2009 Nov-Dec Issue by Chain Media

CHINA PORT FOCUS

NOVEMBER/DECEMBER 2009 www.chainaonline.com

RMB 40 HK$40 SG$9 EUR€5 US$6

THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS

一本为全球供应链管理人士倾力打造的专业杂志

2009: CATALYST FOR CHANGE China Rises to the Moment

2009:

FROM THE EDITOR Managing Editor Russel Beron

Project Executive Yolanda Gu Event Manager Echo Sun Photographers Grant-Oh! Buchwald Hideto Machikawa Contributing Writers Namrita Chow, Patrick Daly, Robert Dixon, Tielman Nieuwoudt, Damon Ross Paling, Peter Stokes

Editorial Advisor & Publisher Max Henry Contributing Editor Rebecca Kanthor Art Director How Xu Graphic Designer Acco Fang Finance Manager Jenny Kim

Editorial Advisory Board Jeff Broadhurst, Vincent Chang, Chris Deans, Marnix Ettema, John D. Van Fleet, Jean Luc Laboucheix, JP Sexton, Aldo Spaanjaars, Yann Teste, Guy Tran CHaINA Sponsorship For information on sponsorship opportunities with CHaINA Magazine, please email ads@supplychain.cn DISTRIBUTION We distribute CHaINA free by direct mail to subscribers in Greater China who are involved in all aspects of supply chain management, manufacturing and logistics. Our target subscribers are logistics, warehousing and transportation directors and managers; sourcing, procurement and purchasing directors and managers; and manufacturing executives at foreign and domestic Chinese companies. For subscription inquiries, please contact: subs@chainamagazine.com. Contact us to receive a free digital or print edition of the magazine. CHaINA Magazine is distributed through selected locations in Shanghai, including hotels, restaurants, business centers, airport lounges and other key locations. Comments and Feedback We welcome feedback and comments about our content or any issues relating to supply chain management or trade in China.

Many curious foreigners – much like myself - arrived in China to witness or be a part of the unfolding of a compelling story. This issue, our final of the year, takes a look at a new twist in the story that took place over the past 12 months as a result of the global economic shake-up. In this plot turn, driven by an insatiable appetite for resources and global recognition, China has leveraged its foreign currency reserves and skill sets to gain more ground and global influence. By nature, most of us don’t like change, especially when it threatens our way of life. So resistance to China’s steady march upwards, from companies and governments in North America and Europe, is no surprise. The latest wave of resistance was initiated by the Obama administration with tariffs on Chinese tire exports which have extended to steel exports and other products. Likely we’ll see more of these trade wars in the coming year as China bites back against foreign imports which threaten its own domestic industry. The big story still seems to be China’s domestic economy, with the large promise it holds for both foreign and Western brands. As new brands such as The Gap enter the market and existing brands such as Ikea, H&M and Zara continue their expansion and compete with Chinese brands, the market is likely to become even more hotly contested. As our feature on Ports indicates, the Government is also thinking domestically when it’s not buying up available assets around the world. Beijing has again refocused its energy inwards, spending on infrastructure inland and along the Yangtze River artery. The move to balance China’s wealth gap through stimulus measures will no doubt continue as governments and hungry corporations focus on China’s interior. What all these changes seem to point to is a fast maturing China. Examples are everywhere that Supply chains are no exception. Localized foreign players such as TNT/HOAU are striving to be the first non-state owned logistics provider to build a nationwide network. Indicators are that supply chain standards and processes will continue to improve as technology such as RFID are more widely used and service standards rise in the face of competition. China’s emerging market gold rush may be ending, but the maturing market still holds plenty of promise.

Please email any comments to: comment@supplychain.cn

Russel Beron Publisher and Managing Editor CHaINA Magazine

Chaina magazine’s sponsors:

CHaINA Magazine (ISSN 1992-9668) is published jointly by Painted Horse Media Limited (Hong Kong) and the China Supply Chain Council Limited (Hong Kong). There is no charge for qualified readers to receive subscriptions. Send subscription requests or address changes to subs@chainamagazine.com. The contents of the magazine may not be reprinted in whole or in part without the permission of the publisher. The publisher is not responsible for product claims and representations. CHaINA is a registered trademark of the China Supply Chain Council.

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NOVEMBER/DECEMBER 2009

FEATURE 14

Catalyst for Change: China’s Chance in the Sun

As 2009 winds down, we look at how the past year of trials has actually been a time of great opportunity for China.

Interview With Frank Sutherland, Steelcase

NOVEMBER/DECEMBER 2009

Wuhan- Journey to China’s Industrial Heartland

China’s Ports and Global Integration-Where to Now? Peter Stokes gives an update on Ports and Terminals in China with an angle on electronic exchange of information.

Establishing a Regional Distribution Centre in China

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THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS

NOVEMBER/DECEMBER 2009

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CONTENTS FIRST

6 Protectionist Measures China is facing tariffs on its products around the world and is fighting back with some protectionist measures of its own.

NEWS

8 A look at some of the key recent stories impacting logistics and supply chain management in the Asian region.

PROFILE

17 View from the Road Wang Zhao Guo, long haul trucker, gives us a perspective on logistics from behind the wheel.

CASE

32 A Kanban-Driven Material Supermarket at Braun, Shanghai, Ltd. Patrick Daly, Managing Director of Alba Consulting Group describes the project challenges and successes of creating a design solution layout for Braun’s Shanghai manufacturing plant.

FOCUS

Green 38 Supply Chain Management Readies for Green Explosion Nicolas Pechet, Vice President of China, GIA Group China, discusses sustainable practices in the manufacturing and logistics sectors in the Asia Pacific region. Research 40 Increasing Demand in Cold Chain Logistics in China Jones Lang Lasalle releases a new report uncovering the potential of China’s cold chain logistics sector.

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Vietnam 42 Vietnam’s Textile Industry-Opportunity and Challenge Tielman Nieuwoudt writes on the advantage of Vietnam’s textile sector and its drawbacks. Event 46 What’s Up with RFID in China? Veteran RFID expert, Jim Maclean explains how RFID usage is developing in China. 47 The Search for a China Pallet Standard Continental Logistics specialist Farid Pazun explains how standardization could cut costs and increase efficiency. Expert 48 Planning for Economic Recovery- Establishing a Regional Distribution Center in China Damon Ross Paling shares the experience of a U.S. luxury retailer in setting up a regional distribution centre in China.

LIFE

Cars 50 VIP Porsche - Luxury Goes Local 51 The Executive Standard in Luxury Sedans Books 52 How China’s Leaders Think

FINAL

Word 53 When Global Manufacturing Leadership Fails 55 CLASSIFIED LISTINGS 58 COMPANY INDEX 58 EVENTS CALENDAR

NOVEMBER/DECEMBER 2009

Chinese factory workers brush steel pipes at a factory in Dongwei village, Zouping county, Binzhou city, in East Chinas Shandong province, 20 June 2009.

NOVEMBER/DECEMBER 2009

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FIRST Word

Protectionist Measures While most of the world suffered through the recession, China has leveraged its large foreign currency reserves to buy up commodities and resource companies to fuel its manufacturing engine. This has sparked protectionist measures on Chinese products from corporations and governments in the U.S., Europe and elsewhere. Renewed protectionism began in earnest in September as the Obama administration set tariffs on Chinese tires, followed by tariffs on steel imports and renewed tariffs on consumer products such as shoes. China in turn continues to impose tariffs on imports it sees as a threat to domestic industries.

90%

– The amount of anti-subsidy duties the U.S. Steel Corp. requested the Commerce Department to impose on US$400 million of steel imports from China used in the chemical, petrochemical, refineries and related operations.

5 347%

– The number of years the European Union has decided to impose anti-dumping tariffs -- of 30-40% -- on aluminum foil and seamless steel pipes from three countries including China.

Imaginechina

- The amount of the antidumping tariff imposed on October 9 by the Ukraine Interdepartmental Committee of International Trade on 10ml Chinese syringes. Other tariffs include 24% on 2ml syringes and 54% on 5ml syringes.

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5-37%

- The range of antidumping tariffs that China’s Ministry of Commerce has imposed on nylon imports from the U.S., Italy, the U.K., France and Taiwan.

NOVEMBER/DECEMBER 2009

Imaginechina

NEWS Retail

Retail

A Chinese woman walks past an H&M (Hennes & Mauritz) store in Beijing, China, April 17, 2009.

H&M Ups China Store Count Swedish fashion giant Hennes & Mauritz (H&M), the world’s third largest clothing retailer aims to raise its Greater China store count by nearly 30 percent by the end of December to 27 from the current 21 as part of a broader push into Asia. The company has 15 stores in the Chinese Mainland and six in Hong Kong, with six more set to open in the Chinese mainland this year.

online shopping site and generated more than three million sales a day last year, and 75 percent of the items were delivered by express services. Online shoppers exceed 120 million in China and ninety percent of them choose to have purchases delivered via express service.

