Lia Oct-Dec16

ISSN 2010-4235 MCI (P) 094/05/2016 PPS1672/01/2013 (022917)
October-December 2016
www.LogAsiamag.com
Cold chain logistics

Supply chain management
Training and development
Disruptive technologies
Leveraging on software solutions
[ EDITORS COMMENT ]
Keep calm
and carry on
ISSN 2010-4235
Lee Kok Leong

Editor
It has already happened in Europe and the United States and it is

happening now in Asia. There is a wave of change, brought about
by innovation, descending on the supply chain industry. And in my
opinion, these are disruptive technologies and there will be a huge
consequence for all involved.
Cover credits: Infor
PUBLISHER
Annie Tan, (65) 6521 9781; annie.tan@contineomedia.com
This myriad of disruptive technologies can be categorized into

three areas: 3D printing, cloud computing (big data analytics) and
automation (driverless vehicles, drones, robots, mobile and wearable
technology, and sensors). They all have one thing in common; they
are game changing, in that they are not only disrupting the operations
but also the very business models that the survival of every company
depends on.
[ EDITORIAL ]
In terms of change, these technologies will bring about consolidation

resulting in leaner logistics networks, greater efficiencies in
warehousing, vertical expansion of higher building height, lengthened
road transportation coverage and enhanced last mile delivery.
Depending on perspectives, the consequence can be either good or
bad. Companies and individuals alike will need to get over the initial
hurdle of resistance to change. After that, companies will also have to
justify the relatively high investment in capital expenditure.
Marketing & Circulation manager

Ophilia Leung, (65) 6521 9761; ophilia.leung@contineomedia.com
For individuals, there will definitely be job redundancies and new skills
to acquire. And one issue, especially in Asia relating particularly to
older employees, is that even with re-training, how they will compare
to fresh graduates and younger persons when they are competing for
the same jobs.
It is human nature not to like disruption and change, preferring to
remain status quo. But times have changed. End users in the supply
chain industry are clamouring for faster response time and lower
delivery cost. Companies and individuals alike have to adapt. They
have to be agile and nimble to reap the economic rewards. So, keep
calm and carry on.
Editor
Lee Kok Leong, (65) 6521 9784; kokleong.lee@contineomedia.com
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October-December 2016
[ Editors Comment ]
CONTENTS
Keep calm and carry on 01

[ Industry News ]
03
[ SOFTWARE AND SYSTEMS ]
Marching towards the factory of the future

Unlocking the Darwinian code
Enhancing last mile delivery
08
12
14
08
[ HANDLING AND STORAGE ]
Automating the retail therapy

Becoming the cornerstone on
intralogistics trends
16
18
[ C-LEVEL CONVERSATION ]
Going gold for cold chain
20
[ STRATEGY AND BUSINESS ]
Life-long training for career longevity
22
16
[ Modes and services ]
Collaborative supply chain management

Taking on risk
24
27
24
Logistics Insight Asia is published four times a year by Contineo Media Pte Ltd, located at
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For annual air-speeded subscriptions for non-qualified subscribers, please contact the circulation
department at circulation@contineomedia.com. Logistics Insight Asia Volume 10, Issue 4.
[ INDUSTRY NEWS ]
Changi Airport Group strengthens

pharmaceutical supply chain in
Singapore
Changi Airport is the first airport in Asia to join Pharma.Aero as a
strategic member, together with partner Singapore Airlines Cargo
who comes on board as a full member. Both parties envisage that
this effort will raise pharmaceutical handling capabilities at Changi
Airport. An organization comprising stakeholders of air cargo supply
chain from around the world, Pharma.Aero is dedicated to achieving
excellence in end-to-end air transportation for pharma cargo.
Pharmaceutical cargo is among the fastest growing segments at
Changi Airport, growing 19 percent year-on-year for the first nine
months of 2016, and registering a five-year compounded annual
growth rate (CAGR) of 13 percent from 2010 to 2015.
The South West Pacific and North East Asia regions account for 45
percent of total share of pharmaceutical cargo at Changi Airport. In
terms of volume, Australia, China and India are Changis top three
pharmaceutical markets on a year-to-date (January to September
2016) basis. The top markets showing strongest growth for the
period are China (+51 percent), Vietnam (+35 percent) and Hong
Kong (+32 percent).
Pharmaceutical products that pass through Changi Airport include
vaccines, tablets and pills. These products are highly sensitive to
fluctuations in temperature. Pharmaceutical cargo is the sixth most
valued segment in terms of total air cargo handled, and account
for under 10 percent of total value of cargo handled.
Changi Airport is well-equipped with specialized facilities to be the
preferred gateway of pharma cargo in Asia, with the two ground
handlers (Coolport by SATS and Coolchain by Dnata) having
the ability to handle more than 300,000 tonnes of temperature
sensitive cargo annually. Our excellent connectivity (6,800
flights to 330 cities served by over 100 airlines) and strong mix
of freighter and bellyhold capacity provides ample options for
pharma shippers to access the global economy.
Changi Airport is the first airport in Asia to embark on a community
approach for the IATA CEIV Pharma certification, thereby raising the
local communitys handling standards and capability for temperature-
[ Changi Airport is the first airport in Asia to join Pharma.Aero as a strategic

member. ]
sensitive pharma cargo. The pioneer group of companies in the

Changi CEIV Community consists of Singapore Airlines Cargo, dnata
Singapore, Global Airfreight International Expeditors Singapore,
CEVA Logistics Singapore, and Schenker Singapore.
SATS Coolport, a major cargo player at Changi Airport, was the first
facility in the world to attain the IATA CEIV Pharma certification in
2014.
Global spending on pharma cold chain logistics is projected to
grow at eight-nine percent per year, totaling US$16.7 billion by
2020 according to Pharmaceutical Commerce. Asia is expected to
account for the largest regional share growth with more than $1.2
billion of cold-chain growth through 2019.
SingPost opens regional logistics hub in Singapore
SingPosts eComm Log Hub is a three-storey facility housing two

warehousing floors, 150 simultaneous loading bays as well as
an office block. The ground floor of the building houses a fully
automated parcel sorting facility with a capacity of up to 100,000
parcels a day, and end-to-end sorting, shipping and returns
management capabilities that enable quicker order fulfilment.
The total built-up area is 553,000 square feet.
[ Regional eCommerce Logistics Hub is SingPosts largest eCommerce

logistics investment in Singapore at S$182 million. ]
Automation plays a big part in the eComm Log Hub beyond the
fully automated parcel sorting system on the first floor of the
facility, the second floor warehouse is also automated, resulting
in the entire eComm Log Hub being integrated end-to-end from
the eCommerce front-end platform to delivery. The eComm Log
Hub will process parcels for delivery within Singapore and those
to be shipped to destinations worldwide.
www.LogAsiamag.com
is SingPosts largest eCommerce logistics investment in Singapore

to date.
03
LOGISTICS INSIGHT ASIA
Singapore Post (SingPost) announced the launch of its Regional

eCommerce Logistics Hub (eComm Log Hub) located at the
Tampines Logistics Park. The S$182 million (US$131 million) facility
[ INDUSTRY NEWS ]
Crown increases servicing

speed, parts availability with
new field service technology
Crown Equipment announced the Southeast Asian rollout of its
latest in-house developed software solution for managing and
maintaining forklift fleets.
The new service management system is a powerful information
management and messaging system, bringing together
everything a field service technician needs to carry out the
most efficient repairs and maintenance to customers forklift
fleets. The system does away with many paper-based systems,
reduces the incidence of human error, lost paperwork or misread
handwritten notes. It also maintains a complete service history
for every lift truck used by every Crown customer in the region.
With the new service management system, when a service
technician visits a customers premises, he can immediately pull
down the recent service history of any lift truck requiring service
directly onto his Pocket PC to help in assessing the service
requirement. The technician can then message Crowns Parts
Distribution Centre, ordering any necessary items which may not
be carried as part of the standard stock in his service van. These
parts are quickly picked, packed and shipped to the technicians
local facility for collection. When the service of the lift truck is
completed, the service technician sends a comprehensive service
report directly to Crowns database, where the customers service
history is automatically updated.
Clothing retailer Takko Fashion has chosen to work with Hermes

Fulfilment as its logistics partner. The Hamburg-based distance
selling service provider is now handling the warehousing and
order picking of all the items shown on the Takko Fashion
website. It is also providing financial and call centre services.
Until recently Takko Fashion clothing was sold exclusively
through a network of physical retail stores. The company
currently operates 1,850 stores, 1,100 of which are in Germany
and recently an online shop was set up as an additional
distribution channel for the German market. The website sells
Takko's complete women's and children's collections and a range
of men's clothing. The plan is to gradually extend the scope of
the online range, ultimately offering the same collections online
and offline by autumn 2016 at the latest.
The holistic approach that encompasses both online and store based
retail formats provides shoppers with an integrated user experience.
For instance, an item ordered online from the Takko Fashion website
can be shipped free of charge to any of the company's German
stores and paid for when it is picked up. Returned items can also be
dropped off at these stores free of charge.
The warehousing and picking of the items is carried out at the
Sdhafen mail-order logistics centre in Haldensleben (SaxonyAnhalt). Hermes Fulfilment has just finished turning this facility
into one of the most modern in Germany specifically designed to
serve the needs of the logistics processes associated with fashion
items. Takko Fashion's inventory management, merchandise
management and checkout systems are connected to the IT
platforms of Hermes Fulfilment via standard interfaces. Takko
Fashion operates its returns management itself.
One of the decisive factors for the partnership agreement
with Hermes Fulfilment was the extensive experience that the
Hamburg services provider and Otto Group member has of the
retail sector. The efficiency of the logistics processes at the
company's Haldensleben location also played an important role
in Takko's choice of partner.
October-december 2016
Crown takes service very seriously, and invests heavily in

personnel, spare parts and facilities. We have invested in new
and expanded service facilities, the most recent being in Rayong
in Thailand and Johor in Malaysia, said David Sultana, marketing
manager, Crown Equipment, Southeast Asia. This new service
tool is further proof of our commitment to increasing our
customers forklift fleet uptime, so that their businesses run
smoothly and profitably, and it is yet another example how
Crown invests in technology to increase efficiency.
Hermes chosen as Takko

Fashion's logistics partner
04
[ Customers to benefit from new software system being rolled out in

