LOGISTICS OUTSOURCING AND SUPPLY CHAIN VELOCITY

Logistics Outsourcing and its role must be recognized as a factor in achieving critical Supply Chain Velocity. 

CROWLEY TO MERGE LINER AND LOGISTICS

Will merger of the two make Logistics a stepchild of the liner business, instead of building a viable standalone business?

https://theloadstar.co.uk/crowley-merge-shipping-logistics-new-year-vertical-integration-plan/

By Gavin van Marle

29/11/2018

US container shipping line Crowley has become the latest to embark on a vertical integration strategy after announcing its liner and logistics divisions will merge.

“This restructuring is essential for us to compete more effectively in our markets while providing clarity to our customers and business partners that we are a fully integrated logistics organisation,” said Tom Crowley, chairman and chief executive.

“We add a lot more value when we help customers increase the velocity of their supply chains and reduce their landed costs,” he added.

The merger is set for 1 January and will coincide with the retirement of long-term Crowley veteran John Hourihan, currently senior vice president and general manager of its Puerto Rico services.

He has worked for the company for 31 years and most recently oversaw the delivery and deployment of the first of two new LNG-powered con-ro ships and the “transformation of the Crowley’s San Juan, Puerto Rico, terminal to world-class standards”.

Steve Collar, who has been with the company since 1977, will become senior vice president and general manager of Crowley Logistics at the beginning of next year.

“The integration of the liner services and logistics organisations into a singular, highly focused resource for our customers will allow us to take a holistic approach to maximizing the efficiency of their supply chains,” he said.

“I’m looking forward to working with our highly experienced and dedicated team to bring innovative solutions to our customers.”

The integration of liner and logistics services is part a of wider corporate restructuring that leaves the group with four business units: Crowley Fuels; Crowley Solutions; Crowley Shipping (its ship management, towage and offshore services division); and Crowley Logistics.

SUPPLY CHAIN VISIBILITY

With the upstream Supply Chain, visibility is about the Purchase Order. From time placed at supplier until delivered. The PO is the focus for Inventory Velocity. Not the container or trailer. 

SUPPLY CHAIN SEGMENTATION

A Supply Chain should be segmented. Otherwise it is a monolith. Segment by common supply chain activity, market channel, geography, and/or... Multiple/tiered segments. Improve performance and customer service. Give customers what they want.

PERFECT ORDER AND RETURNED GOODS

The Perfect Order is THE Supply Chain, customer service, and company metric. Another way to see it, besides measuring, is Returned Goods.

THE LAST MILE AND OMNICHANNEL STRATEGY

Many retailers and manufacturers see the Last Mile as a logistics costs and not a component of Order Delivery Velocity and Customer Expectations. And therein lies a flaw in their omnichannel strategy.

FLAWED RETAIL OMNICHANNEL STRATEGIES

How many retailers have to struggle before there are open/honest discussions of flawed/failed omnichannel strategies that lack the New Supply Chains to drive them?

GEOGRAPHIC POSITIONING OF SUPPLY CHAIN ORGANIZATIONS

Technology aside, are Supply Chain Management organizations properly dispersed around the country and the world to manage Supply Chains? Does remote positioning in corporate office help or hinder required Supply Chain Velocity and Perfect Order performance?

MID-SIZE MANUFACTURERS AND RETAILERS--AND THEIR SUPPLY CHAINS

Mid-size manufacturers and retailers face the biggest challenge with the new selling reality and adapting their Supply Chains.  Size/scale is a factor. More need then to develop their SCM structure and its operations performance.

OUTSIDE THE FOUR WALLS OF SUPPLY CHAIN MANAGEMENT

Outside the 4 walls, how many Supply Chains are Lean? Outside is where waste--time and inventory-is created and where Supply Chain Velocity is lost. And nothing inside the 4 walls can make it up.

SUPPLY CHAIN MANAGEMENT AND PAIN POINT

Is your Supply Chain a pain point? If so, why? What are you doing to correct it?

UNDERINVESTMENT IN SUPPLY CHAIN MANAGEMENT

Is there a link between #manufacturers & #retailers who have underinvested in #SupplyChainManagement and how robust their #omnichannel #OrderDeliveryVelocity and #PerfectOrder results are?

PERFECT ORDER

The best company, customer service, and Supply Chain metric--the Perfect Order--requires perfect order entry.

ORDER DELIVERY VELOCITY AND SKU RATIONALIZATION

Lack of SKU rationalization is an impediment to achieving the Inventory Velocity required for Order Delivery Velocity.

MANUFACTURING AND CHERRY-PICKING

Some manufacturers cherry-pick what they think are their best/low-cost products to make and outsource others. The emphasis should be on how to best serve customers and the market. As a result, they struggle with Perfect Orders and Inventory Velocity.

