Description
Supply Chain Management - IDS-Group SCM
IDS International
A Premier Supply Chain Management Service Company
marketing
logistics
manufacturing
Moving Towards Virtual SCM
SCM Challenges in a Global Trading Company: Li and Fung Experience
? IDS Logistics International – a virtual global SCM
business model ? Core Capabilities
– Integrated Flow Services & DDP Program – Export DC & Inventory Management
? Case Studies
– Import supply chain integration – Export supply chain re-modeling
? Our China Advantages ? About IDS Group
What can Supply Chain Management do for us?
- A true Asian multinational ? The IDS Group is a member of the Li & Fung family
– – – – Founded 1906 First Chinese-owned company to engage in foreign trade Turnover in excess of US$5 billion. 13,000 employees Recognised as a leader in supply chain management
Li & Fung Trading
Sourcing and exporttrading in soft and hard goods. A supply chain management company serving Fortune 500 clients
IDS Group
Distribution services in manufacturing, logistics and marketing. A ValueChain Logistics company operating in Asean and Greater China
Li & Fung Retailing
Retail operator and license holder of Toys'R'Us in Asean + Circle K convenience stores in Greater China
Three companies working hand-in-hand
marketing
promote, sell, bill, collect
logistics
ship, store, deliver
manufacturing
make, test, package
marketing
logistics
manufacturing
IDS Logistics operates an extensive Pan Asian logistics network, driving an uninterrupted flow of goods at maximum efficiency for the lowest cost.
Market segments Footwear Fashion Liquor Retail FMCG Pharmaceutical Agrochemical Industrial Cosmetics
Service offering Bonded warehousing Inventory management Freight forwarding Multi-modal transportation Specialty warehousing Re-labeling and repackaging Customs clearance Cross docking Regional hubbing Supply chain management
marketing
logistics
manufacturing
? 40 distribution centres and depots of over 3 million sq ft ? Common warehouse management system – EXceed 4000 and
proprietary web-based application to provide real time visibility of inventory, delivery status and KPIs ? IDS Logistics International integrates global supply chains and optimizes product flows
China
70,000 sq m DCs Distribution network to 250 cities
Hong Kong
3DCs, 90,000 sq m Deliveries to over 7,500 outlets
Taiwan
3DCs, 25,000 pallet positions Bonded facility in Taipei
Malaysia
2 DCs, 22,000 sq m Extensive repackaging capabilities
Philippines
3 DCs, 37,000 sq m Distribution to over 50,000 retail points
Singapore
2 DCs, 33,000 sq m 44,000 pallet ASRS facility
Thailand
2 DCs and 5 depots 30,000+ sq m ISO 9002 certified
marketing
logistics
manufacturing
IDS Marketing is intimately familiar with the fine details of Asian markets, and distributes hundreds of consumer FMCG & healthcare pharmaceutical, medical and dental brands.
Consumer Marketing
Extensive coverage including hypermarkets, supermarkets, convenience stores, specialty outlets and food service providers.
Service offering Market intelligence Sales analysis and forecasting Trade marketing Category management Key account management Merchandising Advertising and promotion Billing & collection
marketing
logistics
manufacturing
Healthcare Marketing
Market and distribute pharmaceutical, medical, dental and over the counter healthcare products to hospitals, clinics, drugstores and retail outlets Service offering Product registration Sales and support Detailing Medical seminars Exhibitions/workshops Billing & collection
marketing
logistics
manufacturing
The IDS Manufacturing is built on over 40 years of Asian in-market expertise producing thousands of world-renowned product lines.
Product Range Home & personal care Health & beauty Food & beverage Pharmaceuticals Product Category Liquid Cream Gel Aerosol Powder Lotion Tablet Capsule Juice Lip balm Packaging Option Glass/PET Bottles Jars Metal/composite cans Tubes Pouches Strip packs Sachets Tetra Pak Drums Cartons
IDS Logistics International
- global logistics network and services
? Specializes in managing global supply chains based on
dynamic supply and demand changes ? Provides valued logistics services from manufacturers to distribution centres or retail points
– Aggregated buying of services from “best-in-class” providers – End-to-end information pipeline to drive supply chain visibility and velocity – Virtual global logistics network not restricted to any specific facility or service provider – Innovative solutions to achieve cost competitiveness and inventory reduction
What is Your Supply Chain Competitive Edge?