Retail e-Commerce Represents 30% of China Express Delivery

China Unicom, the country’s number two mobile phone carrier, will sell Apple’s popular iPhone in China from October at a retail price of RMB5,000 (US$732.5). The price is set above market expectations, as it seeks to build up its 3G service. Analysts said Unicom may have to set the price high to force buyers of the popular handsets to sign up for packages carrying longer-term contract commitments as competition heats up in the recently reformed sector.

More than 500 million express packages in China were generated from electronic commerce business in 2008, accounting for about one third of the country’s total express volume. China’s online retail sales reached RMB132 billion (US$19.3 billion) last year, representing one per cent of national volume. Taobao.com is the country’s biggest

NOVEMBER/DECEMBER 2009

China Unicom to Sell iPhones From October

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NEWS Retail

Shifting focus from Japan where it found success, retailer, The Gap is now setting up in China.

Prepsters in China can look forward to next year when Gap, Inc. opens its first store in Shanghai. “Chinese consumers love American brands,” says Gap’s Chief Executive, Glenn Murphy, but is there still room in their hearts…and wallets for a latecomer? CHaINA asked two retail experts for their opinion. Shaun Rein, Managing Director China Market Research Group (CMR) “Retail sales went up 15 percent for the first three quarters this year and we think they’ll go up another 16-18 percent next year. Gap is coming in and could target a consumer market that is still growing, remains confident and is willing to try quality brands. Coming in late isn’t the question. I’m not sure Gap has the branding and style that Chinese consumers like and it remains to be seen what their price point will be. What’s Gap’s positioning and will their styles fit China? Preppy design doesn’t work in China They’re going to have to change their marketing. They’re going to have to localize stores and product designs. I’m not sure opening in Shanghai or Beijing is the right move. Markets in 2nd and 3rd tier cities are more optimistic. Shanghai and Beijing have been hit harder by the financial crisis. If you opened in Chengdu or Hefei, it’s easier to generate buzz, consumers have money and they’re more optimistic. I think Gap will have some major challenges.”

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Nathan Burkland, Senior Partner, Vertical Retail Consulting “Gap is one of the first major US Retail Stores of this format to come in and it will be interesting to see how they attempt to penetrate the market. Usually Chinese consumers like foreign brands if they are perceived as high quality or a premium brand. In the US Gap is more of a casual brand. I think there is room for strong brands to still enter because the market is expanding and the strong brands can take some of the market share from the weaker brands. Brands that grew in China due to general economic expansion and not from strong competencies will struggle as retail continues to become more competitive. We have seen lots of retailers experience tremendous growth in China by simply opening stores and servicing pent up demand. Those days have been over for a while and companies must become better at what they do in all aspects of their business if they expect to perform well in China. However, this presents a great opportunity for some of the best brands. There really is no other market of this size that is experiencing this type of growth. It helps to have entered earlier but even if it is late, it’s either now or never.”

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NEWS Supply Chain

Shanghai GM R&D Test Center Being Built in Anhui Province Construction has begun on the Shanghai GM R&D test center at Guangde county in Anhui Province. The center is expected to be finished in 2011.The new R&D center is expected to cover 5.67 square kilometers, and has an investment of RMB 1.643 billion. After it begins production, the center has the capability of working on 140 cars at the same time, and will have an extensive track for testing. The center is expected to be the most advanced of its kind in China.

CSR China Moves Residents, Keeps Lead Smelters Going.

Manufacturing Chinese Factories Face Worker Shortage Although China’s employment situation is still grave, a shortfall in labor resources has cropped up in some regions as both the domestic and global economy have picked up. Those suffering most from labor shortages are small and medium-sized enterprises, the major employers of migrant workers. Some analysts warned the current labor scarcity was mainly a result of seasonal factors instead of solid growth in external demand.

(WEPZ). The design center will be completed by the end of 2009 and the manufacturing facility is expected to be completed by the end of 2010.

R&D Unilever China R&D Center Opens in Shanghai The new R&D center, with an investment of $71.66 million, covers an area of 30,000 squre meters, and is located in Shanghai’s Changning district.

China plans to move 15,000 residents in its biggest lead smelting area away from the plants in order to allow them to keep operating, after tests showed over 1,000 children had excessive lead in their blood. Some smelters and lead production lines in Jiyuan, Henan province, had shut for nearly two months after the lead tests, which came amid a spate of cases of high lead in children leaving and going to school in the shadow of smelters across China. The mayor of Jiyuan, Zhao Suping, said 15,000 people in 10 villages around the plants would move at a total cost of about RMB 1 billion yuan (US $150 million), allowing lead plants including China’s largest, owned by Yuguang Gold and Lead, to keep operating.

Flextronics to Build New Facility in Suzhou to Support Manufacturing and R&D Capabilities for Computing Products In a signing ceremony held recently with Suzhou Wuzhong Economic Development Zone and Jiangsu Wuzhong Export Processing Zone, Flextronics (Nasdaq: FLEX) announced that it will expand its presence in China through the development of a new facility in Wuzhong. The new facility will support the growing demand for computing products in China and will include a design center and extended manufacturing capabilities in the Wuzhong Export Processing Zone

NOVEMBER/DECEMBER 2009

Paul Polman, CEO of Unilever, speaks during the opening ceremony of the Unilever China Research & Development (R&D) Center in Shanghai in September.

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NEWS Logistics

Airbus Plans to Build a New Logistics Center in Tianjin, China

Chongqing to Spend US$29.3 million Yearly to Support logistics

Shenyang Bonded Logistics Center launched

European aircraft manufacturer Airbus is planning to set up a new logistics center in China to coordinate its growing operations in the country. The logistics center will likely be located in Tianjin. Airbus opened its first final assembly line outside of Europe in the northeastern Chinese city last year. The plant assembles A320s and delivered its first plane in June. Airbus forecast its procurement of components and materials in China will rise to US$200 million by 2010 and to US$450 million by 2015. The company sourced about US$70 million worth of parts and materials from China in 2007 and expects to source US$140 million this year. It has also begun construction of a plant in Harbin, Northern China, to manufacture major components for the A350 XWB and it is scheduled to start operations by late 2010. Airbus will own a 20 percent stake of the plant, and Harbin Aircraft Industry Group Co. will hold a 50 percent stake. Hafei Aviation Industry Co., Avichina Industry & Technology Co. and Harbin Development Zone Heli Infrastructure Development Co. will hold 10 percent each.

The city of Chongqing has set up a fund for the development of the logistics industry and plans to spend RMB200 million (US$29.3 million) every year to subsidize the city’s major logistics operations. Chongqing has been positioned as a logistics hub for southwestern China and one of the key hubs for the whole country according to the China State Council’s development plan. In order to realise the plan, Chongqing is to pour RMB164.3 billion on 175 logistics projects. By 2012, the city’s logistics industry added value will reach RMB65 billion; port capacity of 3.5 million TEU.

Shenyang Bonded Logistics Center in Shenyang Jinhai Economic Development Zone was officially sealed off and put into operation in mid-October. The center is currently the sole inland bonded area in Northeast China. It is located in Shenyang Jinhai Economic Development Zone in Liaozhong County, and has a planned area of five square kilometers. 750 mu of land and a total investment of RMB 500 million were used in the first phase of its construction. Shenyang Bonded Logistics Area is a logistics distribution center connecting coastal areas and the hinterland in Liaoning province. Shenyang Jinhai Economic Development Zone, where the Area is located, is only 45 kilometers from Shenyang, close to Yingkou Port and no more than one hour drive from industrial cities such as Anshan, Liaoyang, Benxi, Fushun and Tieling. Special railways for the bonded area are currently in the works and operation of the flight route directly connecting the area with Xiantao Airport in Shenyang will commence by the end of the year.

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Chongqing to develop its logistics infrastructure.

NOVEMBER/DECEMBER 2009

NEWS Asia

Logistics Costs Still Too High in Thailand Economists and business leaders are calling on the government to improve the efficiency of Thailand’s logistics system to help mitigate the drop in export revenues caused by a decline in the global demand for goods and services. Export-dependent countries such as Thailand, where exports account for about two-thirds of gross domestic product can benefit from reducing the cost of their logistics systems. Economist and former finance minister Chalongphob Sussangkarn said the government should collaborate with its neighbors to develop a logistics network to connect the region’s transport systems. Such a move would lower logistics costs while making Thailand-based products more competitive globally. Thailand’s GDP per capita was US$8,500 last year, compared with Vietnam, $2,800; Cambodia, $2,100; Laos, $2,000; and Burma, $1,200. Thailand has a trade surplus, exporting 80-90 percent of products for consumption in neighboring countries, while importing only about 5 percent from them. Recent road projects to better connect Thailand with neighboring countries such as Burma, Laos and Cambodia have increased border trade.

company continues to expand. Only about 10 percent of 85 million Vietnamese have opened a bank account but with the growing economy, consumers there are seen as a lucrative untapped market.

