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SUPPLY CHAIN Asiamagazine Awards Special, winners & profiles Supply Chain Asia Magazine magazine SUPPLY CHAIN Connect • Communicate • CollaborateAswww.supplychainasia.comIA MICA(P) 181/02/2008 | JAN/FEB 2009 Ajay Mittal, on investing Procurement US$1.2bn in a modern strategies in Indian supply chain challenging times January/February 2009 network Recalls: when supply chain management becomes crisis management Ethical Supply Chain Management (so-called) The Power of the ISSN 1793 5377 Wind Vestas’ China Supply Chain “The system maximises both volume capacity and product selectivity, in the space of 2200 m2 at the temperature of -25 ◦C.” Mr. Kevin Lim Integrated Cold Chain Logistics Sdn Bhd Mobile Racking System Cost-effective, Semi-Automated, Safe Efficient space utilisation, especially in high-cost cold storage environment is of paramount importance. SCHAEFER’s mobile racking system is a cost-effective and efficient storage system that can effectively increase pallet capacity by up to 100%! Equipped with the latest technology, with the current EN safety features, the mobile racking system can be customised to specific requirements. Interested to find out more? Call us today, or visit us at www.ssi-schaefer-asia.com Regional Headquarter: Schaefer Systems International Pte Ltd 73, Tuas Avenue 1 Singapore 639512 Phone +65/ 6863 0168 Fax +65/ 6863 0288 eMail [email protected] www.ssi-schaefer-asia.com SCA 216x303 bleed Ad_Mobile_Reg.indd 1 8/15/2008 4:42:07 PM January/February 2009 SCAsia 10 Contents15 27 60 Editor’s View 21 Accenture’s Jeffrey 02 The uncertainty of Russell on Asia Regulars recession Pacific’s supply chain imperatives 60 Opinion — Ethical President’s Address Supply Chain 04 Gearing up for bigger Supply Chain – Recalls Management challenges in 2009 24 Recalls: when supply (so-called) chain management Developments becomes crisis 62 Lao Tze on Asia 06 Regional and global management supply chain news update 64 Supply Chain Country Focus – India Indicators Transporters – Air Cargo 27 Interview with Arshiya 08 Cargo declines to help International chairman push 2009 industry loss Ajay Mittal to U$2.5bn Supply Chain – Transporters – Maritime Procurement 40 10 Liquidity crunch fails 30 Procurement challenges Cover Story to faze Indian shipping and opportunities in a majors slowing economy The Vestas China Supply Chain 12 Green shores — Supply Chain – Risk terminal operators take Management measures to reduce 52 Exit strategies — the emissions right and wrong ways to shut down a factory 34 Supply Chain – Strategy Awards Special 15 Supply chain organisation Regional Focus - UAE design — the secret sauce 54 Dubai taps the potential of Winners & Profiles of peak performance Africa If you’re looking for experienced people in the Logistics, Transport If you’re looking for the or Supply Chain sector... And you want to take advantage of our specialist database and best people our in-depth knowledge of the industry in this region... in the Supply Chain... Then visit our website that lists a wide range of Hot Candidates available to add value to your business - and contact us with your specifi c requirements. Gary Enderby, Senior Recruitment Manager Logistics Recruitment, Level 18, Republic Plaza 2, 9 Raffl es Place, Singapore Offi ce +65 6823 6810 Mobile +65 8172 9326 We’ve already found them. AUSTRALIA • ASIA • EUROPE • MIDDLE EAST • AFRICA INQBASE9554 www.lrs.com.sg editor’sVIEW The uncertainty ADVISORY COUNCIL MEMBERS of recession OF SUPPLY CHAIN ASIA DR ROBERT YAP Recessions are a funny thing. Not just because it seems impossible to get Chairman & CEO consensus on when you’re actually in one — or indeed on what the term YCH Group (Founding Chairman) actually means (Japan has been in something called a ‘growth recession’ for MR PAUL WILLIAM BRADLEY the best part of the past two decades) — but because of the psychological President, Arshiya International Limited (Vice Chairman) effect they have on people. Looming large as a giant spectre over the event, the idea of recession had MR MAHENDRA AGARWAL Managing Director & CEO, GATI two noticeable effects on our November industry Awards show in Shanghai: we drew a slightly (only slightly) smaller crowd than normal; and never in MR DAVID CHEW the history of the event have people attending — often competitors — been Managing Director, SC Asia Consulting Pte Ltd nicer to one another. DR KRIZZ CHANTJIRAPORN An industry friend who likes to say he’s more cynical than myself says President, Thai Logistics and Production Society this is because people are experiencing a type of fear born from ‘recession- MR ALLEN FUKADA uncertainty’ and realise they might need each other soon. I like to think of Business Development, Supply Chain Management, IBM Asia it in terms of a we’re all in the one troubled boat and is there any way we can ASSOCIATE PROFESSOR MARK GOH help each other out of it sort of attitude. Apropos to this, since that event I’ve Director, Industry Reasearch, The Logistics Institute Asia Pacific had conversations