Charlie P. Villasenor
Transcription
Charlie P. Villasenor
Charlie P. Villasenor Chairman of the Board - PASIA Senior Vice President – LBC Supply Chain 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” “Getting To Best In Class Warehousing” Charlie P. Villasenor, CSSP, CPSM Chairman of the Board PASIA Senior Vice President, LBC - Supply Chain Topic Agenda Introduction The Future of Warehousing WERC Warehouse Certification Program Case Study 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” The Future of Warehousing A GROWING COMPLEXITY Today’s warehousing professionals are feeling significant pressures from multiple internal and external sources. Now, as the economy is on upward, warehouse operations are growing again, too. But as they grow, they are also being transformed by a number of issues that go well beyond simple increases in volume and throughput. 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Warehousing’s Five-Year Outlook 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Reality to Vision: The Future of Warehousing Intense pressure to reduce inventory levels to free up capital—is now in the position of having to quickly keep pace with today’s increased fulfillment demands. The industry must also anticipate the areas in which even greater growth will occur in the next five years and beyond. This has vast ramifications for both operations and IT. Assess your warehouse and its future state 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Warehouse Expansion Plans over Next 5 Years 51% 7% 66% 3% 70% 33% 1.5% 5% 39% 45% 54% 11% 11% 9.5% 10.7% VOLUME OF ITEMS CARRIED NUMBER OF SKUS CARRIED ANNUAL EQUIPPING AUTOMATION SIZE OF NUMBER OF INVENTORY STAFF WITH OF PROCESSES CURRENT LOCATIONS TURNS TECHNOLOGY LOCATION(S) NUMBER OF EMPLOYEES 54% DECREASING INCREASING 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” In-bound Handling: Today and Tomorrow Receiving and put-away processes can have a domino effect on virtually every other warehouse process. significant cause of potential problems upstream and downstream TRENDS 2015 PASIAWorld Annual Conference 2013 2018 66% 83% 31% 83% 21% 38% 16% 30% INBOUND BARCODED ITEMS CROSS DOCKING UTILIZATION RFID SYSTEMS USAGE REVERSE LOGISTICS IMPLEMENTATION “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Storage and Inventory: Today and Tomorrow Warehouse storage and inventory processes are poised to undergo a seismic shift, 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. 61% 2013 2018 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” 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 efficiency and productivity, it is turning to innovative processes. 2013 2018 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” 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 customer relationships better than efficient outbound material handling processes that consistently provide accurate, on-time deliveries and always meet downstream customers’ supplier compliance initiatives. 2013 2018 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Vertical Market Warehousing: Consistencies and Differences Not all warehouses are the same. In fact, hardly any are. There are significant differences across warehousing operations in the various segments of the supply chain: manufacturing, wholesaling and retailing. But there are also similarities, especially at a macro level. 2013 2018 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Vertical Market Warehousing: Consistencies and Differences VERTICAL CONSISTENCIES VERTICAL DIFFERENCES When viewed holistically, similarities exist in virtually all warehouse operations. No matter what vertical market segment they operate in, most IT and operations personnel are committed to three common pillars of warehouse wisdom. Although almost all warehouse professionals would agree on these overarching objectives, each segment also has its own specific issues that impact procedures and workflows. These are most efficiently and effectively addressed through unique, segment-specific strategies and tactics for achieving flawless fulfillment, as dictated by each vertical’s specific business and management models. 1 Automating and streamlining warehousing processes. 2 Providing the flexibility in technology and process management that increases efficiency, productivity and cost control. 3 Optimizing risk management across IT and operations throughout the supply chain. 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” A 5-Year Evolution from Cost Center to Growth Area 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. 2013 2018 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Topic Agenda Introduction The Future of Warehousing WERC Warehouse Certification Program Case Study 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” WERC Warehouse Certification Program 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. 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Certification Process Onsite Audit Application Pre-Audit Survey Delivery of Results Process Improvement Workshop Rate, Rank & Plan Day 2 Day 1 Pre-Audit 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Warehouse excellence – we need to lead & differentiate Global Standard & Benchmarking: Receiving & Inspection Material Handling & Putaway Step 1: Set benchmarking priorities Slotting Storage & Inventory Control Plan Step 2: Identify the key processes to be assessed Warehouse Management Systems Shipping & Documentation Measure Step 3: Collect data - operational and managerial Picking & Packing Load Consolidation Compare Step 4: Research and compare best-in-class performance to internal and external standards Step 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 Best Practice Good Practice 114 Warehouse Processes Common Practice Inadequate Practice Poor Practice 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 be closed in a specific timeframe to attain certification 2015 PASIAWorld Annual Conference 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 “2020 Vision: Competitive Procurement, Logistics and Supply Chain” 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) 2015 PASIAWorld Annual Conference •Penske Logistics (Whirlpool*) •Perfetti Van Melle •REI Distribution (2) •Scholastic National Service Organization •Starbucks Coffee Company (5)* •Swagelok OFC Component Warehouse •Whirlpool (2)* “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Topic