India 3PL Logistics to Touch US$90 Million by 2012

Citigroup Opens in Vietnam Citigroup has opened a retail location in Vietnam, demonstrating the interest in the growing Asian economy by western companies. The Vietnam branch will launch offering deposit services to individual customers and remittance services. Citi has an interest in the Asian market, with 32 million customers and 14 markets in the region. Recently it launched debit cards in China and SMS banking in the Philippines. It’s been a tough year for Citi, but after being rescued by the US government, the

A cargo truck in India. The country’s logistics industry is poised for growth.

NOVEMBER/DECEMBER 2009

Third party logistics business in India is likely to touch the $90 million mark by 2012 as more and more domestic companies want to enhance their efficiency, a study by industry body Assocham said. With globalisation, the demand of third party logistics business is increasing among Indian firms that want to increase their efficiency, the chamber said. The Logistics outsourcing market in India is estimated to be USD 58 million as around 55 per cent of the local firms are logistic outsourcing services like supply chain management and warehousing, which used to be between 10 and 15 per cent about a decade ago. “One of the contributing factors for this is value added tax which is expected to drive Indian industry towards using more third party logistics services,”

Logistics Sector Gains Favour Among PE Investors in India The logistics sector seems to be emerging as the flavour of the season for Indian PE firms. About half a dozen PE investors are targeting this sector along with other industries such as infrastructure, real estate and healthcare. The Indian logistics market is estimated to contribute 13% of the country’s GDP. There’s little organized investment in the logistics sector, says Manas Mitra, head and chief investment officer, UTI Infrastructure PE. India’s towns and small cities are set to grow significantly in the coming years, resulting in an increase in the movement of goods which, in turn, would boost the logistics business, he reasons. The logistics industry is broadly divided into ocean freight, air freight, rail freight, trucking and third-party logistics (3PL) services. The Indian logistics market is estimated to contribute around 13% of the gross domestic product (GDP). There has been a lull in deal making as the economy weathers a slowdown.

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NEWS Movers

Executive Appointments

With talent at a premium, CHaINA keeps an eye on which executives are moving where.

Changed jobs in the past month? Hired someone new recently? comment@supplychain.cn

Lufthansa Cargo Group Appoints David Albaiceta General Manager in Asia

Schenker Appoints Henry Schmidl as Director of Oceanfreight, South China

Bulgari Appoints Lelio Gavazza as China Country Managing Director

Working with the Charter team in Hong Kong and with an additional base in Singapore, David Albaiceta will be responsible for promoting the development of Asian markets. With many years of international experience in the field of special logistics, Albaiceta succeeds Eric Erbacher.

Effective September 21, 2009, Henry Schmidl was appointed as Director of Oceanfreight, South China of Schenker International (H.K.) Ltd. Prior to his appointment with DB Schenker, Henry Schmidl was formerly Regional Manager of Oceanfreight for a leading international freight forwarder.

Effective November 1, Lelio Gavazza will take the role of Country Managing Director for Bulgari. With a wide depth of experience in textiles manufacturing, Gavazza was formerly CEO of SharMoon EZ Garments CO Ltd ( Zegna Group).

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NOVEMBER/DECEMBER 2009

PROFILE Company

Frank Sutherland Sourcing Director, Asia, Steelcase

an awful lot of fairly small suppliers. A lot of those suppliers are export oriented back to states (secondary markets would be Europe). This financial crisis has hit them very hard and we’ve tuned up our level of financial auditing to make sure we don’t have any bankruptcies on our watch. How important is technology for Steelcase? What software or business applications are you using to help you in your day to day job? FS: For the manufacturing side it is SAP, and that allows us to be a globally integrated company. We have a web-based software that is integrated with SAP and allows us to share information with our suppliers in real time and give them advance notice on orders and track shipments. This is specifically Steelcase developed software. Not all our suppliers in Asia are on this but we’re moving in that direction.

Sourcing for Seats Furniture maker Steelcase successfully maneuvers the downturn

ounded in 1912, Steelcase is an American based manufacturer of premium office furniture with approximately 13,000 employees. In Asia they have manufacturing in Southern China, Japan, and Malaysia. CHaINA Magazine sat down with Frank Sutherland, Steelcase’s Sourcing Director for Asia to talk about the company’s growth and future outlook. How long have you been working in sourcing or procurement? Frank Sutherland (FS): It feels like my whole life. 15 years, first in Japan and now in Shanghai. I’ve been with Steelcase for 8 years, all in sourcing and procurement. I was hired in Japan and I was asked to set up the Shanghai office. In the beginning, I was a one man team and now I have staff in Malaysia, Southern China, and Tokyo.

NOVEMBER/DECEMBER 2009

How do you structure your team? We split up the supply chain and procurement so within supply chain we have approximately fifteen employees and some of them traverse over into purchasing. I think it is important to keep a definitive split between those who are paying the money and those who are negotiating for them. It keeps it clean and avoids any pitfalls. Our supply chain includes a sourcing function and a strategic sourcing function for long term strategies and then we move into the logistics side as well. We have a specific logistics group and it crosses over in our group so there’s some overlap. What has been the impact of the economic slowdown? FS: There’s been a lot more emphasis on reliability and risk management. We’re an office furniture company and we deal with

What is the competitive edge of Steelcase? FS: Some would say that since our headquarters are located close to the heart of the auto sector in the U.S., we take a lot of the best practices from the automotive sector. Continuous learning is very important for Steelcase and our employees, and we have our own university. It’s on-line and there’s a physical university in Grand Rapids. Whether it is lean manufacturing or six sigma, I feel we’re at the front of the latest best practices and that gets filtered down to our employees. We’re talking about a possible upturn and I think the recession is behind us, so what are the major challenges that you’re going to have in growing your operations in Asia in the next 2-5 years? FS: Inflation. Everyone in our industry is concerned about inflation on raw materials, on everything. We’re not sure how much of our supply base has left the industry and how much is looking into other markets and how much is looking inward as opposed to export-oriented. We know our own suppliers very well, and we know the next tier well. But beyond that we don’t have enough visibility so [the question is] when we try to

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PROFILE Company

expand are we going to have the capacity? Have those suppliers that we relied on in past years moved on to other pastures? Can you comment on the wave of in sourcing? Are companies moving back to the US? FS: It’s not happening. Continually there will be components coming from Asia, not necessarily from China. There’s a lot of focus on China when I think that we should probably be focusing on Vietnam, Bangladesh and other countries coming up. Those components are going to end up closer to the market and then you’ll have final assembly. In our industry the biggest market by far is the U.S. So you’re going to see components coming from Asia and assembled in Mexico for quick delivery and customization for the US market. Keep in mind though there’s sourcing back to the U.S. and Europe as well as the growth in the markets here. In my team there’s more

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of a focus on the market in Asia now than there is on sourcing back to the U.S. We’re not neglecting that but it’s probably going to be minimized. We’re currently the leader in Asia. We are only in the high end [of the market]. We only see growth. We know it’s not going to be easy and it’s not going to be as quick as we’d like, but we’re very optimistic.

You’re going to see components coming from Asia and assembled in Mexico for quick delivery and customization for the US market.

What are some of the personal challenges of managing your team? FS: The biggest one is geography. We have a team that’s all over Asia and we just don’t have that face to face time. The other issue is keeping motivation up. Right now it’s easy because we’re in the

growth phase, but even with the global recession as we slow down, it’s important to keep the team motivated and challenged.

Are you worried about not being able to retain talent? FS: We’re extremely fortunate. We make nice furniture and our offices are pretty beautiful and nice places to work, so we have people walk in the door and say, “Oh, I want the job.” Knock on wood, I’ve had very few departures and I hope that’s going to continue. Now hiring is going to be difficult as the economy recovers. I feel that to find the right person is difficult.

