy and use supply chain and logistics services and facilities in Asia. These are the people that decide which supply chain and logistics service providers to use.
How is the VENDORS’ DIRECTORY distributed and promoted? Targeted at qualified decision-makers, the directory is distributed free-of-charge to subscribers of CHaINA Magazine and companies based in China who request a copy (companies are only asked to cover the mailing cost). In 2009, we will print more than 10,000 copies, which will be given out at more than 100 supply chain and logistics-focused events each year.
To find out more about how the VENDORS’ DIRECTORY can contribute to your marketing needs in China, please contact: +86 (21) 5102 1617/18
directory@supplychain.cn
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SPECIALFEATURE
Cutting the fat
in your supply chain By Peter Bachmann
In a time of sluggish demand, shrinking profits and uncertainty, companies around the world are focused on increasing efficiency and lowering costs to stay competitive. The Cost Optimization Summit organized by the Global Supply Chain Council on February 18, showed how best practices in supply chain management can help companies to improve their cost structure.
C “
hina has the potential to be the best production base in the world,” said Duane Bolinger, managing director of BBK Consulting Asia Pacific. But even here, companies need to improve their cost structure to stay competitive. As expenditures continue to grow and loans become more difficult to obtain, companies have to find ways to become ‘lean.’ A straight forward way in the right direction is to “improve cash flow by reducing inventory and lowering capital expenditure,” Bolinger noted.
Herman Heung, head of operations practice at Booz & Company, said there are many challenges when it comes to cost optimization and companies need to address these: What are the opportunities that truly provide a significant payoff, with minimal time and investment? Also, how can we strike both quickly and deeply without cutting into the essential “muscle” of the business? And, how do I ensure that the results “stick” for the long haul and avoid a “bounce back” of costs? Bolinger and Heung both pointed out that senior management in small and big companies need to find out how to capitalize on
Delegates listen to a speaker at the China Supply Chain Council’s Cost Optimization Summit in Shanghai.
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the recent market fluctuations for resources and changes in exchange rates. Prices for oil, copper and aluminium, for example, have increased tremendously vastly in the last years but have all fallen back to their 2002 levels in the last months. Robert Zhang of Lishen Battery Joint-Stock Co. Ltd, agreed as his company depends heavily on natural resources to produce batteries for the Chinese and overseas markets. “We supply 20 percent of all mobile phone batteries and you can imagine that we follow the price fluctuations of steel and cobalt very carefully.” Having low inventory and using the right hedging techniques can increase or lower costs dramatically, Zhang said. Another way to save money is by using different currencies when payments are due. “We pay imported materials and other costs in U.S. dollars as the Chinese yuan has appreciated much in the last months. This helps us to take advantage of market fluctuations and minimize transaction costs.” Patrick Xu, supply chain director with U.S.based electronics retailer Best Buy, explained that a defensive supply chain approach is a viable tool to optimize costs. “Negotiate your costs down, eliminate processes that do not add value and always pay attention to your cash flow.” Xu said he still believes that at the end of the day, serving customers better than anyone else is the best way to create value for all stakeholders. “We believe that customers still want quality, not merely costs.” In February, Best Buy announced it has concluded
A straight forward way in the right direction is to ‘improve cash flow by reducing inventory and lowering capital expenditure’. Duane Bolinger, BBK Consulting
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SPECIALFEATURE
Delegates at the China Supply Chain Council’s Cost optimization event exchange ideas and business cards at the break.
Virtual distribution will make physical distribution obsolete and drastically reduce production and distribution costs for Microsoft.
the acquisition of Jiangsu Five Star, China’s third largest electronics retailer. Five Star has 161 outlets in east China and will help Best Buy to reach more people as the U.S. company only runs six shops in China so far. Microsoft, on the other hand, is expecting to ‘neglect’ supply chain costs in 3 to 5 years, and this for a simple reason. In the near future, cloud-computing will allow companies and private users to download software and data from ‘virtual clowds’, explained John Solheim, Director for OEM Supply Chain of Microsoft in Asia and the Americas. As a result, virtual distribution will make physical distribution obsolete and drastically reduce production and distribution costs for Microsoft. Barry Elliott, director of ABF1 Consulting, has experienced that many companies in China do not pay enough attention to inventory. The management needs to find out if it really understands the purpose of inventory, he argues. Companies have inventory only for two reasons: “1. To cover off uncertainty of demand and supply and 2. to use economics of scale.” To successfully implement changes and cost efficient measures, Elliott recommends getting senior management aboard first and once this is done, mid- and longterm results from sales and operations planning can be implement in a much faster way. Erich Winsloe, partner and managing director of Araia Supply
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Management, showed in its case study that costs are often ‘hidden’ and need to be carefully analyzed. A product can become considerably cheaper to produce when the client is weighing the functions and evaluates its individual costs. “If design is not of importance but 27 percent of all costs are spent for this specific function, we have identified a substantial cost reduction potential.” Another way to cut costs is by paying attention to the importance of indirect taxes, said Robert Smith, partner with Ernst & Young Asia Pacific. “If we look at China’s total tax revenue in 2007, we see that 56 percent come from indirect taxes. That’s where much of your company’s tax money goes.” Indirect taxes includes the value added tax, business and consumption tax and customs. “Management needs to understand that corporate taxes are less important right now as profits are down in many places. But even when you incur losses, you still have to pay indirect taxes.” Smith saw that there are companies that do not pay enough emphasis on indirect taxes. “Often companies don’t know how much hidden indirect taxes they pay and that’s very costly.” A good number Chinese firms still rely on VAT refunds for their profit margin, Smith said. Yann Teste, head of East Asia Purchasing of the truck division of Knorr Bremse, noted that in small and big projects, cost reduction is much more likely to happen when all cost centers are carefully examined. “Look at all cost drivers and focus on indirect material costs because these can usually be eliminated or at least reduced much faster.” In multinational companies as Knorr Bremse, where multiple teams work on a project and the number of people involved is large, “synergies can result in significant time and cost savings.”
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EVENTUPDATE
New City bankruptcy and ProLogis sale shake industrial property market During a February China Logistics Real Estate Luncheon organized by the Global Supply Chain Council, participants discussed the two most recent events in the industrial property industry: New City’s bankruptcy and the sale of ProLogis China to GIC.
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n October 2008, New City filed for bankruptcy with USD 1.1 billion in debt after it could not refinance existing loans or raise funds to pay for properties it had committed to buy. Former New City employee, Peter Garrisson talked about the events that led to the demise of New City. It was the first collapse of a Japanese real estate investment trust. New City had a 250,000 sqm bonded logistics park in Shanghai’s Waigaoqiao and another two developments in Fengxian and Kunshan. Several companies are now bidding for what is left of Tokyo-based New City. The Development Bank of Japan and Goldman Sachs Group are among the final bidders. Oaktree Capital Management and Daiwa Securities SMBC Principal Investments also submitted an offer. New City also had offices and infrastructure projects in Seoul, Singapore, Sydney, San Francisco and Honolulu. The sale of ProLogis’s China operations to Singapore’s GIC has surprised insiders in China and the U.S. The real estate division of the state-run global investment management company agreed to pay USD1.3 billion in two phases. SMG, a joint venture between GIC and ProLogis’s former CEO Jeffrey Schwartz, will be assigned to manage the target assets including 20.7 million square feet of completed properties and properties under development. Denver-based ProLogis said it was forced to sell its China operations to reduce its USD 11 billion debt. For an in-depth report about the ProLogis sale read our article on PAGE 34.
Best Buy bets on China sourcing By Peter Bachmann
China saw a drastic fall in exports so far in 2009. Overseas shipments fell 17.5 percent in January from a year earlier and imports declined 43.1 percent. As a result, sourcing services in China have seen a sharp fall in demand and the industry has witnessed unprecedented changes in business development ranging from resource and time shortages to overcapacity within a couple of months. Charles Zhang, sourcing manager with U.S.-based electronics retailer Best Buy, said at the February sourcing leader luncheon that bad times do offer opportunities. “There is no question that we are going through a difficult time right now. But sourcing currently offers chances for firms to become stronger in the future,” Zhang noted. Companies and their staff need to use their time wisely and should streamline and restructure their processes. It is more about ‘what’ we can do for the client and less about ‘how’ we are going to do it.” Companies need to be more flexible these days and it might be better for clients if they are offered sourcing from different places. “Not every single part needs to be sourced from China anymore. You could offer an interesting package to your client by sourcing part A from China and part B from Vietnam. This could proof more cost effective and give you a competitive advantage vis-à-vis your competitors.” Although no one can predict the length of the economic slump, Zhang warns that cutting back on resources including investments, staff, offices and service could backfire. “If you are downsizing to save costs today, you could very likely run into problems tomorrow when demand picks up again. You don’t want to turn down clients because your cut backs hinder you to do business.”