Southeast Asia. ]
[ The plan is to gradually extend the scope of the online range, ultimately
offering the same collections online and offline by autumn 2016 at the latest. ]
[ INDUSTRY NEWS ]
7-Eleven, Flirtey make first US

drone delivery
Convenience store 7-Eleven and Reno-based drone start-up Flirtey
have enabled the first delivery to a customer's residence as a step
to integrating drones into the US National Airspace System.
According to 7-Eleven EVP and chief merchandising officer Jesus
Delgado-Jenkins, drone delivery is the ultimate convenience
for customers: "This delivery marks the first time a retailer has
worked with a drone delivery company to transport immediate
consumables from store to home. In the future, we plan to make
the entire assortment in our stores available for delivery to
customers in minutes."
Flirty CEO Matt Sweeny said the successful 7-Eleven delivery brings
the startup closer to its vision of reinventing the delivery process
for humanitarian, online retail and food delivery industries.
Visit us!
Pack-Expo, Chicago, USA
November 6 9, 2016
Stand 1410
The company says it is the first to conduct an FAA-approved

delivery in the US, the first to perform a fully autonomous drone
delivery to a home in the US and the first to conduct ship-toshore drone delivery in collaboration with the Johns Hopkins
University School of Medicine.
A multi-department government team, supported by the UK Civil

Aviation Authority (CAA), has given Amazon the green light to
explore the use of drones in performing beyond-line-of-sight (BLOS)
operations in rural and suburban areas; flights where one person
operates multiple automated drones; and testing sensor performance
to make sure the drones can identify and avoid obstacles.
Paul Misener, vice president of global innovation policy and
communications, Amazon, said: The UK is a leader in enabling
drone innovation weve been investing in Prime Air research
and development here for quite some time. This announcement
strengthens our partnership with the UK and brings Amazon closer
to our goal of using drones to safely deliver parcels in 30 minutes to
customers in the UK and elsewhere around the world.
Using small drones for the delivery of parcels will improve customer
experience, create new jobs in a rapidly growing industry, and
pioneer new sustainable
delivery
methods
to
meet future demand,
added Misener. The UK
is charting a path forward
for drone technology that
will benefit consumers,
industry and society.
SOME THINK
DELIVERY
ERRORS ARE
INEVITABLE.
WE THINK
DIFFERENT.
Running an efficient warehouse center makes a big
difference to profitability and customer satisfaction.
Thats why many leading brands put sortation systems
from BEUMER Group at the heart of their supply chain.
Through operational insight and analysis, BEUMER Group
is able to deliver complete automated material handling
systems that fit seamlessly into your process. Offering
exceptional speed, capacity and accuracy, our technology
makes a difference to your customers, your brand and
your bottom line.
For more information, visit www.beumergroup.com
[ Amazon unveiled the second prototype of its Prime Air drone last year
with the vehicle capable of taking off and landing vertically, but flying like a
plane to cover distances up to 16 km at an altitude of 122 metres and carry
packages of up to 2.3kg, but much of its autonomous flying technology is
yet to be fully tested. ]
BEU_Logistics_Post-Parcel_Belt Tray_2_LogInsightAsia_85x247+MH_EN.indd 1
www.LogAsiamag.com
Amazon has announced that it will be partnering with the UK

government to explore the steps needed to make the delivery of
parcels by unmanned aerial vehicles (UAV) a reality. The tests are
the most extensive trials of Amazons drones anywhere in the world.
05
Amazon set to test drone

deliveries in the UK
23.09.16 11:10
[ INDUSTRY NEWS ]
Air NZ transports precious kiwi

cargo
Nippon Express makes China

e-commerce foray
Air New Zealand carried six North Island brown kiwi eggs to a safe
new home for hatching as a part of initiative of Conservation Week.
Japans largest international freight forwarder, Nippon Express

has announced a deal that will see it handling China-bound
shipments originating in Japan for Alibabas TMall.com platform.
The Japanese forwarder will transport goods from companies
doing business on the e-commerce platform to China, while an
Alibaba affiliate will handle home delivery. Goods can either
be flown across the sea when ordered or shipped by surface in
advance and stored in warehouses.
The kiwi eggs were removed from nests in the Rimutaka Forest Park
near Wellington by volunteer handlers from the Rimutaka Forest
Park Trust before being flown in warmed insulated containers on an
Air New Zealand passenger flight from Wellington to Rotorua. At
Rotorua, they were taken to Rainbow Springs Kiwi Wildlife Park and
placed in an incubator.
The eggs were expected to hatch
within a week to ten days and
will be moved to a predator-free
environment at Wairakei Golf
Course and Sanctuary north of
Taupo at around four weeks
old.
The North Island brown
kiwi will remain there for at least
six months until they reach a
safe weight to be flown back to
[ Air New Zealand carried six North
Wellington and released into the
Island brown kiwi eggs to a safe
Rimutaka Forest Park.
new home for hatching. ]
Navis partners with Khorgos in

Kazakhstan port
Navis, a part of Cargotec Corporation announced that Khorgos
Gateway Dry Port in Kazakhstan is live with Navis N4 terminal
operating system (TOS) in place. The implementation of N4
allows Khorgos a smoother and faster exchange of data among
terminal functions, including the recording of all TOS services,
clear communication of process-oriented operations and efficient
planning for higher productivity.
In concert with Chinas major One Belt One Road initiative, which
aims to rebuild trade links across Eurasia to Western Europe,
Khorgos is investing in terminal hardware and software under
the expansion of this transcontinental trade and infrastructure
project.
06
Khorgos Gateway Dry Port is strategically located on the

Kazakhstan-Chinese border, along the New Silk Road, and
is under the management of DP World, which was chosen to
oversee the development and maintenance of this important
terminal. The revival of the Silk Road has been a key initiative
for Kazakhstan since 1990 and is a major step in advancing
transcontinental commerce. The opening of this trade route has
strong economic implications, as it not only bolsters land-trade
between Europe and Asia, but will also be the site of a new tradehub city that many are likening to the Jebel Ali Free Trade Zone in
Dubai. Ultimately, Khorgos is expected to become a central trade
destination for manufacturing, transshipping, warehousing,
importing, and exporting.
Importantly, the Dry Port also supplies the local markets and
currently serves as a transshipment hub for the cargo arriving
from China and destined for Western Europe and CIS nations.
Khorgos Gateway expects to close out 2016 with an annual TEU
of between 45,000 and 50,000 and expects that number to
dramatically increase in 2017, projecting between 175,000 and
200,000 TEUs.
The volume of Japanese cosmetics and other consumer goods

moving from Japan into China via e-commerce channels, is growing
rapidly with consumers. There are forecasts to buy 2.33 trillion
yen (US$22.8 billion) in goods from Japan online in 2019 nearly
triple the 2015 level according to the Japanese trade ministry.
Freight forwarders have been largely slow to tap this sector with
Japan Post maintaining a near-monopoly, handling 90 percent of
the cross-border express business moving outbound from Japan
with its EMS services.
But a fee hike of around 30 percent in June to 1,400 yen (US$13.68)
for packages up to 500 grams may erode its monopoly as Nippon
Express plans to charge around 1,000 yen. Both services take four
to six days for delivery in China.
Nippon Express and Alibaba will also handle the complex business
of dealing with customs for companies on TMall. China updated
rules on cross-border e-commerce in April and now requires
information such as what is being shipped, prices, etc, to be
submitted electronically.
Nippon Express will be the first Japanese logistics company to create
a digital link with Alibabas Cainiao e-commerce logistics platform
in order to facilitate the order and shipping information. By linking
directly to Cainiaos platform, track-and-trace progressions, and
customs clearance no longer require additional data exchanges.
China's cross-border e-commerce retail market is expected to
grow roughly twelvefold from 2014 levels to US$245 billion in
2020, according to Accenture.
Other Japanese forwarders and transportation providers have
made moves to tap this enormous market with Yamato Holdings
striking a deal with Chinese e-commerce companies including
JD.com, TMall's smaller rival, in April to offer international
shipping and home delivery. And ANA Holdings is also working
towards offering a service handling everything from customs
procedures to delivery starting in September.
[ Nippon Express will be the first Japanese logistics company to create a

digital link with Alibabas Cainiao e-commerce logistics platform. ]
Rhenus opens office in

South Korea
"Today marks the dawn of a new era for the KION Group, Dematic
and our customers," said CEO of the KION Group, Gordon Riske.
"The transaction brings together the world's most profitable
manufacturer of forklift trucks and warehouse technology with
one of the largest and fastest-growing warehouse automation
and software solutions providers. Our combined global presence,
intelligent and tailored material handling as well as comprehensive
automation and software technology solutions, plus now more than
30,000 dedicated and highly skilled employees will enable us to
deliver even more value for our customers."
The Rhenus Group is opening its own business site in South

Korea at the beginning of November. The logistics specialist also
founded the national company known as Rhenus Logistics Korea
at the same time. The office in the South Korean capital Seoul will
organise sea and air freight operations, third-party logistics and
domestic transport services in future.
The new Dematic operating unit will be led by John Baysore,

previously CEO of Dematic North America, who will hold the role of
president and CEO and has a proven track record in growing supply
chain solutions business.
"At Dematic, we are proud to move forward as part of the KION
Group, which even better positions us to assist our customers
with supply chain performance. The newly established solution
portfolio affords our customers the ability to accommodate their
ever changing business requirements and will dynamically optimize
their warehouse and distribution functions," said John Baysore. "The
market for system solutions is expected to grow by around 10 percent
per year in the medium
term. We have the
innovative technology,
software
expertise
and
global
network
to meet the supply
chain
requirements
of the future, such as
those resulting from
the
rapidly
growing
e-commerce sector and
the many other vertical
markets we serve."
[ INDUSTRY NEWS ]
KION Group completes

acquisition of Dematic
The primary motive for opening the business site in South Korea
is to continue consolidating our Asian network; weve been
continually expanding this during the past few years. Seoul forms
the centre of South Korea and is the focal point of the Sudogwon
metropolitan district. More than 25 million people live there and
this accounts for half of the population of the country; it therefore
provides an excellent starting point for our range of logistics
solutions, said Tobias Bartz, who is responsible for the logistics
specialists Asian business
on the Rhenus Management
Board, citing the reasons for
the latest developments.
The Rhenus Group is
particularly
aiming
to
establish itself as a partner
for transporting, handling
and storing raw materials,
semi-finished products and
industrial and consumer
goods in the South Korean
market with its complete
range of services. Rhenus
Logistics Korea then plans
to develop the individual
solutions
for
specific
sectors, combined with
local expertise.
[ John Baysore, president and CEO of Dematic. ]
Arvato opens bonded warehouse in China
Arvato will provide end-to-end logistics services in the