with more than a few industry professionals lamenting a lack of good examples of partnering among supply chain players — a valid MR HARRY LAGAD point at any time, and surely more so in the current environment. President, Integrated Supply Chain, Brightstar Corp. While having to wait longer to get paid for your work is certainly a MR RICHARD LORETTO concrete real experience, it is clear that a lot of the effects of recession Executive Director, Strategy, AVON begin in fear of uncertainty. This means effects can be limited by good MR MARK MILLAR partnering relationships, which are built on transparency and therefore Vice President, International Relations, Supply Chain Asia raise levels of confidence and reduce uncertainty in recession industries or recession economies. MR TURLOCH MOONEY Managing Director, Editorial Several contributors to this issue of Supply Chain Asia Magazine raise SC Asia Publications the idea of improved partnering in one form or another. As part of his advice on how procurement professionals can develop a meaningful response to Mr peter l. o’brien Head, Asia Pacific Supply Chain Practice, changing and challenging economic times, Gerry Mattios notes several Russell Reynolds Associates times that there is an opportunity now for deeper and more effective collaboration between supply chain business partners. In our cover story, MR MICHAEL PROFFITT Strategic Advisor/Consultant, Dubai Logistics City which looks at the China and Asia supply chain operations of one of the world’s largest sustainable energy companies, Bjorn Johansen talks about MR VIVEK SOOD the value his company is placing on good partnerships with key suppliers. Managing Director, Global Supply Chain Group And in this issue’s Opinion column, Barry Elliott muses on whether ‘Ethical MR MARK WETTASINGHE Supply Chain Management’ is more than simply a necessary PR exercise, Vice President, Value Added/Tech & Engr Services, DHL and talks about moves by brand owners to communicate better with suppliers in order to limit a host of supply chain risks. Ideas and methods MANAGEMENT TEAM for more transparency and trust in business relationships are discussed, & SUPPORT TEAM as well as how improved and mutual auditing agreements can help create good business partnerships. PUBLISHER SC ASIA PUblications PTE ltd The good thing about recessions is that they eventually go away. When [email protected] they pass, they sometimes leave something worthwhile behind, leading MANAGING DIRECTOR, EDITORIAL some to even consider them a necessary part of economic life — a kind TURLOCH MOONEY of corrective economic hangover after a party. The lesson left behind this [email protected] time could be a reminder of the increasing importance of confidence in both MANAGING DIRECTOR, COMMERCIAL economic cycles and business exchanges, and how good partnering initiatives FRANK PAUL [email protected] can help to keep things real. CONTRIBUTORS SAM CHAMBERS, Barry ELLIOTT, DR JOHN Gattorna, FREDERIC GOMER, MASANORI KIKUCHI, PAUL LIM, Gerry Mattios, PALOMA MINTER, JEFFREY RUSSELL, KATHERINE SZETO DESIGN & PRODUCTION Turloch Mooney DESIGN WORKZ PRINTING Editor-in-Chief, Supply Chain Asia Magazine REGENT PRINTING (S) PTE LTD Managing Director, Editorial SC Asia Publications DAPLC 25189 APL_210x279 p_OK 15/12/08 19:45 Page 1 C M Y CM MY CY CMY K HTS DAPLC25189_Supply Chain Asia 1 Size: 210mmWx297mmH (PDF email) DYR CC249212 DL-MAC8 Osx 15.12.2008 CC693 Composite president’sADDRESS Gearing up for Bigger Challenges in 2009 Happy New Year. With the global economic crisis bringing news of retrenchment closer movers and shakers providing perspectives on what’s happening to many people, we can certainly feel too downtrodden to recognise in the industry today from a regional and global standpoint. We will a new year has started. While solutions to current difficulties may also host our regular forum discussions complemented by plenary now seem far away, you can be sure this crisis will blow over and now roundtables; a special workshop with Dr John Gattorna, and our may be the best time for us to put our houses in order. Young Professionals Forum targeted at the young and aspiring talent The same goes for Supply Chain Asia. With a community joining the industry today. structure, we may not be as badly affected by the crisis as some Over the course of 2009 we also plan to host more half-day others, but we still feel the hurt of our members who are. In this seminars and workshops across the region to bring our community environment, to ensure members of the community continue to members closer together. Penang (Malaysia), Bangkok, Hong Kong, support each other, we will be increasing the number of face-to-face Shanghai, Mumbai and Chennai are some of the cities in which we meetings we are organising for this year. plan to hold events. And if our planning goes well, we may even The first big event of the year will be ourSupply Chain Careers 2009 host a Supply Chain Asia Dialogue in the US at the end of the year to event.
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