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$Avings S M Awards 2009, the List of Finalists of List the 2009, Awards SEP/OCT 2009 Awards 2009, The List of Finalists Supply Chain Asia Magazine magazine SUPPLY CHAIN Connect • Communicate • CollaborateAswww.supplychainasia.comIA MICA(P) 036/02/2009 | SEP/OCT 2009 Procurement Maritime Tactics for volatile Shippers choose ocean market conditions over TransSiberian September/October 2009 Air Cargo Plus… Exposing the conflicts in Beijing ups the ante in service supply chains the north Asia hub game SPEND anagement m for sustainable ISSN 1793 5377 $avings September/October 2009 SCAsia 10 Contents18 14 52 Editor’s View Risk Management 02 Time to rebalance 28 Tactics for procurement in Regulars volatile market conditions President’s Address 24 Awards 2009: the 04 Supply Chain Asia City 32 A uniform approach to finalists Dialogues global supply chain risk 60 Lao Tze — when less management than 100% is good Developments enough 6 Regional and global Country Focus – China 62 Supply Chain supply chain news update 44 Changing market Indicators conditions bring 64 Blogs Air Cargo new challenges for 8 Beijing ups the ante in manufacturers north Asia hub game 14 Reverse Supply Chains On the Cover Maritime 48 Creating sustainable high 9 Shippers choose ocean performance service Spend management for over TransSiberian supply chains sustainable savings 10 Work in progress — Opinion Shanghai’s ambitious 52 The importance of supply targets chain research to industry 36 and society The CSR Series Chinese Section 18 Structural change: 56 What does ECR really greener supply chain stand for? buildings Opportunity awaits To welcome your next supply chain opportunity, contact Craig Rawlings, [email protected]. greenDot-Ads-door-190x60-draft3.indd 1 21/8/2009 10:15:50 AM editor’sVIEW Time to ‘rebalance’ ADVISORY COUNCIL MEMBERS OF SUPPLY CHAIN ASIA Over the course of this recession we have frequently looked at the potential of using supply chain management to drive positive change in organisations DR ROBERT YAP (Founding Chairman) Chairman & CEO, YCH Group and business models. We have discussed how improved supply chain risk and security management systems, better supplier relations and sourcing and MR PAUL BRADLEY (Vice Chairman) procurement strategies; even complete redesign of organisations and business Member, Global Advisory Board, Arshiya International operations around supply chain functions, can create healthier, higher COUNCIL MEMBERS performing companies and organisations. “Fix your supply chains and you fix MR MAHENDRA AGARWAL Managing Director & CEO, GATI the company” was the self-explanatory title of the contribution to our May/ June issue from supply chain thought-leader Dr John Gattorna. In this issue – MR NEERAJ BHARGAVA Regional Logistics Procurement Director, as part of a call for better research and understanding of the contribution of Johnson & Johnson Asia Pacific supply chain management and logistics to industry and society – he extends the idea from companies to national economies to regions. MR VITTORIO FAVATI President, Asia Pacific, CEVA Logistics The central and increasingly recognised role of supply chain and logistics systems and processes in the emergence of Asia, in terms of the MR ALLEN FUKADA Regional Solutions Leader, Asia Pacific, transformation of its organisations and national economies, and integration Supply Chain Management Services, of those with each other and with other parts of the global economy, is the IBM Business Process Delivery rationale behind the set up and existence of Supply Chain Asia Magazine and ASSOCIATE PROFESSOR MARK GOH its parent the Supply Chain Asia Community. As such, as we move through Director, Industry Research, the second half of 2009 we have a sense of optimism, not only because more The Logistics Institute Asia Pacific signs of recovery have been emerging, but because of the probability that MR HARRY LAGAD this recession has helped to drive home the importance of the discipline Independent of supply chain management and all its constituent parts to the health of MR RICHARD LORETTO organisations and national economies, and to the emergence of Asia. The Executive Director, Fashion and Home Asia Pacific Supply Chain, AVON frequent identification over the past year of supply chain management as a very effective channel to create more sustainable organisastions and MR MARK MILLAR economies is one good example. Managing Director, M Power Associates Another good example comes from the new urgency on the part of the MR TURLOCH MOONEY Chinese government to rebalance its economy (perhaps the most significant Managing Director, SC Asia Publications economic challenge to emerge from the recession on a regional level). As MR PETER O’ BRIEN outlined in the Beijing government’s new logistics rejuvenation