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PROFILE Company

期策略性采购功能然后进入物流运作。我们专门的物流团队偶尔也会涉足其他工作领域，从某种程度上来说就会出现一些工作的重复。

家具用椅采购家具制造商 Steelcase 战略性的降价于1912年创立的Steelcase是美国的一个优质办公家具制造商，拥有约 13,000名员工。他们分别在亚洲的中国南部、日本以及马来西亚进行生产。 CHaINA杂志有幸邀约到Steelcase 亚太采购部经理Frank Sutherland一同畅谈该公司今后的发展以及未来前景。：您从事采购工作有多长时间了？ Frank Sutherland (FS): 感觉好像有大半业辈子了。足足15个年头，先是在日本然后是上海。在Steelcase就职8年时间，都是从事采购业务这块。早前是在日本被雇佣的，后来我提出在上海地区设立分公司。刚开始，我单枪匹马，到如今员工遍布马来、中国南部以及日本地区。您是怎样配备这个员工团队的？我们将供应链同采购部区分开来，在供应链这一模块我们分配了15人左右并且他们其中一部分人同时还可以从事采购业务这一领域。由于他们分别是负责资金付款及付款协商这两个部分的，所以我认为明确划分两者之间的职责是至关重要的。使两者之间的职责更明晰避免其他不必要的错误发生。我们的供应链包括采购功能和长

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经济萧条都带来哪些影响？ FS:可靠性及风险管理是一度被人们所关注的。我们是一家办公家具公司经常会跟许多小供应商打交道。大部分的这些供应商都专门从事出口销往美国（第二大市场即是欧洲）。这次的金融危机给他们带来了重大性的打击，因此我们对财务审计也进行了及时的调整以确保其不导致我们任何的经济损失。

对于Steelcase来讲，技术有多重要？一般会采用什么软件或商业应用来辅助每天的日常工作？ FS:在生产方面我们应用的软件是SAP，它能够让我们的公司国际性统一化。我们巧妙地将软件同SAP相兼并使得能够同供应商共享信息资源并且提供最新订单资讯和货运进度。这是Steelcase专门独立研发的一个应用软件。目前虽还未完全覆盖所有的亚洲供应商但是我们尽力朝着这个方向发展。

Steelcase的竞争优势是什么呢？ FS:有些人可能就会说是由于我们公司总部位于美国汽车业的核心，在那里我们得到了很多很好的锻炼机会。不断学习对 Steelcase和所有公司员工来说是非常重要的，我们还拥有我们自己创办的大学。它有远程授课和一所位于美国大激流城的大学院校。无论是精益生产还是六西格玛，感觉我们就像是领跑在最前沿的最佳实践然后再将实践渗透到我们所有的员工身上。我们正在讨论关于经济开始复苏的事，我认为经济衰退已成为过去式，因此，在未来2-5年间，在亚太地区发展运作的公司将面临哪些挑战？ FS:通货膨胀。这个行业中我们很多人都很担忧通货膨胀将对原材料及其他方面带

来的影响。我们也无法确定究竟有多少供应基地已经离开这个产业了，又有多少已经转向其他市场以及有多少从出口转向内销。我们对自己的供应商已经很了解，对下一个层面也已经很了解。除此之外，我们还缺乏一定的可见性。问题是当我们想扩大规模的时候我们是否已经具备这个实力了？过去这些让我们值得信赖的供应商是否已经投靠其他行业领域里去了呢？你能否对采购浪潮进行个简单评论？是不是一些公司已经都准备撤回美国去了？ FS:这个倒没有。将会不断注入源自亚洲的零部件，并不是说一定会在中国。当我一想到目前中国一直是被视为是一个被关注的焦点，我们或许应该将焦点转向对越南孟加拉国和其他国家。我认为我们这些零部件终将会符合市场，然后再继续进入最后的组装。迄今为止本行业最大的市场即是美国，所以你会看到部分来自亚洲和墨西哥组装，快速交货，专门为美国市场而定制。请牢记，尽管采购又回到美国、欧洲以及这里市场的发展。在我的团队里，我们目前投入更多的精力在亚洲市场上，已经不再回美国进行采购了。但是我们也不忽视这个市场，只是渐渐地会减少在那里的采购。我们现在是亚洲地区的领头人。我们一直处在市场的最前端。我们看着它逐渐变得壮大起来。知道这并没有那么简单也不会如我们预期想的那么美好，但是我们非常乐观。管理团队时个人将面临着哪些挑战？ FS:面临最大的挑战就是地域问题。我们的团队遍布亚洲地域，但我们没有这样面对面的时间。另一个问题就是保持活跃性。相对而言，现在变得简单些了，因为我们现在是处于发展阶段，随着经济大萧条的影响我们也放慢了发展的脚步。保持一个团队的积极性和勇于挑战的精神是非常重要的。你是否会担心留不人才？ FS:我们感到非常的幸运。我们生产的家具都很精致漂亮，办公环境也非常舒适大方，是个理想的办公场所，所以也会有人进门问道:噢，我要做这工作。我们公司很少会有人离职，我希望一直都能是这样的一个状态。现在经济会复苏，招聘的工作越来越沉重。我觉得想找一个合适的人选真的是太难了。

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PROFILE Individual

but the hard part is waiting to unload. If everything goes smoothly then we can unload right away. But if the warehouse is full and everything’s backed up, we have to wait, and then we get really anxious because we can’t get off work or rest. Loading up is the same. I wish clients could manage their unloading system better. Usually it takes about one or two hours. What part of your job do you like? WZG: My favorite part is getting off work. What stresses you out? WZG: We worry most about the truck breaking down and having to pay for the repairs. It doesn’t happen that often, maybe once or twice a year, but we still worry about it. Of course our trucks go in for maintenance so they’re in good shape.

View from the Road Wang Zhao Guo talks with CHaINA writer, Rebecca Kanthor about his life as a long haul trucking driver in China.

: Tell me about your job? Wang Zhao Guo (WZG): I’ve been driving now for more than six years. I load up at night and around midnight I set off to Ningbo. It used to take 5 ½ hours but now that the Shanghai-Ningbo sea bridge has opened, it takes just 3 ½ hours to drive the 200 km. I drive there, unload the freight in the early morning, and then go to rest. That night, I load up again and drive back to Shanghai. We drive at night to avoid the road construction. It’s a constant back and forth. I do 12 return trips a month and have about five days off. How often do you see your family? WZG: My wife and daughter live in Ningbo so if I have time I go to see them, take a nap and have dinner. If I’m too busy I don’t go home. My life is quite regular. We’re used to this life. Does it get lonely on the road? WZG: We work in teams, two drivers to a

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truck. When I’m driving he can rest, and when he drives I can rest. We chat about everything- family matters, news. We’re together every day, even more than with our families, so we have a good relationship. We don’t switch partners often. We listen to music and the traffic report. It’s part of the job. We have to keep on top of the road and weather conditions, especially now that it’s getting towards winter.

Is there a lot of overloading that goes on? WZG: We have to be careful not to overload because it’s dangerous and the fines are really high if we get caught. We don’t overload too much to be on the safe side. Even if they offer money we won’t do it. Are you a night person? WZG: I like driving at night. If I’m in a good mood and well rested, driving at night is much more relaxing than daytime driving. But it’s really important to get rested up during the day, otherwise I can’t work well.

Do you see a lot of interesting things driving every day? WZG: Unless I’m told a different drop-off location, I drive the same route every day. There’s not much interesting to see. I almost never get lost. I’ve been driving this route How much do you get paid and what are for years. We just pay attention to the road, your expenses? nothing else. I’d like to drive new routes WZG: I bought my truck last June and paid but it’s good to have regular customers. RMB140,000. In all I make RMB20,000 a It’s better for working together. I see trafmonth. But I have to pay all fic accidents once or twice a the expenses myself, like month. That’s a normal part insurance, tolls, gas, and reof our job, but it’s hard to pairs, so my take home pay see. It stays with you. Name: Wang Zhao Guo is RMB10,000. Age: 29 years old Do you have any hobbies? Origin: Mengcheng, What part of your job do WZG: Hobbies? Driving’s my Anhui you not like? hobby. WZG: Driving is no problem,

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PROFILE Individual 到最后能剩1万留作家用。工作中哪一块是您不太喜欢的？汪兆国：其实开车倒没什么，最头痛的就是等待装卸。如果所有的事情都安排妥善，我们立马就可以卸载货物了。但是一旦由于仓库满了或是被一些其他事情耽搁了，那么我们就得等，这会让我们很着急，因为我们没办法收工好好休息。装载货物也是同样的道理。我希望客户能够合理有效的改善其卸载体系。这样的话不用一两个小时就可以搞定了。工作中哪一块是你比较喜欢的? 汪兆国：下班的那一刻是最开心的。什么事情会让你觉得很有压力？汪兆国：我们最担忧的就是车子出问题，因为维修费是由我们自行承担的。这种情况并不时常发生，一年下来会有一两次这样的事情发生。但是我们还是比较担心这个问题的。当然我们对车子的维护非常小心翼翼，所以车子基本上都是完好的。

旅游风景 CHaINA杂志编辑Rebecca Kanthor对长途运输司机汪兆国进行的个人专访能否跟我们谈一谈您的工作？汪兆国：到目前为止我从事这个行业已经不止6个年头了。通常都是选择在夜间完成装载货物然后下半夜启程去宁波。过去整个车程需要5个半小时，现在上海至宁波的跨海大桥开通后只需3个半小时就能完成200公里的车距行驶。车到达目的地后，大清早就开始准备装卸货物，完成装卸之后才抽空去歇息一会。到了晚上我们重新装载另一批货物，然后再运输回上海。为了避开道路建设，通常我们都是会选择在夜间驾驶-速去速回。一个月往返两地大致是在12次左右，另外会余出5天休息的时间。那多长时间才能跟家人一聚呢？汪兆国：我的妻子和女儿都住在宁波，所以我一有时间我就回去看她们，休息休息、吃吃饭。如果时间比较仓促我就暂不回了。我的生活总体来说还是比较规律的。我们也早已习惯了这样的生活方式。