new multi-user facility. This includes the processing of
imports and exports as well as warehousing, multichannel distribution, returns management, and
other value-added services. The access-controlled
location is also equipped with a monitoring system
and has more than five loading bays. In the licensed
bonded warehouse, goods can be stored duty-free
indefinitely. Arvato is already represented by five
distribution centers across Asia.
07
The launch of our third distribution center in China is necessary as we meet an

increasing demand for logistics services in the region, said Raoul Kuetemeier,
head of Arvato SCM Solutions Asia. This new bonded warehouse enhances our
logistics network in the Chinese market and underscores our commitment
to provide the most flexible and competitive supply chain solutions
for our clients.
www.LogAsiamag.com
Arvato SCM Solutions is expanding its presence in China with a new bonded warehouse that will serve clients in the high-tech and
entertainment and consumer products industries. The new 2,000m facility is located in the Shanghai Waigaoqiao Free Trade Zone.
[ Software & Systems ]
Marching towards the

factory of the future
A holistic PLM approach, including a highly visible supply chain, can help transform the
factory of the future. Helen Masters shares tips on how to do just that.
he factory of the future beckons

and the road leading to it is a five-lane
superhighway of technology, product
innovation, customization and advanced
performance capabilities. Passing the
tollgates, however, requires a creative
mind-set for problem-solving, latestage assembly, configuration tools,
accelerated prototyping, and sensor
tracking.
Stubborn
adherence
to
traditional processes whether its
holding on to a legacy ERP or insisting
that IT modifications are enough will
cause serious roadblocks for the slow
adopters. However, some manufacturers
in Asia Pacific are already leading the way
to modern manufacturing, setting new
production standards for product lifecycle
management (PLM). They are making bold
advances and reaping greater rewards.
Here are some tips other manufacturers in
08
the region can learn from these early pace

setters.
Learn about the latest PLM

strategies
While some manufacturers are already
reaping the benefits of the latest
generation technologies, such as cloud,
virtualization and mobility, there are
those who have yet to muster the courage
to take the first step either waiting to
see technologies to mature, or more
best practices to emerge. Given some
disruptive technologies, like the Internet
of Things (IoT), are still in their infancy,
manufacturers who are too slow to take
advantage of disruptive technologies risk
becoming irrelevant. PLM is changing
dramatically, from engineering design
through prototyping and product launch
to customer feedback, warranty claims,
and after-market service. Its crucial

for Asia Pacific manufacturers to keep
updated on the latest PLM strategies.
Only then can they start to look into
accelerating their PLM transformation.
A holistic approach to PLM

propels the factory of the
future
To help steer the regions manufacturers
into modernizing their PLM practices,
it is crucial to have a comprehensive
approach, which includes harnessing
multiple IT capabilities across different
functions, such as product design
collaboration,
sales
configuration
tools, assemble-to-order capabilities,
quality control, regulation compliance,
and 3D printing for rapid prototyping,
amongst others.
Transparent supply chain

Accelerated product innovation
especially in high tech industries
requires a reliable supply chain that
can keep up with trends, technology,
and fast changing market demand.
For instance, suppliers should be
flexible enough to contract or expand
as required. This is only possible when
theres a clear visibility across the
supply chain, making it easy to monitor
the details of components, parts and raw
materials, for instance. Interoperability
and collaboration with partners is also
important, and this includes sharing
and using relevant data to ensure an
effective and well- managed value chain.
Product innovation and

configuration tools
To satisfy consumer demand for highly
personalized/customized
products,
manufacturers in Asia Pacific may want
to look into implementing product
configuration tools that enable them

[ Accelerated product innovation especially in high tech industries requires a reliable supply chain that can keep up with trends, technology, and fast
changing market demand. ]
Late-stage assembly
As customers increasingly demand
Engineer-to-Order (ETO) and Made-toOrder (MTO) products, manufacturers
are turning to delayed or late-stage
assembly to help them manage this
mass
consumerization
trend.
By
designing products in various modules,
components can be manufactured and
inventoried first, waiting for the order.
The product is only assembled when the
order is received.
A
similar
concept
is
distributed
manufacturing, where the raw materials
and
methods
of
fabrication
are
decentralized, and the final product is
manufactured at a location closest to the
location of the customer. Like reshoring,
regionalization is a growing trend, where
manufacturers, their suppliers, and
subcontractors work to form the right
Internet of Things (IoT) and

performance insights
The Internet of Things (IoT) is expected to
impact many aspects of manufacturing,
including PLM, with product design and
supply chain management likely to be the
biggest beneficiaries. Already, scanners,
bar codes, and GPS tracking are being
used to monitor the movement of goods
from the warehouse, on trucks, on
ships and cargo planes, on the road, and
to customers. Data from sensors provide
valuable insights on when/how the
product is purchased, how it performs
when in use or consumed, product
durability, performance and consumer
interaction, and more. Today, connected
cars are already collecting data on user
behavior, service and performance.
Data is gold
Data is the force that is making modern
manufacturing cost-effective. Insights
derived from business intelligence and
data analysis help manufacturers focus
on markets, buying trends, customer
attributes, cost of raw materials, time,
labor, operational costs, details about
the product in use in the market, as
well as consumer opinions. Insightful
data enables manufacturers and their
respective supply chains to make the right
decisions quickly and more efficiently.
Social and mobile

Manufacturing leaders are extremely
mobile. They are expected to make
decisions on site, in the heart of their
operations. They need 24/7 access

to critical data and systems from
remote locations. This can range from
a maintenance technician checking
inventory of spare parts to a warehouse
manager using a smart tablet to confirm
locations of forklifts and personnel.
Social and collaboration tools also
provide critical support to employees
empowered by smart phones, tablets,
laptops and other mobile devices to
access data. To continue to be relevant,
it is crucial for manufacturers to embrace
mobility and collaboration tools.
Cloud and the need to be

nimble
Manufacturers need to keep pace with
fast-changing global trends, which include
dealing with new markets, new customer
demands, challenges of omni-channel
shopping, and growing competition from
start-ups. All these require manufacturers
to agile and flexible cloud solutions,
because they offer faster deployment and
implementation, support manufacturers
in their efforts to continually offer new
and improved products to quickly and
cost-effectively.
Cloud solutions allow manufacturers to
add branches, bring on new fabricating
facilities, and set up new distribution
hubs easily and quickly.
Closed loop quality control

Automated quality control methods are
frequently used by manufacturers to help
control consistency and brand value.
By deploying sensors and monitoring
www.LogAsiamag.com
Another tool that is helping drive the

speed of innovation is 3D printing,
allowing
manufacturers
to
create
prototypes easily. Many manufacturers
are already implementing 3D printing
for prototyping, testing and obtaining
customer feedback. Its use will continue
to increase as materials used in the 3D
printing process become more versatile
and the cost of equipment gets more
affordable.
combination of proximity to customer

and a productive location.
09
to manage complex designs, product

quotes and production specifications.
Also, integration with online portal and
CAD solutions allow customers to visualize
designs, adding to a more positive
customer experience.
devices at numerous checkpoints in

the production cyclerather than only
at final stage inspections it becomes
easier to detect noncompliance issues
early, thus and minimizing production
waste. Quality control is a crucial
aspect of the PLM strategy that is often
overlooked.
product value, and a positive experience.

Consumers are more demanding than
ever before. Manufacturers must continue
their effort to build customer-centric
models and strategies that predict and
align with customer purchasing trends
and expectations.
Customer-focused
Get ready for the Factory

of the Future
Todays market economy has evolved

from a volume-driven into a customercentered model that stresses providing
customers with speed of delivery,
PLM is one of the most critical aspects

of the factory of the future. Its an
exciting time for manufacturers as they
to modernize their processes, speed
[ Helen Masters ]
up their product design and delivery,

and improve product innovation. New
products, new ideas and new ways of
producing products will be the hallmark
of tomorrows factories. Manufacturers
in Asia Pacific need to start now if they
havent already - to make sure they are
on the right track, poised to reap the
promised rewards.
[ IoT is expected to impact many aspects of manufacturing, including PLM, with product design and
supply chain management likely to be the biggest beneficiaries. ]
Helen Masters is vice president

and managing director, South Asia
- ANZ & ASEAN, at Infor.
NaviTrans uses INTTRAs electronic

ocean shipping services
10
NTTRA,
the
worlds
ocean
shipping electronic marketplace,
and NaviTrans, a provider of
software solutions for logistics
firms operating on the Microsoft
Dynamics NAV platform, are in a
partnership to integrate INTTRAs
full suite of ocean shipping services
into NaviTrans software. As a result,
NaviTrans clients will have seamless
access to INTTRAs global network
to make bookings, submit shipping
instructions, easily track shipments
anywhere in the world, and utilize
other INTTRA solutions.
Ocean shipping is a vital part of the

supply chain, and offering shipping
management services can be essential
for logistics providers and their
partners, said Sherrie Orzechowski,
vice president, business development
at INTTRA. Our alliance with NaviTrans
reflects our commitment to partnering
with leading software providers to
offer their customers access to our
unparalleled ocean shipping products
and network.
For the forwarding companies among our
logistics customers, offering shipment
management services is indeed a

crucial part of their business, said
Stefan Dedrie, managing partner at
NaviTrans and VP of international
business development. Our alliance
with INTTRA however is more than just
a next logic step. It also emphasizes
our
continued
commitment
to
the forwarding industry as one
of the major logistic branches we
focus on.
Unlocking the
Darwinian code
Unlock the Darwinian code of integrated software solutions and accelerate supply chain
profitability to thrive in the oil and gas industry. By Allison McNulty and Nirmala Arifin
eyond
adapting
to
incessantly
fluctuating crude oil markets and general
industry volatility, oil and gas companies
need to manage their businesses even
more scrupulously than ever before.
For example, finding ways to optimize
their supply chains and better manage
feedstock prices. It is critical to respond
quickly to disruptions, capitalize on
trading opportunities, and optimize
inventory, as well as transportation
assets.
In fact, feedstock pricing has never been
more vulnerable. A recent example is
how Brexit, literally miles away from
your gas stations, can swing commodity
prices in a matter of hours. Thus, in the
name of necessity we are taking a leaf
from the world of biology.
Charles Darwin once said, It is not the
strongest species that survive, nor the
most intelligent, but the ones most
responsive to change.
Getting data
12
Across the oil and gas industry,