% of Company Revenue Spent on Supply Chain Activities
Automotive Appliances Chemical Computer Packaged Goods Pharmaceutical Semiconductor Telecom 0%
4.32%
8.77% 8.08% 6.35% 7.29% 6.52% 11.00%
14.06%
13.28% 11.85% 9.06% 10.40% 14.09% 15%
3.78% 5.80%
7.42% 5%
10%
Best in class Average
IDS Logistics International focuses on improvement of landed costs and working capital….
Core Capabilities
Supply Chain Integration
Management & Co-ordination of the Global Supply Chains between Manufacturers and Regional DC/ Retail Outlets
Asia Export DC
Shipping Port Lines Services
Frt. Fwd
Financing Insurance
Customs Drayage
International Suppliers
Export volume from each port of loading, e.g. HK, Shanghai, etc.
International Freight
Destination Markets
Buyer Consolidation at Source De-Consolidation at Destination Shipment Equipment
Order volume from each DC/destination
Order Processing
Logistics Model
Forecast Coverage & Demand Velocity
Frequency and Schedule of Shipments Strategic locations of inventory
Carrier & Network Selection
Replenishment Model
Storage cost differential
Information Platform for Integrated Solutions
Li & Fung Suppliers in various origins Consolidation Centers in various origins Drayage in various destinations De-Consolidation Hub at destinations
Drayage in various origins Send production orders Consolidate orders Custom Declaration
Shipping
Custom Clearance
Destination DCs
Import Direct & Trigantic Extranets
Place one order Update Order & shipment status, inventory visibility
Global Supply Chain Center
Transaction platform, product catalogue, suppliers, procedures, self-help manual, query, reports, customer service
Buyers supply chain analysis, inventory management
Accounting receive a single invoice
Management and Buyers receive reports
Information Pipeline ViTAL
Visibility & Intelligence
Case Studies
Import Supply Chain Integration
Import Supply Chain Integration
Import Supply Chain Integration ? Reduce Leadtime
– 35 days leadtime cut to 5 days
? Reduce Inventory Holding
– 4 month inventory coverage cut to less than 1 month – MOQ to 1 case
? Lower pricing, higher margin, faster
response
– Market share from distant #2 to prominent leader in less than a year
? Supply Chain model impacts business
results significantly
- Leveraging our Asia Pacific’s infrastructure
Export Supply Chain Modeling
Export Supply Chain Modeling
? Before IDS
Factories in China
vendor shipments inter-DC transfer international shipment retail delivery
DCs in UK
Markets Germany DC Australia DC Japan South Africa DC DC U.S. DCs
Wholesalers or Retails
Export Supply Chain Modeling
? After IDS
Factories in China
vendor shipments international shipment retail delivery
China hub
Markets UK DC Germany DC Australia DC Japan South Africa DC DC U.S. DCs
Wholesalers or Retails
Key Export Supply Chain Initiatives ? Import Direct, Buy Local - low landed cost, high inventory
turn, maintain service level
– Global sourcing and procurement – Centralized inventory holding and replenishment at Global Export DC (Hub) – Optimized consolidation – Continuous replenishment (Buy less, more often) – Collaborative global/regional promotion and new product introduction
? Move costs upstream – improve bottomline and balance
sheet
– Lower warehousing handling and storage costs – Reduce working capital – Minimize capital expenditure on distribution centres
Our China Advantage
? Central Hub at
China Global Hub
Europe hub
US hub
?
?
China – inventory holding, consolidation, labelling, packaging and palletization Destination DC cross-docking and bypass Distribute in China via 34 IDS DCs/depots
International freight Vendor delivery Retail delivery
Thank You!
