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LIA SEP-OCT 14.Indd ISSN 2010-4235 MCI (P) 196/06/2014 PPS1672/01/2013 (022917) September-October 2014 www.LogAsiamag.com WAREHOUSE WHY LOGISTICS THAILAND’S NEXT TECHNOLOGIES PEOPLE NEED TRANSFORMATION TO ‘SOCIALISE’ INTRA-ASIA TRUCKING Get ready for increased cross-border road freight Smarter, faster & ergonomic order fulfilment Flexible, scalable & modular solutions Goods to Person picking by Dematic Another logistics result. Retailers are increasingly challenged by rapid order turnaround times and multichannel distribution. For as long as there has been order picking, sending a person out to get the goods has been the common approach. Innovations in handling technology and software have led to dramatic advances in split case picking solutions. The Dematic RapidPick® and Multishuttle® Goods to Person System is a high performance solution that helps you pick smarter, faster and more ergonomically. Products and orders are quickly staged, buffered, sequenced and Find out more transferred to pickers who can sustain over 1000 picks an hour. Not only do they pick more productively, they are now able to do so more accurately. And as your business changes over time, the modular and scalable design provides you with the flexibility to adapt and expand to your new requirements. That’s what we call a logistics result. Ask us. (65) 6398 3980 www.dematic.asia Creating Logistics Results Logistics Solutions | System Design & Integration | Software & IT | Voice Picking | ASRS | Storage Solutions | Conveyors | Service & Support DRIVER SHORTAGE ISSN 2010-4235 ISSN 2010-4235 MCI (P) 196/06/2014 PPS1672/01/2013 (022917) September-October 2014 www.LogAsiamag.com [ EDITOR’S COMMENT ] [ EDITOR’S DENICE CABEL Editor WAREHOUSE WHY LOGISTICS THAILAND’S NEXT TECHNOLOGIES PEOPLE NEED TRANSFORMATION It’s rare that a story about truck drivers reaches the general public – TO ‘SOCIALISE’ INTRA-ASIA TRUCKING except, of course, when there’s a horrible accident or a sensational Get ready for increased cross-border road freight protest on the news. So I was surprised when I found out from my Cover photo courtesy of Volvo Trucks conversation with Valery Muyard, GM of Volvo Trucks Singapore (read the interview on page 8), about the shortage of truck drivers GROUP PUBLISHER in Southeast Asia. I won’t be surprised that it is already happening in Wai-Chun Chen, (65) 6521 9770; [email protected] Singapore, but Thailand and Malaysia? No way! [ EDITORIAL ] To satisfy my curiosity, I scoured the Internet to find legit statistics on EDITOR Denice Cabel, (65) 6521 9750; [email protected] unfulfilled trucking jobs in this region. I found out from a Wall Street Journal report that land-logistics organisations in Southeast Asia are looking for 140,000 drivers, representing 15 per cent to 20 per cent [ SALES & AD ADMIN ] ACCOUNT MANAGER of some 900,000 trucks registered to transport goods. As a matter of Arthur Ong, (65) 6521 9767; [email protected] fact, last year Thailand’s transport industry has enlisted government help to recruit young soldiers as they leave the army. I also found out MARKETING EXECUTIVE Chiang Zhen Hao, (65) 6521 9758; [email protected] that transport-related companies in Malaysia are facing a 20 to 30 per cent driver shortage, forcing some to downsize their operations ADMIN EXECUTIVE (source: Pan-Malaysia Lorry Owners Association). Brenda Tan, (65) 6521 9748; [email protected] How did this happen? Well for one, not enough younger drivers are [ PUBLISHING SUPPORT ] being recruited to replace the older ones who retire. Another reason EDITORIAL PRODUCTION MANAGER Pauline Goh, (65) 6521 9772; [email protected] is the booming intra-regional trade. According to Morten Damgaard, CEO of Agility Malaysia and Southeast Asia (read his article on page DESIGN MANAGER 7), as Asia has transformed from a source of cheap production into Honess Ho, (65) 6521 9769; [email protected] a strong economic trading bloc, and with continuous investments in GRAPHIC DESIGNER road infrastructure, both in physical terms and also through improved Olive Chan, (65) 6521 9785; [email protected] customs procedures to reduce waiting times at borders, the take-up of international trucking services has spiked over recent years. CIRCULATION MANAGER Ophilia Leung, (65) 6521 9761; [email protected] The situation will only get worse once economic integration between CIRCULATION EXECUTIVE the 10 ASEAN countries begins next year, as that will increase the Levi Cheng, (65) 6521 9775; [email protected] amount of freight flowing overland from China through to other WEB MANAGER countries. Can you imagine the ripple effects this will have on the Yoke Lee, (65) 6521 9779; [email protected] trucking industry? In