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EVENTUPDATE
The future of the Supply Manager profession
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ith most companies looking for ways to cut costs, increase efficiency and survive in tough times, supply chain management has become a critical success factor and a key competitive advantage. Despite lagging behind other professional areas such as accounting and finance for decades, in academia and practice, purchasing and supply chain management are now more top of mind than ever. Speaking at a recent Council workgroup on the topic, “The future of the supply manager profession,” Dr. Martin Lockström, Research Associate at China Europe International Business School and Senior Representative of the Supply Chain Management Institute China, shared some insights about the current state of the profession and where it is heading. Some trends that Dr. Lockström has observed in purchasing are: the establishment of a Chief Purchasing Officer in some companies, a shift from low
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to high education of managers along with a shift of buyers becoming supply managers and the shift of purchasing into a more strategic function. Using the example of BMW, Dr. Lockström noted that increasingly, companies with strong brands are outsourcing everything except marketing, which places even higher value on the supply chain to create, produce and deliver products on behalf of brands. In alignment with the strategic role that purchasing and supply will continue to play, Dr. Lockström noted that “the supply manager has to be both an internal manager to deal with other areas or departments and also needs to be customer oriented.” As such the supply manager needs to shift from being perceived as a back office clerk to a manager with broad skills and competencies. The shift that Dr.Lockström is describing is one that has been a long time coming and hopefully will continue to raise the standard for the supply manager profession.
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2009
SOFTSKILLS
Retaining talent on a shoestring
Managers play a key role in retaining talent and developing a team so that your company gets through tough times in even better shape.
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hy did you leave your last job? Surveys show better compensation and more career advancement opportunities are major reasons. HR veterans also confirm the relationship with your immediate manager is a major factor. It’s a commonly held belief that people leave managers not companies. But it’s also true that people stay with companies that focus on their career development. Retention is a triangle involving company, employee, and immediate manager. In this uncertain year with belt-tightening, how can a company retain talent without busting budgets? Hewitt’s China Economic Impact Survey showed 63 percent of companies have put a hiring freeze in place. But even with less opportunities for job-hopping, top performers are targeted by headhunters with increasing frequency. Hewitt also found that 61 percent of companies are planning to provide additional learning and development opportunities. As a manager what are you doing today to provide career advancement plans to your team? Here is a low cost approach: 1. Ramp up your communication Communicate through weekly one-on-one meetings with your direct reports. Talk only about what help they need to do their work better. This is not a performance review, it is an opportunity for you to coach and support their development. Be sincere. Be genuine. Which means be consistent. If you start weekly one-on-ones, you need to keep them going. Give your people clear reasons for staying. Companies with the highest retention rates, don’t have the highest compensa-
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tion plans. They do however communicate much more frequently with their teams. Examples include open-door HR policies, posters in elevators, memos on bulletin boards and regular emails . As a manager, proactively talk up the strengths of your company culture and compensation benefits.
Warwick John Fahy
2. Share the knowledge With tight budgets, you need to get creative on how to provide opportunities to share learning. Ask each member of your team to deliver a structured presentation on their work expertise to other team members. This helps them feel important and allows some of their best practice to be shared around. If morale is low, you can start by asking your team to share a fun skill from outside work, like salsa dancing or yoga. Identify skills that your team needs to improve, like customer business understanding or customer service skills. Ask
yourself “Who in the company knows the most about this subject?” Ask them to give a presentation. Video tape it. Ask your secretary to transcribe and print it up as training notes. Hold a team meeting about the training and go deeper in certain areas. Remember to communicate the importance of this knowledge to your team and build in time for them to put some ideas into practice. Pitch it as your company’s internal mini-MBA program. Job satisfaction is a key retention factor. Allowing people to share their expertise and learn from others in a consistent, structured fashion will increase their job satisfaction. 3. Keep future focused Previous downturns have shown that companies stand an even better chance of riding the downside while preparing for the upside if they take care of their workforces over time. This includes taking extra efforts to reward and keep top performers, and substantially increasing the productivity of the whole team Employees are more willing to stay with firms that provide regular growth opportunities and a clear career path. As a manager you play a key role in retaining an effective team. Start by increasing the frequency of your communication and become a coach and mentor to your team. Warwick John Fahy coaches managers to higher performance across Asia. He leads interactive, engaging workshops that improve essential management skills. He is the author of The One Minute Presenter available at www.oneminutepresenter.com
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COMPANYPROFILE
Danish insulation producer finds opportunity inside the
I
walled kingdom
nsulating apartments and offices in China is not the standard as developers and contractors try to keep costs down. Erik Gielen, International Procurement Manager for Asia-Pacific of Rockwool International, a Danish company, feels confident that China is getting ready for resource saving insulation although regulations are not in place yet. CHaINA’s Editor, Russel Beron, spoke with Erik Gielen, International Manager Asia Pacific for Rockwool International A/S, a leading European insulation specialist for houses, offices and industry. CHaINA: Can you tell us more about Rockwool? Erik Gielen (EG): We are a Danish company, started up as a family company around 100 years ago, and it is now the biggest “stone wool” manufacturer in the world.
Erik Gielen, International Procurement Manager Asia Pacific, Rockwool
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What is “stone wool”? EG: “Stone wool” is a type of mineral wool insulation made of stone and is used in all kinds of buildings (houses, apartments, offices, etc). Then we have Lapinus Fibres
who produces different kind of fibers, used for instance in the automotive industry (like brake pads). We also make products for sound insulation like Rockfon, a ceiling tile of stone wool that will not only prevent fire from spreading, but is also sound-absorbing. The sound waves will be absorbed through the stone wool - which is really a bunch of fibers - and is dispersed. Finally we have Rockpanel (façades) and Grodan (agricultural). Are you producing here in China or are you considering doing so in the near future? EG: We don’t produce in China. We have 22 factories around the world, mainly in Europe, some in North America and one in Malaysia. Basically what we do is we melt
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COMPANYPROFILE stones into wool. It’s the greenish stuff you can see at building sites. The advantage of our material is that it won’t melt at the same degree as other insulation products do, which makes it more fire-safe. We are the biggest in the world; we produced two million tons last year. And China is interesting because there is a lot of energy waste here. Buildings are very poorly insulated. The main reason however we are here now is because of the automotive industry. Are you supplying the domestic auto industry? EG: Yes, through Lapinus Fibres, and that goes quite well as the automotive sector in China is still booming. We have some sales of insulation also, but the main problem we see is that there are limited regulations; limited standards in China for insulation like you would have in the United States or in Europe. In China, new standards for the construction industry have been set but the implementation takes a long time. Do you think China is moving in the direction of implementing standards? EG: I think they are, but it will take some work in making sure the right regulation will be put into effect. In my personal opinion, I think these standards are kept low or are non-existing deliberately. You have this growing middle class which would rather buy a non-insulated house and pay little bit more for gas and electricity per month than to wait a longer time to save up to pay more for an insulated house – even if they would earn back the money eventually. Since most people in China live in apartments, are insulation options available? EG: Yes, you can get a contractor to put insulation into apartments too, but again, contractors (and landlords) think about money. I think in China they focus on the lowest cost per square meter. Where this could apply is more in rural areas but then they won’t have money to do it? EG: It applies to everywhere. It’s very normal in the West to use insulation in apart-
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ments. It will increase the total cost of your building but you will save the money easily later on. I think they are avoiding the increase of the building cost of the individual apartments. And it’s a pity since it’s a big waste of energy. So you really have a market here for your products for automotive and probably for the other industries. But can you also produce in China? EG: Yes, we could. If my memory serves me well, one cubic meter of stone can be made into up to 90 cubic meters of stone wool. The rest is air which of course is a good insulator but transporting all this air from Europe or North America is too costly. Where do you get the stone from, is it a specific kind of stone? EG: It’s a very common stone, also in China. A colleague of mine, heading the Sales Office, told me that south of Beijing, you have literally one city completely of stone wool manufacturers, but it’s all small mom and pop shops.
it’s of lower standard than we would use. However, they’re up to our standard now. If your view here is long term then you’ll get through this? EG: That’s the plan for now. Yes, if the prospect is good, of course, we will stay here. If it turns out that the price differences due to the strong RMB vs. the EUR are not beneficial to us any more, we might not see any benefit in investing here in
Manufacturing stonewool insulation at a Rockwool factory.