Tommy Lui General Manager IDS Logistics International Phone: Fax: Mobile: Email: (852)2686-3366 (852)2645-5813 (852)9613-7773 [email protected]
14/F, LiFung Centre, 2 On Ping Street Shatin, NT, Hong Kong
doc_963820617.ppt
Supply Chain Management - IDS-Group SCM
IDS International
A Premier Supply Chain Management Service Company
marketing
logistics
manufacturing
Moving Towards Virtual SCM
SCM Challenges in a Global Trading Company: Li and Fung Experience
? IDS Logistics International – a virtual global SCM
business model ? Core Capabilities
– Integrated Flow Services & DDP Program – Export DC & Inventory Management
? Case Studies
– Import supply chain integration – Export supply chain re-modeling
? Our China Advantages ? About IDS Group
What can Supply Chain Management do for us?
- A true Asian multinational ? The IDS Group is a member of the Li & Fung family
– – – – Founded 1906 First Chinese-owned company to engage in foreign trade Turnover in excess of US$5 billion. 13,000 employees Recognised as a leader in supply chain management
Li & Fung Trading
Sourcing and exporttrading in soft and hard goods. A supply chain management company serving Fortune 500 clients
IDS Group
Distribution services in manufacturing, logistics and marketing. A ValueChain Logistics company operating in Asean and Greater China
Li & Fung Retailing
Retail operator and license holder of Toys'R'Us in Asean + Circle K convenience stores in Greater China
Three companies working hand-in-hand
marketing
promote, sell, bill, collect
logistics
ship, store, deliver
manufacturing
make, test, package
marketing
logistics
manufacturing
IDS Logistics operates an extensive Pan Asian logistics network, driving an uninterrupted flow of goods at maximum efficiency for the lowest cost.
Market segments Footwear Fashion Liquor Retail FMCG Pharmaceutical Agrochemical Industrial Cosmetics
Service offering Bonded warehousing Inventory management Freight forwarding Multi-modal transportation Specialty warehousing Re-labeling and repackaging Customs clearance Cross docking Regional hubbing Supply chain management
marketing
logistics
manufacturing
? 40 distribution centres and depots of over 3 million sq ft ? Common warehouse management system – EXceed 4000 and
proprietary web-based application to provide real time visibility of inventory, delivery status and KPIs ? IDS Logistics International integrates global supply chains and optimizes product flows
China
70,000 sq m DCs Distribution network to 250 cities
Hong Kong
3DCs, 90,000 sq m Deliveries to over 7,500 outlets
Taiwan
3DCs, 25,000 pallet positions Bonded facility in Taipei
Malaysia
2 DCs, 22,000 sq m Extensive repackaging capabilities
Philippines
3 DCs, 37,000 sq m Distribution to over 50,000 retail points
Singapore
2 DCs, 33,000 sq m 44,000 pallet ASRS facility
Thailand
2 DCs and 5 depots 30,000+ sq m ISO 9002 certified
marketing
logistics
manufacturing
IDS Marketing is intimately familiar with the fine details of Asian markets, and distributes hundreds of consumer FMCG & healthcare pharmaceutical, medical and dental brands.
Consumer Marketing
Extensive coverage including hypermarkets, supermarkets, convenience stores, specialty outlets and food service providers.
Service offering Market intelligence Sales analysis and forecasting Trade marketing Category management Key account management Merchandising Advertising and promotion Billing & collection
marketing
logistics
manufacturing
Healthcare Marketing
Market and distribute pharmaceutical, medical, dental and over the counter healthcare products to hospitals, clinics, drugstores and retail outlets Service offering Product registration Sales and support Detailing Medical seminars Exhibitions/workshops Billing & collection
marketing
logistics
manufacturing
The IDS Manufacturing is built on over 40 years of Asian in-market expertise producing thousands of world-renowned product lines.
Product Range Home & personal care Health & beauty Food & beverage Pharmaceuticals Product Category Liquid Cream Gel Aerosol Powder Lotion Tablet Capsule Juice Lip balm Packaging Option Glass/PET Bottles Jars Metal/composite cans Tubes Pouches Strip packs Sachets Tetra Pak Drums Cartons
IDS Logistics International
- global logistics network and services
? Specializes in managing global supply chains based on
dynamic supply and demand changes ? Provides valued logistics services from manufacturers to distribution centres or retail points
– Aggregated buying of services from “best-in-class” providers – End-to-end information pipeline to drive supply chain visibility and velocity – Virtual global logistics network not restricted to any specific facility or service provider – Innovative solutions to achieve cost competitiveness and inventory reduction
What is Your Supply Chain Competitive Edge?
