Global Supply Chain Council RSS Feed

China Wage Conflict & Impact on Supply Chain on Aug 3, 2010 8:00 AM

Tue, 03 Aug 2010 00:00:00 GMT

China Wage Conflict & Impact on Supply Chain
Start Date: Aug 3, 2010 8:00 AM
End Time: Aug 3, 2010 10:30 AM
Location: The Longemont
Speaker: John So, Iris Duchetsmann, Michael McCool

Event Details:

On August 3, the Council is organizing a new forum discussion on “China Wage Conflict & Impact on Supply Chain” by bringing HR specialists, risk experts and supply chain executives to discuss these issues.

The cost of running supply chains from China is going up. Coastal factories are increasing hourly payments to workers. Local governments are raising minimum wage standards. And if China allows its currency, the renminbi, to appreciate against the United States dollar later this year, as many economists are predicting, the relative cost of manufacturing in China will rise even more.

The shift was illustrated recently with the various strikes that took place at the Chinese plants of Honda and Toyota. Japanese companies, with their usually tight supply chains and their large number of interns, appear especially vulnerable to the industrial unrest. But Ingersoll-Rand which makes air conditioning systems, was also recently hit by a strike.

Following the recent crisis, Foxconn, the maker of iPhone, said that it was planning to double the salaries of many of its 800,000 workers in China, beginning in October. The new monthly average would be RMB 2,000. Honda also agreed to give raises of 24 to 32% at one of its plants in southern China ending a two-week strike. The new monthly average would also be around RMB 2,000, not counting overtime.

Still, salary increases are expected to affect many stages of the supply chain and force some companies to raise prices. For many exporters who simply produce on contract for global brands, profit margins are already razor-thin, and raising prices could hurt business.

When: Tuesday, August 3, 8:00am, 2010. to be finished around 10:30am
Fee: RMB 150 for Council members, RMB 300 for non-members. a breakfast buffet will be served at 8:00am.
Venue: The Longemont, 1116 West Yan An Road, Shanghai(上海延安西路1116号龙之梦大酒店)

No registration will be accepted by email, phone or fax.

The Longemont

1116 West Yan An Road

Shanghai, China

M&A Outlook and Approaches in China's logistics industry on Aug 11, 2010 12:00 PM

Wed, 11 Aug 2010 04:00:00 GMT

M&A Outlook and Approaches in China's logistics industry
Start Date: Aug 11, 2010 12:00 PM
End Time: Aug 11, 2010 2:30 PM
Location: Osteria
Speaker: Gan, Chee Wee

Event Details:

You and your colleagues are invited to join the Council for a new workgroup discussion on "M&A Outlook and Approaches in China’s logistics industry" on Aug 11, 2010 in Shanghai. The workshop will start with a presentation, then followed by a group discussion around the following topic:

M&A Outlook and Approaches in China’s logistics industry
Many market leaders view China, the world’s second-largest economy, as the “it” country for expansion, and identify the country’s logistics industry as the next growth frontier. Since China opened its logistics industry to wholly owned foreign enterprises in 2005, there has been a surge in mergers and acquisitions. M&A has not only reshaped the Chinese logistics industry but also introduced new technologies and more reliable products and services. Further consolidation is expected, and domestic companies are taking notice.

As expansion-minded firms—domestic and foreign—strive to grow in China, they face certain challenges in conducting mergers and acquisitions. How skillfully companies approach these challenges will determine the extent to which their cross-cultural “marriages” succeed.

In this workshop, we will review and discuss:
- State of China’s current logistics industry
- Drivers of M&A and shifts in customer behaviors
- China M&A hotspots
- Successful M&A approaches

What: M&A Outlook and Approaches in China's logistics industry
When: August 11, 12:00 noon-2pm
Fee: Council Member pay RMB 100 , Non Member: RMB 200
Venue: Osteria, 226 Jinxian Road, near South Shanxi Road (进贤路226号靠近陕西南路), Call (21) 62568998 for directions.

Please register online, no email or phone calls please.

Osteria

226 Jinxian Road,

Shanghai, China

So Many Boats, So Little Space: The Big Squeeze on Aug 26, 2010 8:30 AM

Thu, 26 Aug 2010 00:30:00 GMT

So Many Boats, So Little Space: The Big Squeeze
Start Date: Aug 26, 2010 8:30 AM
End Time: Aug 26, 2010 11:00 AM
Location: The Longemont Hotel
Speaker: .

Event Details:

Coping with space shortages and rising shipping rates in China

With the shipping rush for Christmas 2010 due to start picking up again now, shippers are already complaining of an acute shortage of vessel space and containers when exporting their goods out of China.

For the past few months, booking times have been steadily increasing and some shipping lines are even unwilling to accept large bookings because they feel they would risk compromising their service quality. Rates are also increasing dramatically with 3PLs and shipping lines implementing peak rate surcharges and other various surcharges.

Shippers are complaining and the Council wants to give them an opportunity to discuss the situation with logistics service providers and shipping lines.The Council is inviting logistics and shipping directors from leading manufacturers/retailers to discuss and debate the situation with 3PLs and shipping lines. The goal of this discussion is again to provide some practical recommendations to help shippers cope with the shortage and rising rates in the second part of the year.

What: So Many Boats, So Little Space: The Big Squeeze

When: Thursday, August 26, 8:00 am, to be finished around 10:30 am

Fees: Council members pay RMB 150, non-members RMB 300, a buffet breakfast will be served.

Venue: The Longemont, 1116 West Yan An Road, Shanghai (上海市延安西路1116号麗晶大酒店)

The Longemont Hotel

1116 West Yan An Road

Shanghai, China 200052

IIAPS Procurement & Supply Qualification Summit: Black Belt Show Case on Sep 2, 2010 1:00 PM

Thu, 02 Sep 2010 05:00:00 GMT

IIAPS Procurement & Supply Qualification Summit: Black Belt Show Case
Start Date: Sep 2, 2010 1:00 PM
End Time: Sep 2, 2010 6:30 PM
Location: The Longemont Hotel
Speaker: John M. Paterson, Monica Sun, Bernhard Raschke, Wayne Brown, Andrew Cox, Holger Schober

Event Details:

The IIAPS (International Institute for Advanced Purchasing & Supply) is a not for profit organisation, dedicated to the raising of international standards in purchasing and supply management.The Shanghai conference focuses on two main areas: competence issues in purchasing & supply management and the IIAPS Black Belt Qualification (which has been assessed as “Mini-MBA” in supply).

High-level speakers such as the CPO of IBM will give insight into their approaches of people development and will also discuss with the audience the challenges (and potential solutions) in this area. Furthermore Prof. Dr. Andrew Cox will introduce the IIAPS itself, its mission and its approach of people development. In the early afternoon decision makers from the procurement, supply, and HR area will give an insight into their approaches of competence development. The speakers from IBM, Henkel, ThyssenKrupp and PwC will furthermore discuss together with the audience competence issues such as sustainable people development and retention initiatives.

In the second part of the conference IIAPS itself will be introduced focusing especially on the institute´s Black Belt Qualification Program in Procurement & Supply Management. According to experts from Procurement and HR this belt qualification program can be seen almost as a “Mini-MBA” in Procurement. Due to the various stages of qualification (Green Belt – Red Belt – Black Belt) and the innovative learning style (“proof of competence”) the IIAPS Belt program is able to cover at least two strategic HR areas: sustainable people development in combination with people retention.

The last part of the summit will be an informal networking event where the speakers, the audience, and the IIAPS representatives will have the chance to continue the discussion while enjoying wine and canapés.

What: IIAPS Procurement & Supply Qualification Summit: Black Belt Show Case
When: Tuesday, September 2nd, 1:00-6:30pm
Fee: Council members pay for RMB 300 , Non-members pay for RMB 400.

Venue: The Longemont, 1116 West Yan An Road, Shanghai ( 上海市延安西路1116号龙之梦大酒店)

The Longemont Hotel

No. 1116 Yan An West Road

Shanghai, China

One Step Ahead - Developing an effective B2B communications plan on Sep 7, 2010 12:00 PM

Tue, 07 Sep 2010 04:00:00 GMT

One Step Ahead - Developing an effective B2B communications plan
Start Date: Sep 7, 2010 12:00 PM
End Time: Sep 7, 2010 2:30 PM
Location: Osteria
Speaker: Penny Burgess, Nicky Wang

Event Details:

The key to effective communications is planning ahead to deliver a communications strategy that helps drive sales today, while building a brand for the future. In the B2B space, where corporate reputations are typically built over many years, and yet can be destroyed in minutes, it is important to take a long-term approach to your planning – both in terms of proactive stakeholder engagement and crisis preparedness.

In our One Step Ahead workshop, leading independent consultant Penny Burgess, will advise on the different elements to be considered when developing an effective B2B communications campaign. It will touch on stakeholder mapping, message develop, media relations, thought leadership and digital communications.

Agenda:

Introduction – agenda for the ppt, why planning is important, success criteria, benefits (all supported with real examples where possible)
Stakeholder Mapping – Identify who need to talk to, understand their interests
Message Development – consistency is key, needs to link back to business objectives, consider industry issues/opps, how to prioritize
Media relations – optimal number of releases, identifying relevant stories, targeting, media list development. Press releases vs media placement vs interviews
Thought Leadership – what is it and how does it build your reputation?
Digital Communications – what is the relevancy for B2B companies? What to consider/the options?
Crisis management – how to plan for when the worst happens
Integration – how do you link your communications campaign with the company’s wider marketing/sales strategy
Measurement – what are your options / realistic KPIs

When: Sep 7, Tuesday, lunch 12:00 noon
Fee: Council Members pay for RMB100, non-members pay for RMB 200
Venue: Osteria, 226 Jinxian Road, near South Shanxi Road, Shanghai 进贤路226号(靠近陕西南路). Call 62568998 for directions.

Osteria

226 Jinxian Road,

Shanghai, China

Regional Supply Chain Risk Workgroup on Sep 9, 2010 8:00 AM

Thu, 09 Sep 2010 00:00:00 GMT

Regional Supply Chain Risk Workgroup
Start Date: Sep 9, 2010 8:00 AM
End Time: Sep 9, 2010 12:00 PM
Location: The Longemont
Speaker: Neal Beatty

Event Details:

You and your colleagues are invited to join the Council for a seminar and discussion on "Regional Supply Chain Risk Workgroup" on Sep. 9th in Shanghai.

This highly interactive workshop will help senior regional management gain a broader perspective on some of the operational, political, security, integrity and reputational risks facing the supply chain in Asia Pacific. The workshop will be run in small roundtable groups, and facilitated by experts in political risk, regional supply chain and operational risk management.

The format of the workshop will be as follows:

- Short introduction to supply chain risk and the risk assessment process
- Review of recent issues impacting the supply chain in Asia Pacific
- Introduction of a typical regional supply chain – scenario exercise
- Group brainstorming & discussion on operational risks impacting the supply chain, both external and internal
- Group discussion on risk mitigation techniques
- Scenario – when the supply chain breaks
- Group discussion on managing a supply chain crisis

At the conclusion of the workshop, the participants will have:

- A peer group’s view on the key operational risks facing the supply chain in Asia Pacific.
- A broad perspective on some key issues facing the regional supply chain
- Shared experience in mitigating operational risks.

What: Regional Supply Chain Risk Workgroup
When: Tuesday, Sep 9, a breakfast will be served at 8:00am
Fee: Council Members pay for RMB150, Non-Member pay for RMB300

Venue: The Longemont, 1116 West Yan An Road, Shanghai (上海延安西路1116号龙之梦大酒店)

Please register online, no email or phone calls please.

The Longemont

1116 West Yan An Road

Shanghai, China

Automotive Supply Chain Forum on Sep 16, 2010 8:30 AM

Thu, 16 Sep 2010 00:30:00 GMT

Automotive Supply Chain Forum
Start Date: Sep 16, 2010 8:30 AM
End Time: Sep 16, 2010 5:30 PM
Speaker: Stefano PICCOLI

Event Details:

Automotive Supply Chain Forum to be held in Shanghai on September 16, 2010.