So what is your role here? EG: I’m here for the procurement part of the company which means I’m trying to find suitable suppliers to meet our supply needs in Europe for production materials. I’m also sourcing machine parts for our equipment in Europe. Our main suppliers were and are still in Europe. In China, are you finding suppliers of these parts and materials able to meet the standards? Is there lots of supplier development needed? Is that part of your function as well? EG: That’s part of our function as well. But it can still take up to a year and a half to two years to get up to standards. One of the materials we’re trying to source here is laminated aluminum foil. Although they use this on insulation material in China as well,
our Sourcing activities. For sales the prospects might be different. But in China, it’s also about building up relationships. We are willing to invest in our suppliers: one of the companies we are working with has been supplying to us for seven years, in good times and bad times. They supply us with steel products. When the iron ore price exploded, we agreed to have them increase their price – in breach of our contract. Because otherwise they will go bankrupt which won’t help us and it won’t help them. My philosophy is that if you want to have a good supplier, that they need to make (some) money. If he’s not making money, he will try to squeeze it out from somewhere else which will lead to lower quality or late deliveries – or worse.
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S INSIDEVIEW
trategies to survive in a downturn
T
he management challenge
With many sectors now experiencing declining sales and profits, the current downturn has those industries in Asia in a state of shock. Decades of surging economic growth has produced an entire generation of managers who have never run a business in turbulent times. A deepening recession need not be all doom and gloom. Studies of previous recessions have shown that there will be winners as well as losers. One common theme from our 2008 Annual Consumer Survey was: companies that effectively manage the downturn have a higher likelihood to emerge more quickly and successfully post recession. We consider six strategies critical to effective downturn management: Focus the business, generate/preserve cash, manage trading partner terms and conditions, improve buying, rationalize head office, and drive staff productivity
1.
Focus the business During a downturn a clear focus on the key business drivers is essential to ensure resources are allocated to those areas that deliver most value to the business. This is particularly true in China, where rapid growth over the past two
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percent of promotions lose money and fail to grow long-term sales. Promotions also reduce forecasting accuracy and add significant complexity and management cost to the business. In Asia, trade expenditures are even less transparent and many companies struggle to quantify their real impact on the business – hence, reducing trade expenditures that do not have clear economic benefit will likely have a twofold impact on profits decades has resulted in many companies adding significant complexity to their business. A. Product and item rationalization As companies seek to claim greater market share through M&A or organic growth, they frequently increase the number of products they take to market. This proliferation often results in excess costs particularly in production, logistics and working capital. We find up to 30 percent of products are actually loss–making when you correctly allocate direct and indirect costs to each product. Eliminating loss-making products and their costs can deliver many benefits. In one case the extra production capacity generated by a SKU reduction was utilized to expand production of an existing higher margin product. Before cutting products, however, a thorough assessment should be made of their strategic importance to customer relationships, branding, their substitutes and their stage in the product lifecycle. B. Trade relations and promotions Trade expenditures for many companies, particularly those targeting retail consumers, have significantly increased over the past decade; however, our work and published research suggests that up to 75
C. Customer Profitability All customers are not equal and should not be treated equally. With increased competition in a downturn, it becomes even more important to hold on to your most valuable customers. There are a number of factors that impact customer profitability including order frequency, custom products and production runs, special packaging and logistical arrangements, selling time and effort, and trade terms. Our research indicates that when direct and indirect costs are accurately allocated, up to 25 percent of customers are actually loss making! Understanding customer profitability allows companies to develop alternate models to reduce the “cost-to-serve” for customers. One client, faced with a group of substantially unprofitable customers, decided to identify more cost efficient ways to sell to and service these customers rather than eliminate them altogether.
2.
Generate/preserve Cash With more than 20 percent of liquidations due to customer late payments, many companies are simply leaving cash on the table as a result of internal inefficiencies. We have found a number of common weaknesses in our Asian clients that provide quick-win opportunities to
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INSIDEVIEW
generate or preserve cash: Sales Order to Cash Sub-optimal credit decisions due to poorly defined criteria and internal alignment Ineffective receivables analysis and collection strategies Failure to address deteriorating customer performance. Procurement to Payment Purchases are not correlated to production and operating needs Negotiated discounts and terms are not enforced by the buyer Supplier rationalization is needed Product Forecast to Distribution Production forecasts aren’t accurately linked to demand drivers Excessive lead and cycle times. Obsolete and safety stock levels are excessive Trade-off between capacity utilization and inventory levels are poorly managed Small improvements in these areas can
investment and improved payment terms. For one China subsidiary of a MNC food company, we found more than 30 instances where they were regularly giving away non-standard discounts, rebates, and special logistics arrangements to their retailers. By eliminating these non-standard terms, most of which were not important to the customer, the company was able to quickly generate bottom line savings.
4.
Improve buying Companies can achieve significant cost reductions by improving how they buy – a 5 percent reduction in purchase costs can result in a 50 percent profit improvement. “Better Buying” requires improved aggregation and buying leverage, improved buying processes and analysis, and improved technologies to support all of these. Our experience suggests that supplier auctions are a quick and effective tool to generate significant savings for certain indirect categories such as office supplies, travel, cleaning and maintenance, and delivery services. Auctions can also be effective for common resale categories such as CDs, pens, and consumer stationary, where we have seen clients generate procurement savings between 15 percent and 40 percent.
A 5 percent reduction in purchase costs can result in a 50 percent profit improvement. significantly affect cash balances. One client, an auto parts manufacturer in China, maintained an inventory of three-times average monthly demand for certain parts because of their “economic run quantity” for production runs. By shifting their production philosophy and reducing changeover times, they were able to cut overall inventory by 30 percent and preserve cash on the balance sheet for other uses.
3.
Review Trading Partner Terms and Conditions Companies commonly lack alignment between sales teams and their finance departments, leading to ineffective development and execution of commercial terms. Poor analysis and internal alignment prevents formation of a complete picture that often shows a cumulative negative impact on profitability. In times of downturn, this is even more critical as customers aggressively lobby for rebates, allowances, trade
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5.
Get more value out of your head office Eliminating low-value activities and reducing bureaucracy at your head office is a quick and effective way to reduce costs and to improve responsiveness to the market. Over the past decade, we have witnessed many head offices becoming increasingly large and failing to deliver sufficient value to the business. Excessive bureaucracy has also reduced speed of decision making, thus impacting the ability to respond to a rapidly changing market. During previous downturns, companies have reduced the size of their head offices by 15 percent -25 percent without a no-
ticeable loss of performance. We frequently work with companies to benchmark head office cost structures and headcount against their peers. Identified gaps are then closed by eliminating redundant activities, rework, functional silos, and handoffs. This is especially true in China where activities are often duplicated across multiple JVs or where companies have over-built their operations assuming labour would be inexpensive forever. Finance, IT, procurement, and other central back-office support functions are areas of significant short-term potential.
6.
Improve staff productivity Improving staff productivity is critical to cost efficiency and improving customer satisfaction. Lacking visibility into demand, capacity, and staff productivity, many companies do not accurately allocate staff to match the variable customer demand patterns common that a downturn brings with it. These companies suffer from unnecessary downtime cost when staff levels are excessive and poor staff performance when demand levels exceed resources. Our experience indicates that effective staff resource planning can enhance business performance by as much as 5 percent and reduce costs by up to 17 percent. By aligning management effort with these strategies, companies will vastly improve their performance in this economic downturn, as well as position themselves to emerge more quickly and as stronger players in their industry.
