charlie p. villasenor - pasia pasiaworld_charlie villasenor.pdf · charlie p. villasenor ... lbc...

“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference

Charlie P. VillasenorChairman of the Board - PASIA

Senior Vice President – LBC Supply Chain

“Getting To Best In Class Warehousing”

Charlie P. Villasenor, CSSP, CPSMChairman of the Board PASIA

Senior Vice President, LBC - Supply Chain


Topic Agenda

IntroductionThe Future of Warehousing

WERC Warehouse Certification Program

Case Study


The Future of WarehousingA GROWING COMPLEXITY

Today’s warehousing professionals are feeling significant pressures from multipleinternal and external sources.

Now, as the economy is on upward, warehouse operations are growing again, too. Butas they grow, they are also being transformed by a number of issues that go wellbeyond simple increases in volume and throughput.


Warehousing’s Five-Year Outlook


Reality to Vision: The Future of Warehousing

Intense pressure to reduce inventory levels to free up capital—is now in theposition of having to quickly keep pace with today’s increased fulfillmentdemands.

The industry must also anticipate the areas in which even greater growth willoccur in the next five years and beyond.

This has vast ramifications for both operations and IT.

Assess your warehouse and its future state


Warehouse Expansion Plans over Next 5 Years

51% 66% 70% 33% 39% 45% 54% 54%

7%3% 1.5% 5%

11% 11% 9.5% 10.7%

ANNUALINVENTORY

TURNS

EQUIPPINGSTAFF WITH

TECHNOLOGY

AUTOMATIONOF PROCESSES

SIZE OFCURRENT

LOCATION(S)

NUMBER OFLOCATIONS

NUMBER OFEMPLOYEES

VOLUMEOF ITEMSCARRIED

NUMBEROF SKUSCARRIED

DECREASING INCREASING


In-bound Handling: Today and Tomorrow

Receiving and put-away processes can have a domino effect on virtually everyother warehouse process.

significant cause of potential problems upstream and downstream

TRENDS 2013 2018

INBOUNDBARCODED

ITEMS

66% 83% 31% 83%

CROSS DOCKING

UTILIZATION

21% 38%

RFID SYSTEMS USAGE

16% 30%

REVERSE LOGISTICS

IMPLEMENTATION


Storage and Inventory: Today and Tomorrow

Warehouse storage and inventory processes are poised to undergo a seismicshift, moving from still prevalent pen and paper processes to automated

Mechanized inventory solutions. New automated processes, cycle counts will be performed more often and

with less effort, increasing inventory visibility, more accuracy Fewer out of stock situations and fewer lost sales. Expanding selection and accelerating inventory turns.

2013 2018

61%


Pick and Fill: Today and Tomorrow The picking and replenishment processes—which account for up to 70 percent of

operating costs in a warehouse—remain the top priority

As the industry continues to reduce pick and fill costs and increase worker efficiencyand productivity, it is turning to innovative processes.

2013 2018


Outbound Handling: Today and Tomorrow Increasing pressures are being placed on warehouse managers to maximize efficiency

in packing, staging, loading and shipping.

Inaccuracy is bad for customers. At the same time, nothing cements customerrelationships better than efficient outbound material handling processes thatconsistently provide accurate, on-time deliveries and always meet downstreamcustomers’ supplier compliance initiatives.

2013 2018


Vertical Market Warehousing: Consistencies and Differences

Not all warehouses are the same. In fact, hardly any are. There are significantdifferences across warehousing operations in the various segments of the supplychain: manufacturing, wholesaling and retailing. But there are also similarities,especially at a macro level.

2013 2018


Vertical Market Warehousing: Consistencies and Differences

VERTICAL CONSISTENCIES

When viewed holistically, similarities existin virtually all warehouse operations. Nomatter what vertical market segment theyoperate in, most IT and operationspersonnel are committed to threecommon pillars of warehouse wisdom.

Automating and streamlining warehousing processes.

2 Providing the flexibility in technology and process management that increases efficiency, productivity and cost control.

1

Optimizing risk management across IT and operations throughout the supply chain.

3

VERTICAL DIFFERENCES

Although almost all warehouseprofessionals would agree on theseoverarching objectives, each segment alsohas its own specific issues that impactprocedures and workflows. These are mostefficiently and effectively addressedthrough unique, segment-specificstrategies and tactics for achieving flawlessfulfillment, as dictated by each vertical’sspecific business and managementmodels.


A 5-Year Evolution from Cost Center to Growth Area

2013 2018

The industry is re-examining its perceptions of the business.

Fewer organizations continue to view warehouses and DCs simply as commoditized links between endpoints of the supply chain.

