a4 supply chain planning in asia

The Supply Chain Leadership Forum 2011: Walt Disney World® Resort, Lake Buena Vista, FL

Supply Chain Planning in AsiaGene Tyndall, EVP, Tompkins Associates& Steve Ganster, EVP, Tompkins Associates

2Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com

• Primary objective of supply chain planning in Asia• Planning top priorities• S&OP process challenges• Sourcing and distributing in Asia• Move, store and fulfillment in Asia• Planning for risk management• Other needs for supply chain planning for Asia• Discussion

Session Scope

This Session Will Focus On:


Primary Objective of Supply Chain Planning in Asia• Synchronizing product supply with demand

Primary Objective

PLAN BUY MAKE MOVEDELIVER

& SELL

Business Strategy and Goals

Operations and Technology Management

….SUPPLIERS

TOMERS

Financial Management

Performance Management (Metrics and Reports)

CUSTOMERS

STORE

Information FlowCash FlowWork Flow

Material Flow


Top Priorities• Establish how inventories will be created• Establish the network infrastructure of facilities and

flows• Plan for supply chain risks

Planning Top Priorities


• Cultural differences• Communication• Greater variability in

processes• Decision-making

complexity

S&OP Process

Challenges of Conducting an Effective S&OP Process in Asia


Unique challenges posed by sourcing and/or distributing in Asia• Variability in lead times• Supply chain delays and disruptions• Cost overruns• Supplier performance• Item visibility

Sourcing and Distributing in Asia

Yet this is Critical for Optimizing Efficiency and Logistics.


• Supply chain complexity and length• Infrastructure issues such as ongoing work on roads

and rail and airport facilities• Sheer size and magnitude of population centers• Continuous change• Capacity issues

Move, Store and Fulfillment in Asia

Planning for Move, Store and Fulfill in Asia


Planning for Move, Store and Fulfill in Asia• Distribution network must balance costs


Total Logistics Cost

Transportation Cost

Total D

elivered

Costs

Number of Facilities

DC Operating Cost

Sweet Spot: Optimal Logistics Cost and Service Mix

Gross Margin

Maximum Profit

Sweet Spot: Optimal Margin and Service Mix

Inventory Cost


Planning for Move, Store and Fulfill in Asia• Integrated to the network design is what are the

requirements for each facility


– Availability of land– Transportation infrastructure– Incentives– Capabilities of people,

processes and technology



ProcessTechnology

People

Products

Facilities:DCs, Hubs,

etc

SupplierFlows

ProductionCapacity &

Flows

CustomerDemand &

Flows

InventoryPolicies

Taxes

GlobalTrade Laws

& RulesBusinessStrategy

CompetitorStrategies

Network Modeling &Optimization

Facility, Inventory& Transportation

Optimization

TransportationFlows &

Cost


Planning for Move, Store and Fulfill in Asia• An important factor that is often overlooked is Tax-

Effective Supply Chain Management• There are multiple categories of tax obligations

Facility Location, Selling of Products and Flow of Goods All Impact Corporate Taxes, as Well as

Management of Currencies


– Income tax– Sales tax– Real estate tax– Customs


Planning for Risk Management• Supply chain flow disruptions• Financial or currency variations• Security, theft and counterfeiting

Risk Management

Plans for business continuity are necessary in Asia, as they are globally.


Other Needs• Setting targets for operating margins, inventory turns

and other KPIs• Special events• New products• Planning tools capabilities

Supply Chain Planning for Asia

Planning is the Critical Integrator for Asian Supply Chains

The Supply Chain Leadership Forum 2011: Walt Disney World® Resort, Lake Buena Vista, FL

Discussion

a4 supply chain planning in asia

Business

lake buena

supply chain

rights reserved

op process

primary objective

risk management

planning

amp