plan – released Head, Asia Pacific Supply Chain Practice, Russell Reynolds Associates as part of the response to the recession – this is a task heavily dependant on getting a good basic logistics system in place throughout the country MR MICHAEL PROFFITT and ultimately ensuring the creation of efficient supply chain systems and Strategic Advisor/Consultant, Dubai Logistics City processes to support the domestic economy. MR VIVEK SOOD This is a task we will be covering in detail in coming issues of Supply Managing Director, Global Supply Chain Group Chain Asia Magazine. In the meantime, we will also be carrying out some MR MARK WETTASINGHE rebalancing of our own. Over the coming twelve months, the Supply Chain Vice President, Value Added/Tech Services, DHL Asia Dialogues will be rolled out across the region (see President’s Message, overleaf). The goal of the dialogues is to extend the function of informing MANAGEMENT TEAM and supporting the development of the industry to individual Asian cities. & SUPPORT TEAM At the same time, Supply Chain Asia Magazine will be gradually converted to a subscription-based publication. This is in line with growing demand for PUBLISHER SC ASIA PUblications PTE ltd supply chain intelligence, analysis and thought-leadership among private [email protected] companies, universities, government and consultants as the industry gains MANAGING DIRECTOR, EDITORIAL influence and importance. TURLOCH MOONEY We look forward to expanding our role as providers of the highest quality [email protected] information on the development of the industry in Asia, and to continuing to MANAGING DIRECTOR, COMMERCIAL provide front row seats to watch its emergence. FRANK PAUL [email protected] CONTRIBUTORS PARI ANNAMALAI, RICHARD BRUBAKER, SAM CHAMBERS, CHEW WAI YEE, OWEN Cleaver, Barry ELLIOTT, DR JOHN Gattorna, Patricia GRACE, Ryan HUMPHREY, PAUL LIM, CRAIG Rawlings, JEFFREY RUSSELL, Crystal YAN Turloch Mooney DESIGN & PRODUCTION DESIGN WORKZ Editor-in-Chief, Supply Chain Asia Magazine PRINTING Managing Director, Editorial REGENT PRINTING (S) PTE LTD SC Asia Publications WESTERN DIGITAL HAS FREDERICK ANTONY. Facing a surge in worldwide demand for their hard-drives, Western Digital asked Agility’s Frederick Antony to ramp up inventory velocity. With little lead time, he planned and executed a substantial expansion of their Malaysian distribution center that increased capacity, improved pallet position, and added the efficiencies of advanced tracking software. In doubling their output, Frederick showed the high-tech leader that he shares their passion for storage and speed. WESTERN DIGITAL HAS AGILITY. Frederick Antony Sr. Logistics Manager Agility, Malaysia agilitylogistics.com AGL-WDIG_ad_SupplyChainAsia.090820.indd 1 8/20/09 12:16:24 PM Agility Western Digital Ad r2 Pub __________________________________Supply Chain Asia Size: __________________________________210mm x 297mm Full Pg Trim Prepared By Green Street Ads Insertion: ______________________________Aug 20, 2009 Contact: John Espinoza 626-644-8094 president’sADDRESS Dear friends and readers, On September 1 2009, we celebrate the fourth anniversary of Taking the cue from the results of our discussions, the Council Supply Chain Asia. Since the community was founded in 2005, we and Executive Committee members residing in each country have have been able to experience high growth and support and we decided to take on the responsibility of hosting talks and dialogues want to thank each and every one of you for making this possible. in their cities of origins. In the next 12 months, we are targeting to Without you, there would be no Supply Chain Asia as there would host half-day talks and dialogues in major cities in Asia, including be no community to serve. Kuala Lumpur (Malaysia), Surabaya (Indonesia), Mumbai (India), As a community, our focus was never about the minute Shanghai (China), Tianjin (China), Taipei (Taiwan), Hong Kong, details of forming a formal structure comprised of by-laws and Sydney (Australia) and Bangkok (Thailand). More news on these constitutions. However, we realised we could not function as an dialogues and talks will be posted on our website. effective framework for the community without bringing like- Singapore will remain the host country for the annual Supply minded people together to provide direction and support. The Chain Asia Forum and the next event will take place from August Advisory Council and Executive Committee were formed in early 24-27, 2010. 2006 with this sole purpose in mind. Again, we want to express our heartfelt gratitude for all your To date, we continue to maintain an informal structure with no support in making Supply Chain Asia a viable entity today. We will formal election or campaigns that would distract us from our
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