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”