In today's globally competitive business environment, automotive manufacturers and their suppliers are under relentless pressure to provide innovative products in shorter time cycles, at reduced cost and with improved quality. The industry players need to create and manage streamlined processes with collaboration and total visibility. They also have to synchronize plans and activities with business partners along the supply chain.

The Automotive Supply Chain Forum will be an exclusive gathering that brings together senior-level executives with a select and diversified group of manufacturers, parts/components suppliers and leading-edge solution providers to converge over these vital industry issues. Topics on the agenda include the Chinese car industry, global procurement practices, parts and finished vehicle logistics, collaboration and supply chain best practices.

Why Attend?
> Learn how you can achieve a demand driven automotive supply chain
> Debate the key issues within supply chain and logistics in China
> Identify the cutting edge practices being taken by some leading automotive companies
> Find new opportunities for cost reduction in your supply chain and logistics
> Benchmark your company’s supply chain performance against your competition & customers
> Assess how new automotive solutions can increase your productivity.

Industry Expertise
All of the presentations at the forum come from supply chain executives in the automotive industry - offering you insider tips and proven strateges - not sales pitches. This is an excellent opportunity to share supply chain innovations in the automotive sector and very effective for networking with key counterparts.

What Will I Learn?
At the Automotive Supply Chain Forum, you’ll hear only from your peers at the top of your industry. Their insight and case studies will give you proven strategies that have propelled their supply chains to world-class status. With a focus on quality industry-led presentations, the Forum is specifically designed to give you useful insight and key knowledge that you can take back to your company and actually put to use. The in-depth panel sessions give you further opportunity to really question the experts and benefit from their years of experience.

Key summit topics will include:
> Chinese car industry

> Global procurement practices

> Parts and finished vehicle logistics

> Collaboration and supply chain best practices

> IVECO Supply Chain Management and Saic-Iveco Hongyan experience

Who will attend?

As the leading supply chain professional organization in China with a community of over 25,000 professionals, this event will attract the most dynamic and senior executives interested or involved in supply chain operations in the automotive sector. It will be a must-attend event for all working in the supply chain community and the audience will include VPs and senior executives responsible for supply chain, sourcing, procurement, logistics, transportation and manufacturing best practices.

Media Partners:

Shenzhen International Logisics & Transportation Fair on Oct 15, 2010 9:00 AM

Fri, 15 Oct 2010 14:00:00 GMT

Shenzhen International Logisics & Transportation Fair
Start Date: Oct 15, 2010 9:00 AM
End Time: Oct 17, 2010 6:00 PM
Event Details:

Relying on Shenzhen as the hub of international logistics city and dedicating to build the first brand of logistics and transportation fair in Asia, the Shenzhen International Logisics & Transportation Fair (CILF) is held annually in Shenzhen Convention and Exhibition Center.

It displays every sector and link of logistics service, including logistics equipment and technology, logistics service, logistics parks, logistics talents, reverse (recycled)logistics, logistics financing, govern-ment and enterprise procurement and so on.

Exhibitors are from Europe, North America, the Asia-Pacific Region, Hong Kong, Macau, Taiwan and China Mainland. Most of them are world's top 500 companies or leading brands in the industry.

CILF has created good brand effect and is one of the best in Asia in terms of exhibition area, the quality of exhibitors, the number of professional visitors, media publicity, exhibition effect, comprehensive cooperation, and the organizing of high-quality accompanying programs and seminars. It gains wide and high recognition by the exhibitors and visitors and becomes a new star in Asia logistics exhibition industry.

China (Shenzhen) International Logistics and Transportation Fair 2009, the former China (Shenzhen) International Logistics Fair (CILF), aims at providing an open platform for Chinese and foreign companies to communicate and cooperate. At CILF, you can not only introduce your products, technologies and services to China, but also find potential reliable suppliers. CILF is sure to bring exciting business opportunities to you by attracting a great number of logistics service providers, equipment and technology providers, buyers and manufacturers, professional organizations, specialized media etc., and by taking in considerable professional visitors as well as holding various in-depth forums.

Please view more information at http://www.scmfair.com/en/index1.asp

CHaINA '10 - China's Largest Supply Chain Event on Nov 17, 2010 8:30 AM

Wed, 17 Nov 2010 00:30:00 GMT

CHaINA '10 - China's Largest Supply Chain Event
Start Date: Nov 17, 2010 8:30 AM
End Time: Nov 18, 2010 5:30 PM
Speaker: .

Event Details:

Delegates 参会者	Speakers 演讲者	Exhibition 展览会	Awards 颁奖	Sponsorship 赞助商
Why Attend? 为什么参加?	This Year's Speakers 今年的演讲者	Who Should Exhibit? 参展公司	CHaINA Awards CHaINA 颁奖典礼 Entry Kit 提名须知	Sponsors 赞助商
Past Attendees 历届参会者	Become a Speaker 参与演讲	Factsheet 活动细则	The Categories 奖项类别	Why Sponsor? 为什么赞助?
Book Your Room 住宿咨询	Session Formats 演讲模式	Reserve a Stand 参加展览	Judges Panel 评审团	Sponsorship Packages 赞助项目包
Delegate Program 参会者会刊	Testimonials 感言	Attendance Breakdown 参会者构成	'09 Winners '09 获奖者	A La Carte Sponsorship 赞助机会列表
'10 Agenda '10 日程表	'09 Photos '09 照	Executive Summary 活动回顾	Nominate 提名	Sponsorship Program 赞助商会刊

For all press enquiries, please contact Alexandra Danahy at/ 媒体合作, 请联系Alexandra Danahy adanahy@supplychain.cn

CHaINA Expo '10 (for vendors only) on Nov 17, 2010 8:30 AM

Wed, 17 Nov 2010 00:30:00 GMT

CHaINA Expo '10 (for vendors only)
Start Date: Nov 17, 2010 8:30 AM
End Time: Nov 18, 2010 5:30 PM
Location: Renaissance Shanghai Zhongshan Park Hotel
Event Details:

Exhibition Space Floor Plan

The booths are subject to availability, for the most current booth availability, please contact the event coordinator Alexandra Danahy (adanahy@supplychain.cn).

Renaissance Shanghai Zhongshan Park Hotel

No. 1018 Changning Road

Shanghai, China 200042

Liability Games in China

cathy chen — Sun, 25 Jul 2010 20:15:00 GMT

When something goes wrong with a product and it's your company logo at stake, their needs to be a clear structure set up to tell who is liable for damages and blame. When setting up partnerships with suppliers in China, professionals know that this action should be one of their number one priorities. It is also one of the most difficult contracts to ensure, as was clear by the multitudes of questions at a recent "Product Liabilities breakfast held by the Global Supply Chain Council at MI Thai. "You can never be too careful, said Willi Vett, Partner and Head of Shanghai office at the Beiten Burkhardt international Law Firm. "Don't ever forget how a company got sued after they put a cat in the microwave and it died…the customer said no one told them they shouldn't put live animals inside the microwave.

Less extreme examples have to do with the costs of recalls, insurance coverage and direct product quality claims. Manufacturers have strict liability in terms of end products, and they are liable for defects and loss of cause for the defects regardless of how it arose. Vett says that there has been a change of burden of proof of the cut of the manufacturer. However, sellers and importers have a less clear role in terms of liability in China as they are only liable if it can be proved that they did something wrong themselves. This means that it must be proven that the buyer/seller know that the product was defective, which falls under a component of negligence. Most dangerous for buyers is if they cannot show directly where a product came from.

Vett also mentions that in terms of counterfeit products, the burden of proof is changing. Vett cited a BMW case that was published by the higher courts. The plaintiff bought a BMW that was completely counterfeit, and when the car broke down it caused damaged. The buyer went back to their BMW dealer, and tried to sue. "If BMW didn't have a very extensive responsibility contract in place they would have been liable, continued Vett. "If you allow someone else to use your brand, then you also have to check that the quality is in order, or else you might become liable yourself - in terms of OEM manufacturing, if you put your label on it, you are liable for the product.

Wilhelm Baumeister, QA Management, Sandvik Mining & Construction, says that one of his biggest challenges in ensuring proper liability understanding and management is that his company implements standards according to the iSO-9001 booklet which means that he is able to string all of the standards together and make them traceable, which means Sanvik can prove "this worker has done this task to this procedure on this day with this machine. Because this is a global contract, the language is in English. "Our Chinese suppliers do not necessarily speak English, Baumeister continued. "They often say right away - okay, where do I sign - this makes my hair go up because i have to enforce the contract once it has been signed.

Another participant voiced the fact that Chinese manufacturers are also a challenge in terms of liability because you need to ensure that the workforce has been trained to the correct standards and afterwards stay updated and in a position to qualify and improve their work. "I want to know how you handle this in your company, the participant addressed the audience. "There are certain procedures we give, we want to see them followed and we need to see their documentation but it's hard to get it.

"You offload responsibility to your supplier as much as possible, Baumeister answered. "But in the end we are still liable - if one of our machines stands still for one day it costs 5 million dollars in loss of income and what follows are multiple damages and a long triangle of claims; so we are trying to do our best to offload this as far as we can.

Jul 26, 2010 4:15 AM

Doing It: The Rise of the Chinese Sports Brands

cathy chen — Sun, 25 Jul 2010 20:00:00 GMT

Walking the streets in China today, you may notice many young teenagers wearing sports clothing with unfamiliar logos emblazoned on their chests. Looking at the curvy L that is Li Ning's signature or the sideways V that stands for Anta, you may wonder to yourself, is that a knock-off Nike shirt? No, in fact, these two Chinese brands are well established and are quickly becoming Nike's biggest competition in China. China's sportswear market is poised to expand at an annual average of 18% to RMB149. 1 billion by 2013, according to an estimate by ZOU Marketing inc. Zou Marketing also notes that branded sportswear in particular has experienced double-digit growth since 2000. While Nike remains the number one sports brand with 16.7% market share in 2009, Li Ning surpassed Adidas to become the second most popular brand in China with 14.2% of the market compared to Adidas' 13.9 percent, according to AdAge.

Though Li Ning holds the second place, Anta's net revenue was actually higher than Li Ning's in 2009 with a net profit of 21.6% compared to Li Ning's 11.7%.Other domestic players, such as Dongxiang, Xtep, 361, Hongxing Sports, Peak, and Kangwei are also competing for their share of the pie and have achieved high growth rates in the rapidly expanding market. While Li Ning and Anta managed growth rates of about 20% last year, some smaller brands have been enjoying growth rates of 30% or more. Marie Jiang, analyst at JLM Pacific Epoch, says that this recent emergence of domestic brands will make the market-place more competitive to the established international brands trying to grow in the Chinese marketplace.

Stiff Competition

Building a brand name and facing stiff price competition are the two main challenges for Chinese brands competing against the big names like Nike and Puma. In 2002, Dongxiang acquired Kappa, a European brand, and has been working on a marketing campaign that creates a new image targeting an upscale, fashion conscious crowd who don't have or are not ready to shell out money for the more expensive Nike or Adidas. Chinese brands worked on international imaging through sponsorship; in this instance it was Shaquille O'Neal who gave them the right to use his image, name, and shirt number on their basketball products sold in China. Li Ning also produced a "Shaq line of shoes. Not to be outdone, other brands have been upping the game by signing similar sponsorship deals with international sports stars. Anta signed deals with three players of the famous U.S.basket ball team, the Houston Rockets; Xtep signed the English Premier League Birmingham City Football Club; and Peak signed Shane Battier, also with the Houston Rockets.

Home Game

Besides targeting the international market, sportswear brands are trying to expand into another market much closer to home. While competition remains intense in Tier 1 cities, brands have realized there is a huge, untapped market in Tier 2 and Tier 3 cities. "Li Ming and Anta penetrate everywhere, even into villages. Nike and Adidas are at the higher end, and most people can't afford the price, says Jiang. With Chinese brands penetrating into international markets and taking over the domestic market, are foreign brands such as Nike and Adidas doomed? Perhaps not. According to a recent UBS analysis, Nike could successfully penetrate lower level markets in China by lowering its price. Jiang, however, disagrees with this approach. She says, "Coach and other brands names have penetrated Tier 2 and Tier 3 cities, which still have wealthy people willing to buy brand names. But if Nike and Adidas lower their price, they may run the risk of ruining their brand image, so they should seek other ways to penetrate these markets.