businesses need to be agile. This can
only be achieved by having all the
business information and data they
need for operational excellence, at their
fingertips. Ironically, only by having a
birds eye view, industry leaders can
achieve the required agility to stay ahead
of the hungry competition.
For this iron clad approach, businesses
need to strive to be the best they can at
what they do. This will give them a buffer
against unforeseen external shocks and
a rock solid foundation to build a strong
relationship with customers through
solid
execution.
A
well-prepared
company is one that customers can
trust. Thus, to gain that sharp, resilient
edge, companies need to deploy the latest

technology to help mitigate the winds
of change. As such, change can either
be a friend to your business or a foe that
whittles away at your precious bottom-line.
In the petroleum supply chain, large
distribution networks operate in a dynamic
environment and require instant, accurate
information to make decisions about
supply, inventory, customer demands, and
scheduling. Without an optimized tool set,
companies can face growing challenges.
For example, they may experience late
deliveries, or worse, petrol stations running
out of product. Conversely, these stations
can also be ordering an excess amount of
product. Trucks can also be left to idle due
to sub-optimal logistics planning.
Largely driven by a reactionary delivery
approach, these insidious challenges
cause oil and gas companies to risk
leaving a significant amount of money
on the table. In some cases, it is caused
by scheduling via static spreadsheets.
Other challenges include hidden costs
from runouts, retains, and higher

transportation costs. Thus, the best
industry practice is not to leave your
business outcome to chance. It is
better to gain control of what works
and know exactly what is going on.
Deploying software
This mandates the need for leading
oil and gas companies to deploy a
leading software solution to manage
secondary supply distribution to retail
stations and successfully manage
different demand patterns by product
in this complex environment.
AspenTechs
industry
leading
proportional replenishment algorithms
functionality, as part of the Aspen Fleet
Optimizer (AFO) software, considers a
wide array of constraints that can be
factored into a robust replenishment
plan. This includes terminal, tank,
truck or cargo constraints, sales
forecast by product and by the day
of the week, as well as seasonal
fluctuations.
To increase the prowess, there is a new

functionality called Map Monitor, which
is designed for dispatchers to provide
an accurate view of the schedule, as it
is being executed. With this interactive,
web-based mapping application, users
can filter groups by date, time period,
product, and geography. It also uses
color coding, which provides the ability
for the user to view which stations
have received their product and which
deliveries are still being transported.
With this approach, agility is increased
by anticipating changes to the supply
chain, for example, tracking an out of
service truck or late delivery. With a
full view of the schedule, dispatchers
can also better anticipate unplanned
runouts. In the event of a runout,
dispatchers can proactively solve the
issue by re-routing a truck. Besides
building a more agile and efficient
petroleum supply chain, the Map
Monitor functionality also has the
advantage of being integrated with the
AFO software and its industry-leading
forecasting technology. These advanced
functionalities offer insights with active
guidance to minimize distribution costs
and to optimize commercial outlet
opportunities, providing insight and
agility to the schedule.
As
an
immediate
proof
point,
AspenTechs customers have reported
[ To gain that sharp, resilient edge, companies need to deploy the latest technology to help mitigate
the winds of change. ]
increased
customer
satisfaction,
improved logistics, and in some cases,
a 60% reduction in unplanned runouts.
More specifically, the implementation
of the Map Monitor functionality
improves performance and increases
user productivity. With an enhanced
usability and visualization tool, users
can decrease or even eliminate repetitive
tasks. As a result, increased efficiency is
achieved.
More arguably, AspenTech is also the

only industry provider to seamlessly
integrate a business from crude
exploration
through
production
(refinery planning and scheduling)
and primary distribution planning
for terminals, through to secondary
distribution. This end-to-end supply
chain integration also helps businesses
make better decisions and to protect
their profits. Organizations can also
realize the most profitable schedule to
meet demands and maximize margins.
With global appeal, the AFO software
literally supports more than 20,000 gas
stations in China for their scheduling
and replenishment needs.
Indeed, the Darwinian code has been

unlocked Integrated software solutions
are an integral part of promoting the
agility required In order to survive - even
thrive - in this dynamic environment.
www.LogAsiamag.com
In this constant battle for profits

worldwide, integrated solutions offer
the required continuous innovation to
help oil and gas companies adapt quickly
to energy price changes and market
fluctuations, resulting in reduce costs
and meet customer demand.
[ In the petroleum supply chain, large distribution networks operate in a dynamic environment and
require instant, accurate information to make decisions about supply, inventory, customer demands,
and scheduling. ]
Allison McNulty is from product

marketing and Nirmala Arifin is
business consulting director, both
from AspenTech.
13
Enhancing last mile

delivery
Enhancing last mile delivery with SMS give companies an edge while showing customers that
companies could go the extra mile for them. By Oliver PrevrhaL
-commerce is a fast-moving game

and major forces are changing the
rules. Forward-thinking retailers are
investing to maximize the potential
of both physical and digital channels.
Global players that once stood on the
sidelines are now poised to compete in
South East Asia. Just recently, Indonesian
department store chain MatahariMal
raised $500 million to develop their
e-commerce venture. Alibaba too, has
invested $249 million in SingPost to
expand their delivery network in SEA.
As the worlds fastest growing internet

region with 260 million users, South
East Asia is fast becoming a unique
e-commerce market. Primed for tough
competition, e-commerce companies are
fast prioritizing customer service as a
way to stand out from their competitors.
Keeping customers at the heart of their
business strategy, and delivering the
best possible value to them is becoming
more important than ever.
14
Today, last-mile delivery has become a

priority for both e-commerce companies
and their customers. Ensuring speedy,
but prompt delivery has been proven
to give companies an edge in the
competitive landscape, while showing
customers that companies could go the
extra mile for them.
In fact, local and regional players have
still emerged as early winners, largely
due to their ability to provide a bettertailored experience for local consumers
than what global competitors usually
offer. For instance, Singapore-based
Lazada built local logistics footprints
in each market to increase delivery
reliability, and added motorbike fleets to
provide speedier options to traditional
truck deliveries.
That said, enhancing last-mile delivery for

consumers in the region comes with its
own set of challenges.
Consumer trust, diversity,

slow infrastructure serve
as roadblocks
Firstly, the lack of consumer trust is one of the
challenges the Southeast Asian e-commerce
market is facing. Consumers today are wary
of making transactions online due to various
security issues such as fraud. According to the
e-conomy SEA report by Google and Temasek
Holdings, 58 percent of citizens in South
East Asia expressed concerns over financial
information being shared online. With
cyber attacks on the horizon, trust between
customers and e-commerce companies have
been shaken and today, assurances must be
given to customers on a consistent basis to
maintain strong relationships.
The region also encompasses a wide
range of ethnicities, languages, consumer
preferences and regulations, coupled

by a politically and economically
complex landscape. With such diversity,
consumers
in
different
markets
have conflicting preferences and
expectations, which means more time
and money must be invested carefully
into business planning to ensure that
this is addressed adequately.
Despite the immensely positive steps
taken
towards
ASEAN
economic
integration, there are still sociopolitical and economic issues that can
put a dampener on overall business
growth of regional delivery companies.
Southeast Asia also lacks a solid regional
payment and logistics infrastructure,
which were the foundation for Chinas
astounding
digital-retail
growth.
Even though larger businesses today
are investing in the development of
delivery infrastructure, they are still

[ In order to manage deliveries in a reliable and robust manner while ensuring customer trust is being built, e-commerce companies are looking at the
option of sending SMS notifications to customers. ]
[ Oliver Prevrhal ]
weak and getting your goods delivered

affordably and efficiently may still be an
issue. As a result, organisations often
find it a challenge to make a scalable
business model work, and to justify the
high levels of initial investment.
The use of SMS to represent

reliability and optimization
In order to manage deliveries in a
reliable and robust manner while
This step is critical for business continuity

as it helps to ensure continued trust
with customers. To best manage their
communication processes when it comes
to delivery, e-commerce companies can
consider working with a messaging
solutions provider to create a reliable
and efficient distribution process and
enhance overall customer experience.
By outsourcing their communication
processes to messaging solutions,
companies can efficiently manage the
large volume of messages they send to
customers and delivery partners, through
Through implementing SMS messaging

services,
delivery
processes
are
more convenient and transparent for
e-commerce companies, their business
partners and customers. SMS services
can not only be used during the
registration process to authenticate
customers account mobile numbers,
but also more importantly, update
recipients on specific parcel delivery
information such as estimated time of
arrival.
By selecting a provider with high quality
of service, reliability, security levels and
transparency, e-commerce companies
can experience increased customer and
partner satisfaction as communication
becomes more efficient with important
messages being sent and delivered in
seconds.
www.LogAsiamag.com
SMS services have been selected over

mobile apps as it is ideally equipped
for
both
application-to-person
(A2P) or machine-to-machine (M2M)
applications. While not a popular choice
of communication between people today,
businesses still leverage SMS because it
is always delivered even when customers
do not have smartphones or data
connection, representing reliability and
consistency.
unlimited scalability and transmission

capacity.
15
Oliver Prevrhal is managing director

of Retarus Asia.
ensuring customer trust is being built,

e-commerce companies are looking at
the option of sending SMS notifications
to customers, and are turning to SMS
services to manage the surge in SMSs.
[ Handling & Storage ]
Automating the retail

therapy
The flexibility of automation is key to handling the Ramadan holiday season rush for the
retail sector, says Koh Seng Teck.
etailers looking to respond to

seasonal demands are turning to
automation to achieve the flexibility
and rapid scalability required. Adding to
the traditional surges in retail demand
in spring, summer and the Christmas
season, another peak dubbed the
Ramadan Rush is boosting sales as
Muslims celebrate the end of the holy
fasting month.
Jewellers, designer outlets and five-star
hotels are used to welcoming wealthy Arab
shoppers at this time of year, but in line
with broader shopping habits, more are
turning to their mobiles and laptops to
make online purchases.
In the Middle East, where Swisslog has
recently expanded its presence, the
e-commerce market is said to be over
US$7billion.
Indonesia, Malaysia and
Singapore too also see a spike in online
sales activity. Like the rest of the world,
mobile is now becoming the key driving
force.
Searches for clothes, consumer electronics

and online entertainment increase by up to
25 percent in the run up to Eid, whilst food
and travel are also understandably popular.
Eid is the festival of the breaking of the
fast, which marks the end of Ramadan.
16
The offline world is feeling the impact