Agenda Introduction The Future of Warehousing WERC Warehouse Certification Program Case Study 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” LBC : We like to move it to – Supply Chain Over 1,600 owned branches world wide Over 6,000 directly employed customer associates Over 1,500 vehicle fleet Over 2,500 branches and partner agents LBC is servicing over 18 countries Corporate Solutions The leading provider of moving and supply chain services Solution Supply Chain Global coverage Deliveries Customized services Supply Chain Services End to end Services Cargo movement Value Added Services Reatil Remittance 2015 PASIAWorld Annual Conference Bill payment collection & corporate remittance payouts Domestic remittance International remittance Bill payments Balikbayan Boxes “2020 Vision: Competitive Procurement, Logistics and Supply Chain” 3 Growing towards supply chain services Local Network Int’l Network 1650 Company owned branches 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 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” 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 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Industry pioneer Supply Chain Started serving the needs of overseas Filipinos, for their cargo requirements bound anywhere in the Philippines LBC Air Cargo ("LBC Express") became the 1st Filipino-owned courier company infusing time sensitive cargo deliveries Expanded its Money Transfer Services segment by offering bill payment collection services in the Philippines 2015 2014 2013 2012 2006 1999 1990 1985 1950 1973 Pioneered 24-hour doorto- door delivery 2015 PASIAWorld Annual Conference LBC dominated the cargo, courier and money remittance markets and became known as the “Hari ng Padala” Began to provide corporate remittance fulfillment services Rebranded with new corporate slogan to “We like to move it", and a shift in emphasis in the corporate culture Achieved a 62% share of overall domestic express market in the Philippines “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Our Brand Clear Certain Convenient We believe in providing transparent and timely information to give customers peace of mind. We want to pay particular attention to: The process of moving items or money We believe in providing our various stakeholders with certainty through: Presenting relevant options for different needs We promise to make your experience as hassle‐free as possible by: Constantly improving our processes Our staff’s commitment to set expectations and deliver on our promises Adding new and relevant capabilities The schedule and timing of your delivery Clear communication of our cost 2015 PASIAWorld Annual Conference Fair and timely updates of information Easy access to call centre and frontline staff Growing of our network coverage “2020 Vision: Competitive Procurement, Logistics and Supply Chain” 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 Courier General cargo Parcel International cargo Corporate remittance solutions Bills Xpress payment Bill Xpress online Corporate IPP Sea solutions PesoPak FCL Credit-to-bank account LCL Send and swipe Corporate speed check Mail-room management Database curing Direct mail Land solutions Full distribution Cross docking Mail solutions Supply chain & integrated logistics Warehousing Logistics master planning 2015 PASIAWorld Annual Conference Bulk mail Mail room solutions Printing solutions “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Air Solutions Guaranteed safe and efficient transport of goods for both domestic and international via air freight Courier and parcel Quick, secure and efficient delivery or pickup of documents, parcels and small packages to anywhere in the Philippines Bulk mail Delivery of high volume documents such as bills, statement of accounts 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 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Land Solutions Nationwide distribution of cargoes, packages and documents using the fully equipped on-ground fleet of LBC Full truck load Delivery of cargoes sent by shipper that maximizes a full payload or capacity of a truck and transported via land Less than a truck load Delivery of loose cargoes sent by shippers that cannot maximize a full payload or capacity 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” 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 Delivery of cargoes sent by a single shipper that maximizes a full payload or capacity using a standard container and is transported by sea Less-than-a-container load 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 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Printing Solutions Various printing solutions that will address your business communications and logistics needs Full colour variable 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 statement of accounts, invoices, letters and direct mailers Transpromo printing Combining personalized materials with transactional printing in order for us to make use of their transactional documents as a medium for advertisements Direct mail printing Printing of traditional and non-traditional direct mailers targeted to a specified demographic, using LBC database, or that of clients Book printing LBC provides solutions for short runs, Full Color or Black 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain” Warehouse Management Solutions Use of Radio Frequency Scanner LBC Owned Trucks Nationwide 2015 PASIAWorld Annual Conference Battery Operated Reach Trucks and Forklifts LBC Track and Trace for Deliveries “2020 Vision: Competitive Procurement, Logistics and Supply Chain” A supply chain provider not easily duplicated S&OP Planning Sourcing Seller SAP Tolling / Production Buyer Warehouse Management Buyer Seller Infor Seller Buyer Delivery Seller Oracle Buyer Reverse Logistics Seller Others - Proactis E-Payment BPO Supply Chain Buyer The Story 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 Video: Thank You LBC Foundation Sustainability as a Strategic Agenda BC Foundation aims to give back to Filipino families and their ommunities with the help of more than 7,000 employees, its wide etwork reach and the company’s resources. The Foundation is in charge f coming up with projects and tools for its people to exercise social esponsibility through their major advocacies. 2015 PASIAWorld Annual Conference “2020 Vision: Competitive Procurement, Logistics and Supply Chain”