NOVEMBER/DECEMBER 2009

会有超载的时候吗？汪兆国：我们一般对超载都比较谨慎，因为这是很危险的，而且一旦被逮，罚金可不少。为了安全起见，我们一般都不会超载的。就算是客户多出钱我们都不会愿意去干。你是经常熬夜通宵的人吗？汪兆国：我比较喜欢开夜车。如果心情好、休息得好的话，在晚上开车是要比在白天开车来的轻松。但是白天的休息是很重要的，否则状态就会很不好。

路上会不会觉得很烦闷无聊？汪兆国：一般来说是按排两个司机轮班制来进行的。我驾驶的时候另外一个司机就每天开车会不会碰到些有趣的事情？可以休息，另外一个司机驾驶的时候我就汪兆国：除非客户的落客地可以休息。途中我们互相作点有变动，基本上我每天的伴、聊聊家常，家事和一些路线都是固定不变的。并没小道消息之类的。我们在一有什么特别新奇的事情发起相处的时间比家人还多，姓名: 汪兆国生。我一般是不会找不到路所以我们私底下关系就特别年龄: 29岁的。这条路线我已经开了好要好。我们一般不会随便就主籍: 安徽蒙城多年了。一般我们注意力都更换新的搭档。我们偶尔听集中在开车上了，很少去注听音乐或是路况消息。了意其他事情。我比较希望开些新的路线，解路况报道及天气预报也是工作需要的一但是有固定客户比较好一些。一个月下来部分，尤其是现在眼看着就要入冬了。会碰到一至两次交通事故。这是很正常的，不过也不会时常碰到。但这种隐患无那么您的待遇如何呢？一般都是怎样合理处不在。安排花销的呢？汪兆国：去年6月份我花了14万人民币买你有什么兴趣爱好吗？下这辆卡车。每个月基本收入是在2万。汪兆国：开车就是我的兴趣爱好。一些固定花销（比如保险、过境税、燃油费以及维修）都是由我本人自行承担的，

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FEATURE Story

2009 Catalyst for Change China’s Chance in the Sun 2009 will be noted both for the crisis and opportunities that it brought, particular for China, which has used the global economic crisis as an opportunity to take one step closer to ruling the world. Using the automotive industry for illustration, Namrita Chow also looks at the broader implications of these trends.

A strong presence in Asia is now synonymous with intelligent strategy for the future. Blueprints that existed before to build and expand in Asia quickly transformed into strategic moves. What once were only ideas, 2009 made realities. A strong presence in Asia is now synonymous with intelligent strategy for survival in the future--and the chance for strong growth. As the remnants of the global auto industry continues to look to China for salvation, so do many other sectors.

TREND 1: Building a strong base in high growth markets Contrary to most of the worlds, across Asia, investments and expansions are accelerating, spurred on by the lure of high growth. Global companies have seen sales plummet in developed markets, but not so in Asia. “China will remain a major driver of our growth in Asia,” says Franz Fehrenbach, chairman of the Bosch board of management. Bosch opened its first office in China in 1909. Today

NOVEMBER/DECEMBER 2009

China will remain a major driver of our growth in Asia

Franz Fehrenbach, Chairman of Bosch board of management

the company has a workforce in China of 20,000 staff – the largest outside of Bosch in Germany. While Bosch’s global sales have taken a 15 percent year on year hit, sales in China are up 15 percent and so investments in China continue. In 2009 Bosch invested EUR160 million in China. Infotainment maker Harman International, which has its hands in the auto and mass consumer electronics market, is also expanding across Asia, cutting numbers in developed markets with new facilities

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FEATURE Story

and expansions in Bangalore, India and also in Vietnam.” This year Outrigger has Shanghai and Suzhou in China. “We lost opened one new hotel in Thailand and almost 30 percent sales last year. So yes, signed up for three more across Asia. Harman was also affected Le Meridian already has 26 [by the global downturn],” hotels in Asia but chose 2009 says Dinesh Paliwal, to add a hotel in Hoh Chi Minh chairman and CEO of City, Vietnam. Over the next Harman International three years, Le Meridian will Industries Inc. But Palliwal open five more hotels across is adamant that Harman Asia. will grow in Asia. “Right TREND 2: Optimization now China accounts for of R&D and Human Reunder five percent of sources global revenue, but we What global companies are want to make US$1 billion Dinesh Paliwal, realizing is that markets in in five years time so by Chairman and CEO of Asia are different. Goods then it will be 20 to 25 Harman International have to be targeted for the percent,” says Paliwal. Industries Inc Asian consumer and have Similar growth, which might have stalled this year, is continuing to be designed and engineered with now in other sectors such as travel and the end market in mind. Simultaneously tourism. Anticipating demand for their the developed world is also demanding services, hotel groups are also expanding affordable options. “In the next decade in Asia. “To get through these challenging the automotive industry will focus on times and strengthen our company for the so-called "affordable" cars. Accordingly, future it is important to adapt our business we are intensifying our R&D localization strategy. One way to do this is to take strategy to develop tailor-made products advantage of the potential for economic for the Asian market," says Jay Kunkell, growth by expanding in markets such Continental AG’s Asia president. No longer is it possible for companies as the Asia-Pacific region,” says Mel Kaneshige of the Outrigger Group. “Not to build and design products thousands of stopping with the hotels we have signed miles away from the intended market. As up thus far, we are currently in discussions China’s consumer tastes develop unique for more in Koh Samui and Phuket and demands, localization of R&D is a requisite

Some 2009 examples of expansions and plant openings in the auto sector: Autoliv Inc., an automotive safety system supplier, opened a new US$17.6 million (RMB120 million) plant in January in Jiading, a Shanghai suburb. Continental AG opened a new technical center in Shanghai in April and will open an automotive electronics plant in Shanghai next year. Conti has also begun production at a plant in Thailand and opened a technical center in Bangalore, India. Investment numbers not available. SKF Group added an automotive technical center to its new US$25 million (RMB171 million) plant in Jiading in January. ZF Friedrichshafen AG opened a new US$22 million

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to winning business. “German engineers focus on Mercedes and BMW, they have built in standards. It’s very difficult to develop low cost products in a market like that [in Germany],” says Rolf Gall, head of ZF Friedrichshafen’s engineering division in China. So ZF plans to push for more localized R&D specifically tailored for China. This means building up a strong local team of Chinese ZF engineers. In China the company has added 500 new positions. This example is evident in many other industries which are utilizing the large pool of fresh graduates, where they can take their pick of the best and brightest and train them up. This trend is evident in multiple sectors and is geared at products and services designed for both export and import. In line with this trend is the localization of more upper management functions that accelerated in the past year as companies looked to quick cost cutting to improve their bottom line. “Localization and having a formal policy in place was increasingly on the agenda at companies where international assignments have been the norm in the past. This is being driven by both cost cutting and the need to streamline international assignment processes and the accompanying administrative burdens,” noted a survey by KPMG on International Assignments

(RMB150 million) facility in Shanghai inSeptember. The plant includes an engineering center to increase local product development Webasto AG, a German automotive sunroof manufacturer, has opened two new plants in China, one in Changchun and one in Shanghai, bringing total capacity here to two million sunroof sets annually. Investment numbers not available. George Fischer AG opened a new RMB320 million (US$46.9 million) plant in Kunshan, China in May. Japan Climate Systems, an automotive heating, ventilation and cooling (HVAC) system supplier, opened a new RMB68 million (US$9.9 million) plant in Nanjing in June. This is the company’s first plant outside Japan.

NOVEMBER/DECEMBER 2009

FEATURE Story

A Chinese man walks past a Mercedes-Benz dealership store in Shanghai. Mercedes will launch local production of the E Class Mercedes in 2010.

Policies and Practices “Most of these exports are 2009. going to Europe and some to Asia as an export hub other Asia Pacific markets,” Intense focus on quality he says. In addition, Nissan control now means that is shifting the production of parts that are made in its Micra from the United Asia meet the quality Kingdom to India, says requirements for sale back Master. in developed markets in TREND 3 Increase in Europe and North America. Guenter Butschek, contract manufacEven Mercedes cars made president and CEO of turing here could potentially be Beijing Benz Daimler Until a recent suicide of a sold back in Germany. Chyrsler worker accused of leaking For example: Mercedes trade secrets, most people Benz will launch local production of the new E class in China in had never heard of Foxconn, the company 2010, following record sales of Mercedes- that makes most of the world’s iPods and Benz cars in China. Once parts reach iPhones for Apple. As the world looks for Daimler Benz requirements, these parts more affordable parts that still deliver on are also then ready for global sourcing, the high standards of quality, specialist says Guenter Butschek, president and part makers are able to offer cheaper CEO of Beijing Benz Daimler Chyrsler. prices as they produce for huge volumes Parts from China are currently exported across every industry. Martin Lockstrom of the China European to the United States and Europe. “For the new E class more than 500 International Business School says parts have been locally sourced with the long term trend is a higher degree local content significantly more than 40 of outsourcing. “Take BMW X3 as an percent,” said Butschek. So as affordability example, which was developed and is key, production in low cost countries is produced by Magna Steyr in Austria,” he says. “The auto industry is taking a on the rise. similar path as the apparel and consumer electronics industry.” India as small car production hub Hyundai and Nissan are now using India Nearly every computer and mobile phone as a small car production hub. “Hyundai has a component made in China. “China made a conscious decision to make is definitely number one for electronics, India an export base for its small cars, consumer products etc. For textiles I'd say starting with the production of the i10 mini countries like India, Vietnam, Bangladesh car,” says Ammar Master, senior market etc,” says Lockstrom. analyst for India and Korea at J.D. Power. Contract manufacturing is a win-win