too. Worldpay, one of the worlds leading
independent
payment
processing
companies, reported that in 2015
department stores from London to Bahrain
led the way in Ramadan related sales.
Even leafy Oxfordshire in England saw an
impact, with Bicester Village, a popular
designer outlet destination for tourists,
seeing sales almost triple.
volumes of online orders for delivery on a

real time basis.
the unpredictable demands without hiring

huge numbers of temporary staff.
In addition to scheduled store deliveries

of pallets and cases, retailers must factor
split-case picking, item-level touches
and multi-line item sortation in to their
fulfillment processes to accommodate for
demand fluctuations.
Automation has become more affordable

and productive than ever, and companies
around the globe are leveraging such
technology in their warehouses to improve
the distribution centre work environment.
Scalability is one of automations most
attractive propositions, with systems
capable of fitting into existing buildings
or being designed with future growth
in mind. Automated systems are also
flexible enough to respond to peaks
in demand without putting the whole
system under strain or requiring a huge
influx of temporary workers.
Flexibility of automation
Ramadan falls on the ninth month of

the Islamic lunar calendar, with Muslims
around the world fasting from dawn to
sunset during the period. Its not a fixed
date in the diary, but it can be planned for,
and indeed many retail stores do by listing
tax-free prices, employing multi-lingual
staff and allowing shoppers to pay by card
in their own currency.
Increased volume, holiday deals and

shipping promotions frequently require
retailers to be able to fulfill fluctuating
New technological and ergonomic advances

are helping their online counterparts meet
As a matter of course peak weeks (how

many days?), days within the week (how
many hours?) and even the peak hour on
the peak day, are factored in to the building
designed to work in confines that are

limited or even completely off-limits to
workers.
With the latest automated storage and
retrieval technologies such as AutoStore
in place, operators merely insert bins into
the storage cube via one or more receiving
stations. Robots bring inventory to pickers
for order fulfillment selection and then
replace any remaining material back
into storage. This saves time, increases
productivity and eliminates thousands of
miles of walking for pickers in a typical
fulfillment centre.
[ Human interface with robotic systems present
very little risk compared to the randomness of
such warehouse equipment as the forklift or pallet
truck. ]
of new systems, allowing for the peak hour

design capacity to be defined and tested by
the client.
Human interface with modern robotic
systems also present very little risk
compared to the randomness of such
warehouse equipment as the forklift,
pallet truck and other manually guided
power equipment. Typical fixed-aisle
automated storage and retrieval system
(ASRS) and systems with high-speed
robots for put away and storage are
Automated fulfillment systems leverage

faster robotic technology, data inventory
systems and a re-examined strategy of
how warehouse space is utilized. They
also rethink the sometimes harsh labour
conditions that e-commerce has caused,
and can save workers time and energy. As
e-commerce demand grows, companies need
to consider automated storage and retrieval
technologies especially to accommodate
holiday fulfillment and simultaneously
improve workers quality of life.
Over the coming decades, retailers
are increasingly expected to approach
Ramadan as a lucrative season. Regardless
of whether the Muslim population grows
[ Koh Seng Teck ]
as fast as some predict, levels of wealth

are steadily rising, ecommerce continues
its dominant rise and Ramadans place on
the retail calendar will solidify. In those
circumstances intralogistics operations will
have no choice but to align accordingly.
Koh Seng Teck is head of

Southeast Asia at warehouse and
distribution division of Swisslog.
The areas of collaboration include

enhancing current delivery options for
merchants selling small and light items
and developing financial solutions
such as micro-credit loans and online
payment options for logistics fees.
Both organisations have also expressed
interest to collaborate with cross-border
warehousing solutions, logistics-related
education and training, and seller onboarding in the longer term.
Lazada is committed to deliver a bestin-class online selling experience to our

partners and a comprehensive, reliable
and
competitively
priced
logistics
solution is a key element to achieve this.
We are pleased to partner with China Post
which, with its strong postal network in
Southeast Asia and expertise in postal
services, will be a vital partner as Lazada
attracts more brands and merchants
to bring a wider product assortment to
consumers in the region, said Maximilian
Bittner, CEO of Lazada Group.
becomes the next growth market for

eCommerce, we see an opportunity to
do more for postal deliveries to the
region.
China Posts logistics business has

been growing rapidly with the rise of
the eCommerce industry, said Zhang
Ronglin, VP of China Post. Today, we are
the main postal service provider for crossborder sellers in China. As Southeast Asia
Lazada Group operates Lazada,

Southeast Asias number one online
shopping and selling destination,
with presence in Indonesia, Malaysia,
the Philippines, Singapore, Thailand
and Vietnam.
Through our partnership with Lazada

the leading eCommerce platform
in the region with an established
logistics infrastructure we will
improve our existing cross-border
delivery services, and build a reliable,
end-to-end logistics solution for both
of our customers.
17
hina Post Group, Chinas stateowned postal service provider and

the Lazada Group, the leading online
shopping and selling destination in
Southeast Asia, have signed a strategic
agreement to enhance cross-border
logistics solutions for Chinese sellers
on the Lazada platform.
www.LogAsiamag.com
China Post, Lazada do deal to

enhance cross-border retail
Becoming the
cornerstone On
intralogistics trends
Dr. Christoph Beumer postulates that intralogistics is a cornerstone of the
global economy.
ntralogistics is a cornerstone of the

global economy. For companies it is
no longer a necessary evil; it is crucial
for gaining a competitive edge and
creating added value. Moreover, it
opens the way to new business models,
such as e-commerce and customization
of products and services. Weve all
discovered how convenient it is to order
goods via the Internet. Online shops are
open all the time and customers can
shop anywhere and at any time from a
computer, tablet or smartphone. If they
dont like what theyve bought, they just
send it back.
18
On new challenges
The demand for reliable, flexible delivery
is steadily growing. In online retailing
same-day delivery has almost become
standard, especially with groceries.
Customers expect to get what they
ordered right away, whether its frozen
pizza, strawberry ice cream or lettuce.
This trend is accompanied by an
atomization of orders. Businesses and
private individuals have no notion of the
effort involved when they order a product
and then a second one a few minutes
later and expect the two to be combined
in a single delivery oh yes, and when the
package comes to the house, please ring

only once. The increasing flow of goods
in e-commerce, along with the problem
of handling returns, has led to greater
connectivity, automation and system
integration. For me, these are the key
areas that are providing solutions.
Supply chains nowadays are organized and
interconnected from end to end from the
source of raw materials to the consumers
door and continuing on to returns, disposal
and recycling. The driving forces are the
expectations of consumers and industrial
customers. For consumers, what counts
The theme was a very good choice. It calls

attention to the fact that future processes
in logistics will be automated and
interconnected. Increasing digitization
will bring about fundamental changes in
value chains, and entirely new business
models will emerge. The adoption of
digital technology and the associated
changes in peoples thinking will create
new challenges not only for logistics
companies, but also for service providers
of all kinds. For them, success in the future
will depend even more on the capabilities
of their logistics centers.
[ Dr Beumer said that supply chains nowadays
are organized and interconnected from end to
end from the source of raw materials to the
consumers door and continuing on to returns,
disposal and recycling. ]
is the benefit they expect from products

and services. Products and services must
be tailored to their individual interests and
needs. For industrial customers, whose
main concern is high productivity, efficient
production processes are paramount.
Here reliable, cost-effective logistics is
indispensable. But the new emphasis
on individuality has set the bar so high
for logistics that stackers and high-bay
warehouses by themselves are no longer
sufficient. Technical solutions at the
starting points and connection points,
in other words value-added services, are
becoming increasingly important, plus
software control.
On flexibility in supply
chains
It is critical. Globalization is bringing
about lasting changes in markets and the
economy. The economy is becoming more
international, but also more regional.
On the one hand, customers in Europe
configure their laptops on the web and
have them assembled in Texas, while their
summer clothes are sewn in Vietnam.
And they want to receive these products
at the front door within 48 hours. On
the other hand, they want to buy locally
grown organic food. The same is true for
businesses. They order products on the
global market, but they still want to have
Intralogistics
and
digitization
are
inseparably linked. Industry 4.0 is already
a reality, as is the internet of things,
which in many areas has become part
of everyday life. The opportunities are
enormous because were talking about
highly
scalable
systems.
Intelligent
solutions are already available, but the
possibilities of this technology are by
no means exhausted. For example,
increasing numbers of logistics companies
and warehouse operators are opting for
autonomous in-house transport systems
that select their own routes, and for
warehouses that detect empty stocks in
real time and fill them.
On driverless transport
system
There is a clear trend on companies using
driverless transport systems for some
time now. The trend is away from heavy,
inflexible handling equipment to small,
multifunctional vehicles. The latter are
much more versatile when it comes to inhouse transport and warehouse operations.
The vehicles independently agree on which
of them should do which job and what
routes to take.
I see a direct correlation here with the
growing trend towards small load carriers
and goods packed in cartons. These are
being used more and more as a result of
e-commerce and atomization. In addition,
lean concepts are becoming more
important in assembly, in combination with
smaller inventories and order quantities.
radical
On what to be done to cope

with these changes
We must plan processes with the future in
mind and devise safe and reliable technical
systems. This will mean more and more
processors, user controls, software
and control units. All of these elements
must be integrated into a harmonious,
ergonomic, efficient and user-friendly
system that is able to handle the gigantic
quantities of data. The complexity of
logistics makes IT indispensable; it is the
only means of intelligently controlling the
flow of goods.
undergoing
We will need smart solutions for the

supply chain. The performance of IT
systems and components will have to be
continuously improved. This applies to
more than storage and distribution; it
extends to areas such as manufacturing
and
the
supplying
of
assembly
workstations, and it also includes the
consumer. In all parts of the supply chain
value creation and profitability will thus
increase. There will also be benefits for
mechanical and systems engineering.
In many companies software already
accounts for half of the new solutions
being developed, or even more.
On what it means for

a manufacturer of
equipment and systems for
intralogistics
Nowadays, unless we decide to alter
machinery and equipment, we can often
only achieve increases in performance
and efficiency by creating better
software. This opens up an exciting area
of activity for us, one with great benefits
for our customers. We have grown from
being a component supplier to become a
system integrator. We equip our systems
with intelligent software and control units
from the very start.
This is a big advantage for users. Their
processes are more flexible, and they are
efficient even with a batch size of one. With
a comprehensive database our customers
can optimize their processes from start
to finish and achieve significant savings
thanks to greater transparency.
www.LogAsiamag.com
On the theme of CeMAT

2016: Smart Supply Chain
Solutions
Intralogistics is
transformation.
19
Dr. Christoph Beumer is the
chairman and CEO of the
BEUMER Group.
their specialized suppliers in the vicinity.