Robert Barrett is a Director in PricewaterhouseCoopers Performance Improvement (PI) practice. Based in Shanghai, China, he has been working in South East Asia since 1995. Robert leads PwC’s Consumer/Industrial Products and Supply Chain consulting groups in China and is a member of PwC’s Global Operations and Procurement Council
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55
VIETNAMVIEW
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ith the economic downturn in full swing, Vietnamese companies are looking for ways to make their operations more efficient and effective. Research has found that a successful Enterprise Resource Planning (ERP) system has the ability to reduce inventory by as much as 45 percent. Until recently, ERP was out of reach for many Vietnamese companies as the investment was just too large for small and medium sized enterprises (SMEs) to justify. Many local companies did not consider ERP as a viable option. Today, however, SMEs are looking at ERP in a different light, as more affordable options become available. Vietnam’s ERP market is still relatively small, but it is a growing market that has changed dramatically the last five years. “In Vietnam the local market is growing fast as companies recognize the benefits of ERP,” said Nguyen Chi Duc, General Manager of Exact Software Vietnam, a specialized ERP software provider. In Vietnam, Nguyen added, recent entry into the World Trade Organization (WTO) has put in-
The State of ERP in Vietnam
By Tielman Nieuwoudt Principal, The Supply Chain Lab www.thesupplychainlab.com
ERP misconceptions The Vietnamese economy has progressed a lot over the last five years. However supply chain management is still a relatively new discipline. “There is a misunderstanding of what supply chain is,” explained Long Chandara, Country Manager of Tectura, an ERP service provider with a Country Office in Vietnam. Chandara highlighted the need for vendors to manage their customers’ expectations of what ERP can and cannot deliver. For example, a Vietnamese company might be interested in a payroll package and expect ERP to provide the same functionally and benefits as best of breed software. This represents a misunderstanding of ERP. ERP is not a magic bullet to replace all best of breed software in the organization. Another challenge can be getting senior management on board. Nguyen succinctly summarized, “Some senior management don’t see the benefits of ERP”. For ERP to get senior management buy-in, time needs to be invested in developing a clear understanding of ERP and its potential benefits for SMEs.
a successful Enterprise Resource Planning (ERP) system has the ability to reduce inventory by as much as 45 percent. creased pressure on local organizations preparing to compete against a feared international onslaught. Nguyen said that companies in Vietnam are no different from their counterparts in the US and Europe. They are searching for vendors that can provide the required functionality and service quality that companies expect. Finding relevant data to determine the size of the market can be challenging. Most companies continue to work on rough estimates to determine the size of the market and individual market segments.
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ERP readiness Many Vietnamese organizations are increasingly looking at ERP implementation to drive organizational change. However, in Vietnam, ERP readiness is a critical point to consider for any project team prior to implementation. “Companies in Vietnam don’t always have an ERP culture”, said Chandara. For example, simplifying and standardizing business processes is an important part of any ERP implementation. However, many companies in Vietnam lack the required business processes to do this. Similarly, evaluating business processes is critically important. “There is a [misplaced] belief that automating existing business processes will result in optimized business processes,” said Abesolom Abby Fidel, an independent SAP consultant based in Vietnam. Vietnamese companies need to invest more time in
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VIETNAMVIEW
evaluating best practices than is currently done. That said, with limited data available, identifying best practices can be a challenging undertaking. Vietnamese companies need to institutionalize performance metrics and be clear how performance will be measured. Something that doesn’t always take place. Limited collaboration Collaborating and sharing information among supply chain partners is not yet a common business practice in Vietnam. “Companies have a problem with sharing information,” Chandara said. Nguyen echoed this view,” There is limited supply chain collaboration in Vietnam.” Poor interdepartmental collaboration and conflict can severely affect the success of ERP implementation. Poor collaborating in the supply chain is leading to poor visibility along the supply chain. Business relationships in Vietnam are sometimes less trustful than one finds in more developed markets, which limits the amount of data companies are willing to share. On a more positive note, Nguyen noted that with the current economic crisis and WTO entry he is seeing more companies collaboratBusiness relationships ing and sharing information.
in Vietnam are
employees,” advised Fidel. Nguyen added that, to some extent, human resource departments are benefiting from the slowdown in the economy as employees are less likely to jump ship.
Implementation challenges sometimes less Companies in Vietnam are facing a number trustful than one finds of challenges when implementing ERP sysValue and return of investin more developed tems. One of the big errors companies make ment is to rush implementation schedules. “ERP Despite lower costs now, markets, which limits implementation in Vietnam takes much lonVietnamese companies need to the amount of data ger,” said Nguyen. Chandara added that many have a clear understanding of the companies are willing companies underestimate the implementation investment cost and return on to share. timelines and that project management can be investment. “Companies someproblematic. Streamlining business processes times underestimate the total can take a long time in any operation. According to Fidel, Vietnamcost of ERP implementation,” Chandara said. Acese companies sometimes lack patience and flexibility in dealing cording to Nguyen, some companies view the implewith the required business engineering. mentation of a well known ERP brand as increasing For ERP implementation to succeed companies need to change the value of the company. behaviour in the organization and remember there is no single person responsible for operations. Companies need to understand The Vietnamese business landscape has changed the capability in their organizations and what they need to do to dramatically the last couple of years and companies develop capability. In Vietnam, finding and keeping good people are increasingly recognising the benefits of ERP. on a project can be challenging undertaking. “Companies don’t alHowever, the business environment in Vietnam is ways have the human resources for ERP implementation,” Nguyen very different from more established ERP markets explained. Especially outside of the major commercial centers of in the US and Europe. Vietnamese companies need Ho Chi Minh City and Hanoi, finding the right capability can be to conduct a detailed risk assessment and not base problematic. Bringing in overseas consultants also presents chaltheir assessments only on industry research. For lenges. “Overseas consultants don’t always understand business any company, ERP is a big investment and implepractices in Vietnam”, said Nguyen. Language skills can also be mentation and building local capability should not be an additional barrier. Developing local talent in the organization is taken lightly. Especially in these uncertain economic an ongoing process. “Companies need to cultivate and motivate times.
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57
With talent at a premium, CHaINA keeps an eye on which executives are moving where.
William Fello appointed MD, China, Korn/Ferry International
Ryder appoints Paul Tay Vice President and Managing Director of Asia Pacific
William V. Fello was recently appointed as Managing Director of the Global Supply Chain Center of Excellence for Korn/Ferry International, based in Shanghai, China. Mr. Fello focuses his search consulting practice on senior executives in the industrial sector, as well as senior supply chain leaders across a wide variety of industries. He is also responsible for leading several of the firm’s largest global client relationships. Prior to joining Korn/ Ferry in 2003, Mr. Fello was affiliated with two other international executive search firms, and before that was an executive at Electronic Data Systems.
Ryder System announced the appointment of Paul Tay as Vice President and Managing Director of Asia Pacific. In his new role, Mr. Tay will be responsible for the continuing development and operation of Ryder’s supply chain solutions offering throughout the Asia-Pacific region. He will report directly to Ryder’s President of Supply Chain Solutions, John Williford. Mr. Tay brings to Ryder more than 15 years of experience in both the contract and international supply chain management industry.
Menlo Worldwide Logistics appoints Huimin Wang as Shanghai & Jiangsu Territory Manager
DHL names new MD for HK, Taiwan
Huimin’s primary responsibilities will be hiring, directing, training, and establishing business controls to support regional operations through on site management teams. Prior to joining Menlo, Huimin had 15 years of working experiences with Maersk Logistics where he had different roles cross the organization in China and Denmark including client management, operation management and project management as well as process re-engineering. Menlo Worldwide Logistics specializes in the integration of all functions across the supply chain, from sourcing of raw materials, through product manufacturing, to the distribution of finished goods.
Taiwan- DHL has announced that Connie Tang, general manager at DHL Express Hong Kong, has been promoted to the position of managing director for DHL Express Hong Kong and Taiwan. With 3,000 staff under her wing, Tang will now be responsible for developing strategies and managing DHL’s operations in both markets, while maintaining its position as an industry leader through quality logistics. Tang joined DHL Hong Kong in 1995 and held a number of marketing-related managerial positions before she was named general manager of DHL Express Taiwan in January 2005.
UPS makes new appointments
Ken Torok
58
Brad Mitchell
MARCH/APRIL 2009
UPS has announced the appointment of two new top executives to head their Logistics and Freight Forwarding operations. Brad Mitchell has been named the new president of UPS Global Logistics and Distribution. Mitchell, who joined UPS in 2000, will be directing distribution services and post-sales services worldwide. Ken Torok on the other hand, has been named the president of UPS’s global freight forwarding. In his new appointment, Torok will also oversee commercial air and ocean carrier relationships as well as coordinate trade lane development and international freight sales.
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BOOKFOCUS
MADE IN CHINA:
Secrets of China’s Dynamic Entrepreneurs
China’s rapid development has been greatly facilitated by the rise of privately owned enterprises (POE) which account for about 80 percent of the total corporate enterprises in China. Many of these companies developed only in the last 15 or so years and have already become global giants. Nie and Xin’s book takes a look at some of these success stories, such as Wahaha (drinks and yoghurt maker), Nice (laundry detergent giant) and Taobao (an eBay competitor). The writers talked to 20 POE founders, looking at some of their commonalities and personal characteristics. What all these individuals and companies have in common is that they were able to take on their big foreign and local competitors and win. Part 2 and 3 of the book focus on understanding the evolution of entrepreneurship in China over the Authors: Winter Nie & centuries and in to the most recent period following the opening up of China. The final section looks at Katherine Xin threats and opportunities for MNC’s in China, focusing on the opportunities afforded by cooperating with with Lily Zhang. these Chinese POE’s and the challenges of competing with them. While not a groundbreaking piece of non-fiction, among the plethora of China books, Made in China is Publisher: John Wiley & worth a read, if only for the case studies and the synopsis on entrepreneurship in China. Foreign compaSons, $24.95 nies seem to need every help they can get to succeed in China and this book might offer a tip or two.