NOVEMBER/DECEMBER 2009

When China Rules the World Martin Jacques Penguin, 2009 If you want more food for thought on the topic of how and when China will rule the world, you need to read Martin Jacques’ new book – When China Rules the World, which skips ahead to the question- what will this future world look like? Jacques categorizes most westerner commentators as those that believe China will take over the world only through Westernization and those who think it is doomed to failure because it won’t Westernize. Jacques denounces them both as wrong. China will rule the world he warns, but it won’t be through adapting western ideals and ways. Evaluating China he says means recognizing this difference, and failing to do so "excludes everything... that makes China what it is.” Former editor of the journal Marxism Today, Jacques argues in favor of a China developing, adapting and growing on its own terms. China’s difference is a strength, not a weakness he argues. Whether he’s right or wrong, the book reads as a thought-provoking look at the relationship between China and the West.

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FEATURE Story

situation for all players. “I Schemes to increase taken their companies through initial think all supply chain players spending are also public offerings (IPO) of their stock in do [benefit] - final assemblers being mobilised across Shanghai, Hongkong or Shenzen, with can optimize their balance industries. One way four more planning to do so to raise cash sheets, the contract retailers are doing this for quick buys, says senior market analyst manufacturers can gain is via an increase in Tim Dunne in a report from J.D. Power more economies of scale, the voucher system. and Associates. and an overall degree of “With the effects of the If Asian automakers already have joint specialization. However, risks global economic crisis ventures, why would they need to acquire increase as transparency now felt in most Asian more technology? “In China there is a and communication becomes markets, a number of trend of foreign companies to take full harder to facilitate,” he says. governments in the region control of their operations,” says Ivo Songlin Mei, Philips is another company are looking to jump-start Naumann, Asia general manager of JD Power that has made a similar growth by encouraging global restructuring firm AlixPartners Asia shift, focusing on R&D and consumer spending LLC. Why? “So Chinese companies will utilizing its brand value, while through the distribution of find it more difficult to access technology,” outsourcing manufacturing consumption vouchers,” he says. as a non core competency. With a says Mr. Robert Gregory, a retail analyst higher value in the requirements for with Planet Retail. Governments across The future? manufacturing, it will be interesting to Asia in Thailand, Japan, China and Global manufacturers, retailers and see if the auto industry can make the Vietnam encouraged such schemes and investors caught in the sudden downsizing of markets in the developed world are shift that FMCG brands such as Nike boosting sales. looking for quick answers. Fast expansion and adidas have made, focusing on their core competency of branding and retail TREND 5: Technology Acquisitions in Asia and talk of high growth numbers distribution, over actually making the Domestic companies in Asia need is appetizing when other markets have expertise. They need technology and gone sour. But, the future has yet to be products. know-how. Rather than re-invent the seen and analysts predict a slowdown TREND 4: Governments in Asia wheel, an easier option is to buy existing in the acceleration of growth in Asia push consumer spending technology, which sometimes can be which in some cases has been prompted Markets in Asia, such as China and going cheap. For example, India’s Tata by government and artificial growth India are responding well to government Motors has been acquiring technology for stimulations. stimulus packages. In China auto financing years, with joint ventures and technology “It’s uncertain whether the government schemes usually penetrate close to five sharing agreements. The Nano is the will extend the tax incentive policy to next percent of car buyers. But the Chinese outcome of years of collaboration between year or carry out new stimulus measures,” government’s push to boost spending Tata Motors and its various foreign joint says analyst group J.D. Power in its and increase demand has changed the venture partners. China Automotive report. “We do believe situation. “Our teams have been working closely a payback is in order to compensate for “In the past few years less than five with Tata Motors right since the inception the stimulated growth in 2009.” percent of car buyers in China used loans of the project, to design In fact the report states to buy cars,” says Songlin Mei, China and engineer various that expectations for 2010 general manager for think tank J.D. Power components, keeping the for light vehicle sales Chinese that studies consumer trends in China. cost, superior quality and in China will match this companies “This year, 15 percent of car buyers are performance parameters in year's. “We maintain a will find it expected to use loans.” mind which required design cautious outlook for 2010 more difficult with growth decelerating “In the past credit financing was not and process optimization,” considered important in China,” says Mei. says R S Thakur, chief to a rate of 25-3%,” says to access “However with the current financial crisis operating officer at Tata the report. And as the technology the situation is changing. Now, both OEM AutoComp Systems. auto market is linked to dealerships and the Chinese government But automakers want the amount of money are promoting financing schemes to kick more. And 2009 has been the growing Asian middle Ivo Naumann, Asia start sales. Government loans for car that catalyst, pushing them classes have in their general manager of buyers are currently being offered with to buy assets faster. This pockets, it is indicative global restructuring firm zero interest rates, for repayment between year alone, 12 of China’s of the scenario expected AlixPartners Asia LLC one and two years.” top 20 automakers have across the supply chain.

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NOVEMBER/DECEMBER 2009

NEWS Movers

FEATURE Story

2009—催生中国新变革 2009是充满危机与机遇的一年，尤其对中国来说，全球金融危机让中国拥有一个绝好的机会来影响世界经济。就汽车业的发展来说，Namrita Chow（汽车专栏记者）已经在探寻这些机会给汽车业会带来哪些广泛深远的影响。

亚洲的影响力完全表现在未来发展策略的选择上。亚洲已经能做到在建立其发展的宏伟蓝图时，就能迅速转化为实际的战略举措。想法一旦被提出和认可，就会在当年得以实现。如今，对未来的生存发展大计和强劲发展势头已成为亚洲的代名词。全球汽车的零件生产商和许多行业部门仍将中国作为危机的避难所。趋势一：为迅速壮大的市场打造坚实的发展基础与世界大多数市场的情况相反，亚洲在高速发展的经济刺激下，投资与扩张的步伐不断加快。当全球公司的销售额在发达国家的市场迅速滑落时，亚洲却能继续坚挺。“中国将继续成为我们在亚洲发展的主要市场”—BOSCH董事会会长弗兰兹菲润巴赫这样说到。BOSCH早在1909就在中国成立了第一家办事处。如今公司已发展为拥有20000名员工的最大BOSCH德国驻外办事处。当BOSCH的全球销售年增长达到15%时，在中国的销售同比也增长了15%，因此，2009年BOSCH在中国又追加了1.6亿欧元的投资。娱乐业信息大亨哈曼国际，在汽车和大众电子消费市场也略有涉足，同样也把扩张范围瞄准了亚洲，削减了在发达国家的投资力度，而在印度的班加罗尔，中

NOVEMBER/DECEMBER 2009

国的上海和苏州建立了新的办事处。哈曼国际总裁Dinesh Paliwal表示“我们去年的业绩下滑的近30%，不可否认的，我们的

Franz Fehrenbach, Chairman of Bosch board of management 确受到了金融危机的影响。”但Paliwal却坚持认为其在亚洲的销售仍处在增长势

头。Paliwal还说“目前中国的业绩占我们全球销售业绩的5%，但我们希望要在5年时间内的销售额达到10亿美元，也就是说到那个时候，中国的盈利能力将占全球年盈利的20%-25%。其他本该在今年停滞不前的行业（如旅游业），却依旧呈增长的态势。酒店业预期到其服务的需求量，也将主要发展重点转移至亚洲。Outrigger集团的梅尔凯恩斯基说到：“要想熬过这段困难时期，就必须让公司未来的发展适应我们的商业发展策略。其中一点很重要的就是利用亚太地区经济增长的潜在发展机会创造新的增长点。我们目前都没有想过要与我和签约的酒店停止合作，相反，我们还在考虑增加苏梅岛，普吉岛和越南的投资力度。” 今年Outrigger在泰国新开了家酒店，并在亚洲其他地区签约了3家酒店的合作协议。 Le Meridian（艾美酒店）在亚洲已有 26家酒店，但其仍旧决定于2009年在越南的胡志明市开设新酒店。并计划在未来 3年在亚洲增开5家信酒店。趋势二：优化研发力度和人力资源发展全球性的跨国公司已经意识到亚洲市场的特点所在。产品的设计研发必须针对亚洲的终端用户市场。同时也需要考