Online

Another way brands are reaching the market is through Taobao and ecommerce. In April of 2008, Li Ning opened it's own channel on Taobao. Sales were such that in 2009, Li Ning started to offer its merchandise on its own website. In 2010, Li Ning plans to make it even easier to shop online by allowing users to buy from their website with cellphones and sending coupons through cellphone messaging. Even if Li Ning didn't have its own online store, other enterprising citizens would have capitalized on the opportunity. As simple search within Taobao turned up 17,427 individual "stores offering Li Ning merchandise. As Ben Cavender of China Market Research Group observed, "it will disturb things, but ecommerce is here to stay. It will make store distributors provide better service. Kappa is starting to sell on Taobao, but distributors won't walk away because Kappa has market pull. Though storefronts are suffering from the loss of business, they are still a necessary part of the distribution chain. Customers benefit from browsing the store and trying out the physical merchandise, even if they end up then ordering it online. Some brands are dealing with the distributor backlash by buying out or owning their distributors.

Which domestic brands survive to battle Nike is still in question. Analysts have differing opinions. A January report from China Construction Bank favors secondtier brands such as Peak and Xtep, which they believe have a better chance of capturing the lower tier markets. However, analysts from UBS and Core Pacific Yamaichi think that smaller brands will not be competitive in the long-term, and will eventually lose out to the bigger brands, which have larger advertising budgets and are eyeing the lower tier market. Whether or not surviving brands will be able to compete with global brands is also a question that remains to be answered. "A name like Li Ning and an identity so much centered around Chinese nationalism don't travel. Plus, the company needs to truly differentiate from its competitors in a way that is globally relevant in order to expand to international markets, commented Francesco Wesel from integrated Marketing Communication on an online article from Adage. What is not in question: China's sportswear market is expanding and the battle between domestic and foreign sportswear brands is far from over.

During a recent retail summit held by the Global Supply Chain Council, delegates discussed the upcoming role of domestic brands.

Jul 26, 2010 4:00 AM

A Matter of Cost Comparing Labor Prices in China & India

Frances Karamouzis — Sun, 25 Jul 2010 20:00:00 GMT

One of the most frequently asked questions about China is an attempt to verify the competitive cost structures variables for sourcing business consulting, IT consulting, applications development, maintenance and management or some type business process management services. And more specifically, many clients ask about labor costs as it is one of the single largest components of total cost of sourcing calculations. A comprehensive analysis of the total cost of sourcing for a business or IT process involves an analysis of two components: standard costs (such as labor, real estate, telecommunications and project management) and incremental globalization costs (such as remote management, communications, project trips and incremental legal costs).Also, enterprises should consider the costs of managing or mitigating potential risks (such as country risks, security risks or maturity risk) to arrive at a risk-adjusted total cost of sourcing.

Gartner's analysis of a comparative cost structure assessment between India and China reveals that a total cost of sourcing business case for a vendor or a captive center varies widely depending on enterprise specific business and IT requirements, scope, scale and appetite for risk.The variability is based on city locations (where coastal China cities might be as much as 30% more expensive than inland China locations), availability of specific skill sets, risk factors (country, security, competency, and maturity risk) as well as available vendor options.

Based on analyzing over 240 business case analyses over the last 2 years, Gartner research shows that there is not a simple or absolute ranking of global sourcing country locations by cost.Furthermore, given the current volume levels for China global sourcing, there is not enough critical mass of completed deals, or a critical mass of established vendors with extensive track records, and authenticated data.However, based on extensive analysis including breakdowns of major variables of costs, Gartner has concluded that the cost structures in China for the largest components of standard costs (namely, labor, real estate, telecommunications) are indeed within an extremely competitive range relative to many of the leading global delivery locations (including India). Therefore, the continued "cost is king mentality of clients will inevitably continue to drive interest in the analysis of China as a global sourcing destination. Unfortunately, there is no clear yes or no answer as to whether China is cheaper than India, the answer is deal specific and primarily driven by scope, scale, skill set requirements, language requirements and risk thresholds.

A more detailed look at costs reveals that there a several factors that have a large variability across city locations in China, therefore, it is imperative that enterprises understand the factors with extensive hi-low ranges. These factors include: (1) the variability of wage rates and attrition across various cities in China (2) the short versus long term cost of real estate as rates vary dramatically over multi year periods given short term government or technology park subsidies (3) large standard deviations in the investment ranges required for human resources readiness (technical, language and soft skills training) as well as IT Services process business models (4) economic variations based regulatory requirements (5) government and legal requirements to manage risk (6) security issues (7) additional investment needed for low English speaking capability and/or cultural affinity.

Clients must explore and ensure deal-specific due diligence for the incremental globalization factors and analyze risk management costs. Clients need to ensure they assess a thorough total cost of sourcing analysis over a multi-year period in order to determine cost benefits and manage risks.

Common Mistakes

The five most common mistakes enterprise buyers with regard to cost comparisons are as follows:

1) Enterprise buyers (especially those who have sourced work in India) often compare a rate card from a Tier 1 vendor with operations in India (I.e.IBM, Accenture, Tata, infosys or Wipro) to a rate card of a tier 3 or tier 4 vendor in China. Simply comparing a rate card for a specific skill set is not a proper comparison because the elements built into a rate that is quoted by a vendor include elements of disaster recovery, and business continuity

2) Comparison of pure wage rate charts. For example, if you look at some wage rate charts in China, you may see a quoted number such as 9K per year for specific for a programmer. However, the total cost to the employer is far more because China has a federal tax that is required (similar in nature to US social security taxes) which are currently 50%. Therefore, the cost to the employer is actually 13.5 K (9K plus 4.5K). Beyond that, if the programmer requires a certain level of English proficiency, a premium of of 10 to 15% must be factored into the wage rate above and beyond the market based rate.

3) Assuming competency and skill sets in China and India are equivalent. A project manager or business analysts or even a programmer as designated on an human resource inventory in each of the respective region are not at all equivalent. Project management expertise is quite different. For example, at this particular juncture, a "experienced' project manager in India can claim a track record of projects involving significant complexity and project size that simply has not yet materialized in China as of yet. Also, the label of of progammer or software engineer in China often refers to someone with experience with embedded (R&D) engineering expertise versus the more commonly used reference in India is related to Enterprise Apps skills.

4) Assuming that there is one singular China cost structure. China is a vast country with over 20 designated hub cities. Cost structures across these various cities may vary by as much as 30%.

5) Incorrect Calculation of total cost of sourcing or risk adjusted total cost of sourcing. Quite often enterprises do not properly account for or comprehensively analyze the following:
. multi-year sustainability of cost structures
. do not include differentials in program and project management overhead costs
. cross cultural communications cost impacts
. vendor competency/execution differentials
. risk mitigation and/or management costs
. potential currency rate fluctuations

Jul 26, 2010 4:00 AM

Cloud Computing - A Whether Update

cathy chen — Sun, 25 Jul 2010 19:30:00 GMT

Everyday it seems we hear something about cloud computing. As a topic, it pops up everywhere. Industry experts describe its paradigm shifting potential for customers, while major suppliers are buying up companies with cloud related capabilities while proclaiming astronomical business potential. Everyone seems to be offering some variation of service. It has been around for years, but suddenly it is being identified as the top strategic technology for 2010. Something is going on.

What is it?

Definitions abound, but a common element of all cloud computing definitions is that it involves the provision of services over the internet, thus deriving its name from that fluffy internet cloud appearing in technical diagrams. Beyond this, details diverge and are frequently driven by the perspective of the definer. Frequently, definition efforts launch into descriptions of characteristics of cloud computing, citing:
. scalability - the consumer uses as much or little as needed at any given time;
. full management by the provider, so the consumer needs only device with access to the internet (which usually entails a browser);
. charges relating to use, frequently time.

That may be exciting, but it is not all that new. Talk is actually being driven by the explosion of service offerings and service providers, a mix that is changing the way customers approach and contract cloud computing services. The service offerings involve software as a service; platform as a service; and infrastructure as a service. The service providers include the familiar companies, but also include your search engine provider, your telecoms provider and even your book and consumer product seller, each vying to sell you often sophisticated services in the simplest of ways.

Who cares?

Of the many benefits to cloud computing, technical advantages are frequently first noted. These include on-demand computing services, saving time and money by avoiding investment in hardware, software, network infrastructure; and pooled computing resources across multiple users, so fluctuations in demand are more easily met.

There are operational advantages which increase opportunities for collaboration and knowledge sharing as files are available to any designated users from any location (with internet access). Control of data can be enhanced, as the paradigm shifts from shipping data around to controlling access to data, and on a real-time basis.

However, challenges are quite wieldy. The services contracting model, which has developed over many years to address significant concerns sufficient to allow third party services to be incorporated into business operations, is facing a tough go with cloud computing. Especially among the new breed of service providers with little outsourcing experience, suppliers are emphasizing low cost offerings and have limited capacity for or interest in contractual commitments or customer requirements.

This situation requires customers to exercise significant judgment, diligence and restraint. Not all service / contractual arrangements fill all needs. On one end of the spectrum, some "nice to-have tools, routines and non-sensitive data may allow use of a standardized, low-cost cloud computing service with few contractual protections. A move toward the other end of the spectrum, such as toward mission critical data and applications, gives rise to the need for security and predictably.

Then there are the regulatory challenges, of which many have already become legend. Businesses involved in any kind of regulated activity face obvious risks, where restrictions on data disclosure, access and even location of storage will have to be carefully considered in the context of any cloud computing solution. Issues may rise under import/export control regulations as data moves around the cloud, often to non-identified locations and parties holding the data. Data retention and disposal requirements can present challenges in cloud computing. But the grand regulatory challenge by far relates to privacy and security issues related to regulating personal information. Customers must determine how to ensure compliance with these various laws and standards while taking maximum advantage of the benefits of cloud computing.

Applying to the Supply Chain

Cloud computing is also beneficial and risky for supply chain operations. With applications as diverse as customer relationship management, human resources and accounting being made available through cloud computing offerings, supply chain organizations will increasingly face the appeal of obtaining powerful functionality without the time and costs of arranging for the people, applications and facilities required to do-it-yourself is absolutely huge. However, equally huge is for those organizations will be retaining requisite control of critical proprietary data, so that they have confidence that it will be where it needs to be, and won't be where it shouldn't or cannot be- whether such requirements are driven by business need or law. Such responsibility cannot be delegated and seeing to such needs will almost certainly require increasing judgment, discipline and, in some cases, powerful restraint.

Ultimately, cloud computing is a variation of outsourcing. In this sense, many of the risks are the same as the risks faced for years in more traditional outsourcing. They also must be mitigated the same way - through successful navigation of appropriate due diligence up front, appropriate contractual protections that account for higher risk data and applications, and continuing vigilant governance.

Ultimately, cloud computing is a variation of outsourcing, so many of the risks are the same ones faced for years in more traditional outsourcing.

Jul 26, 2010 3:30 AM

Thin ice: Examining the facts behind Foxconn, Apple and the "crisis" facing the EMS market

cathy chen — Sun, 25 Jul 2010 19:00:00 GMT

Suicides. Spreading strikes. Militaristically zealous management and aggressive security guards. Pay raises and suicide contracts. These recent dramatic headlines have shoved Foxconn, the trade name of Taiwan-based Hon Hai, from relative anonymity straight into the unwelcome limelight, dragging its big-name customers like Apple, Dell and Sony along behind it. But while the glare of publicity may be bright, it has blinded many to the real story, which is about much more than suicides at a single electronics company in Southern China. While the shrill voices of daily news have been pointing fingers at individual players, the issues, real and illusory, at Foxconn are symptomatic of the dynamic, pressured relationships between all the usually anonymous EMS providers and their brand-name customers, their employees, governments and society at large.

Myth: Foxconn is the Bad Guy

Before looking at the wider issues, we should consider what is actually happening at Foxconn, and clear up a wide array of misunderstandings intensified by headline hype.