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59
INFRASTRUCTURE
Everything is changing fast.
Don’t lose your direction.
supplychains.com > The Right Way 60
MARCH/APRIL 2009
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INFRASTRUCTURE
China bets big on rail As Obama passes a massive stimulus package in the U.S., China is already months into its own massive stimulus plan. This includes spending hundreds of billions of dollars on infrastructure, including massive investments in rail expansion.
Some of the rail projects include: • $17.6 billion on a passenger rail line across the deserts of northwest China. • $22 billion on a web of freight rail lines in Shanxi province in north-central China. • $24 billion on a high-speed passenger rail line from Beijing to Guangzhou in southeastern China. • $88 billion on constructing intercity rail lines. • $19 billion on a 1,200 km high-speed railway network in Zhejiang.
China Railway Statistics Year
Investment RMB (billion)
Km Built
Km Total
Cargo / tons
2020
1,500**
10,000**
120,000
--
2012
3,500*
31,000*
110,000
--
--
--
--
--
--
2008
330
--
79,000
3.3 bn
2007
177
1,000
78,000
3.1 bn
*total for 2009-2012 period **total for 2012-2020 period
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61
CLASSIFIEDLISTINGS
LOGISTICS SERVICES
LOGISTICS SERVICES
Agility 19/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 8668 www.agilitylogistics.com
ARVATO SERVICES B-1F XingHong Science & Technology Industrial Park,Feng Huang Gang Village, Xi Xiang, BaoAn 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200231 +86 (755) 3386 1666 www.arvatoservices.com.cn BDP INTERNATIONAL Unit 2102-2106, Shanghai Bund Int’l Tower, 99 Huangpu Road, Shanghai 200080, China 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
ALLWINGS LOGISTICS 1688 Sichuan North Road, 26/F Fude Business Centre South Shanghai 200080, People‘s Republic of China +86 21 6306 3134 www.alls-sh.com
CEVA Logistics 上海鲁班路600号 江南造船大厦19楼
APL LOGISTICS 5F Raffles City Office Tower, 268 Xizang Zhong Road, Shanghai 200001 上海西藏中路268号来福士办公楼5 200001 +86 21 2301 2800 www.apllogistics.com
PLACE AN AD
+86 21 5302 9988 www.cevalogisitics.com
tel: +86 (21) 5102 1617/18 • email: ads@supplychain.cn
THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS
Editorial Intern Wanted
CHaINA Magazine, Asia’s leading operations magazine is looking for an enthusiastic and talented intern to join our editorial team. Entering our third year, CHaINA Magazine is a bimonthly trade publication focused on supply chain and logistics in China and other developing markets in the Asian region. The magazine is distributed in print and online to senior executives in trade, manufacturing and a range of other functions. We have a strong focus on content and rely on freelancers and industry people to provide high quality content. Job Duties: The candidate will have the opportunity to research, write and edit articles, do interviews, cover events, develop story ideas and get involved in all aspects of magazine production. Excellent opportunities will be provided for meeting and networking with a wide range of senior executives providing exposure to many companies and industries.
LOGISTICS SERVICES LOGW N AIR + OCEAN CHINA LTD. Room 618, Ocean Towers, 550 Yanan Dong Lu, Shanghai, 200001 上海市延安东路550号海洋大厦618 室，200001 +86 21 5352 4766 www.birkart.com
IDS LOGISTICS 8/F Tower Block, LiFung Plaza NO.2000 Yishan Road, shanghai 201103 上海市闵行区宜山路2000号利丰广场 主楼8楼，201103 +86 21 2416 4700 www idslogistics.com
CHINDEX INTERNATIONAL 2F, Tower B, China Arts&Crafts Building, 103 Jixiangli, Chaoyangmenwai, Beijing, 100020 北京市朝阳区朝阳门外吉祥里103号中国 工艺大厦B座2层邮编：100020 +86 10 6552 8822 www.chindex.com
IPS L MITED 01-11 YouYou International Plaza 76 Pujian Road, Pudong Shanghai, China 200127 +86 21 6165 9288 www ipssupplychain com
SHANGHAI DAJ N LOGISTICS 3000 South Lia-hua Road, Prologis Logistics Park,Minhang,Shanghai,201109 莲花南路3000号，普洛斯闵行物流园区内。 邮编：201109。 +86 21 6309 8336/3430 6999 www.dajin.com.cn DERET LOGISTIQUE 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，200080 +86 21 6307 5086 www.trans-access com cn DHL 18/F, Tomson Commercial Building, 710 Dong Fang Road, Shanghai 200122, China 上海市东方路710号汤臣金融大厦18楼邮编 200122 +86 21 5058 1111 www.dhl com DSV LOGISTICS 38F, 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, China 中国上海嘉定区南翔镇科福路375号 +86 21 39124360 www.eleechina.oom FM LOGISTIC 2099 Xinqun Road,Pinghu EDZ, Zhejiang Province. 浙江省平湖经济开发区新群路2099号 +86 573 8527 3072 www.fmlogistic com HAVI FOOD SERVICES 6 Xingsheng Jie, Beijing Economic & Technological Development Area, Beijing, 100176 北京经济技术开发区兴盛街6号，100176 +86 010 6788 3335
Requirements: Native English speaker with background in Journalism, English or communications Strong interest in business issues in China and region Competence in writing, editing and attention to detail Resourceful and able to work independently Able to work as part of team in a deadline environment
HMG GROUP Suite B-E, 10F International Shipping & Finance Building,No.720, Pudong Avenue,Shanghai, China 中国上海浦东大道720号国际航运金 融大厦10楼B-E座 +86 21 5036 8000 www.hmglog.com
Compensation: Monthly stipend
ID LOGISTICS Room 19D, Dong Tai Plaza, No.309 Tanggu lu,shanghai 上海市塘沽路309号19D +86 21 6306 7083 www.id-logistics com
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Contact Russel Beron: rberon@supplychain.cn www.supplychain.cn
MARCH/APRIL 2009
LOGISTICS SERVICES
KERRY EAS LOGISTICS No 21,xiaoyun Road,North Dongsanhuan Road,Chaoyang District,Beijing,100027 北京市朝阳区东三环北路霄云路21 号大通大厦，100027 +86 10 6461 8899 www kerryeas.com KUEHNE & NAGEL Block 1, 11-16F 1868 Gong He Xin Road Shanghai 200072, P R. China 共和新路1868号大宁国际商业广场 第一幢11-16楼，邮政编码：200072 +86 21 2602 8000 www kuehne-nagel com LINFOX ROAD TRANSPORT 26-F, Cross Region Plaza, 899 Ling Ling Road, Xuhui District, Shanghai 200030, China 上海市徐汇区零陵路899号飞洲国际广场26 楼F座 +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, 200131 +86 21 5046 1666 www linkstarlogistics com LOG FASHION 375 Kefu Rd, Nanxiang Town, Jiading District, Shanghai, 201802, China +86 13917614568 www logisfashion.com MAERSK LOGISTICS 24/F, Tian An Centre, No. 338 Nanjing Road, Shanghai, 200003 中国上海黄浦区南京西路338号天安中心24 楼 200003 +86 （21）23062666 www maersk-logistics.com MENLO Golden Eagle Mansion, 1518 Min Sheng Road, Tower A 13th Floor, Shanghai, P.R.China 中国上海浦东新区民生路1518号金鹰大 厦A座13楼 +86 21 6160 1190 www menloworld.com PTL 1603, Kun Yang Plaza, No. 798 Zhao Jia Bang Rd, Shanghai, China 200030 上海市肇家浜路798号坤阳国际商务广场 1603室邮编200030 +86 (21) 6445 3190 www ptl-group.com RUNBOW LOGISTICS Office #207, Building 39 No. 2688 Yindu Road 201108 Shanghai, China +86 (21) 5443 1002 www runbow-logiitics com
www.chainaonline.com
CLASSIFIEDLISTINGS
Operations Manager, China Twinings is part of Associated British Foods plc (ABF), one of Europe’s largest food companies with a wide range of successful brands and an increasingly strong presence in advanced research and technology. Being part of ABF means more than impressive figures and a bright future, it means greater opportunities to develop their careers in an environment that’s focused on rapid growth with stable foundations.