% of Company Revenue Spent on Supply Chain Activities
Automotive Appliances Chemical Computer Packaged Goods Pharmaceutical Semiconductor Telecom 0%
4.32%
8.77% 8.08% 6.35% 7.29% 6.52% 11.00%
14.06%
13.28% 11.85% 9.06% 10.40% 14.09% 15%
3.78% 5.80%
7.42% 5%
10%
Best in class Average
IDS Logistics International focuses on improvement of landed costs and working capital….
Core Capabilities
Supply Chain Integration
Management & Co-ordination of the Global Supply Chains between Manufacturers and Regional DC/ Retail Outlets
Asia Export DC
Shipping Port Lines Services
Frt. Fwd
Financing Insurance
Customs Drayage
International Suppliers
Export volume from each port of loading, e.g. HK, Shanghai, etc.
International Freight
Destination Markets
Buyer Consolidation at Source De-Consolidation at Destination Shipment Equipment
Order volume from each DC/destination
Order Processing
Logistics Model
Forecast Coverage & Demand Velocity
Frequency and Schedule of Shipments Strategic locations of inventory
Carrier & Network Selection
Replenishment Model
Storage cost differential
Information Platform for Integrated Solutions
Li & Fung Suppliers in various origins Consolidation Centers in various origins Drayage in various destinations De-Consolidation Hub at destinations
Drayage in various origins Send production orders Consolidate orders Custom Declaration
Shipping
Custom Clearance
Destination DCs
Import Direct & Trigantic Extranets
Place one order Update Order & shipment status, inventory visibility
Global Supply Chain Center
Transaction platform, product catalogue, suppliers, procedures, self-help manual, query, reports, customer service
Buyers supply chain analysis, inventory management
Accounting receive a single invoice
Management and Buyers receive reports
Information Pipeline ViTAL
Visibility & Intelligence
Case Studies
Import Supply Chain Integration
Import Supply Chain Integration
Import Supply Chain Integration ? Reduce Leadtime
– 35 days leadtime cut to 5 days
? Reduce Inventory Holding
– 4 month inventory coverage cut to less than 1 month – MOQ to 1 case
? Lower pricing, higher margin, faster
response
– Market share from distant #2 to prominent leader in less than a year
? Supply Chain model impacts business
results significantly
- Leveraging our Asia Pacific’s infrastructure
Export Supply Chain Modeling
Export Supply Chain Modeling
? Before IDS
Factories in China
vendor shipments inter-DC transfer international shipment retail delivery
DCs in UK
Markets Germany DC Australia DC Japan South Africa DC DC U.S. DCs
Wholesalers or Retails
Export Supply Chain Modeling
? After IDS
Factories in China
vendor shipments international shipment retail delivery
China hub
Markets UK DC Germany DC Australia DC Japan South Africa DC DC U.S. DCs
Wholesalers or Retails
Key Export Supply Chain Initiatives ? Import Direct, Buy Local - low landed cost, high inventory
turn, maintain service level
– Global sourcing and procurement – Centralized inventory holding and replenishment at Global Export DC (Hub) – Optimized consolidation – Continuous replenishment (Buy less, more often) – Collaborative global/regional promotion and new product introduction
? Move costs upstream – improve bottomline and balance
sheet
– Lower warehousing handling and storage costs – Reduce working capital – Minimize capital expenditure on distribution centres
Our China Advantage
? Central Hub at
China Global Hub
Europe hub
US hub
?
?
China – inventory holding, consolidation, labelling, packaging and palletization Destination DC cross-docking and bypass Distribute in China via 34 IDS DCs/depots
International freight Vendor delivery Retail delivery
Thank You!
Tommy Lui General Manager IDS Logistics International Phone: Fax: Mobile: Email: (852)2686-3366 (852)2645-5813 (852)9613-7773 [email protected]
14/F, LiFung Centre, 2 On Ping Street Shatin, NT, Hong Kong
doc_963820617.ppt