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FEATURE Story

虑发达国家的需求已向经济性和实用性转变。“在未来10年汽车业将重点发展“经济性”车型。相应的，我们也在加强研发亚洲市场推出的战略化产品。”德国大陆公司亚洲区总裁Jay Kunkell这样说到。如今，大多数企业已经不会允许自己的产品设计过分偏离目标市场的需求。考虑到中国消费者特殊的购买需求，本土化的产品研发战略是企业成果必不可少要素。“德国的工程师们热衷于生产奔驰与宝马，是因为他们的生产流程已经接近标准化。这也就意味着在类似德国这样的市场不大可能生产出低成本的汽车。”德国 ZF集团的中国区工程部部长Rolf Gall这样分析。因此ZF集团计划为中国市场推出更多本土化的产品研发战略。这就需要在中国建立强大的工程师团队。该公司已在中国增加了500个新职位。这个例子同样明显的说明其他产业也希望充分利用应届毕业生的资源，选出最合适最有潜质的人才重点培训。这种策略在多个行业部分都得到了充分体现，旨在为进出口的产品和服务提供坚实的人力后盾。与此策略相一致的是加快高层管理的职能定位本土化趋势—在过去的一年里，各大企业都在积极削减成本来加强其抵御风险的能力。“在削减成本和降低国际化运作模式所带来的管理负担的双重驱动下，本土化如今正逐渐代替以往国际化作业的标准模式成为公司的正式策略议程。”这是由毕马威2009年对国际策略与实践调查得出的结论。微观趋势1：亚洲已成为出口中心对质量控制的高度关注正意味着在亚洲生产的各类零件也能符合其在欧美发达市场的销售质量要求。甚至在亚洲生产的奔驰车在德国一样也有可能被卖掉。例如：奔驰将在2010年推出中国本土制造的新型E级车，来继续填满奔驰在中国的销售记录。Guenter Butschek，北京戴姆勒奔驰的执行董事兼总裁说到：一旦零件的生产达到戴姆勒奔驰的要求，这些零件将被全球采购。由中国生产的零件现在已出口到美国和欧洲。 “由于新型E级奔驰轿车有500多个零件都是中国本土生产采购来的，这就让车体的本土化含量达到了40%。”Butschek 介绍说。因此，在集约化生产的前提要求

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其小型车的生产出口基地，已经开始生产 i10迷你车型。大多数迷你车都出口到欧洲和其他亚太市场。此外，日产也将其全新小型车Micra的生产基地从英国转到了印度。”

Dinesh Paliwal, Chairman and CEO of Harman International Industries Inc

下，生产成本低的国家产量却能保持不断上升的趋势。 “ 对于新的 E 级 500多件在当地已与当地含量显着高于百分之四十的来源”Butschek说。因此，承受能力是关键，在低成本国家生产上升。微观趋势2：印度成为小型车的生产中心现代和日产都将印度作为小型车的生产中心。J.D. Power（亚太公司）印度韩国市场部的高级市场分析师Ammar Master 说：“现代十分精明的决策将印度作为

Guenter Butschek, president and CEO of Beijing Benz Daimler Chyrsler

趋势3: 增加合同化制造直到近期一名因泄露商业机密被指控的员工自杀事件发生，人们才开始了解富士康，这家默默为苹果公司生产iPod和 iPhone的公司。由于世界各大企业都在寻找更加经济又不影响产品高质量标准的产地，部分专业的零件制造商已经能运用产业的规模化效应实现低成本运作。来自中国中欧国际工商学院的Martin Lockstrom提到，高比例的外包将是长期发展的趋势。“以宝马X3为例，就是在奥地利的麦格纳斯太尔研发和生产的。汽车业将与服装和大众电子行业的发展殊途同归。” 几乎每一台电脑和手机都有一个零件是在中国生产的。Lockstrom说“中国无疑是数字电子产品和快消品生产的龙头老大，而印度，越南和孟加拉国等国家则是纺织品的生产专业户。” 合同制造对所有参与者来说是一种共赢的模式。Lockstrom还说，“我认为所有供应链环节的参与者都会因此得益—终端的零件装配商能最优化资产负债表，合同制造商能充分利用规模化效应和生产专业化来降低成本。然而，随着风险的增加，透明度和各方的沟通却变得不那么容易了。” 飞利浦也是另一家做出类似转型的企业，在外包制造并不是企业核心竞争力的时候，注重研发和利用其品牌效应。随着制造业不断要求高附加值的需求，对汽车业来说，是否能像耐克，阿迪达斯等快消品一样做出适时的转型，将其核心竞争力放在品牌营销和零售分销而不是产品制造本身，将是个有趣的未知数。趋势4：亚洲政府拉动内需在亚洲市场，比如中国和印度的政府都以刺激消费作为应对市场的策略。中国的汽车业融资计划往往渗透近5%的购车者。然而，在我国振幅的推动和刺激下，不断增加的消费需求改变了这个局势。“ 以往在中国，贷款这样的消费方式并不被看好。”宋林美说到。

NOVEMBER/DECEMBER 2009

FEATURE Story

一位中国男士从上海的奔驰专卖店旁边经过。奔驰会在2010年上市其在国内生产的E-Class系列轿车。

“然而当前的金融危机却改变了这和技术共享的结晶。一状况。如今，原始设备制造的分销商与 “我们的团队在工程初期就一直保持中国政府都在积极宣传各种金融政策来刺与TATA汽车密切合作，在设计和攻克各激销售。政府先对购车贷款实行零利率政种零部件的问题上，本着低成本，高质量策，还款需要在一至两年和高性能的宗旨，这就需内完成。” 要设计和生产过程的最优政府还动员各行业化。”TATA汽车公司的运加大投资力度。零售商的营总监R S Thakur这样说做法是大力实行购物卷制到。度。“亚洲市场在全球金但汽车制造商想要融危机的影响下，该地区的更多。 2009年是推动的一些政府就试图通过发汽车业扩大资产的重要一放消费券的方式来鼓励消年。J.D. Power 的首席市费。”Planet Retail的零场分析师Tim Dunne的一售分析师Robert Gregory 片调查报告中提到，仅在先生这样说。在泰国，日今年，排在中国的前20名本，中国和越南等亚洲各的汽车制造商中，有12家国都不同程度地利用购物已在上海，香港和深圳完券来刺激消费。成了上市首次公开募股， Songlin Mei, 还有4家也在考虑采取类 JD Power 趋势5：技术收购似的做法迅速筹集所需资在亚洲的国内企业需要专业的知识。他们急需技术和专业知识。购买现有可利用技术是比重新研发新技术更加快捷和经济的途径。比如说，印度的TATA汽车公司多年来一直在收购不同的技术，最近推出的TATA NANO小型经济车便是TATA汽车与众多跨国合资伙伴合作

NOVEMBER/DECEMBER 2009

金。如果亚洲汽车制造商已经有固定的合资伙伴，为什么他们还需要收购更多的技术呢？“在中国，已经有越来越多的外企想要完全控制参与合资伙伴的经营。”美国AlixPartners Asia LLC.（一家专为全球资产重组提供咨询服务的国际知名公司）的

亚洲区总裁Ivo Naumann说。“因此，中国企业就会发现要想从合资伙伴那得到更多的技术支持是很难的。” 未来会是怎样的呢？突然在发达国家陷入市场低迷的制造商，零售商和投资们急切的想找到改变萧条状况的突破口。亚洲迅速的扩张和增长飞快的数据让其他地区走下坡路的市场垂涎三尺。然而，未来的归宿依旧扑朔迷离，有分析师预测亚洲的快速发展也有可能有停滞不前的阶段，尤其是在政府经济干预等为刺激过于对市场干扰的情况。政府是否会在明年引入税收刺激政策或实行新的刺激措施我们不得而知，”J.D. Power 的分析师小组在其中国区调查报告中表明，“但我们相信一定会有相应的举措来维护2009年刺激性增长的成果。” 事实上，这份报告还指出，2010年中国小型车的预计销量将于今年持平。“ 我们谨慎地观望后认为，2010年的汽车业增长将会减速 25%-3%， ” 报告还说道。并且汽车市场的发展与实力不断加强的中产阶级的资产拥有量也成一定的正比，这同时也能作为整个供应链预期发展的一个重要指标。

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FEATURE Story

China’s Ports and Global Integration Where to Now?

