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Asian Companies who improve performance through improving supply chain

1. Sinopharm

Sinopharm group is Chinas largest and pharmaceutical group and also one of the top supply chain services provider in the country. Its business network covers 30 provinces, municipalities and autonomous regions.

In 20-Sep-11, the group announced its investment of 200 million Yuen into its Hunan distribution center, which had opened earlier in May-11. It has implemented a warehouse management system (WMS), launched by Manhattan Associates to improve and streamline its operations. With the launch, Sinopharm is now able to categorize their products and manage storage requirements to meet different manufacturers needs and this has helped improve order picking and also optimized operating flow. It is also able to manage the movement of goods in a more efficient manner through better inventory visibility and better access to comprehensive supply chain data.

Sinopharm has also benefited from the software tracking and traceability capabilities of the WMS system. This will enable the distributor to assist the government departments it currently works in regulating the pharmaceutical industry by assuring safe drug use.

The result of the implementation was a positive one, as Sinopharm has delivered impressive benefits including 99.99% inventory accuracy and 100% on-shelf availability in customers stores.

Asian Companies who improve performance through improving supply chain

2. Sony Corporation

Sony announced in 2009 a series of measures to enhance its profitability and competitiveness. It does so by implementing a series of measures:

a. Structural reform in Electronics businesses with priority on speed to market and profitability Pursuing OEM/ODM deployment strategy targeted at emerging markets. It has redesign its hardware and software globally, standardizing them globally, it will do so by consolidating its resources for small and mid-size LCD panel operations to Sony Mobile Display Corp and batter operations to Sony Energy Device Corp b. Cost Reduction group-wide Consolidation of manufacturing sites and workforce optimization to deliver cost savings.

Asian Companies who improve performance through improving supply chain 3. POSCO

POSCO implemented the RFID technology (the Smart-Works System), which includes a custom UPM DogBone UHF RFID tags to track and trace multi-ton metal coil products from manufacturing through customer delivery.

By October 2011, POSCO will tag all the items (more than 2 million steel components annually) it produces. The RFID system comprised of tags, hand-held PDAs, fixed RFID readers attached to cranes and placed at factory gates. The system is connected to the enterprise resource planning (ERP) and manufacturing execution systems and a server.

The advantage of implementing the system is that it communicates seamlessly with their customers own planning solutions via the Internet, and allow them to access real-time information on POSCO products. They can them use the data to plan and fine-tine their production operations. This system has also provided complete traceability of their products and thus decreased packaging and shipping errors, leading to improved customer satisfaction and costs reduction.

POSCO is also propagating to be integrated into their customers supply chain by adopting the early vendor involvement approach (EVI), with respect to their automobiles, home appliances and shipbuilding customers. This will help them reduce manufacturing costs when developing tailor-made products for their customers.

Asian Companies who improve performance through improving supply chain

References
Press Release 2011. Pharmaceutical Leader Sinopharm Successfully Upgrades Supply Chain Systems with Manhattan Associates. Logistics Asia [internet]. Available at: http://www.logisticsasia.asia/articles/pharmaceutical-leadersinopharm-successfully-upgrades-supply-chain-systems-with-manhattanassociates [accessed on 28 February 2012]. China Supply Chain Council, 2008. 2011 CHaINA Awards - IT Category: Manhattan Associates for Sinopharm [online] (updated 2011). Available at: http://www.supplychains.com/awards/nominees/sinopharm/ [accessed 29 February 2012]. Sony Corporation, 2009. Sony Outlines Initiatives to Enhance Profitability and Competitiveness [online] (updated 22 January 2009). Available at: http://www.sony.net/SonyInfo/IR/financial/fr/08revision_supinfo.pdf [accessed 29 February 2012]. Kim, T. 2010. POSCO Plans to improve Supply Chain System. The Korea Times [internet]. Available at: http://www.koreatimes.co.kr/www/news/biz/2010/11/123_76499.html [accessed on 29 February 2012]. UPM RFID. 2011. Leading Steel Manufacturer POSCO implements RFID

Logistics System to Track and Trace Two Million Multi-Ton Metal Parts Annually. [online] (updated 26 July 2011). Available at:

http://www.upmrfid.com/rfid/upm_rfid-news-2011-posco [accessed 29 February 2012].