the future carriers will be forced to offer trucking jobs to those with no experience or risk leaving their fleets parked; WEB DEVELOPER Vanxy, (65) 6521 9783; [email protected] and governments will lose their competitive edge and business opportunities if they don’t do anything! WEB OPERATIONS EXECUTIVE Franco Sevilleja, (65) 6521 9778; [email protected] This got me thinking about what it is going to take to attract and retain drivers. Driver pay must go up, of course, but quality of life [ FINANCE ] is equally important to many drivers. Those carriers that can offer FINANCE MANAGER Kenny Yeoh, (65) 6521 9740; [email protected] their drivers a better standard of living, including shorter routes, more regular schedules and more time at home, will likely be the winners. CEO Management can also provide a driver break room with clean facilities Raymond Wong, (65) 6521 9777; [email protected] and coffee machines. Providing driver training programmes and a continued emphasis on safety are important as well. Truck drivers deserve respect for their skill, commitment, and hard work. Even if you lack the resources and bandwidth for some of the items above, train your staff to communicate, work with, and show drivers the respect their profession deserves. Remember that happy CONTINEO MEDIA PTE LTD 61 Ubi Avenue 1, #05-17 UB Point drivers get the job done as efficiently as possible. Singapore 408941 Tel (65) 6521 9777 Fax (65) 6521 9788 www.LogAsiamag.com SUPPORTED BY Please direct your comments and editorial enquiries to PRINTER [email protected] Sun Rise Printing & Supplies Pte Ltd www.LogAsiamag.com September-October 2014 CONTENTS [ EDITOR’S COMMENT ] Driver Shortage 01 [ INDUSTRY NEWS ] 03 [ PORTFOLIO ] Warehouse Technologies 06 [ HANDLING AND STORAGE ] 10 Intra-Asia Trucking 07 Workhorses on the Road 08 Schweppes Voice-enables its Warehouse 10 [ SOFTWARE AND SYSTEMS ] How a Smart Warehouse Saves Money 12 Making Sense of Big Data in Logistics 16 [ STRATEGY AND BUSINESS ] 16 Supply Chain Approach to Halal 20 Why Logistics People Need to ‘Socialise’ 22 Thailand’s Next Transformation 23 [ CEO SERIES ] Building and Sustaining an Enterprise Supply Chain Model 24 [ SPECIAL REPORT ] Asian Manufacting Awards 2014 27 23 Logistics Insight Asia is published six times a year by Contineo Media Pte Ltd, located at 61 Ubi Avenue 1 #05-17 UB Point Singapore 408941. All rights reserved. Please address all subscription mail to Logistics Insight Asia at the above address, or Fax (65) 6521 9788. Annual air-speeded subscriptions for non-qualified subscribers is S$210. Single copies are available for S$35. Logistics Insight Asia Volume 8, Issue 5. [ CHINA ] It will also occupy the complete facility where it has a presence in Chuan Kei and plans to equip the 21,000 sq ft warehousing Swire builds cold storage with full air conditioning to serve the needs of the electronics facility in Shanghai industry, mainly. Swire Cold Chain Logistics has built a new cold storage facility at Comments the company’s CEO, Simon Wong: “The outsourcing of Fengxian in Shanghai, China. Driven by the increasing affluence of logistics functions to specialist companies continues apace. The the middle classes, who have a growing appetite for quality frozen additional warehousing adds further value to U-Freight Logistics’ packaged foodstuffs, China is seeing a burgeoning demand for full range of services, and is an important development for ship- [ INDUSTRY NEWS ] cold chain services, with fixed asset investment in cold storage pers moving cargoes that are dependent on the regulation and reaching more than RMB 100 billion (US$16.28 billion) in 2013 - maintenance of ambient temperature and control of atmospheric representing a YoY increase of 24.2 per cent. conditions. [ INDIA ] BDP merges with UGL to boost India business US-based transport and logistics firm BDP International has merged with its long-time local partner Unique Global Logistics. As a result of the integration, BDP’s customers will be support- ed by a team of more than 200 logistics professionals in India. The integration with UGL will mean dedicated inbound and out- bound logistics and customs clearance in every major interna- tional gateway, seaport and airport in India. Customers will also benefit from access to BDP’s technology such as the web-based BDPSmart Suite of shipping transaction/tracking management tools. In addition to the Shanghai facility, Swire Pacific Cold Storage’s new facility at Langfang in Hebei Province has also commenced [ MALAYSIA ] operations. Two more cold storage facilities are under construc- tion at Nanjing in Jiangsu Province and Ningbo in Zhejiang Prov- DHL is building Malaysia’s ince and
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