Foxconn is the largest electronic manufacturing services (EMS) provider in the world, more than twice the size of its' next-largest competitor Quanta, and with more than 300,000 employees at their Longhua and Shenzhen campuses alone. It is also notorious for an aggressive management style. "They come in like an occupation army, said one former Foxconn manager. "That approach served them well in the past, but i think they'll have to change now.

But whether management changes or not, Foxconn is hardly the only EMS firm that manages "aggressively, and while many have criticized Foxconn's on-site factory work environment, Foxconn actually offers working conditions similar to those at the other leading EMS players, and substantially better than those at many of their suppliers. One insider noted that while the company is aggressive in their business approach, they also provide their workers with swimming pools, exercise rooms and on-site counseling centers for staff. One supplier to Apple said that, in their experience, Foxconn is far from a sweatshop, and actually provides a better environment than many Chinese companies. For example Wintek, one of Foxconn's suppliers, was accused earlier this year of not protecting its workers against the toxic chemical nhexane, which is used to clean Apple components. Many employees subsequently exhibited extensive damage to their peripheral nervous system and spinal cord, causing to muscular weakness, atrophy and in some cases, paralysis.

Another misleading assertion is the link between the suicides and overtime. "in my three years of interviewing migrant workers ...I found that the greatest pressure comes more from interpersonal and emotional concerns than factory conditions, said Leslie T.Chang, author of Factory Girls: From Village to City in a Changing China, in a recent report for research house CLSA. "Laboring long hours is the reason they come to the city in the first place. According to other sources, most factory workers actually expect the ability to apply for overtime work, as this is how they make extra money on top of their base monthly salary - which averages around RMB900. Factories that do not offer overtime have a hard time filling spaces on their factory floor. While some argue that the only reason workers want overtime is because they are underpaid, the counterargument is that many of the migrant workers have one goal: to save as much as humanly possible in as short a period of time, and send it home.

Behind the Suicides

However, the 10 disturbing suicides plus three attempts that have been reported do not express a sense of worker satisfaction, and to outsiders the tragedies suggest an even darker corner in Foxconn's closet. The first suicide reported was a result of one worker being accused of stealing an iPod and then being interrogated in a small room for hours. The interrogation, and the worker's ensuing deadly leap from the roof, enraged the public. Unfortunately, the same Spartan management style that brought Foxconn to dominance was ill suited to coping with ensuing employee dissatisfaction and media coverage. Eventually compensation was granted to the worker's family. The suicides kept coming, but seemingly spawned by dissatisfaction in the given worker's personal life - although one worker referred to the prospect of generous compensation from Foxconn in his final letter.

In any population of 300,000 young people in urban China, one should statistically expect at least as many suicides per year as seen at Foxconn recently. Factory workers are overwhelmingly younger than 25, and the suicide rate among Chinese youth (similar to youth everywhere) is higher than the overall average. Many U.S.universities would be ecstatic if their suicide rates fell to levels as low as those at Foxconn China.

Even a concentration of suicides at a single manufacturer may not be the manufacturer's fault. Aggressive media coverage tends to exacerbate the globally well-documented "Werther effect of suicide clusters. "Reports from other countries have identified suicide clusters in schools, military units and other closed communities similar to the 'company town' environment at Foxconn, said Michael Phillips, director of the Shanghai Suicide Research and Prevention Center at the Shanghai Mental Health Center, in a recent opinion piece for the Asian Wall Street Journal. "This is most common in adolescents and young adults [all the recent suicides have been in their teens or early 20s] and there is always a contagion element to clusters because the individuals know each other or have been exposed to prior suicides by personal communication, the media or the internet.

Myth: The Apple's Gone Bad

While Foxconn has already caught its share of the heat, some reporters are already looking up the value chain at Foxconn's corporate customers. This involves Apple in particular, as the company has also been getting a lot of flack in this media blitz for lying down on CSR and for the fact that it seems to have little knowledge about the actions of its suppliers. In February 2010, a CSR investigation (initiated by Apple) discovered child labor in its suppliers' factories. While by the time the workers were discovered, they were legally of working age the revelation, in combination with the Foxconn scandal, has rattled Apple's image with Western consumers and made some observers wonder whether it is losing control of its supply chain.

That's extremely unlikely. Rather, the media feeding frenzy grows because Apple, like Foxconn, represents an easy target. In Apple's case, it's in part the extreme of secrecy and detail orientation in product development, though the resulting product design has created millions of devoted Apple fans the world over. A supply chain manager at a competitor in the mobile device sector says that they do think Apple is on the extreme side when it comes to their outsourcing strategy. But the difference is of degree, not of kind. "Apple is well aware of Foxconn's practices and is attentive to the world at large, says one former Apple supply chain manager. "Apple pushes Foxconn to improve the working environment.

In 2007, three academics writing for the Personal Computing industry Center took apart an iPod to gain a clearer understanding of Apple's sourcing and supply chain, and to understand which parts of the value chain were delivering the most profit. In Who Captures Value in a Global innovation System? The case of Apple's iPod, the authors revealed that the iPod, like virtually every other consumer electronics product available today, is a combination of many companies' efforts. Toshiba makes the hard drive (themselves outsourcing some components), the most expensive component in the iPod. Broadcomm, inventec and Samsumg all contribute components as well. Foxconn manages the overall upstream supply chain, assembles and delivers to distribution points, and then supports after-sale service. Nothing in this model suggests anything extraordinary, though the report does note that "Apple is particularly sensitive about its supply base.

A Problem of Cost

Looking beyond Apple and Foxconn, what substantial supply chain issues really lurk behind the stories? Rather than media hype and speculation, supply chain managers should be paying attention to how the manufacturing environment in China is changing. A primary issue is increasing labor costs. Manufacturing job growth in China has accelerated rapidly again this year, and seems to have recovered almost entirely from the 2008/2009 downturn. Rising demand for manufacturing labor, rising minimum wages and an increased sense of worth on the part of potential laborers have all put strong upward pressure on labor costs. In late May, headlines covering a strike at a Honda-owned parts factory in Foshan (near Shenzhen) began to appear alongside the Foxconn stories. The Honda employees won about a 25% wage increase. At the same time, workers struck at a Japanese-owned manufacturing facility in Xi'an and at a Taiwanese-owned facility near Shanghai. Nearly concurrently, Foxconn announced a pay raise of over 30-50% for its Shenzhen plant, bringing the base salary of its workers from RMB900 to RMB1200-2000. Numerous provincial governments subsequently announced they would raise local minimum wage levels. For companies operating in China, labor costs are going up.

Business as Usual

The EMS companies survive on relatively small margins. Can they survive in a more expensive environment? One supply chain manager at a leading EMS player says that the strikes at Honda and in Xi'an are more worrisome than the over-reported situation at Foxconn. The macro factors driving increased negotiating power on the part of employees will continue to nudge labor costs up for manufacturers. However, since labor costs are not yet a major component of overall costs, manufacturers have some room to manage labor cost increases.

Manufacturing wages have also been climbing roughly in line with GDP in China for at least a decade, yet manufacturers have survived. "A sample of 120 Taiwan tech vendors shows remarkably steady margins, on an aggregate, through many years of wage hikes, says Bhavtosh Vajpayee, head of technology research for CLSA. "Despite a decade of wage inflation, China or India will remain preferred outsourcing destinations for hardware and services. Demand volatility and non-labor input costs have a much stronger influence on margins.

Arthur Kroeber, head of the research house Dragonomics, also says that since workers in China aren't permitted to independently organize and there are still so many of them, China won't see a paradigm shift soon.

"China's massive underclass of workers is often seen as a source of social unrest, but in reality [these workers] are a force for stability, says Chang in her CLSA report. "Repeated predictions of rising unrest - during an Asia-wide recession in the late 1990s and again in the recent global economic down - turn - have not come to pass."

Customer Distancing

The other issue is the demand side. Will the recent media frenzy negatively impact Foxconn's relationship with its customers, namely Apple, and shift the power relationship between the brands and their suppliers? As mud drips off of Foxconn onto Apple and Dell, will the brands try to distance themselves?

As a rule, during initial stages of discussions between brands and EMS players, the negotiation advantage tilts towards brands, due in part to overcapacity in the EMS space and the lower barrier to entry. A sales representative for one of the leading EMS says that he as seen a lot of desperation among the EMS players recently. "Last year, we were at the final stage of negotiation for a big project, and we'd already accepted terms that would have cut our margin to 1%, he said. "Then the brand rep said we would be required to pay a multi-million contract signing fee. The sales representative's company walked away from the deal, but their competitor took it anyway. "They are losing money, he continued. "How long can this go on?

Forward looking prospects

However, no substantial change is likely in the short term. Once a relationship is established between an EMS supplier and a brand, savvy EMS players are able to make the relationship sticky - meaning the cost of shifting suppliers becomes intolerably high so that the EMS player's negotiating power increases. "[Our major customer] may press us for a few more pennies off the price, said one EMS development manager. "But we counter by saying we'll grant the discount if they give us a larger piece of the service contract. Foxconn is exceptionally good at being sticky - few of the insiders we spoke to felt that Foxconn is at any risk of losing substantial business as a result of the recent media attention, because their highprofile and highly demanding brand customers have come to rely so deeply on Foxconn's partnership - going far beyond product production and covering virtually all of the value chain: from cooperation in R&D to retail distribution and after-market services.

At the same time, the increase in labor costs is also manageable. Historically, Taiwanese tech-sector companies have been able to maintain their margins over time because they are constantly on top of their pricing. While the Shenzhen site will be more expensive to operate, Foxconn, along with competitors Quanta and Wistron, are already developing other manufacturing sites in western China.
Foxconn will likely downsize dramatically in Shenzhen and Longhua, moving the mass production work farther north and west, while the more detailed finishing and export work will stay on the coast. Not only are labor costs less out west, but land prices are also cheaper, as local governments are very keen to give large employers a break to attract them to their town.

While reaching global markets from Chongqing and other inland locations may be marginally more expensive, the move to the inland provinces also puts EMS providers closer to some of China's large and fast-growing domestic markets.

Foxconn and their figurehead Guo have also proven their ability to evolve fast. In late May, the company took the unprecedented step of inviting six buses full of journalists for a tour of their Longhua facility. For a company that is famously secretive and protective of their customers' products, the media bus tour reflects on the likely speed with which they're going to transform what they're doing in Longhua.

While discussion, concessions and media hype may continue for some time, the relationships between the brands and the EMS will not likely stray greatly from their current course. The recent incidents at Foxconn and Honda, and countless others that are happening around the country, though less reported, are merely smaller symptoms of an epoch-level transition in the global economy and supply chains. The major forces affecting the China supply chain will remain as they've been for some time: steadily rising wages and more demanding employees here; contract manufactures moving up the value chain, and brands eager to hand over more of it to the manufacturers, world-wide; and consolidation of the manufacturers, because of the paramount importance of economies of scale. Supply chain leaders will do well to remain focused on the global tides affecting supply chain management, and to ignore the regularly appearing froth on the waves.

EMS Branding Risk?

In some peoples mind, these brand names have outsourced too many secrets, and face having their name brand technology used for by and EMS trying to break into the retail market. Early in the last decade, Flextronics famously decided against developing an own-branded product in the mobile device sector, believing that they'd risk too much by going into
competition with their competitors. "Foxconn will never do what HTC and such have done, said one ex-Foxconn employee. "To launch their own brand doesn't make sense. An ex-Apple manager echoes that Foxconn will not betray its customers and in fact is in line with Apple's business strategy. "i believe Foxconn is the right partner for Apple, said the manager. "They have the same concept for supply chain management. Apple wants to move to online business, while Foxconn wants to continue their vertical integration.
The bottom line is that branded products produce more margin than unbranded ones; services and solutions produce more margin than hardware. The zeal for margin will keep brands and their EMS suppliers on the battlefield, though sometimes fighting in league with one another.