Greater volatility, constrained capacity, evolving regulations, major shifts in customer demographics and buying patterns, and increasingly demanding customer and supplier requirements.

Industry professionals is seeing the bigger picture and viewing warehouses and distribution facilities as historically underleveraged centers that can drive competitive differentiation and, by doing so, increase profitable growth.


Topic Agenda



Case Study



The industry's first & only best-practice certification

The WERC Warehouse Certification Program is a voluntary program that certifies an individual warehouse facility’s capabilities and its ability to perform core warehousing functions.

The program provides an industry standard-grading methodology that includes facility inspections and process assessments by independent third parties. Auditors benchmark and grade warehouse operations against a 5-point scale.


Certification Process

Application

Pre-Audit Survey

Onsite Audit

Delivery of Results

Process Improvement Workshop

Rate, Rank & Plan

Pre-Audit

Day 1

Day 2

Warehouse excellence – we need to lead & differentiate

Receiving & Inspection

Material Handling & Putaway

Slotting

Storage & Inventory Control

114

Warehouse

Processes

Best Practice

Good Practice

Common Practice

Inadequate Practice

Poor Practice

Warehouse Management Systems

Shipping & Documentation

Picking & Packing

Load Consolidation

Plan

Step 1: Set benchmarking priorities

Step 2: Identify the key processes to be assessed

Measure Step 3: Collect data - operational and managerial

Compare

Step 4: Research and compare best-in-class performance to internal and external

standardsStep 5: Identify gaps and reasons for low performance

Step 6: Develop an improvement roadmap and set priorities

Act Step 7: Close gaps and improve/refine processes

Global Standard & Benchmarking:


Difference between ISO and WERC Certification

ISO• Sets world class standards for products, services, and systems to ensure quality, safety and efficiency

• Applicant is audited based on a defined international standard.

• Certification is attained by meeting ISO requirement / standards.

• Non conforming findings needs to beclosed in a specific timeframe to attain certification

WERC• Gathers and establishes global warehouse and distribution best practices as basis of warehouse assessment.

• Applicant is assessed based on global best warehouse and distribution practices.

• Certification is attained by meeting grade requirement through 5-point scale systems.

• Not meeting the required grade will entail a process improvement in order to attain certification


Who has it?

•Colgate-Palmolive Co.(4)•Gopher Sports•Hunter Fan Company•Invacare Company, Inc.•Kane is Able (2)•Kenco Logistics Services (Whirlpool*)•Kennametal NA DC•Mountain Equipment Co-op•Nexus Distribution CDC•OHL (Starbucks Coffee Company*) (3)

•Penske Logistics (Whirlpool*)•Perfetti Van Melle•REI Distribution (2)•Scholastic National Service Organization •Starbucks Coffee Company (5)*•Swagelok OFC Component Warehouse•Whirlpool (2)*


Topic Agenda



Case Study


LBC : We like to move it to – Supply Chain

The leading provider of moving and supply chain services

Over 6,000 directly employedcustomer associates

Over1,600

owned branches world wide

Over1,500

vehicle fleet

Over 2,500 branches and

partneragents

LBC is servicing over 18

countries

Co

rpo

rate

Solu

tio

ns Solution

SupplyChain

Cargo movement

Customized services

Deliveries

Rea

til

End to end Services

Value Added Services

Supply Chain Services

Domestic remittance

Remittance

Bill payment collection & corporate

remittance payouts

Global coverage

International remittance

3

Bill payments Balikbayan Boxes


Growing towards supply chain services

Local Network 1650 Company owned branches

Int’lNetwork

63 Overseas branches

10 Agents

Delivery & Warehouse Infrastructures

206 Delivery Teams

330 Delivery vans

1500 motorcycles

1,400 couriers/shuttler

Expanding warehouses & full Supply Chain

End to end value added services


Leadership and Commitment

VISION

We are the customer’s choice for providing value- driven professional supply chain management services.