All companies, large and small, must adjust
to these new patterns of procurement,
production and sales. This is leading to farreaching changes in the supply chain and
it will require enormous flexibility. Without
efficient intralogistics none of this will be
possible.
Going gold for cold chain

Lee Kok Leong interviews Benson Teo, senior director of sales for Pelican BioThermal Asia.
t the forefront of the Asia operations

is Benson Teo, who is based in Singapore.
Teo works with global accounts, drives
news businesses, manages and supports
partner relationships while working closely
with the services and operations team
to help establish and drive the services
strategy for Asia..
You could ask why do we need cold chain

regulations, need temperature controlled
packing procedures for this kind of supply
chain? It is because of patient safety and
the market demand for higher standards.
We all want a proper label on the product
we consume and this is especially so when
it comes to medication and healthcare.
What is your view of the Asian economy

in general?
The Asian economy is consolidating for
the next wave. The stakeholders realized
the need to collaborate and leverage on
each others comparative advantage.
Trade blocs are realigning with the larger
economies of America, Europe and Africa
and barriers to trade are collapsing with
the flurry of Free Trade Agreements (FTAs).
Within the cold chain segment everything is

pointing to the fact that its a growth area for
logistics and also a very profitable area for
logistics, for 3PLs and also for the airlines.
The Asian economy is going in the right

direction because Asia was really picking
up its global economy and starting to trade
well and there was something of a boom.
If you look at China, over a good three to
five years there was a super growth and
suddenly there was a slump.
China is now working very closely with

other counterparts in Asia and in the
smaller countries. The trade blocs have
realigned themselves with China and China
has also become very inclusive in her
strategies with her partners. All things are
going very, very well for the economy as
a whole because when you come to terms
with whats right for everybody going
forward in the area, it is a good thing.
20
This leads to lots of engagement and

dialogue and communication, which is
very good at bringing down barriers for
trade between different countries.
[ Benson Teo ]
of goods, cold chain logistics and in

particular qualified temperature controlled
packaging, things can only go north.
The global market for cold chain packaging
services for the healthcare industry is set
to grow from US$3.6 billion to US$6.1
billion between 2015 and 2021 (an
average of 9.2 percent per year), according
to estimates of the International Market
Analysis Research and Consulting Group
(IMARC Group).
We have great confidence in the region and
our latest expansions are just the start.
Singapore is our first development but
we will roll out and expand to the other
countries like China and Japan and more
countries will follow.
Healthcare grows with the state of the
economy and the size of your wallet - if you
are poor you cant really talk about healthcare.
Whatever the country, and no matter how big

they are, they need to be a part of the region
and support the region. It is about setting
aside any differences to move forward
together because they are so intertwined
and can really excel in this game.
However with the growth of the middle

classes, especially in China where you
have 400 million people in the middle
classes living out of a population of over
a billion, you are looking at group of
people who are very concerned with the
standard of living and how to excel in their
health. Consequently you can imagine the
demands on healthcare.
What about the cold chain logistics

market segment?
With a burgeoning and educated middle
class across Asia, freer movement
That is where the need for cold chain

logistics comes in. With cold chain logistics
we are talking about taking care of special
products in this vital supply chain.
What are the challenges faced by this

segment?
We are seeing more investment in Asia to
support this growing sector. We are also
seeing challenges relating to capacity
being driven by the revelations of EU
Good Distribution Practice (GDP) and these
regulations are very complex in different
countries.
Challenges that need to be addressed can
include how to increase capacity for cold
chain handling at an airport or how to
ensure correct and compliant cold chain
handling at a 3PL; coupled with how to cater
for additional cold chain requirements for
equipment at a distributors level.
All these additions need to be addressed
to ensure capacity not just looking at
space utilized but also equipment.
That could include ensuring refrigerating or
cooling elements are put in place especially
in a place like Asia where temperatures can
go very, very high in many places. Human
resource goes hand in hand with these
challenges facing the industry.
You can have infrastructure however whats
also essential is having the appropriate
knowledge in place. That is a big challenge
for cold chain logistics. It would be a
positive move to see more programs that
focus on teaching this specialty within
the educational system due to its growing
importance in Asia.
Take graduates today how do you align
them with the new demands of cold chain?
Consequently what we are seeing are a
The other aspect to address is the need for

good quality control/quality management
personnel - these are the challenges when
it comes to human resource segment.
These, I feel, are the challenges because
if you are not talking to the right people
to support the cold chain industry you are
barking up the wrong tree and this will be
a big issue and compliance will be a huge
upward task for many companies.
If they dont have access to homegrown talent
they need to attract them from elsewhere
and what we are seeing are professionals
who will move across geographies because
of opportunities like this.
How do you overcome these challenges?
We use internal tools to tackle these
challenges. The way to overcome a
challenge is first to know there is one and
this would at first be picked up through
diagnostic selling. If we do not know what
we do not know then it is very difficult to
solve a problem.
Then there is cold chain logistics
optimization which is something we do
when consulting with our customers.
We dig deep to get an insight into their
operations and seek out areas where we
can optimize their cold chain logistics.
Whether that is exploring more efficient
uses of their systems, their transportation
modes or storage space it is a tool we use
quite often within our company and it is
beneficial to our clients.
Total cost of ownership this includes
looking at various aspects, having certain
packaging solutions set within the budget
structure its not just a box, a space
and volume for transportation. Its about
efficiency and performance it needs to be
looked at as a whole to make it easier to
understand the total cost of ownership and
indeed the financial repercussions of not
having the effective temperature controlled

packaging in place.
this strategy with the strength of your

partners and utilize each others strengths.
What is your opinion on the outlook for

the next two years?
Trends such as growing globalization
in clinical research and pharmaceuticals
manufacturing, rising demand for ever
more complex, frequently bio-based,
temperature-sensitive medications, and ever
more stringent product safety requirements
like GDP are playing a role in this context.
Describe the solutions offered by Pelican

BioThermal.
Pelican BioThermal is dedicated to
supporting the safe transport of critical,
high
value
temperature-controlled
materials globally for its pharmaceutical,
diagnostics, clinical trial/vaccines, blood/
tissue and military/government customers.
The outlook is great and we are very

optimistic of the market because more and
more customers are waking up to the rigors
of EU-GDP regulations compliance. A lot of
traditional distributors are looking at cold
chain logistics seriously. In the past many
of them were trying to get by using waterbased solutions and now they are willing
to have a fresh look at where they sit with
packaging.
They are now dealing with packaging as
an asset, an essential item, which is a very
exciting trend for us because packaging is
an asset, it is a responsible item thats
really a game changer.
A concrete example of this trend in the
industry is our partnership with Zuellig
Pharma where a century-old distributor
is changing their packaging for their Big
Pharma customers.
What is your strategy for growing the
business in Asia?
There is a Chinese saying
; one depends on parents at home but
friends are the ones to count on for support
outside of home. Thus the game plan
is to cultivate a comprehensive network
consisting of customers, distributors and
service partners.
In Asia its about who you know, its about
building relationships. Its also about
strategy. If you did everything yourself,
such as setting up on your own and setting
up your own distribution network, that
would be very expensive. Rather it is about
working with partners, you can achieve
growth faster that way, you can leverage
Pelican BioThermal produces thermalcontrolled

packaging
solutions
to
support a full range of sizes (from 2-96
Liter
payloads),
temperature
ranges
and distribution durations including the
reusable Credo Cube product line, the
single-use Sherpa and high-end Chronos
Advance, and the CoolPall Vertos bulk
shipper. Pelican BioThermal offers the
broadest range of temperature-controlled
asset management services available in
the life sciences industry and is expanding
globally to support its customers around
the world. In addition, Pelican BioThermals
Crdo ProEnvision Suite software solutions
provide a robust reverse logistics support
system designed to provide comprehensive
asset accountability and assists in
maximizing return on investment.
As the only Asian in the leadership team,
how do you achieve this?
This is really a non-issue at Pelican
BioThermal as we have an experienced
team who is exposed to the dynamics
of a global market. Communication and
flexibility are two essential ingredients,
which have always worked well.
As a company we have been in Asia for
some time and we engage regularly with
global customers and are exposed to
different demographics and cultures and
the key is communication and flexibility.
We understand this and you do what you
need to satisfy your customers. Take a
region like Asia where we need to project our
growth flexibility and nowhere is the center
of the world so to speak. We are a truly
global company so it stands to reason that
the leadership team should reflect that.
www.LogAsiamag.com
This is all linked because if you want to plan

an economy according to these industries
and comply with GDP guidelines, you need
to have standards set in schools to produce
the right talents to meet the market labor
demand.
[ Pelican BioThermal is dedicated to supporting the safe transport of critical, high value temperaturecontrolled materials globally. ]
21
lot of pharmacists being employed by the

3PLs. This is being driven by fact that 3PLs
are having more and more responsibility
in terms of the management of medicines
and drugs and this can only be done by
pharmacists and how many pharmacists
are we turning out from the universities.
This is one of the challenges being faced
as pharmacists are traditionally used in
the healthcare sector and now they are
increasingly in demand within the 3PL
segment.
[ STRATEGY & BUSINESS ]
Life-long training for

career longevity
Training of supply chain professionals ever more important in todays competitive
world, says Patrick Tan.
s the year winds down, it is always

helpful to look back, review and continue
to refine business strategies. On the whole,
2016 has been challenging, highlighted by
the South China Sea arbitration, Brexit, and
prolonged ISIS problem, among others.
Despite a gloomy outlook, companies
in the logistics and transportation (T&L)
sector are realising that uncertainty itself
cannot be a reason for mothballing growth
plans. They must seek new strategies in
their globalization drive and be ahead
of competition. This article will discuss
some of the industry challenges and bring
attention to the need for training supply
chain professionals.
october-december 2016
Rise in M&A activities
22
A notable trend being seen in the T&L

sector is an increase in mergers and
acquisitions (M&A) in recent years.
According to a report by PwC, there were
over 50 global transportation and logistics
M&A deals announced in Q2 2016 the
third highest quarter by aggregate value
of the last three years. Mega-deals in the
first half of the year include the purchase
of Toll by Japan Post, TNT by FedEx, and
APL by CMA CGM.
As with any merger, companies have to
integrate resources and familiarise their
personnel with the new system, process
and culture. To be able to do this, training
must be provided to the staff. The quicker
the integration is completed, the sooner