Jul 26, 2010 3:00 AM

Taming the iP Dragon

cathy chen — Sun, 25 Jul 2010 19:00:00 GMT

Increasingly, international manufacturers are motivated to be in China due to the growing domestic demand of the Chinese marketplace. It is easy to see why when you consider that last year, Chinese consumers bought more automobiles than Americans for the first time in history. Tim Lee, General Motors Shanghai-based president of international operations recently said that he thinks it won't be long before GM will sell more cars in China than in its home market.

However, despite this optimism, all is not well in Chinese - Western relations. Perhaps the most high profile case is that Google, one of the world's most ambitious and recognizable technology companies, was willing to pull out of China; defying censorship regulations despite its 30% share of China's internet search market. The key issue this action raises needs to be addressed by Chinese policy makers and must be rigorously considered by all global executives and risk managers who are seeking to do business in China. I am talking about intellectual property (iP) theft.

Google's allegation of state-supported iP theft raises questions about the ability of any business to safeguard iP in China and just how many companies avoid the Chinese market because they fear they could lose their most valuable assets; iP rights.

China's extremely loose iP regime has been a key element in the country's growth, and until Google's recent stand, western businesses have been willing to trade on these terms; balancing iP risk against their own short- and long-term business development goals in China and Asia. However, I argue that western businesses will increasingly develop duel strategies to balance their regional sourcing goals in order to harness low cost sourcing requirements with alternative strategies for gaining access to domestic Asian markets. One such strategy will be India.

According to a study performed by the London School of Economics, both India and China are capable of world class manufacturing processes. The study on the supply chains of the two countries' automotive industries, found that two-thirds of their domestic suppliers were able to meet western quality standards and have a large sub contract base to outsource component manufacture. The recent flow of major global companies setting up sourcing operations in India emphasises India's growing attraction as a manufacturing base for western companies: Fiat and Chrysler, BMW, Ford, and Jaguar Land Rover have all recently established India sourcing; Walmart is looking to make India a major sourcing hub and Atlas Copco set up global sourcing in India

India is now in the early stages of a manufacturing revolution of the kind that China commenced in the 1990s, and it is increasingly seen as a viable alternative to China for sourcing manufactured goods. Add to this that India, with its legal system roots planted in English law, is seen as a much safer environment for international firms to protect iP, and India could become a serious threat to China's manufacturing dominance.

Also, as trade between China and India continues to grow to be one of the world's largest trading blocks, India could become the Asian base of choice from which western companies centre regional market strategies and also gain access to the huge Chinese market. To address this challenge I argue, China must tame the iP dragon in two ways; tighten its iP regulatory framework to protect western investment, whilst also continuing to internationalise via M&A, and cooperation, to secure its own iP.

The internationalisation route has already been followed by Huawei Technologies, Haier, Sun Tech Solar and Chery international, and more recently by Geely's $1.8bn acquisition of Volvo. In this way China can tame the iP dragon and maintain its country of choice position amongst western companies in the long term.

David Henshall is founder of Purchasing Practice (www.purchasing-practice. com), a niche consultancy specializing in procurement.

Jul 26, 2010 3:00 AM

Merck Sharp & Dohme plans new site in Hangzhou

Max Henry — Thu, 22 Jul 2010 02:15:00 GMT

Merck Sharp & Dohme (MSD), a leading global pharmaceutical manufacturers, began work on a new manufacturing factory in east China' s Hangzhou City, Zhejiang Province on Monday as part of its expansion plan in China.

According to the local government, the first phase of the project covers 75,000 sq m of land and involves RMB700 million of investment. Total investment will surpass RMB1 billion (about US$147.6 million), making it one of its largest pharmaceutical packaging projects in recent years.

The factory is expected to start production by the first quarter of 2012 and will have an annual packaging capacity of over 300 million packs.

Jul 22, 2010 10:15 AM

Monthly throughput at Shanghai and Shenzhen declines

Max Henry — Thu, 22 Jul 2010 02:00:00 GMT

Analysts foresee a slowdown in global trade on the horizon as the mainland's two biggest ports, Shanghai and Shenzhen, report lower volumes last month compared with May.

The volume of containers through Shanghai, the world's busiest container port, fell 4.7 per cent to 2.44 million 20-foot equivalent units (teu) from 2.56 million teu in May, according to Shanghai International Port Group, the Shanghai-listed operator of the city's ports.

Shanghai's cargo throughput fell 4.95 per cent to 35.97 million tonnes from 37.85 million tonnes in May.

The container throughput in Shenzhen, the mainland's second-busiest port, fell 1.4 per cent to 1.91 million teu from 1.93 million teu in May, after three consecutive months of increases to May, according to the Shenzhen Ports Association.
Shenzhen's cargo throughput fell 1.3 per cent to 18.74 million tonnes from 18.99 million tonnes in May.

"The global recovery has reached a turning point as the momentum provided by the inventory cycle wears off," Melissa Kidd wrote in a report for Lombard Street Research, a London economic think tank.

"Recent falls in the BDI (Baltic Dry Index), with weakening hard commodity demand in China and softening global data, point to a slowing down in the global recovery."

But, Charles de Trenck, an analyst at consultancy Transport Trackers, pointed to the double-digit year-on-year growth, as opposed to the month-on-month figures, of the Shanghai and Shenzhen ports in June.

"These are not bad numbers," de Trenck said.

Shenzhen's container throughput grew a sizzling 35.2 per cent year on year last month, while Shanghai's container throughput growth was 21.4 per cent year on year.

However, he predicted slower growth for the mainland's port throughput in the coming months, because retailers in the United States were likely to slow down their inventory restocking.

In Hong Kong, estimates from the Port Development Council show the pace of growth and the volume of containers through the city's port were still on the rise compared with the first part of last year. Figures for May show 15.2 per cent year-on-year growth to a little more than 2 million teu, up from 1.7 million teu.

Hong Kong, through its Kwai Chung, river trade and mid-stream operations, handled almost 9.4 million teu in the first five months of this year, up 15.5 per cent compared with last year.

These figures show a gradual month-on-month improvement in container volumes which could gain in strength as the container shipping sector moves into the peak season, starting around now, as goods are shipped to meet pre-Christmas demand.
Based on current projections, Hong Kong is on course to handle about 23.5 million teu, the same level as in 2006.

One of the problems facing shippers, de Trenck said, was a shortage of containers that could grow more acute if container volumes continued to rise in the peak season.

He said the liner industry thought the shortage "was going to be solved, but it could last the whole summer".

Part of the problem has been caused by container lines cutting the speed of their ships to reduce fuel consumption and increase available capacity, resulting in containers kept on board ships at sea for longer.

Asian shippers groups estimated the slow sailing had reduced the number of containers available by about 20 per cent. Container liners cannot easily "change their schedules around" either by increasing the speed of their ships or withdrawing ships from service, de Trenck said. This is because most carriers are in alliances with other shipping lines and each contributes vessels or deck space to each route or service.

Jul 22, 2010 10:00 AM

Demag Cranes opens new plant in India

Max Henry — Thu, 22 Jul 2010 02:00:00 GMT

Following a construction phase of just eight months, Demag Cranes inaugurated its new production plant in Chakan, India, together with customers and partners. This marks an expansion of the company’s production capacities on the sub-continent of some 8,000 square metres to cover a total of more than 10,400 square metres with a possible extension of 6,000 square metres.

Besides Standard Cranes and crane components, the product range in future will also include the technically more complex Process Cranes which are specifically integrated into the production process to meet the customer’s individual needs. Aloysius Rauen, Chief Executive Officer of Demag Cranes AG emphasises: “The expansion of our production with a clear concentration on the requirements of the Indian market reflects the core element of our strategy to make our customers’ wishes the focus of our activities. This investment of more than EUR eight million also underlines our strategic commitment in the BRIC countries.”

The plant, which is located 30 kilometres from Pune, is designed for a production capacity of up to 600 Standard Cranes and 100 Process Cranes per year. Parts for the KBK crane construction kit are also manufactured at the location – up to 24 kilometres of KBK rails can be produced per year.

The spare parts logistics operation has also already been running from Chakan since March; the production of components such as rope-hoist and open-winch crabs as well as KBK has commenced. For components which the company does not manufacture itself, Demag Cranes utilises a network of local suppliers. Thomas H. Hagen, Board Member of Demag Cranes AG and Chief Operating Officer of the Group, commends the teamwork during development of the locally produced Process Crane: “The new crane is the result of extremely productive and innovative teamwork between Indian and German engineers who have worked to meet the particular requirements of the Indian market and its procurement opportunities. This success demonstrates again that we are on the right path with the integration of our Group.”

Demag Cranes Group has been operational in India since 1997. It has more than 600 customers in the country for all three of its business segments – Industrial Cranes, Services and Port Technology.

Jul 22, 2010 10:00 AM

GM plans to grow India's sourcing

Thu, 22 Jul 2010 02:00:00 GMT

General Motors India, the local arm of the Detroit-based car manufacturer, is strengthening its India plans as it intends to locally source more than 90% of its requirements for making commercial and passenger vehicles.

The strategy, which would be executed within the next two years, would benefit a host of existing and potential Indian suppliers, auto component makers and other allied companies.

GM India currently sources only 60% of auto parts and ancillary for its passenger cars from India. “When we launch commercial vehicles, localisation rate would be 90%. And that would mean purchasing and making everything in India,” says GM India president and managing director Karl Slym. “Within a couple of years, we would reach that mark in passenger cars.

Some components are just not available in India and existing contracts (with international suppliers) need to expire before looking at local suppliers.”

The company has been focusing on creating capabilities on suppliers end such that they can quote for orders outside GM India. As of the end of the first quarter, Indian suppliers were able to get $500-million business allocation from GM outside India, and the magic number doesn’t seem too far away. “We still think that it can be double than what it is now. Of course, the activities outside India have meant that volumes are lower in Europe and North America. So, it will probably put a bit of time lag, but our plan would be to get to $1 billion by the end of the financial year,” adds Mr Slym.

“The company is also planning some MUV and SUV launches with the help of its new parent, SAIC, making India and China the sourcing hubs. So, with higher localisation, they can reduce the input cost, thereby bringing down prices of other car models as has happened in the case of Beat, which is priced very aggressively,” says IDFC SSKI Securities director research Ramnath Subramaniam.

However, commercial-vehicle segment could become a bone of contention where the market is dominated by Tata Motors and Ashok Leyland. An international major like Volvo has only recently been able to make a dent in their combined market share after years of trying, says an industry analyst.

But GM India is strengthening its supplier base and manufacturing capacities. In November, the company will begin production at its power train plant with a total capacity of three lakh petrol and diesel engines, entailing an investment of $200 million. “Our engine plant will start operating from November, and the Beat will have petrol and diesel engines from there,” adds Mr Slym.

Jul 22, 2010 10:00 AM

The Council launches a new benchmarking initiative on 3PLs capabilities in China

noemail@supplychains.com — Tue, 22 Jun 2010 12:00:00 GMT

In an effort to help its members in selecting the best logistics service provider in China, the Council is launching a confidential benchmarking survey aiming to give supply chain and logistics professionals a holistic view of logistics service providers' performance in China and the factors contributing to it in.

At the core of analysis is the shared vision that your potential clients - end-users & shippers - need to develop consistent, reliable, actionable, and credible measures to ensure accurate comparisons and reporting of the various 3PLs in China.

How Do I Get Started?
Enrolling into this benchmarking effort requires a 3PL to appoint a manager to guide the data collection process and to guarantee that you provide timely and accurate data. After you have assign the person, you can start to respond to the excel file and send back your completed form.

Please download, review and complete the following excel sheet:
http://www.supplychains.com/attachments/files/4745/China%203PLs%20Benchmarking.xls

Who Will Use My Data?
Your results will be kept confidential by the Council and made available to members who are manufacturers, retailers and trading companies who are requesting it. These companies are all potential clients of your company so we strongly recommend that you take part in this initiative.

Your Data is Safe With Us
At the Council, we aim to be your long-term partner to your business in Asia. An important part of that relationship - of any relationship - is trust. And with this benchmarking, you can trust us 100% that we are committed to keep your confidential data and none of your competitor, even if they are a member of the Council, will have access to it.