SKU RATIONALIZATION

SKU rationalization is a little discussed and resolved issue in Supply Chains and companies.

MANUFACTURERS AND B2B E-COMMERCE

#B2B #ecommerce is larger than #B2C--and growing. How will #manufacturers transform when online is about more than placing orders on customers?  When it becomes about #OrderDeliveryVelocity, like with B2C.

SOUTHEAST ASIA AND SUPPLY CHAIN RISK

And the resultant #SupplyChain #Risks--  #SCM  #SupplyChainRisk

Southeast Asia's risk map: A country-by-country breakdown

Markets wrestle with individual risk factors as global turmoil rises

RYUSHIRO KODAIRA, Nikkei senior staff writer October 31, 2018 12:34 JST

BANGKOK -- Geopolitical risk comes in many forms. While investors are keeping a wary eye on political divisions in the U.S., the trade war between Beijing and Washington, and rising populism in Europe, Southeast Asian markets are facing their own unique headwinds.

From protectionism to inflation, we break down the risk factors facing each country, as well as the performance of its local stock index this year (calculated as of Oct. 26) for an idea where each market stands.

Philippines (-17.5%)

High inflation is putting pressure on the central bank to keep raising interest rates. In September the bank hiked its benchmark rate for the fourth time in five months to a seven-year high of 4.5%. Rising prices also seem to be taking their toll on President Rodrigo Duterte's popularity. His diplomatic approach -- criticizing Europe and the U.S. while cozying up to China -- is stirring unease in the international community.

Duterte has criticized conglomerates as hurdles to structural economic reform, but his attitude appears to have softened recently. In July, he attended a birthday party for Philippine Airlines Chairman and CEO Lucio Tan, formerly a target of the president's ire. Duterte's potentially closer relationship to business and the possibility of more inward-looking economic policies could deter foreign investment into the Philippines.

Indonesia (-9.0%)

President Joko Widodo has an early lead in the presidential election slated for April 2019, but a corruption scandal involving one of his cabinet members -- Idrus Marham, then-social affairs minister, was named as a suspect in a bribery investigation in August -- could weigh on his chances. The fall of the rupiah and slowing growth may hurt his popularity as well. According to Andy Ferdinand, director of Samuel Securities, the president faces a dilemma. "Raising domestic crude oil prices by reducing fuel subsidies is an effective means for deterring the fall of rupiah. But it would be an unpopular policy that leads to an increase in inflation and burden on the people."

Vietnam (-8.5%)

The leadership in this communist-ruled country has been promoting free trade and actively seeking foreign capital in recent years, efforts that international investors have welcomed. But here, too, signs of protectionism have started to emerge, for example in the auto industry. Earlier this year, the government raised the safety certification requirements for imported vehicles, a move that disrupted shipments to the country. In another red flag for foreign investors, JXTG Nippon Oil & Energy's plans to construct a refinery in Vietnam were thrown into disarray recently when its local partner pulled out of the project.

Thailand (-7.1%)

More than four years after the coup, the military junta remains in power. A general election is expected next year, but the exact timing is yet to be decided, and the poll has already been pushed back several times. But despite the rapidly growing political uncertainty, there is little sense of a crisis in the country, as the baht remains more stable than other Southeast Asian currencies. The country's growth rate, however, is relatively low compared to fellow members of the Association of Southeast Asian Nations, adding weight to the argument that Thailand has fallen into the "middle-income trap."

Former Prime Minister Thaksin Shinawatra, now living in exile, still has a strong influence among voters, mainly in rural areas. Sources in the country, including an economist for a U.S. investment bank, warn that tensions between his supporters and the military regime are quietly growing.

Malaysia (-6.3%)

A wave of optimism accompanied the return of 93-year-old Prime Minister Mahathir Mohamad to power after the May 9 election. But although the economy is doing well, that is largely due to temporary factors, such as the abolition of the goods and services tax. Yuta Tsukada, deputy chief researcher at the Japan Research Institute, said, "The realization of [structural reform] requires a lot of pain for the people, and the power of Prime Minister Mahathir, who once guided Malaysia to a high growth with strong leadership, will be tested." An important issue in the near future will be ensuring policy consistency between the governments of Mahathir and Anwar Ibrahim, the man widely expected to succeed him as prime minister.

https://asia.nikkei.com/Spotlight/Cover-Story/Southeast-Asia-s-risk-map-A-country-by-country-breakdown?utm_source=facebook&utm_medium=infeed&utm_campaign=IC+NL&utm_content=FBorganic+post&fbclid=IwAR3jnJ27f2zpY3mc50mqlajn85q5nxXJlF_hyqBsNgAKNmjz41jWB9XxXmA