the intended benefits of the M&A will be
realized.
Staff turnover and

re-deployment
When businesses are down, companies
often resort to downsizing manpower
and operations. To reduce the cost
of
re-employment
when
business
picks up later on, many companies
are now choosing job rotation or reassignment for their employees over
layoffs. Regardless whether a company
chooses to retain existing employees or
hire new ones, the need for training is
unavoidable.
Quick deployment and

quality alignment
Logistics companies also become more
agile in dealing with overseas investments
and have a lower appetite for risk during
times of economic slowdown. They also
move toward lighter, mobile assets and
Web-based solutions for managing the
warehouse and freight. These factors
further emphasize the need for training
employees with a new set of skills and
knowledge that allow them to be readily
deployable.
Inevitably, pressure falls on logistics
trainers to make their training materials
and methods up-to-date, effective and
readily accessible. Trainers must ensure
that the personnel are equipped with

the right skills which are up to company
standards and must do so in a short
timeframe.
Singapore workforce
In Singapore, the topic of increasing
workforce productivity has received so
much attention that the government,
under the Ministry of Manpower, created
the Workforce Development Agency (WDA)
to focus on the employability of its citizens
through training and skills upgrading.
A national credentialing system called
Workforce Skills Qualifications (WSQ)
was also set up to train, develop, assess
and recognise individuals for the key
competencies that companies look for in
potential employees.
On a separate but related topic, adult
learning (andragogy) is getting traction in
recent years. Many countries are extending
retirement ages and encouraging mothers
and retirees back to the workforce. With
Singapores population bringing about an
ageing workforce, this scenario is only
going to become more mainstream.
Singapores Supply Chain and Logistics
Academy (SCALA) has set up initiatives
and develop The Logistics Professsional
Conversion Programme. Launched in
June, this is a Place and Train programme
to equip trainees with practical logistics
and supply chain skills. This support the
Learning management system

Training logistics professionals has come
a long way. There are even learning
management
systems
(LMS)
readily
available as a third-party platform
(e.g.
www.academy-world.com)
that
companies can deploy as part of their inhouse application systems in addition
to traditional warehouse management
system, freight management system,
etc. LMS is highly affordable but should
not be undermined in any way. It is
an effective and responsive way for
trainers to deliver and manage their
learning materials, as well as monitor
participation and assess performance
among trainees/employees.
[ STRATEGY & BUSINESS ]
development of manpower and talent needs from other

unrelated industry into the logistics sector.
Parting
thought:
Workers
are
essentially assets to a company and
should therefore be treated as human
capital. The more that is invested in
them, the more that can be expected
from them in terms of performance,
which can give the company its competitive
edge.
[ Workers are essentially assets to a company and should therefore be

treated as human capital. ]
Patrick Tan is the lead consultant and group IT and

innovation director for Pacific Integrated Logistics
Pte Ltd (PIL).
HL and the United Nations

Development
Programme
(UNDP)
once again conducted their joint
preventative training, known as Get
Airports Ready for Disaster (GARD),
at Balis Ngurah Rai International
Airport, Lombok International Airport
and Selaparang Airport in Lombok.
Indonesia was the pilot country when
the program was implemented globally
in 2009 in Makassar and Palu.
Indonesia is located on the Pacific
Ring of Fire where several continental
plates collide. As a result, the chain
of islands is at frequent risk of
earthquakes, tsunamis and active
volcanoes. Additionally, Bali and
Lombok are categorized as high risk
areas in the Indonesian Disaster Risk
Index (2013). Airports in both provinces

experienced operations shutdown due
to volcanic eruptions from nearby Mount
Rinjani.
volumes of passengers and cargo and

warehousing relief supplies. Locationspecific disaster plans are drawn up as
well.
The multi-day workshop involves over 50

participants including representatives
from the airport operating company,
aviation safety experts, national and
regional Disaster Management Planning
Agencies,
Indonesian
Red
Cross,
immigration authorities, the military and
the police force who will be trained
to handle the high volume of incoming
relief goods and increasing number
of passengers during the aftermath of
natural disasters.
Since 2009, GARD trainings have been

held in eight airports in Indonesia,
namely Sultan Hassanuddin Airport in
Makassar (2009), Mutiara Airport in
Palu (2009), Ngurah Rai Airport (old
airport) in Denpasar (2011), El Tari
Airport in Kupang (2011), Polonia
Airport in Medan (2012), Sultan
Iskandarsyah Airport in Banda Aceh
(2012), Fatmawati Airport in Bengkulu
(2012) and Minangkabau Airport in
Padang (2013).
The training includes evaluation of the

airports capacities for processing high
23
www.LogAsiamag.com
DHL, UN hold airport disaster

preparedness training
[ MODES & SERVICES ]
Collaborative supply
chain management
One of the biggest areas to improve efficiency, also one which is often overlooked, is an
organizations supply chain, says Elaine Low.
usinesses across the world today

are in a state of constant change. In an
attempt to increase their competitiveness,
organizations are looking at various ways
to improve company-wide efficiency. One
of the biggest areas for improvements
is also one which is often overlooked
an organizations supply chain. The
intricacies of the logistics function require
specialized attention because the ability
to manage it well will yield benefits not
only in their overall supply chain but
also in their business performance due
to the increased efficiency, improved
time-to-market and improved customer
satisfaction.
24
The challenges of connecting various

global or regional suppliers, codifying
the weight and quantity of hundreds
or thousands of small and large parts
for
shipment,
understanding
any
opportunities
for
consolidation
in
various geographies, meeting seasonal
demands, managing unpredictability due
to weather conditions -- these are among
the challenges that some organizations
prefer to outsource to a dedicated third
party logistics provider (3PL). By doing
so, they can focus on their core business
rather than worry about warehousing
space or transportation of their goods.
Outsourcing is a lot more commonplace
in Europe and in the US than in Asia.
Yet Asia is undeniably the region with
an exciting growth potential and which
plays an increasingly influential role
in the global economy. It is therefore
a market that businesses want to
succeed in.
Increasing urbanization is leading to
increased consumer consumption power
in the rising middle classes of Asia.
According to a report by DBS, Imagining
Asia 2020, Asia Pacifics middle class
will make up 54 percent of the worlds
share of the middle class income group
by 2020. Furthermore, Asia Pacific is
expected to play a similar part in the

burgeoning growth of e-commerce around
the world. From 2015-2019, Asia Pacific is
forecasted to grow at a compounded rate
of 24 percent from a market valued at 66
billion (US$72.5 billion) today, according
to
Transport
Intelligences
Global
E-Commerce report, 2016. These figures
point to increased demand in activity for
e-tailing and warehousing services.
The role of the 3PLs will continue to evolve
as supply chain complexity increases.
The relationship that shippers can have
with their 3PLs goes beyond individual
transactions. 3PLs like CEVA, with a
portfolio of end to end supply chain
capabilities, can play a more important
role because they become a supply chain
orchestrator for their customers, and look
to grow their relationship with the shipper
as a strategic supply chain partner. Rather
than merely delivering tactical logistics
services efficiently, the right 3PL provider
will be able to provide much greater value
that helps to transform the customers
supply chain to be more competitive.
So how do companies do this and
should they look at transforming their
supply chain? How do they design

or reengineer their complex supply
chain - building on what they already
have and what theyre already doing
well, while implementing changes to
areas that need improvements? This
article discusses the approach CEVA
has taken with a number of customers
we work with in South East Asia, and
the tangible results seen across their
supply chain as well as their business
performance.
Science of simplifying
Have you heard the phrase, the
simplest solution is often the best?
Well, thats exactly what logistics is
about simplify and applying common
sense solutions to complex problems.
It doesnt matter whether you are a
fashion business or an industrial parts
manufacturer, thousands of businesses
have been able to transform their
entire organization by making simple
changes to their supply chain.
Take for example one of the worlds bestknown brands in home and personal care,
a CEVA customer in Malaysia, whom we
have worked with for the past 15 years.
How do we actualize the CEVA Way?

More than just promising excellent
operational execution, we strive to
create a collaborative culture where the
best benefits come when the customer
works together with CEVA for a better
performing supply chain. When we are
able to develop a customer relationship
based on a value-driven collaboration,
dramatic results are achieved in a more
sustainable way. That collaboration
involves change.
Instead of managing over 10 warehouses

in and around Malaysia, with another one
in Singapore, CEVA was able to consolidate
the warehouses into one central national
distribution center (DC) in Shah Alam, with
cross dock operations in Singapore, and
provide cross border transportation from
Bangkok to Shah Alam for their inbound
goods. The central DC in Shah Alam
occupies a 150,000 sq ft warehouse space,
acting as both the regional and national DC
in Malaysia. In the process of redesigning
the warehouse and distribution network,
CEVA also consolidated the number
of transport providers required to
simplify and increase their efficiency
in transportation. In addition, CEVA
introduced our warehousing management
system, Matrix WMS, to interface with the
customers existing IT system and provide
better control and visibility over their
entire operation.
Having a birds eye view of their needs,
and on-the-ground expertise to execute
solutions to those needs, allowed our
customer to achieve significant cost
savings in the long term: dispatch time
improvements jumped from 50 percent
to 98 percent; lead times were shortened
for imported stocks from Thailand to
Malaysia; and their next day order delivery
increased from less than 60 percent to
over 99.5 percent.
This tailored solution is based on CEVAs
global best practices and standardized
processes. The result of simplifying the
warehousing and distribution has been all
the pieces of the complex puzzle working
seamlessly for the customers South East
Asia operations. At the end of the day,
the customer is able to deliver to its high
standards, all the while reducing premium
transportation and warehousing costs for
the company.
Art of supply chain - the

CEVA Way
In the example above, we were able to
make a deep and positive impact on the
FMCG customers supply chain because
CEVA was given the opportunity to shape
it for optimal performance. We call it
A willingness to change that is embedded

within the organizational culture is
extremely important for success, as is
an understanding of the current business
successes and desired outcomes of the
project. However, from our experience
the most crucial aspect is progressive
leadership.
By analyzing industry trends, and from
the work weve undertaken, it is evident
that companies who lead in supply
chain performance display distinct
characteristics when compared to the
average performers. While those who are
considered best in class are focused
on the strategic management of the
supply chain, average performers are
focused on tactical elements of their
logistics activities. For instance, a rigid
focus on individual rates, as opposed
to the total delivered cost, can lead to
inefficiencies in the supply chain and
fragmented processes with incremental
improvement.
In the context of todays global slowdown
and
increasing
financial
pressures,
there is an even greater urgency for
senior leadership to be more engaged in
evaluating the health of their supply chain
and its management. Global supply chains
are extremely complex, so any attempt at
change or innovation must be successful
from the start.
Room for change