How Much Does It Cost?
At the present time, there is no cost for logistics firms and 3PLs to participate in this benchmarking exercise. The results will also be made available free of charge to the end-users members (manufacturers, retailers) of the Council.

If you have further questions or issues around this benchmarking effort, feel free to email or call us directly.

Asia's Leading Supply Chain Magazine, CHaINA Magazine, Goes Live on iPad & iPhone

noemail@supplychains.com — Tue, 08 Jun 2010 23:00:00 GMT

> First magazine in China and probably in Asia to be released on iPad
> First supply chain and logistics magazine worldwide to be launched on iPad/iPhone
> More than 130 million iTunes members worldwide can now read CHaINA magazine

The Council is delighted to announce that CHaINA’s digital edition is now available for the iPad and iPhone. With today's launch, CHaINA Magazine makes history as the first publication in China and the first supply chain and logistics magazine worldwide to offer its iPad version.

The Council take great pride in being at the forefront of all of the latest technology available and now with the iPad/iPhone version of our magazine, CHaINA will be available to over 130 million potential readers worldwide, particularly in South East Asia, North America and Europe. Apple already sold 2 million iPads and is expected to sell more than 5 million by end of 2010: Apple sells right now one iPad every 3 seconds.

CHaINA Magazine gives you knowledge to act, with fast on or offline access to the latest updates on Asia's business, in-depth analysis, executives interviews - all your favorite sections of the magazine are here - and they’re even better on iPad.

With CHaINA on iPad, you will be notified of any new issues in real time, which can be purchased from within the App, as well as your favorite back issues. This App includes a free issue of the magazine and the vendors directory that you can read for preview. One and two years subscriptions are also available.

Special Features:
- Stay connected to the latest top stories in supply chain in Asia.
- Interactive page flipping where pages follow your fingers.
- Read in both landscape and portrait mode, take a closer look at photos.
- Share magazines with your colleagues just like you would in the real world!
- Search the magazine you are reading but all of your back issues too.
- Read offline and anywhere regardless of a data connection or wifi signal.

To view and download CHaINA Magazine on iTunes, click on http://itunes.apple.com/app/chaina-magazine/id375953391?mt=8

The Council launches new regional title for South East Asia

noemail@supplychains.com — Wed, 12 May 2010 13:00:00 GMT

The Global Supply Chain Council, a leading business media company that provides community, marketing and event services to the specialized profession of supply chain management, today announced the launch a new regional publication on supply chain and operations excellence in Asia.

The announcement follows the successful re-launch of CHaINA magazine in a bilingual English-Chinese format in November, and advances a Council objective to expand its regional presence all over Asia.

The new title called OPS Asia will be produced monthly and will have a target distribution of over 100,000 readers.

The title will be targeted to "highly influential" supply chain professionals including: supply chain, logistics, procurement, sourcing and operations senior executives working in markets like Hong Kong, Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam and India.

"We look forward to partnering with the numerous supply chain and operations executives in these markets with the same innovative brand of comprehensive local coverage that we feature in CHaINA Magazine," said its Council founder, Max Henry.

Editorial will include articles on practitioners interviews, company profiles, product information and applications, regulatory and legislative news, best practices, training, and industry case studies

The magazine will be available in both print, digital and tablet formats.

For more information, visit http://www.supplychains.com/opsasia

CHaINA Magazine coming to iPad in June

noemail@supplychains.com — Wed, 12 May 2010 13:00:00 GMT

This coming June, the Council will release the iPad edition of CHaINA Magazine which will be the 1st China-based magazine and the 1st supply chain/logistics magazine worldwide to be released on iPad. CHaINA Magazine on iPad will be available through iTunes, the channel to purchase music, movies, books and other entertainment for the iPhone and iPad. More than 125 million iTunes account holders will be able to order CHaINA magazine with just a few taps on a screen. The CHaINA app will be free for a few months with ad support before switching to a subscription only basis. This strategy would allow the Council determine pricing and retain the direct relationship with its readers on print and digital version. Apple sold 300,000 iPads on its first day and is expected to reach 1 million in the quarter ending June and more than 5 million by end of 2010 worldwide. iPad is already available all over China via illegal channels and will hit stores legally in Hong Kong next month. The...

China Logistics & Warehousing Map Launched

noemail@supplychains.com — Wed, 12 May 2010 13:00:00 GMT

The Council has recently launched a new interactive map featuring the latest modern warehouses and distribution centers in China.

This new map can help you find a suitable warehouse or distribution center for all of your sourcing, storage and logistics needs across China. With the ability to show detailed information, photos of the facilities, add comments, this map is also available online, in CHaINA magazine and very soon in a poster format.

全球供应链协会最近开发了一种新型在线地图，帮助您在中国找到合适的仓库，解决任何储存、采购和物流问题。以下是一些新开地产的信息。搜索更多仓库信息，请登录www.supplychains.com/map.

Communicate, educate and inform the business community about your company on this visually attractive, critical research map. If you are interested in featuring your facility or services, please email map@supplychain.cn. 如果您也想加入地图，请发邮件至map@supplychain.cn.

To start searching new warehouses and distribution centers in China, click on www.supplychains.com/map

APL Logistics Wins Major Asia Supply Chain Award

noemail@supplychains.com — Thu, 19 Nov 2009 15:00:00 GMT

Shanghai, China – 18 November, 2009 - APL Logistics, an innovative provider of international supply chain solutions, has received the 2009 CHaINA ‘Best 3PL Supply Chain Provider in Asia’ Award for its development of integrated logistics services to support the world-famous US-based designer and marketer of premium retail brands, Liz Claiborne Inc. The prestigious awards were presented at a gala ceremony in Shanghai by the Global Supply Chain Council, to identify and honor excellence in the procurement and logistics industries throughout the region, especially in Greater China. Liz Claiborne nominated APL Logistics for the award, citing the significant cost reductions and operational efficiencies that APL Logistics has helped the designer achieve during their relationship. APL Logistics’ creative use of flexible consolidation and transportation services at key stages throughout Liz Claiborne’s transpacific supply chain were also highlighted as major...

SEEBURGER's RosettaNet-Based B2B Deployment for Digital China Wins CHaINA Best IT Supply Chain Solution Award

noemail@supplychains.com — Thu, 19 Nov 2009 15:00:00 GMT

Automates Order Processing with Customers & Suppliers to Improve Operations ATLANTA, Nov. 18 -- SEEBURGER Inc. announced today that it has earned Best IT Supply Chain Solution honors from the Global Supply Chain Council for deployment of a RosettaNet-based business-to-business integration system for Digital China, that country's leading integrated IT service provider. The project - one of China's most advanced supply chain communications systems - paves the way for completely paperless order processing that will help Digital China speed order handling, reduce costs and improve supply chain management. Before the new B2B system was deployed, Digital China was communicating with the majority of its trading partners manually and had only limited automation for those few partners that...

Kong and Allan Consulting Wins 2009 Best Supply Chain Consulting Partner in Asia Award

noemail@supplychains.com — Thu, 19 Nov 2009 15:00:00 GMT

SHANGHAI (November 11, 2009) --- Kong and Allan (Shanghai) Consulting Co. Ltd. announced today that the company has won the 2009 Best Supply Chain Consulting Partner in Asia Award as determined by a committee of industry professionals from the Global Supply Chain Council. Kong and Allan Consulting received the award for their work with Ningbo Fotile Kitchenware Co. Ltd. Previous award winners include Accenture and IBM. Kong and Allan Consulting has been engaged with Fotile Kitchenware for over eight months in an effort to improve operational efficiency, reduce supply chain costs and to implement sophisticated demand forecasting and S&OP processes. Fotile Kitchenware is a leading Chinese brand in the electric and gas appliances, and integrated kitchen solutions industry. In 2007, Fotile Kitchenware's brand value ranked 173rd in brand value overall for all Chinese brands. In granting the award, Max Henry, Founder of the Global Supply Chain Council noted, The jury had a...

Kingfisher, APL Logistics, SEEBURGER, Manhattan, Kong and Allan, Bosch and Coca-Cola honored with their partners at the 2009 CHaINA Awards

noemail@supplychains.com — Wed, 11 Nov 2009 18:00:00 GMT

Shanghai, China, November 10th, 2009 – In its fifth year, the 2009 CHaINA Awards was back again to celebrate and acknowledge the best of the best in China’s supply chain and logistics. The CHaINA Awards is an independent award that has been held yearly since 2005 to recognize and praise companies as well as individuals who have made significant contributions to China’s supply chain and logistic landscape. The CHaINA Awards is extremely unique as it is one hundred percent sponsor free and is not affected by any sponsorship influences. Being one of the only supply chain awards in China, the CHaINA Awards truly seeks to identify and applaud all extraordinary achievements in supply chain and logistics in an objective and unbiased manner. Our panel of judges consists of experienced and intelligent individuals in diverse industries with their main areas of expertise in areas of supply chain, logistics and operations. This year, we had more than ninety nominations for the awards in total...

New Research Reveals a Fast Evolving China Logistics Sector

noemail@supplychains.com — Mon, 26 Oct 2009 19:00:00 GMT

The Global Supply Chain Council and logistics services provider FM Logistic have announced results from their China Warehousing and Transportation Survey, which reveals that the logistics sector in China may be more globalized and advanced than industry players think. Max Henry, founder of the Global Supply Chain Council, says, Our research indicates that logistics efficiency in China—measured by logistics costs as a percentage of sales—may be higher than commonly believed. The average of our respondents’ reported costs, about 10% of sales, is much lower than commonly cited estimates of China logistics costs as a percentage of GDP. Mr. Jean-Cyprien Onteniente, China Sales Director for FM Logistic, adds, People answering the survey clearly indicated that service quality is a more important factor than price when they are evaluating logistics services providers. It is good to see that the ‘price-is-everything’ mentality is less common in the market, and that companies understand...

Supply Chain Project Leader (Hangzhou)

Sun, 25 Jul 2010 16:00:00 GMT

Title: Supply Chain Project Leader (Hangzhou) Description: - Design of concepts, processes and material flow for Supply Chain Asia Pacific (together with Logistics Headquarters in Germany) - Implementation of processes and material flow in Asia Pacific - Lead or participate in cross-functional projects in Source, Make and Deliver Logistics (Material flow design, Process design, etc) - Lead or participate in Supply Chain IT-projects in regards to process and user requirement - 参与亚太区物流规划，流程设计，推动标准物流流程，实际物流优化的实施 -...

Supply Manager- Asia Pacific (Hangzhou)

Wed, 21 Jul 2010 16:00:00 GMT

Title: Supply Manager- Asia Pacific (Hangzhou) Description: - Supply coordination: Ensure availability of finished goods in the CSO by coordination with the plant/CLP. Escalate delivery problems and initiate actions to improve delivery situations. - Bottleneck coordination: Prioritizes the manufacturing activities in cooperation with the country management and distribution manager (rBU/LOG) and in cases of components bottle necks coordinates between rBU's and plants. - Communication, coordination: should discuss purchase order and purchase forecast in weekly meeting with the distribution manager, exchange CSO and plant information. Daily/weekly communication with plant is needed. - Production lead-time tracking and analysis, coordinate LT 10 implementation: improve the Service Level 1 continuously. This includes an accurate planning to prevent SL1 issues and effective actions to solve existing SL1 failures. - Launch manager: Join the launch meeting for the product...

Distribution Manager- Asia Pacific (Hangzhou)

Wed, 21 Jul 2010 16:00:00 GMT

Title: Distribution Manager- Asia Pacific (Hangzhou) Description: - Purchase planning: Make planning according to defined finished goods inventory planning process. - Inventory controlling: Be responsible to keep the inventory under control, and this includes the knowledge of the inventory structure as well as the overstock elimination - Communication, coordination: coordinate the sales forecast in a monthly meeting with the Brand Manager but should also communicate on a weekly/ daily basis with fixed agenda which defined by demand planning process; DM should communicate with the plant to ensure delivery and monitor or push them in case of a bottle neck. - SL1 improvement: improve the Service Level 1 continuously. This includes an accurate planning to prevent SL1 issues and effective actions to solve existing SL1 failures. - Supply chain cost control. Required Experience: - Education: Bachelor degree and above (logistics is preferred) - Work Experience: 3-5 years...