Expat Package � Key Senior Management Position � Shanghai Based As part of the International Supply Team and reporting to the Head of Manufacturing, this role is responsible for the overall management of the Shanghai factory. The role involves managing a high profile multi SKU operation, continuously seeking ways to improve performance and efficiency, and operating within an integrated tea supply chain organisation. This position is high profile in both its autonomy and location, with the opportunity to enhance and develop deep end to end supply chain experience. Key responsibilities will include: X Managing high volume blending, packing and warehouse operations through a departmental management team. X Agreeing with UK central planning on a production plan and ensuring compliance. X Developing strategies to meet exceptional standards of quality and safety and ensuring sustainability.
X Proposing the annual budget and seeking efficiency improvements to generate cost saving opportunities. X Ensuring equipment is well maintained and operators trained and motivated to maximise operational performance. The successful candidate is likely to: X Be an excellent leader with significant manufacturing experience within an FMCG operation and experience of working in China or Asia. X Have excellent relationship management skills and strong communication and influencing skills. X Be results oriented with an in-depth knowledge and ability to implement modern production and efficiency methods. X Be fluent in English and Mandarin.
To apply for this position, please go to www.michaelpage.com.cn/apply quoting ref:H341600 or call Josh Hollway on (+8621) 3222 4758 for further details. All direct and third party applications will be forwarded to Michael Page for consideration.
LOGISTICS SERVICES SCHENKER Room 3802-3806, Raffles City (Office Tower) No.268 Xi Zang Zhong Road, Shanghai 200001, P.R.China 上海市黄浦区西藏中路268号来福士广场 3802-3806室邮编：200001 +86 21 6170 8888 www.schenker.com.cn SCHNE DER LOGISTICS UC Tower,Suite 1605,No.500 Fu Shan Road,Shanghai,China 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 PRC INTERNATIONAL 20F, 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 SHENZHEN ST-ANDA LOGISTICS 18/F, Times Plaza, No. 1 Taizi Road, Shekou, Shenzhen, PRC 518067 深圳蛇口太子路1号新时代广场1801室 邮编518067 +86 755 2681 9188 www.st-anda.com TOLL AUTO LOGISTICS D1/E2, 31F, East Building, Hi-Tech King World, No. 668 Beijing East Road, Shanghai Postcode 200001 China 中国上海市北京东路668号
www.chainaonline.com
LOGISTICS SERVICES
SINOTRANS 7th Floor, 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100044 +86 10 6229 5600 www.SinoTransOne.com 科技 京城东楼31楼D1/E2 邮编：200001 +86 21 5308 2266 www.tollgroup com UPS 23F and 33F China Insurance Building, 166 Lujiazui Dong Road, Pudong, Shanghai, 200120 上海市浦东新区陆家嘴东路166号中国保险 大厦23楼，200120 +86 21 3896 5599 www.UPS.com WERNER GLOBAL LOGISTICS South 23/F Harbour Building 1 Fenghe Road, Shanghai, China 上海市浦东新区丰和路1号港务大厦南23楼
LOGISTICS SERVICES
PROFESSIONAL SERVICES
+86 21 3887 9520 www.werner com
+86 21 2305 3333 www accenture cn
YATFAI LOGISTICS (HOLDING) L MITED 39H, Fortune Building, 88 Fuhua San Road Futian District, Shenzhen, Guangdong Province, P.R.C. 广东省深圳市福田区福华三路88号，财富 大厦39楼H座 +86 0755 3336 6898 www.yatfai.com
ARAIA SUPPLY MANAGEMENT CONSULTANTS Suite 1709, No. 93 Huai Hai Zhong Road Shanghai 200021 Republic of China 中国上海市淮海中路93号大上海时代广场办 公楼1709室, 200021 +86 21 6391 8356 +86 139 16217254 www araia com
YRC LOGISTICS Room 1307-08 Lan Sheng Building No. 8, Huai Hai Road (M) Shanghai 200021, P.R.C. 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
ARVATO SERVICES 20F, 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 & MCKENZIE Suite 3401 China World Tower 2 China World Trade Center, Jianguomenwai Dajie Beijing 100004, PRC +86 10 6535 3800 www bakernet com BARKAWI A 705, Dong fang Road, Eton Place, Pu dong New District, Shanghai 200120 上海东方路裕景国际商务广场A705室 +86 21 6859 9686 www barkawi.com
PROFESSIONAL SERVICES ACCENTURE 30F, 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
BBK CONSULTING 17F Lippo Plaza, 222 Middle Huaihai Road, Shanghai, China 中国上海市淮海中路222号力宝广场17楼 +86 (21) 5396 5600 www e-bbk.com
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CLASSIFIEDLISTINGS
PROFESSIONAL SERVICES CHAINALYTICS G9 Gamma Tower, Sigma Soft Tech Park, 7 White Field Main Road, Bangalore, Karnataka, India, 560066 +91 80 4125 4309 www.chainalytics.com DELOITTE CONSULT NG Room 2701-2704 Bund Center, 222 Yan An Road East, Shanghai 200002 上海市延安东路222号外滩中心 2701-2704室200002 +86 21 6141 8888 www.deloitte.com DEMAND MANAGEMENT SYSTEMS PO Box 6180, Norwest Business Park, Baulkham Hills BC NSW 2153 Sydney, 2153 Australia +612 9659 4555 DRAGON SOURCING Suite 1502, Jin Tian Di International Mansions 998, Renmin Road Shanghai, 200021, P R.China 上海市人民路998号今天地国际大厦 1502室, 20002 +86 21 61413955 www.dragonsourcing.com ESTABLISH Room 609, Tian An Centre No. 338 West Nanjing Road Shanghai 200003 上海南京西路338号天安中心609室 邮编：200003 +86 21 6359 1980/0486 www.establish cn ET2C NTERNATIONAL NC 13F, East Tower, King World Hi-Tech Building, 668 Beijing East Road, Shanghai 200001 上海北京东路668号科技京城西楼13F 200001 +86 21 5308 1220 www.et2cint com HUDSON Unit 2302, 23/F Hongyi Plaza 288 Jiujiang Road Shanghai, China 200001 上海市九江路288号 宏伊国际广场23楼2302室 +86 21 2321 7888 www.hudson com
PROFESSIONAL SERVICES
200020 上海市卢湾区淮海中路222号力宝广场 2705-06室 Tel: +86 21 6386 8700 Fax: +86 21 6386 8712 www.resourcesglobal.com
LLOYD’S REGISTER 20F Ocean Towers, 550 Yan An Dong Road, Shanghai 200001 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
7 ROCK INVESTMENT ADVISORY 7/F Crystal Century Tower, 567 Weihai Lu, Shanghai 200041 上海市威海路567号晶彩世纪大厦7楼 200041 +86 21 6288 8766 www.sevenrock.com
LOGISTICS RECRUITMENT 2B, Apollo Building No. 1440, Yan An Road © Shanghai 200040 上海市静安区延安中路1440号 阿波罗大厦2B 邮编：200040 +86 21 6248 8606 www.logisticsrecruitment.com.cn
SUPPLY CHA N CONSULT NG Suite 404, 20 Donghu Road, Xuhui District, Shanghai, CHINA 200031 上海市徐汇区东湖路20号404室 +86 21 5404 0818 www.supplychain-consulting.com
LOWENDALMASAI 1505-1506 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 1505/1506室, 200001 +86 21 6341 1255 www.lowendalmasaichina cn MANPOWER 36F, Xinmei Union Square, 999 Pudong Road (S), Shanghai, 200120, China 上海市浦东南路999号,新梅联合广场36楼 邮编200120 +86 21 5878 2618 www.manpower.com.cn MB SIM TECHNOLOGY Bldg. 8, 865 Changning Road, Shanghai 200050, P.R. China 上海市长宁路865号8号楼5楼, 200050a +86 21 6240 5529 www.mbtech-group com MICHAEL PAGE INTERNATIONAL 601-603 Shanghai Kerry Centre 1515 Nanjing Road (West) Shanghai 200040, China 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
BM GLOBAL BUS NESS SERVICE 北京市朝阳区工体北路甲 2号 盈科中心 BM大厦，25层 邮编：100027 +86 10 6361 8888 www.ibm com/cn/zh/
PricewaterhouseCoopers Zhong Tian CPAs Limited Company
NTEGRATED DECISION SYSTEMS CONSULTANCY No 511-1-302, Jingsong Wu Qu, Chaoyang District, Beijing, China 100021 中国北京100021 朝阳区劲松五区511-1-302 +86 134 6675 0455 www.idsc com sg IVIE ASIA Room 1507, You You International Plaza, No. 76 Pu Jian Road, Pu Dong New District Shanghai, China 200127 中国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
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PROFESSIONAL SERVICES
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
11/F PricewaterhouseCoopers Center, 202 Hu Bin Road, Shanghai 200021, China
中国上海市湖滨路202号普华 永道中心11楼 +86-21-2323-8888 www.pwccn.com RESOURCES GLOBAL ENTERPRISE CONSULT NG (BEIJ NG) CO., LTD SHANGHAI BRANCH COMPANY Room 2705-06, Lippo Plaza, 222 Huaihai Middle Rd, Lu wan District, Shanghai,
MARCH/APRIL 2009