An example of such engagement is with a
leading global blue chip company in the
industrial sector. A technology-driven
company with innovative products, CEVA
has worked with this industrial customer
for at least 3 decades globally, but started
in South East Asia nearly eight years ago.
Today we manage their freight as well
as warehousing and distribution across
Singapore, Malaysia and Indonesia.
Using best practices from the consumer

and retail sector, CEVA designed a logistics
solution that kept efficiency paramount,
while ensuring that affordability was at
the core of every element of operations.
Over time, the step changes that CEVA

has embarked on with the customer
have demonstrated that the key to
this success is the close engagement
between the two senior leadership
teams to collaborate effectively so as to
improve business performance through
supply chain improvements. As they
move from fragmented, country-driven
solutions to a synchronized regional
network, CEVA has worked alongside
the customer to ensure that their supply
chain keeps pace with the changes
across their business.
Whether it is consolidation of their regional
DC in Singapore, inventory management
in each of their warehouse operations
in Singapore, Malaysia and Indonesia or
distribution and order fulfilment, CEVA has
been able to roll out a standard operating
model one way of working across three
countries with significant effect. The
result of this is a satisfied customer who
is given a holistic view of what is going on
in their supply chain in South East Asia.
Better visibility, consistent reporting and
measurement of their supply chain in a
standardized manner provides them with
the ability to tune in with their customers,
react quickly to market changes, all with
a leaner and more efficient organization.
A significant area of improvement is
the reduction of total cost per carton,
in the region of 30 percent and a
reduction of cost per carton in all three
countries. Use of a common metric for
all operations allowed the customer to
track progress irrespective of the volume
in the individual countries. The reduction
was made possible by leveraging cross
site experience and expertise, reducing
waste and streamlining and consolidating
processes for maximum impact.
The bottomline
By utilizing supply chain management
and logistics as an area of improvement,
businesses from all sectors are reaping
the benefits of change from increased
cost savings and a streamlined time-tomarket operating structure to a more
cohesive and flexible business model.
Understanding that your business requires
change is the first, and often hardest,
step in the process which will eventually
lead to a stronger business. Remember,
improvement is out there for those who
choose to seek it and in most cases, its
often the simplest solution that is the best.
Looking at supply chain the CEVA way
enables us to have a transformational
impact on a customers supply chain. This
is by no means a total reliance on global
standardization without local context.
www.LogAsiamag.com
the CEVA Way, an approach which

identifies and deploys global standard
processes based on the best practices
in the industry while executing from the
customers perspective in order to meet
local market needs and local-specific
requirements.
25
The FMCG customer was able to revamp its

warehouse management and distribution in
Malaysia and benefitted from consolidation
and simplification of its warehousing and
logistics processes through CEVAs solution
for its total supply chain management from
factory to their customer.
Ultimately, it is the customer that matters.

Customer
needs
and
requirements
differ market to market, geography by
geography, and even companies with a
big global brand need to tailor for specific
markets. The secret to achieving the

equilibrium is the ability to combine the
best of global processes and standards
with strong local knowledge to deliver the
flexibility to cope with market differences
[ Elaine Low ]
without losing the benefits of global

standardisation.
This kind of value-driven collaboration
lies in the strength of the collaborativeness between the customer and their 3PL
provider to enable their supply chain to
respond quickly, compete against other
supply chains and ultimately to impact
their bottomline.
Elaine Low is executive vice

president, South East Asia, at
CEVA Logistics.
[ The role of the 3PLs will continue to evolve as supply chain complexity increases. ]
DB Schenker receives halal

accreditation in Malaysia
26
chenker
Logistics
(Malaysia)s
Kuala Lumpur Logistics Centre 9
(KLC9) warehouse located in Puncak
Alam, U10 Shah Alam is accredited
for halal logistics operations under
the
international
halal
standard
for logistics IHIAS 0100:2010. The
accreditation covers both storage and
transportation.
The certificate was presented by IHI
Alliance Executive Director Hj Rafek
Saleh to Schenker Malaysia Logistics
Director Claus Kuhnert.
According to Kuhnert, this recognition is

timely as halal supply chain management is
an emerging requirement for FMCG brands.
It is a new milestone for DB Schenker to be
the first accredited multinational third party
logistics service provider to receive this
international halal logistics recognition.
this as an opportunity to become one

of the first fully certified international
logistics service provider in Asia. We
are gearing towards full compliance
to serve the halal industry as the
innovative integrated logistics service
provider of choice.
He further added Schenker Malaysia

understands the importance of a halal
value chain, and an unbroken halal supply
chain for big brand owners serving Muslim
markets in Southeast Asia. We feel that
this need is not well served by the logistics
industry and we at Schenker Malaysia see
DB Schenker expects the halal logistics

solutions offered by the company will
allow their clients to achieve a total
halal supply chains for food, cosmetics
and pharmaceutical companies, and
strengthening its position in the FMCG
business.
Taking on risk
Reg Kenney on how effective supply chain management affect a companys risk
management strategy and reputation.
Central to helping manage these risks is

a business supply chain. Although there
are a number of functions that must play
a role in the development of a companys
risk management strategy, a successful
approach will always be supported by
an effective, resilient and well-managed
supply chain. Research from the World
Economic Forum indicates that supply

chain disruption can affect not only
profitability but confidence in the
company: large scale disruption to
the supply chain is likely to impact a
companys share price by seven percent
on average.
Getting ready to face

disruption
For many large-scale E&M businesses,
the supply chain plays a central role
throughout operations. It must be
protected, and each company should
also prepare for the external factors
that could negatively impact the supply
chain. The current design paradigm of a
www.LogAsiamag.com
Globally, the political landscape poses

significant challenges to the smooth
running of large-scale businesses. Civil
unrest is a major risk in over 30 percent of
all countries and even outside of the Middle

East, incidents of terrorism have risen by 59
percent compared to the first half of 2015.
In an increasingly digital age, cyber risk is
also on the rise. Data breaches and hacker
attacks are not uncommon and investment
in cyber security is a new priority for
businesses.
27
odays often unstable geopolitical

landscape external volatilities - including
natural disasters, political unrest and
economic turmoil - can have a potentially
devastating impact on a business
operations.
Natural
disasters,
for
example, frequently disrupt engineering
and manufacturing (E&M) companies
supply chains and in vulnerable regions
such as Southeast Asia and Sub-Saharan
Africa, such incidences have caused major
economic losses.
DHL and Schmitz Cargobull

DHL worked with Schmitz and Cargobull to improve its supply
chain visibility and protect on-time delivery. Following a period
of rapid expansion, Schmitz Cargobull needed better supply
chain visibility, right down to component level a challenge
in a sub-sector of extremely short lead times. The sector also
features high demand volatility, and trailer customers can
typically change their order right up to the point of production.
The manufacturer also wanted a detailed global view of daily
events that might impact production. Its supplier base is in
19 countries, inputting to eight production facilities, and
there are drop-off points for finished trailers in 25 countries.
Supply chain visualization was essential for a comprehensive
disruption management system.
The DHL Resilience360 team provided Schmitz Cargobull with
an interactive, multi-tiered global map of its end-to end supply
chain. Search and filter capabilities allow executives to monitor
products, parts, and materials. The platform enables Schmitz
Cargobull to react to incidents before they become problems.

Emergency shipments can now be planned, so business never
falters and orders remain on time. DHL has also created more
than ten new solution features to meet Schmitz Cargobulls
specific needs, including a customized view that connects
sites and products according to the customers organizational
structure.
As a result of this, Schmitz Cargobull has achieved end-toend supply chain visibility at production component level
with a significantly lowered manpower investment and
proactive alerting has enhanced its capability to fulfill delivery
promises. Resilience360 has also enabled improved efficiency
by monitoring first tier and protecting second-tier suppliers.
Schmitz Cargobull also benefits from improved demand
forecasting at supplier materials level, while visualization helps
to reduce logistics costs.
longer, leaner supply chain could prove to

be a burden in the future. Therefore, from
the planning stage of any project, it is
important to assess risks and prepare for
them by implementing contingency plans.
Equally important is the insistence that
suppliers have appropriate contingency
plans in place. Increasing supply chain
visibility is a core element of this
visibility makes it easier to understand
where products are, how shipments could
be disrupted, and what must be done to
mitigate for this.
Predicting supply chain risks

Supply chain risk management works best
when companies have the earliest possible
notice of potentially disruptive incidents.
Data analysis is a key element. By analyzing
past data, E&M businesses can develop
a better understanding of what risks
they might face at any given time, and
ensure they are protected in the future.
Communication across business functions
means that data can be centralized
and analyzed most effectively, helping
companies to predict risk. Collaboration
across business functions should always
be encouraged. E&M companies should
run simulations on their supply chain
processes as well so they can identify
28
[ Reg Kenney ]
[ Although there are a number of functions that must play a role in the development of a companys
risk management strategy, a successful approach will always be supported by an effective, resilient and
well-managed supply chain. ]
pressure points and predict how these

might have an impact in future.
Managing a crisis
Despite a companys best efforts,
sometimes it is inevitable that disruption
will impact the supply chain. What is
important now is that businesses put their
planning into action. Employees need
to react quickly but carefully, and the
business must communicate clearly both
internally and externally with its partners.
If the business has prepared well and
used robust data to predict the potential
of risks in the supply chain, overall impact
on operations will likely be reduced.
Ultimately,
completely
businesses
will
never
avoid disruption but if
they prepare they can potentially reap

rewards. Companies that get supply
chain risk management right have a
strong foundation on which to develop
their overall risk management strategy.
With it, they can often gain advantage
by filling the gaps left by their lessagile competitors. By investing in more
resilient supply chains, E&M businesses
will not only reduce the impact of
disruptive events, they will also have
the potential to boost overall business
performance.
Reg Kenney is president of

engineering and manufacturing
at DHL.
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of Asia Food & Beverage Manufacturing
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ISSN 2010-4235 MCI (P) 094/05/2016 PPS1672/01/2013 (022917)

Cold chain logistics

Lee Kok Leong

It has already happened in Europe and the United States and it is

Cover credits: Infor

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Marketing & Circulation manager

[ SALES & AD ADMIN ]

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CONTINEO MEDIA PTE LTD

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