Managing Director, Project Logistics (Shanghai)

Wed, 14 Jul 2010 01:24:11 GMT

Title: Managing Director, Project Logistics (Shanghai)
Description:

Major 3PL, with a strong focus on the Industrial Project Forwarding Industry is looking for a Managing Director, Project Logistics based in Shanghai.

With a global network and proven reputation in servicing the oil & gas, petrochemical, MOD/defence, renewable and energy industries, this 3PL is looking for a new business focused Managing Director with experience in driving change through continued positivity and new business sales.

Required Experience:

The successful candidate will be a highly experienced project forwarder, with multi-million dollar budget experience, proven closing skills at final tender stage/board level, operational management of 100+ employees and an unrivalled knowledge of the project forwarding industry encompassing knowledge of current and future projects across the main names (EPC’S and Operators) within the industry.

You will be rewarded with a six figure executive package encompassing, Basic, Pension, Healthcare, Relocation Allowance, Bonus, Housing and Language Training.

Education Required:
Planned Duration of Employment: Full Time

Contact info:

Jason Dickens (Add to Contacts)

Kinetic

Global Commodity Manager - Ocean Freight

Tue, 13 Jul 2010 15:46:37 GMT

Title: Global Commodity Manager - Ocean Freight Description: Primary Purpose of the Position: - Develop and implement global sourcing strategies for ocean freight transportation (e.g. container shipping, break bulk, etc.) that will provide competitive advantages to the SBU's and the entities represented. Execution of global commodity and supplier strategies utilizing 7 step procurement sourcing process. - Develop and execute negotiation strategies to provide secure supply lines, contribute towards global financial results, and promote company innovation initiatives. - Responsible for global supplier performance and improvement, and contract management - Team leader for global internal councils designed to facilitate alternate sourcing, new source development and sourcing/supplier management process enhancements. Provide leadership and support for Supplier Relationship Management allocated to the Regional Commodity/Procurement Managers. Principle...

Logistics Officer (Shenyang)

Thu, 08 Jul 2010 16:00:00 GMT

Title: Logistics Officer (Shenyang) Description: Industry: Food manufacturing (JV with reputable European MNC) Office Location: Shenyang, China Reports to: Operations Director, dotted line to HQ SCM Development potential: Logistics Manager (within 1 year) Salary: competitive, depending on experience Responsibilities (job posting): Manage transportation and import/CIQ of materials, manage relationship with forwarders and custom/CIQ authorities Establish logistics procedures to ensure traceability and compliance with regulatory requirements. Support HQ SCM in identifying, qualifying, negotiation, contracting, and assessing logistics SC/resource Support purchasing officer in planning purchase orders. Profile: Bachelor degree in international trading or business. Experience in importing and administrating CIQ of food ingredients of advantage Fluent Mandarin and English Willing to travel ...

Purchasing Officer (Shenyang)

Thu, 08 Jul 2010 16:00:00 GMT

Title: Purchasing Officer (Shenyang) Description: Industry: Food manufacturing (JV with reputable European MNC) Office Location: Shenyang, China Reports to: Operations Director, dotted line to HQ SCM Development potential: Purchasing Manager (within 1 year) Salary:competitive, depending on experience Responsibilities (job posting): Establish purchasing plan, issue and manage purchase orders (from plan to invoice), manage supplier relationship and risks. Establish purchasing procedures to ensure traceability and compliance with regulatory requirements. Support HQ SCM in identifying, qualifying, negotiating, contracting, and assessing suppliers, as well as establishing aggregate Supply Chain plans and policies. Support logistics manager in implementing inbound material procedures. Profile: Bachelor degree in business or food engineering. International accreditation like MCIPS of advantage....

General Manager, Contract Logistics (Manila)

Thu, 08 Jul 2010 12:51:01 GMT

Title: General Manager, Contract Logistics (Manila) Description: Responsibilities: - Leading key account management/3PL operations and business development - Responsible for selling third party logistics and supply chain services to MNC clients - Responsible for government liaisons - Responsible for bottom line management Requirements: - Candidate must possess at least a Bachelor's Degree, Post Graduate Diploma/ above in related disciplines. - At least 10 year(s) of working experience preferably in Logistics/Supply Chain of cold chain/FMCG or equivalent job role in Logistics or Management. - Preferably on General Manager role for at least 2 years in third party logistics/supply chain management. - Strong business acumen with track record in business development/sales and marketing to MNCs. - Proven track record in achieving and exceeding annual sales budget and contributing to the overall growth strategy. - Excellent...

Global Sourcing Manager (Bangkok)

Thu, 08 Jul 2010 12:40:23 GMT

Title: Global Sourcing Manager (Bangkok) Description: Responsibilities: Responsible for raw material sourcing, including: strategic understanding of the supply market place, pricing and term negotiations, preparation and analysis of bid proposals/packages, supplier selection, negotiation and communication with users across plants and business units. Provides subject matter expertise regarding commercial and technology market/trends so as to advise internal users of the materials/services and generate cost savings and value to bottom line. Interfaces with strategic suppliers to solve problems involving pricing, supplier performance, or any other matters that may arise. Streamline work processes to ensure company policy compliance with emphasis on best practices, optimum efficiency, and transparency. Ensure purchasing/sourcing channels are professionally well managed, review and re-negotiate contracts (TOR/RFQ), maintain up-to-date documentation and...

Procurement Specialist

Wed, 07 Jul 2010 16:00:00 GMT

Title: Procurement Specialist Description: PROCUREMENT SPECIALIST http://www.adb.org/Employment/Professional/ps10-009.asp Job Purpose Provide assistance, technical guidance and capacity building to: ensure compliance with ADB's procurement (goods, works, and consulting services) policies and procedures; support improvements in the implementation performance of ADB portfolio of loans, grants, and technical assistance (TA); and assist in the establishment, harmonization and improvement of procurement policies and procedures, consistent with effective project management for ADB projects. Expected Outcomes Procurement/Consulting Services Advice Review borrowers' procurement actions and submissions for engaging consultants under ADB loans. Provide technical guidance and advice as appropriate in accordance with ADB procurement policies and procedures. Project Management Support ...

Purchasing manager /Logistics, SCM Manager

Tue, 08 Sep 2009 23:00:00 GMT

Desired Position Title: Purchasing manager /Logistics, SCM Manager Experience: My responsibility concerns mainly purchasing specific goods in China on behalf of our European Customers by methods of Project Management: Providing purchase solution from the moment of receiving our client’s specifications to Sourcing, Potential Suppliers’ Visiting and Evaluation,, Negotiation of price and litigation, Quality Control, International Logistics, Management of regular purchasing orders, etc. during my work, my projects mainly include: l Project of TRIGANO- Wheeling Hub Unit and Rotating Arms, Jacket Wheel, Solar Panel Industry: Mechanical and electrical spare parts for Recreational Vehicle and Trailers, Report directly to: French Customer Number of Subordinate: 2 Responsibility: Studying customer’s specification, Sourcing, Visiting and evaluating potential supplier, Communication with suppliers, Price Negotiation, Signing Commercial contract, Order...

Positions at the Council

Wed, 28 Jul 2010 21:11:55 GMT

You're on the look-out for a new career challenge? Interested in supply chain management and B2B marketing? Why not take a quick look at the job vacancies currently available at the Council! We are seeking to fill for these positions and interested to hear from motivated professionals who will make a valuable addition to the team. >> View the latest positions available in Shanghai >> View the latest positions available in Guangzhou >> View the latest positions available in Tianjin >> Internship Opportunities in China, Vietnam & India >> NEW! Editorial Internship in Shanghai, China SHANGHAI POSITIONS Membership Development & Retention Manager (Shanghai) The Global Supply Chain Council, Asia's leading professional organization for supply chain professionals, is seeking an enthusiastic, team-oriented, success-driven professional experienced in growing and retaining organization's memberships. ...

***homepage content area - middle top

Wed, 28 Jul 2010 13:41:02 GMT

SEMINARS & CONFERENCES: more events So Many Boats, So Little Space, Aug 26, Shanghai Attend this forum discussion and learn to cope with vessel space shortages and rising shipping rates from China. 参与讨论并学习如何应对中国船只空间不足和日益上涨货运率. Automotive Supply Chain Forum, Sep 16 Attend this discussion and network, share experiences in the field of automotive supply chain and logistics. 参与讨论并建立人际网, 分享来自汽车供应链和物流领域的经验. WORKGROUPS & LUNCHEONS: suggest a topic Industrial Goods Distribution Workgroup, Jul 30 FULL! With guest speaker from Schneider...

**New Banner Rotator

Mon, 26 Jul 2010 13:56:37 GMT

top left - home

Thu, 22 Jul 2010 16:37:07 GMT

PUBLICATIONS CHaINA OPS Asia Directory Times SURVEYS & RESEARCH > Surveys results findings (members only)

Why Join The Global Supply Chain Council

Thu, 22 Jul 2010 09:08:27 GMT

Supply Chain Council Membership - designed with your career and business in mind

The Council is committed to create an environment in which supply chain, logistics and manufacturing skills are developed through practical and hands-on educational activities, networking and resources in China, India and Vietnam.

As a member of the Council, you become part of an exclusive global network of supply chain executives who can provide you with insights that will help you and your company excel in these markets.

The Council membership can be the catalyst that drives your managers to develop a strategic supply chain perspective and seek out new ways to advance the business.

Doing business in Asia?

By joining our Global Supply Chain Council Membership, you will enhance your professional status in your industry and be recognized by your peers. Keep on top of local industry and supply chain changes in China and Asia.

If your goal is to transform your supply chain organization, there's no better time to make the necessary investment than now.

Starting at only US$ 350 annually, a Supply Chain Council membership gives you a strong return on your most important investment - your career in Asia.

> Full membership and pricing levels can be found here.
> To review the complete list of benefits, click here.

Click here to become a member and start shaping the direction of your future today!

Most Influential People in Asia's Supply Chain

Thu, 22 Jul 2010 01:47:59 GMT

Name the most influential people in the supply chain profession in Asia

The Global Supply Chain Council is looking to find the most influential and respected people in the field of supply chain management and operations in Asia. Anybody can nominate a professional who they esteem to have significant influence over the practice of supply chain management in Asia.

The people you select could be supply chain, procurement, logistics, operations business leaders, authors, consultants, industry expert or anyone involved in supply chain industry in Asia.

Have you added your favourite? This is your chance to let us know the names of the people that you most respect, the ones who have made this profession so vibrant.

We'll leave it there. Now you tell us who you would nominate and why! Leave your nomination(s) in the comment fields below by September 15, 2010.

Mission & Vision of Global Supply Chain Council

Thu, 22 Jul 2010 01:44:13 GMT

Through its function as a significant link and resources in Asia, the Global Supply Chain Council provides opportunities for companies, organizations, and supply chain professionals to access up-to-date information and resources regarding supply chain management, best-in-class business practices, benchmarking, market intelligence, current news and new technologies that are so rapidly changing in the China market.

Today, the Council represents the most innovative and successful manufacturers and retailers who view supply chain management as a critical driver of shareholder value and competitive differentiation.

The Global Supply Chain Council brings the key executives from these companies together in unique forums to learn from each other and industry experts, advocate for the best course of action in China and work to advance the reputation of the supply chain profession as as a whole.

It is the quality of our members and their passion for supply chain management that sets the Council apart from other organizations and gives actual business value back to our members.

Our Mission: to provide a platform of education and contacts for the continuing professional development of executives so that supply chain and logistics can be secured in the top management agenda of foreign-invested and local companies operating in China.

CHaINA '10 Live Speakers

Wed, 21 Jul 2010 16:37:13 GMT

Presently confirmed speakers to attend this year, there is no doubt the list will continue to grow! How to cost decrease in a low cost country Yann Teste, Director of SE Asia Purchasing and Supplier Quality Development Knorr-Bremse Improving competitive advantage through innovation sourcing Martin Lockström, Deputy Director China Europe International Business School Saving customs duty costs and reducing customs clearance times Damon Paling, Partner, Customs & Trade PricewaterhouseCoopers Footprinting carbon and chemicals in the supply chain: cost or opportunity? Christopher Hazen, Asia Director WSP Environment & Energy Designing your supply chain & logistics to support business growth strategy William Loy, Supply Chain Director Dow Chemical Company Other Invited Speakers: -Bill Kung, Managing Director, Ecovane Environmental -Brady Sidwell, Assistant Director,...