MISSION

We provide customer focused services which optimize customer value by implementing cost effective supply chain services


Industry pioneer

Started serving the needs ofoverseas Filipinos,for their cargo requirements bound anywhere in the Philippines

Expanded its Money Transfer Services segment by offering bill paymentcollection services in the Philippines

1999

2006

2012

2013

Rebranded with new corporate slogan to “Welike to move it",and a shift in emphasis in thecorporate culture

2014

2015

Supply Chain

LBC Air Cargo ("LBC Express") became the 1st

Filipino-owned courier company infusing timesensitive cargo deliveries

Pioneered24-hour door-to- doordelivery

LBC dominated the cargo, courier and money remittance marketsand became known as the “Hari ng Padala”

Achieved a 62% share of overall domesticexpress marketin the Philippines

Began to provide corporate remittance fulfillmentservices

19501973

1985

1990


Our Brand

Clear Certain Convenient

We believe in providingtransparent and timelyinformation to give customerspeace of mind. We want to payparticular attention to:

The process of movingitems or money

The schedule andtiming of your delivery

Clear communication of ourcost

We believe in providing ourvarious stakeholders withcertainty through:

Presenting relevantoptions for different needs

Our staff’s commitmentto set expectations anddeliver on our promises

Fair and timelyupdates of information

We promise to make yourexperience as hassle‐free aspossible by: Constantly improving

our processes

Adding new andrelevant capabilities

Easy access to call centreand frontline staff

Growing of our networkcoverage


LBC Corporate Solutions Services

Corporate logistics typically involves moving goods from A to B, as well as additional value-added services such as warehousing, fulfillment processing, packaging and repacking, printing and mailing of invoices, reverse logistics.Such value-added services are fully reflected in our pricing

Air solutions Corporate remittancesolutions

Courier

Parcel

General cargo

International cargo

Sea solutions

Bills Xpress payment

Bill Xpress online

Corporate IPP

PesoPak

Credit-to-bank account

Send and swipe

Corporate speed check

Mail-room management

Database curing

Direct mail

FCL

LCL

Full distribution

Cross docking

Land solutions

Bulk mail

Mail room solutions

Printing solutions

Mail solutions

Warehousing

Logistics master planning

Supply chain & integrated logistics


Air Solutions

Guaranteed safe and efficient transport of goods for both domestic and international via air freight

Courier and parcel

Bulk mail

Quick, secure and efficient delivery or pickup of documents,parcels and small packages to anywhere in the Philippines

Delivery of high volume documents such as bills, statement ofaccounts and promotional mailers

General cargo

Transportation to a variety of larger items to anywhere in the Philippines

International cargo

On-time delivery of packages to international territories


Land Solutions

Nationwide distribution of cargoes, packages and documents using the fully equipped on-ground fleet of LBC

Full truck load

Less than a truck load

Delivery of cargoes sent by shipper that maximizes a full payload or capacity of a truck and transported via land

Delivery of loose cargoes sent by shippers that cannot maximize a full payload or capacity


Sea Solutions

Transportation of cargoes via sea through various modes such as pier-to-pier, pier-to-door, door-to-door and door-to-pier

Full container load

Less-than-a-container load

Delivery of cargoes sent by a single shipper that maximizes afull payload or capacity using a standard container and istransported by sea

Delivery of loose items sent by shippers that cannot maximize a full payload or capacity

RORO Service offered by LBC that allows sea-freight customers to

drive their vehicles in and out of the Roll-on-Roll-off vessel


Printing Solutions

Various printing solutions that will address your business communications and logistics needs

Full colour variable printing

Transpromo printing

A form of digital printing wherein text, graphics, and images may be changed to from one printed piece to the next without changing the printing process. Samples are statementof accounts, invoices, letters and direct mailers

Direct mail printing

Combining personalized materials with transactional printing inorder for us to make use of their transactional documents as amedium for advertisements

Printing of traditional and non-traditional direct mailers targeted to a specified demographic, using LBC database, orthat of clients

Book printing LBC provides solutions for short runs, Full Color or Black


Use of Radio Frequency Scanner Battery Operated Reach Trucks and Forklifts

LBC Owned Trucks Nationwide LBC Track and Trace for Deliveries

Warehouse Management Solutions

A supply chain provider not easily duplicated

SAP

BPO

Supply Chain

E-Payment

Reverse

Logistics

Delivery

Warehouse

Management

Tolling /

Production

Sourcing

S&OP

Planning

Infor

Oracle

Others - Proactis

Seller

Seller

Seller

Seller

Seller

Buyer

Buyer

Buyer

Buyer

Buyer

When super-typhoon Yolanda hit in 2013,

LBC offered free shipping services for relief goods

from any of their stores worldwide.

Photo source: http://lifestyle.inquirer.net/136927/your-super-guide-to-helping-the-victims-of-yolanda

The Story

Video: Thank You LBC Foundation


Sustainability as a Strategic Agenda

BC Foundation aims to give back to Filipino families andtheir ommunities with the help of more than 7,000employees, its wide etwork reach and the company’s resources.The Foundation is in charge f coming up with projects andtools for its people to exercise social esponsibility throughtheir major advocacies.

charlie p. villasenor - pasia pasiaworld_charlie villasenor.pdf · charlie p. villasenor ... lbc...

Documents