TRACTUS ASIA Suite B, 22nd Floor Zhaofeng Universe Building 1800 Zhongshan West 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 TUV RHE NLAND 5-6/F AZIA Centre, 1233 Luijiazui Huan Lu, Shanghai,200120 上海市陆家嘴环路1233号汇亚大厦5/6楼, 200120 +86 21 6108 1188 www.chn.tuv.com REAL ESTATE SERVICES AMB PROPERTY CORPORATION Suite 2908, Plaza 66 II, 1366 Nanjing Road West, Shanghai 200040, China 中国上海南京西路1366号恒隆广场二座 2908单元 +86 21 6135 1688 www.amb.com
BAOWAN INTERNATIONAL LOGISTIC +86 21 3379 4008 www.blogis.com.cn 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 200031 +86 21 2401 1200 www.cbre.com.cn COLLIERS NTERNATIONAL PROPERTY CONSULTANS 16/F Hong Kong New World Tower, 300 Huaihai Zhong Road Shanghai, 200021, PRC 中国上海淮海中路300号 香港新世界大厦16楼 邮编 200021 +86 21 6141 3688 www.colliers.com/china DTZ 42-43F,Plaza 66, Tower 2, 1366 Nanjing
REAL ESTATE SERVICES Road West, Shanghai 200040, China 中国上海南京西路1366号恒隆2期42-43楼 邮编200040 +86 21 2208 0213 www dtz.com/cn
Suite 805, Kerry Centre, 1515 Nanjing Road (W), Shanghai, 200040 上海市南京西路1515号嘉 里中心805室 200040 +86 21 5298 6622 www.gazeley.com GOODMAN GROUP 2107 - 2109, Shui On Plaza, 333, Huai Hai Road (M) Shanghai 200021 P.R.China 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 GSE 27C Industry Building, 18 Cao Xi Bei Lu, Shanghai, 200030 上海市徐家汇漕溪北路18号实业大厦27C, 200030 +86 21 6427 9180 www gsegroup.com JONES LANG LASALLE 25F, Plaza 66 Tower 2, 1366 Nanjing Road West, Shanghai 200040 上海市南京西路1366号恒隆广场2期25楼 200040 +86 21 6393 3333 www joneslanglasalle.com.cn KNIGHT FRANK Rm 1208 Evergo Tower, 1325 Middle Huaihai Road, Xuhui District, Shanghai 200031 中国上海市徐汇区，淮海中路1325号，爱美 高大厦1208室，200031 +86 21 6445 9968 www knightfrank com
MAPLETREE LOGISTICS TRUST MANAGEMENT No 500 Zhangyang Road, Pudong New District Level 14 Unit A-D, China Resources Times Square Office Tower Shanghai 200122 上海市浦东新区张杨路500号华润 时代广场办公楼14楼ABCD单元 200122 www.mapletreelogisticstrust.com
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CLASSIFIEDLISTINGS
MagicBusCreative
EQUIPMENT PROVIDERS
EQUIPMENT PROVIDERS Office Building, 1309 Kaixuan Rd (N) 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 www.hoermann.cn
Grant-oh! Buchwald
Portrait photos • Event coverage • Product shots • Onsite/Facility photography
phone: +86 136 4165 6924 email: magicbuscreative@mac.com www.flickr.com/photos/gmartini
REAL ESTATE SERVICES PROLOGIS water 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，201308 +86 (21) 6528 1992 www.shtslp com TONGSHENG LOGISTICS PARK 10th Floor, 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 GROUP Yupei Building, 2500 Jinchang Road, Shanghai 200331 上海市普陀区金昌路2500号宇培大厦， 邮编200331 +86 (21) 6627 7577 www.yupeigroup com IT & SOFTWARE SOLUTIONS APPRISE SOFTWARE 6009 Changjiang Science Building No. 40 Nanchang Road Nanjing, China 210037 中国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 BARLOWORD OPTIMUS 35/F UOB Plaza 1, 80 Raffles Place, Singapore 048624 +65 6248 4722 www.barloworldoptimus com BRAVOSOLUTION BravoSolution China CO., Limited 19F-08, 129 Yan An Road West, Chinese Overseas Building Shanghai 200040, PR China 上海市静安区延安西路129号华侨大厦19楼 08室,200040 +86 21 6145 8500 www.bravosolution com CORE SOLUTIONS Unit 509, Core E, Cyberport 3 100 Cyberport Road, Hong Kong +852 2378 6300 +852 2575 5613 www.coresolutions.com DESCARTES SYSTEMS 4106 China Development Bank Tower, No 500 Pudong Road (S), Shanghai, 200120, P.R. China 中国上海浦东南路500号国家开发银行大厦 4106室 200120
www.chainaonline.com
CHEP 40/F, Suites 8-10, 2 Grand Gateway, 3Hongqiao Road, Shanghai, 200030 上海市虹桥路3号港汇二座 40楼08-10室 邮编：200030
IT & SOFTWARE SOLUTIONS +86 21 6109 5785 www.descartes.com EMPTORIS Emptoris, Inc. PO Box 173, Clementi Central Post Office, Singapore 911206 +65 6778 6395 www.emptoris.com NFOR 15 F Raffles City Office Tower 268 Xizang Zhong Road Shanghai 200001 上海市西藏中路268号来福士广场15楼 +86 21 5359 9666 www.infor.com JDA SOFTWARE 2905 United Plaza, 1468 Nanjing Xi Road, Shanghai 200040 上海市南京西路1468号 中欣大厦2905室 200040 +86 21 6289 7979 www.jda.com MANHATTAN MANHATTAN ASSOCIATES SOFTWARE Unit 2110, 21/F, Shui On Plaza, 333 Huaihai Zhong Lu, Shanghai, 200021 Shanghai, 200021 China 上海淮海中路333号瑞安广场21楼2110室 www.manh.com REDPRA R E Cloud-9 Mansion 7F 711 No.1118, West Yan‘an Road Shanghai 200052, P.R.China 中国上海市延安西路1118号 龙之梦大厦7楼711室 邮编：200052 www.RedPrairie.com SEEBURGER 1409B Cimic Tower800 Shangcheng Rd. Shanghai, PRC, 200120 中国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 TRADECARD F1101-02, Block A, Hailrun Complex, No 6021 ShenZhen Blvd, ShenZhen. P.R.C. (518040) 深圳市福田区深南大道6021号喜年中心A座 1101-02室（518040） +86 755 8830 9030 www.tradecard.com EQUIPMENT PROVIDERS BPS GLOBAL GROUP Unit 3104,Tower 1 Kerry Everbright City 218 West Tian Mu Road 200070 Shanghai, 上海市闸北区天目西路218号嘉里不夜城第 一座3104室 邮编200070 +86 21 6317 8830 www.bps-group.net
+86 21 6127 2488 www.chep.com
HORMANN BEIJ NG 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
LOSCAM PACK NG EQUIPMENT LEASING Room 508, No. 707 ZhangYang Road, Pudong, SHANGHAI 200120 上海市浦东新区张扬路707号508室 200120 +86 21 6104 8156 www.loscam.com LXE Room 03B,5/F Office Tower Huaihai Road(C) 200031 Shanghai, China 上海市淮海中路1045号淮海国际广场办公楼 0503室 +86 (21) 6124 9688 - 866/862 www.lxe com SCHOELLER ARCA SYSTEMS Schoeller Arca Systems 舒乐阿卡 Shanghai China 上海 中国 Unit 5/A Guangdong Development Bank Tower No. 555, Xu Jia Hui Road 徐家汇路555号,广东发展银行大厦5楼A 座 200023 +86 21 6390 1261/62 www.schoellerarcasystems com
THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS
Key Account Manager CHaINA Magazine, part of the Global Supply Chain Council, www.supplychain.cn, is looking for a Key Account Manager to handle sales for the variety of media products we offer to a diverse set of clients. Entering our third year, CHaINA Magazine is a trade publication focused on supply chain and logistics in China and other developing markets in the Asian region. Job Duties: With major responsibilities involving selling both print advertising space in the magazine and banner ads in our electronic media, the position will involve promoting and selling conference sponsorship package, directory listings and other account management activities. Requirements: Knowledge of advertising, trade publications or trade show industry is advantageous At least two years of sales or business development experience recommended Good communication skills in both English and Mandarin Business contacts in Shanghai useful Individual should be: able to work independently, highly motivated, goal oriented and have an ability to build relationships with clients over the long term Compensation: Base plus commission Contact Russel Beron: rberon@supplychain.cn
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65
COMPANYINDEX
7-Eleven �������������������������������������22 ABF1 Consulting ������������������������47 Acer Inc. �������������������������������������18 Adidas ����������������������������������� 30,40 Agility ������������������������������������������62 Air China �������������������������������������18 Alibaba ���������������������������������������17 Allwings Logistics �����������������������62 APL Logisitics �����������������������������62 Araia �������������������������������������������47 arvato services ���������������������26, 62 Avon Products ����������������������������32 B&Q ��������������������������������������������10 Baida Group �������������������������������18 Bank of China �����������������������������18 Bayer ������������������������������������������20 BBK ��������������������������������������������46 BDP International �����������������������62 Beijing Wangfujing Department Store Group ��������������������������������23 Beltek Systems Design ��������������23 Best-Buy ���������������������������23,46,48 BLOGIS ��������������������������������������21 BMW �������������������������������������� 28,49 Boeing ����������������������������������������18 C.H.Robinson �����������������������������24 Carrefour ������������������������������������12 CBRE ������������������������������������ 35,49 Cen Group ����������������������������������25 CEVA ���������������������������������������4,62 Checkpoint System ��������������������28 China Eastern Airlines ����������������18 Chindex International �����������������62 Chongqing Beer �������������������������18 Chrysler ��������������������������������������30 Coaxis Inc. ����������������������������������23 Colliers ���������������������������������������35 Dell ���������������������������������������������18 Deret Logis ique �������������������������62 Descartes System Group �����������23 DHL ����������������������������������23,58,62 DSV Logistics �����������������������������62 DuPont China Holding Co.,Ltd ���29 ECCO (Shanghai) Co.Ltd �����������42 eFuture Information Technology ��23 Electrolux �������������������������������18,21 Elee ��������������������������������������������62 Ernst & Young Asia Pacific ���������47 Exact Software Vietnam �������������56 Facebook ������������������������������������23 FedEx �����������������������������������������21 FM Logistics ��������������������������12,62 Gazprom �������������������������������������25 General Motors Corp ������������� 20,24 GIC ���������������������������������������� 36,48 Great Ocean Container Lines �����21 GSE ���������������������������������������15,36 Harley-Davidson �������������������������16 Havi Food Logistics ��������������������62 Hennes & Mauritz �����������������������23 Hewlett-Packard Co. ������������������18 HighJump Software ��������������������23 Hilton Hotels �������������������������������18 HMG Group ��������������������������������62 Honda Motor Co. ������������������������24 Honeywell �����������������������������������17 HSBC �����������������������������������������16 HuaLian ���������������������������������12,18 Huwei Technologies ��������������������32 Hyundai Motor Co. ���������������������24 IBM ���������������������������������������������23 ID Logistics ���������������������������������62 IDS Logistics ������������������������������62 IKEA �������������������������������������������22 Inovis ������������������������������������������23 Intel ���������������������������������������������21 IPS Limited ���������������������������������62 JAKKS Pacific ����������������������������43
66
EVENTSCALENDAR
Jiangsu Five Star ������������������������47 Johnson & Johnson ��������������������32 Kerry EAS Logistics ��������������������62 Kingfield Management ����������������22 Kingfisher Asia ����������������������������30 Knorr Bremse �����������������������������47 Korn Ferry ����������������������������������58 Kuehne & Nagel �������������������������62 Lenovo ����������������������������������������18 LianHua ��������������������������������������12 LinedIn ����������������������������������������23 Linfox Road Transport �����������������62 Linkstar Logistics ������������������������62 Lishen Battery Joint-Stock Co. Ltd., ����������������������������������������������������46 Logifashion ���������������������������������62 Logwin ����������������������������������������62 Maersk �����������������������������������21,62 MAN ��������������������������������������������17 Marks & Spencer ������������������������18 Mary Kay Cosmetics ������������������31 Menlo Worldwide Logistics ����58,62 Michael Page ������������������������������63 Microsoft ���������������������������16,31,47 Midea Group �������������������������������22 Milestone AV Technologies ���������42 MOL ��������������������������������������������25 Morgan Stanley ��������������������������32 Motorola �������������������������������������20 Neoplan Bus GmbH �������������������17 New City �������������������������������������36 Nine Dragon's Paper ������������������32 Northern Locomotive and Rolling Stock Industry Group ������������������20 Oceanwide Inc., ��������������������������23 P&G ��������������������������������������������12 Pacific Securities ������������������������18 PepsiCo ��������������������������������������32 PetroVietnam ������������������������������25 Philips China Investment ������������28 Positive Purchasing Asia ������������28 President Chain Store Corporation ����������������������������������������������������22 ProLogis China �����������������36,37,48 PTL ���������������������������������������������62 PWC ���������������������������������������� 2,55 Rockwool ������������������������������������52 Runbow Logistics �����������������������62 Ryder System �����������������������������58 Samsung ������������������������������������18 Schenker Int'l (HK) Ltd. ��������������29 SCJ,Inc. ��������������������������������������14 SFCA Inc. ������������������������������������42 Shanghai Dajin Logistics ������������62 Shenzhen Chiwan Petroleum Supply Base Co.,Ltd. ������������������21 Siemens �������������������������������������40 Simplicity Inc. �����������������������������42 SMG Limited �������������������������������37 Sony Ericsson �����������������������16,18 Starbucks �����������������������������������20 Taobao.com ��������������������������������17 Temasek Holdings ����������������������38 Tesco ������������������������������������������16 Toyota �����������������������������������������18 Transrussia ���������������������������������67 Tranzact Technologies,In. �����������29 True Value Co., ����������������������������43 Unilever ��������������������������������������12 UPS ��������������������������������������������58 Vailog ������������������������������������������36 Viking Range Corp., ��������������������43 Volvo �������������������������������������������12 Wal-Mart �������������������������������������12 Xerox ������������������������������������������20 Xiapu Huafeng Factory ���������������17 Yupei Group �������������������������������36 Zhongwei Bus & Coach Group ���17
MARCH/APRIL 2009
2009 MAR.
WED
11
2009 MAR.
THU
12
2009 MAR.
THU
19
Supply Chain & Human Resources China Summit Summit
Shanghai Venue:
Renaissance Hotel Oganizer:
Council
SME: Business Tax Regulations & Rules Workgroup
Shanghai Venue:
to be confirmed Oganizer:
BenCham
Flow: For Love of Water Documentary Screening Workgroup
Shanghai Venue:
to be confirmed Oganizer:
Council
2009 China Ports Future MAR. WED-FRI 2009
25 27
2009 APR.
WED
1
2009 APR.
WED
15
Summit
Shanghai Venue:
Sofitel Jin Jiang Oriental Hotel Oganizer:
MastersWise
The 9th China (Qingdao) International Material Handing and Logistics Exhibition Roadshow
Qingdao Venue:
Qingdao International Convention Center Oganizer:
Chinese Mechanical Engineering Society Retail & Distribution Operations Summit Seminar
Shanghai Venue:
to be confirmed Oganizer:
Council
2009 MAR.
THU
12
2009 MAR.
Venue:
to be confirmed Oganizer:
Council
WED
Operational & Financial Risk Control Seminar
Tianjin Venue:
Hotel Nikko Tianjin Oganizer:
European Union Chamber of Commerce in China
THU
Guangdong? Vietnam ? Cambodia? Where should we go?
19
2009 MAR.
2009 APR.
Seminar
Shenzhen Venue:
Shangri-la Hotel Futian Oganizer:
European Union Chamber of Commerce in China
THU
26
Workgroup
Shanghai
18
2009 MAR.
China Logistics Real Estate Workgroup
Customs Practitioners Group Workgroup
Shanghai Venue:
to be confirmed Oganizer:
Council
Industrial Real THU-FRI China Estate Summit 2009
9 10
Summit
Shanghai Venue:
to be confirmed Oganizer:
China Decision Makers Consultancy
Automotive Logistics 2009 APR.MON-WED China conference
20 22
Conference
Shanghai Venue:
Intercontinental Pudong Hotel Oganizer:
Ultimamedia
www.chainaonline.com
Creative: Publicis Worldwide/Hong Kong - Photographer: Kin Hui
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