best noel bautista

Outsourcing Logistics and Transportation,

Role of 3PL

Emmanuel Bautista Managing Director

IDS Logistics (Phils.), Inc.

Low market acceptance of new products +

Low order fill-rates +

Rush deliveries to fulfill commitments +

Backhaul of stocks to GMA DC +

= High W&D costs, Unsatisfied Customers

Learning From Past Experience

The Philippine Logistics Terrain

Archipelago with scattered Key Demand Centers

Intricate road network in GMA & Luzon

Multi-modal freight needs for Vis-Min– Sea freight expenses are considerable

Backhauling opportunities still limited

Li & Fung Ltd. Li & Fung Retailing

Li & Fung – Founded 1906

Li & Fung (Distribution)

Li & Fung – a strong Asian heritage with well proven track record

Our Parent Group

Asia-wide Integrated-Distribution Services in

Marketing, Logistics and Manufacturing

IDS Group

(Re-listed on Main Board in 1992)

Export-trading, sourcing soft and hard goods with

operations in 38 countries. Key clients include: Kohl’s,

The Limited, Gymboree

Circle-K (Listed on GEM Board in 2001: under Convenience Retail Asia),

Toys “R” Us

Salvatore Ferragamo

promote, sell, bill, collect ship, store, deliver make, test, package

marketing logistics manufacturing

Each core business built on its own strength to compete against best-in-class competition

IDS Group – Our Core Businesses

Customised solution to meet specific customer needs, locally or regionally. Trend towards regional customer partnerships

Three Core Competencies, One Integrated Solution Across the Value-Chain

Framework for Considering Strategic Alliances

Improves market access?

Strengthens operations?

Adds technological strength?

Enhances organizational skills?

Builds financial strength?

Third Party Logistics (3PL)

Advantages– Focus on Core Strengths– Provides Technological

Flexibility

– Provides Other Flexibilities• Geographic locations• Large variety of services• Resource & workforce size

Disadvantages– Loss of Control• Interaction with customers– Managing 3PL requires different skills set

Third-Party Logistics Services

Third-Party Logistics

Trade ReturnsHandling

CustomsBrokerage

Sales OrderManagement

Third-Party Warehouse Mgt.

Supply ChainSolutions

FreightForwarding

Auxilliary Services

Transportation /Delivery

DC Management Services

Over 115,000 sq. m. of covered DC area, and 98,000 pallet spaces

Nationwide presence

24 x 6 or 24 x 7 operations

Designed to suit clients’ requirements– High- density bulk storage– Intense piece picking– Cross- docking operations

Standardized KPI measures reviewed monthly

All DCs are WMS- enabled, and centrally connected to a server

DC Management Services

Operations customized to suit clients’ requirementsHIGH- DENSITY BULK STORAGE AND PICKING

DC Management Services

Operations customized to suit clients’ requirementsINTENSE PIECE- PICKING

DC Management Services

Operations customized to suit clients’ requirementsCROSS- DOCKING OPERATIONS

Exceed 4000 serves as an O/S within our DCs

Optimizes use of the DCs, equipment and staff

Ensures compliance to customer-defined strategies

Allows capture of product-, customer-, truck- related transactional data

DC Management Services

Exceed 4000 Warehouse Management System

DC Management Services

Radio Data Terminal (RDT) Applications

SYSTEM: Checking of items and confirmation of receipt Post- pick audit before dispatch

BENEFITS: Paperless receiving done real time Higher accuracy of receipt Faster checking of items for dispatch Ability to measure and monitor picking accuracy using scan results

FUTURE: Putaway, picking, cycle counts and location replenishments using RDT

Freight Management Services

A total of 338 vehicles comprising of Multicabs, AUV’s, 4, 6, & 10 wheelers

Strong relationships with leading shipping lines

Centralized management and re-deployment of vehicles across DC’s

Monthly measurement of truckers’ KPI’s

Constant measurement of load factors to optimize utilization

Thank you