CHaINA 2005-2008 Attendance Breakdown

Mon, 19 Jul 2010 19:45:30 GMT

Click here to go back to the Main Page

Why Attend CHaINA '10 Live?

Thu, 15 Jul 2010 14:32:46 GMT

CHaINA '10 Live will be an enriching and rewarding event for Chinese executives and operational leaders involved or simply interested in supply chain management. With more educational and networking opportunities than you'll find at any other SCM and logistics event in Asia, there's something for everyone at CHaINA '10. Whether you are the China head, a logistics manager or you're just starting out in the profession, you'll benefit from practical local experience and knowledge you can put into practice into your Chinese operations right away. Attendees will span the enterprise and business solution environments from functional-level management to director-level decision-makers. You should attend if you are working in the areas of: Why YOU Should Attend! You will learn and come in contact with information and people that are relevant to the Chinese market. There will be multiple presentation streams and tracks covering every aspect of...

Green Supply Chain in China

noemail@supplychains.com — Sun, 01 Nov 2009 12:00:00 GMT

Objectives:

Building and sustaining a "green" supply chain in Greater China is no easy thing. To better understand green supply chain initiatives, the Council and GXS have teamed up on this survey.

A total of 145 respondents took part in the Green Supply Chain in China Survey. Most are either Council members or part of the Council’s Greater China community. The survey was open for a two month period starting in mid-September and concluding in mid-November. Questions were geared at understanding current awareness, perceptions, practices and the future direction companies will be taking towards green supply chain management in China.

To view the results, click on the following link:
http://www.supplychains.com/attachments/files/3864/Green_Survey-digital.pdf

The survey was sponsored by GXS, visit www.gxs.com for more information.

Release Date: Nov 1, 2009 8:00 PM
Expiration Date: Jan 30, 2010 8:00 PM
In late 2009, to better understand green supply chain initiatives in China, the Council and GXS have teamed up on this survey.

China Warehousing & Transportation Survey

noemail@supplychains.com — Sat, 21 Mar 2009 11:00:00 GMT

Objectives:

We all know that China's export economy has suffered a lot in the current economic situation. Yet we also see that domestic consumption continues to rise. In such an environment, the transportation and warehousing sector is going through a once-per-generation transformation.

To understand the changing environment more clearly, the Global Supply Chain Council and FM Logistic developed a short survey in the Spring of 2009.

To view the results, click on the following link
http://www.supplychains.com/attachments/files/3593/China%20Transportation%20and%20Warehousing%20Survey.pdf

The survey was sponsored by FM Logistic, visit www.fmlogistic.com for more information.

Release Date: Mar 21, 2009 7:00 PM
Expiration Date: Jul 19, 2009 7:00 PM
In 2009, the Council, in partnership with FM Logistics, completed a new survey on logistics and warehousing in China.

Internet Usage in Chinese Fresh Produce Supply Chain

noemail@supplychains.com — Sun, 03 Jun 2007 22:00:00 GMT

Objectives:

Supply chain management in the fresh produce (fresh fruits and vegetables) industry is rapidly evolving to maximize the benefits of the emerging Internet technologies. However, the study of the Internet adoption in fresh produce industry is limited. Therefore, the objectives of this study are:
1) to investigate the current Internet usage in the fresh produce supply chain in China,

2) to benchmark the supply chain management status for Chinese fresh produce companies, and

3) to evaluate the factors influencing the Internet usage in Chinese fresh produce industry.

This study is also a key part of European Commission funded project, VEGNET, which aims to enhance Internet usage in fresh produce industry, and transfer know-how and develop links between Europe and China by introducing the concept of Supply Chain Management (SCM) and the use of Internet technologies to support SCM in Chinese Agribusiness. Your collaboration and support would contribute to our understanding of the current situation and help generate guidelines on enhancing the technology adoption in the fresh produce sector. Even if your company uses little Internet technologies, your views and options would still be very valuable.

Release Date: Jun 4, 2007 6:00 AM
Expiration Date: Sep 2, 2007 6:00 AM

This questionnaire should be filled in by the person who is able to address the questions on behalf of the company. It will take you 10-15 minutes and can be completed by click http://vegnet.beds.ac.uk/survey. Alternatively, if you would like to fill in a Chinese version questionnaire, please go to this link http://icb.cau.edu.cn/vegnet/survey.htm

All the information regarding you and your company will be treated with strict confidentiality. It will not be used for any other purpose than the research described above. The finding of this survey will provide agribusiness managers, including yourself, with an insight into the current issues facing the industry. By participating in the survey, a summary report of the investigation will be avaliable at your request.

Thank you in advance for your assistance. Please do not hesitate to contact me if you have any questions about the survey or the project.

China Railway Logistics Survey 2007

noemail@supplychains.com — Thu, 04 Jan 2007 15:00:00 GMT

Objectives:

In March 2007, the China Supply Chain Council, in partnership with China Railway, completed the first major survey on rail transportation and logistics in China.

Effective rail freight should be reliable and inexpensive in order to attract increased volumes but so far many companies in China have not been able to tap into this mode. With China's railways giving priority to passenger transport, the service providers have to become more "customer centric" in their approach if they want shippers to transfer more freight from road to rail.

The 17 questions survey was designed to measure the perception and the needs on rail freight logistics among manufacturers and retailers and to identify barriers to growth across China. The study results were presented in an exclusive session at the Intra-China Logistics conference on March 7, 2007.

Download the Survey Executive Summary

The survey is now closed however members can get access to the full results of this survey online by clicking here

Please note that survey’s results are password protected. If you are already a member but have not received your password, please contact us directly.

If you are interested to become a member, click here for more information.

Release Date: Jan 4, 2007 11:00 PM
Expiration Date: Mar 2, 2007 11:00 PM
In March 2007, the China Supply Chain Council, in partnership with China Railway, completed the first major survey on rail transportation and logistics in China.

2006 China Warehousing & DC Trends Survey

noemail@supplychains.com — Sun, 02 Jul 2006 12:00:00 GMT

Objectives:

In July 2006, the China Supply Chain Council and Jones Lang LaSalle completed the first major survey on Warehousing & Distribution Centers Trends in China.

This study identifies companies preferences, capabilities and expectations in the use of warehousing in China and investigates how trade, supply chain and distribution trends affect warehousing processes and impose new requirements on warehousing buildings.

Download the Survey Executive Summary

If you are interested to become a member, click here for more information.

Release Date: Jul 2, 2006 8:00 PM
Expiration Date: Aug 1, 2006 8:00 PM
This study identifies companies preferences, capabilities and expectations in the use of warehousing in China.

2006 China IPOs Survey

noemail@supplychains.com — Wed, 31 May 2006 21:00:00 GMT

Objectives:

Take Part in the 2006 China IPOs Survey Follow-up to last year's Survey on International Procurement Organizations Trends and Best Practices in China

The China Supply Chain Council is asking for your participation in an important research surveying procurement and sourcing leaders like you around the globe about their International Procurement Organizations (IPOs) in China.

This survey investigates critical success factors when ramping up a global sourcing effforts in China, what areas are worth considering? What are the key challenges? What are its role and responsibility? What is the value of a China IPO? What are the expectations?

As a token of our appreciation, if you respond by June 9, you will be entered into a lucky draw with the chance to win memberships and delegates passes to the upcoming China IPOs Conference, on June 15 in Shanghai.

Knowing your time is important, we've crafted this survey to take 20-30 minutes of your time.

Your privacy is important to us. The data you submit will remain confidential and will not be released, sold or used in advertising. It will only be used to compile aggregate statistics for an executive summary report.

To begin the survey, please click on: http://www.surveyconsole.com/console/TakeSurvey?id=219508

Supported by: Accenture

Release Date: Jun 1, 2006 5:00 AM
Expiration Date: Sep 5, 2006 5:00 AM
This survey investigates critical success factors when ramping up a global sourcing effforts in China, what areas are worth considering.

2006 Aftermarket Spare Parts Service Logistics Survey in China

noemail@supplychains.com — Mon, 06 Feb 2006 11:00:00 GMT

Objectives:

The China Supply Chain Council, in partnership with Barkawi and DHL, completed a major survey on Spare Parts and AfterSales Logistics in China.

The objective of this survey was to better understand where after sales or service parts logistics stand today and how it is evolving in China. The survey provided insight into the adoption of leading practices in aftermarket logistics. By capturing significant trends and operational performance benchmarks, it also placed the research findings into an overall context and provides perspective on the continuing evolution of service logistics principles and trends.

Click here to download the Survey Executive Summary

If you are interested to become a member, click here for more information.

Release Date: Feb 6, 2006 7:00 PM
Expiration Date: May 7, 2006 7:00 PM

The objective of this survey is to better understand where after sales or service parts logistics stand today and how it is evolving in China.

2006 Cold Chain Logistics China Survey

noemail@supplychains.com — Thu, 02 Feb 2006 11:00:00 GMT

Objectives:

Businesses in the cold chain today are faced with a transportation capacity shortage while new and existing customers are requiring smaller, more frequent, shipments to meet their lean inventory objectives.

In conjunction of the Cold Chain China Summit that took place in July 12, 2006 in Shanghai, the China Supply Chain Council, in partnership with Linfox, launched the first major survey on cold and cool chain and logistics in China.

The objective of this survey was to determine current practices, captures significant trends and establishes operational performance benchmarks in several key areas of cold chain logistics: strategic objectives, distribution and transportation practices, benchmarks and trends, outsourcing, alliances and information technology, forecasting and inventory management.

Download the Survey Executive Summary

If you are interested to become a member, click here for more information.

Release Date: Feb 2, 2006 7:00 PM
Expiration Date: May 19, 2006 7:00 PM
The survey provides insight into the adoption of leading practices in cold chain logistics in China.

2005 Supplier Relationship Management (SRM) China Survey

noemail@supplychains.com — Sun, 25 Sep 2005 00:00:00 GMT

Objectives:

Launched in September 2005, this survey identified companies’ value expectations and capabilities in the area of SRM in China. In particular, the survey examined the full range of post-contract supplier interactions including:

Day-to-day operations;
Supplier performance monitoring and reviews;
Supplier integration (working with suppliers to optimize inter-company processes);
Strategic investments in supply markets or with specific suppliers (e.g. bringing new supplier to market).

The survey is now closed however members can get access to the full results of this survey online by clicking here:

Supplier Relationship Management (SRM) China Survey Results

Please note that survey’s results are password protected. If you are already a member but have not received your password, please contact us directly.

If you are interested to become a member, click here for more information.

Release Date: Sep 25, 2005 8:00 AM
Expiration Date: Oct 10, 2005 8:00 AM
Launched in September 2005, this survey identified companies’ value expectations and capabilities in the area of Supplier Relationship Management in China.

2005 China Investment & Manufacturing Trends Survey

noemail@supplychains.com — Tue, 06 Sep 2005 21:00:00 GMT

Objectives:

You are invited to take part in the 2005 China Investment & Manufacturing Trends Survey organized by the China Supply Chain Council (CSCC) and sponsored by Accenture.

This survey is designed to identify the experiences, trend and new challenges for business operation and investment in the China market.

Your privacy is important to us. The data you submit will remain confidential and will not be released, sold, or used in advertising. It will only be used to compile aggregate statistics for a summary report.

To thank you for taking part in this research, you will:

receive a complimentary copy of the Executive Summary that will summarize the results of the survey;
be entered into a lucky draw and get the chance to win one of the 5 Free Tickets for the largest supply chain event in 2005, the CHaINA Summit, taking place on November 29-30 in Shanghai.

To begin the survey, click on the link below or paste it into your browser's window:

http://www.surveyconsole.com/console/TakeSurvey?id=118473

1951-01-01T00:00:00Z

Instructor: Jamie Bolton