In March 2009, the Central People's Government of the People's Republic of China, endorsed Shanghai’s strategic goal to establish itself as a world-leading International Shipping Centre by 2020. This envisoins Shanghai not only as a leading port, but also a leading transportation and logistics hub, with the infrastructure and IT services to facilitate multi-modal trans-shipments and global supply chain integration. It also aims to be a major centre for shipbuilding and repair services, cargo and vessel insurance, and ship financing and brokering services. A groundbreaking initiative to establish the country's first arbitration court to decide international disputes is being planned, as well as infrastructure and enticements to lure Yangtze Delta cargo owners to use more waterways instead of expensive, congestion-causing road transportation. According to the People's Daily, Shanghai cargo throughput rose 3.6 percent in 2008 to 582 million tons, making it already the world's busiest port for the fourth consecutive year. Shanghai overtook Hong Kong as the

NOVEMBER/DECEMBER 2009

By Peter Stokes

number two container port in the world with 28 million Twenty Foot Equivalent Unit containers (TEUs) in 2008, while Singapore as number one handled 29.9 million TEUs. While Singapore is primarily a trans-shipment port, Shanghai is primarily an import / export cargo port serving the Yangtze area and the hinterland beyond, with very clear potential to grow significantly as both a gateway port and a trans-shipment port. In total, according to Frost and Sullivan, China is projected to handle 107 million TEUs in 2009 with average six percent annual growth up to 2015, with a projection then of over 200 million TEUs. Economic uncertainty However, all is not rosy. China’s container traffic has plummeted; container volumes were down 15.5 percent year on year for the first half of 2009. While there is much talk of “green shoots,” with unemployment rates still rising in the US and Europe, there is a groundswell of opinion suggesting a double dip recession—the next one in 2010, putting

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FEATURE Story That trading is complex in China, and yet, how does the country handle over 107 million containers every year and how did Shanghai become the number two container port in the world?

more pressure on ports and ocean carriers, already with excess capacity and more coming on stream. Within this context, China ports face many of the challenges of their counterparts elsewhere in the world – how to most efficiently serve their primary customers, the ocean carriers; how to maximize the use of their terminal assets frequently; how to cost-effectively integrate with myriad global supply chains; how to protect trade chains against the threat of terrorism; and how to cooperate with the local Customs authorities in balancing the need for fast clearance of goods with the need to comply with trade and customs regulations. China ports are also different in that they need to operate within the boundaries of more complex trade, customs and security regimes. As an example, in support of global measures to combat the threat of terrorist disruptions to integrated global supply chains, China Customs promulgated Decree 172, mandating that from January 1, 2009 24-hour advanced electronic manifests and related cross-check information be submitted to China Customs in the specified format. For ocean containers coming into China, carriers are required to submit the main data of the original manifest 24 hours prior to loading at the port of origin; consignees and/or customs brokers cannot declare the goods to Customs until the original manifest is accepted by Customs. Secondary data such as house bill information must be submitted by the carriers electronically prior to arrival, and electronic tally reports are required to be submitted by companies operating customs-controlled premises within six hours of arrival. There are similar complex requirements for exports.

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The shift to efficiency Part of the answer is in China’s use of technology to collaborate electronically with all the port community participants – ocean carriers, Customs, Quarantine, cargo owners and so on. Let’s look more closely at Shanghai as an example – it has similarities with other ports on China’s east coast, but also its own unique characteristics. In 2001, Shanghai E&P International was established as a privately held, state-owned enterprise, a joint venture between Shanghai Information Investment Inc. and other governmentlinked organizations including the Shanghai Port Authority, the Shanghai Customs House and the Inspection and Quarantine Bureau. It was established to create a single window for Shanghai port, a "Three-in-One" service that integrated three disparate electronic services to provide a port and logistic information exchange platform (www.easipass.com). Shanghai E&P’s “Easipass” provides a business collaboration and information exchange platform used for carrier operations, port operations, port administration, customs clearance, quarantine inspection, duty payment, and shipment bookings. Companies have visibility into port operational data, document status and end-to-end logistics information. The platform also helps carriers, forwarders and brokers comply with the advanced electronic notification requirements of Customs Decree 172. The platform handles more than 50 different document types in many different formats and processes 100 million transactions each year and more than RMB300 million electronic payments per day. A key feature of the technology is the use of client endpoints to speed the on-boarding of partners. Shanghai is similar to many other ports in China in that its port electronic collaboration platform is operated in a public-private partnership model, originally from a state-owned enterprise. Port community systems in China are evolving to provide more value-added information services, with platform governance and end-to-end visibility becoming critical tools to monitor, analyze, predict and prevent logistic chain problems before they become critical. Visibility also provides near real-time views into performance against service level agreements (SLAs), and allows for the tracking and optimization of key performance indicators (KPIs). China ports, of course, seem well positioned to weather the economic downturn, and despite the current situation, there will inevitably be a recovery. Growth has been driven by globalization, and technological innovation has enhanced the competitiveness of China’s port. It is inevitable that this momentum will continue. Peter Stokes an industry veteran with more than twentyfive years of experience in trade facilitation, logistics and customs, is Regional Director (e-Trade) with Axway Ltd.

NOVEMBER/DECEMBER 2009

FEATURE Story

Ports and Terminals Update â&#x20AC;&#x201C; Key Points As the charts below suggest, recent statistics on throughput at Chinaâ&#x20AC;&#x2122;s major ports reflect the impact of the global financial crisis on the economy. While results are not out yet for 2009, most ports, while showing some improvements in recent quarters are expected to handle less capacity than last year. The big question: are recently improved GDP numbers, manufacturing capacity and exports a result of replenishment and Christmas orders or are they a false indicator, fueled by stimulus measures? The first quarter next year should paint a clearer picture. Container Throughput Volume of China Top 7 Ports 0,000 TEU 2900

2801 2615

2500

Shanghai 2000

1500

2172 1808

2110

Shenzhen 1823

1847

Qingdao

1619

770 714 595 401

630 526 480 334 268

1002 850

710

453

381

321

Tianjin

767 764 637

503

463

Ningbo - Zhoushan

1310

1093

946 943

1000

500

2142

Xiamen Dalian

337

0 2006

2005

2007

2008

2009(Jan - Sep)

Shanghai Port Trade Value and Container Throughput Volume Billion USD 700 600 606.56

500

520.91 428.75

400 300 200

145.5 100 86.51 73.52

217.2

180.8 186.37

160.03

162.19

266.57

261.5

280.0

328.48

393.65 212.91

192.43

182.3 169.12

95.62 90.74

82.80 86.31

Year 2004

Export Value

2005 Import Value

2006 Total Trade Value (Billion USD)

2007

2008

2009(Jan-Aug) 2009 statistics not full year result

Shanghai Port T/P Volume (00,000 TEU)

NOVEMBER/DECEMBER 2009

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FEATURE Story

China PMI and Shanghai Export + Import Laden Throughput MTEUs

PMI (%)

1.9

65 60 55

55.1

58.4 59.2

58.6 56.1 55.7

56.1

54.5

53.1

53.3

54.0

55.4

1.8 51.2

55.3 53.2

53.3

53.0

54.0 53.3 1.7

53.553.1 52.4

53.4

1.6

52.0

1.5

48.4 48.4 45.3

44.6

1.4

41.2 38.8

1.3 1.2

30 25

2007

2008

1.1

2009

1.68

1.65

1.57

1.61

1.49

1.01

1.61

1.27

1.45

1.65

1.83

1.68

1.72

1.77

1.76

1.75

1.76

1.29

1.67

1.61

1.57

1.56

1.58

1.63

1.65

0.7

1.55

1.58

0.8

1.61

1.44

0.9

1.28

1.0

1.44

01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08

0.6

Shanghai Export + Import Laden T P (M TEUs) CFLP PMI

Ports and Terminals - Fast Facts • Shanghai and Shenzhen, showed the sharpest decline relative to other major ports, although it should be noted that port throughput statistics are not just for import and export and include domestic cargo. Throughput drop in some Northern Ports are offset by domestic cargo. 2009 China PMI (a monthly index measuring manufacturing) has climbed up from a historic low recorded in November, 2008 and give hope that the decline has stabilized. • A number of large scale infrastructure projects geared at supporting logistics in the Shanghai Bay and Yangtze River region have completed and are nearing completion which gives hope for the Container Terminals, especially in Shanghai, which have suffered the most. • Cosco Pacific, the world’s fifth-largest port operator, predicted container throughput at mainland ports would increase five to 10 percent next year thanks mostly to government stimulus packages. • According to many sources, the government has shifted its attention from coastal ports and is focusing their attention on infrastructure in 15 key inland cities, especially those on the Yangtze River. Some port and terminal operators, eager to win inland cargo business are following with investments.

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CASE Study

A Kanban-Driven Material “Supermarket” at Braun, Shanghai, Limited

By Patrick Daly, Alba Logistics

Lean Production

Background When James Womack and Daniel Jones visThe Braun Shanghai Limited manufacturing ited the Toyota production plants in 1982 plant is located on the outskirts of Shangthey were struck by the firm’s superior hai and comprises a legacy factory dating process management capability which they from the 1980s. “When I came to Shanghai dubbed “lean production.” They describe in 2007, the warehouse at our factory was how this translated into Toyota’s ability to traditional in its design, with corresponding manage “a series of actions conducted systems and practices,” said Liam Cassidy, properly in the correct sequence at the right General Manager, at Braun Shanghai Limtime to create value for customers” (Lean ited. I wanted to implement a full program Solutions, Womack and Jones, 2005). of Lean Manufacturing Practices from supToday, as global enterprises become plier to the dispatch of our final product. The ever more aware of the strategic importransformation of our warehouse to allow tance of managing the entire supply chain, for this was critical.” lean thinking is being applied There were a number outside the production shop of practical inconvefloor and into the full specLean thinking niences at the plant that trum of supply chain activipresented serious chalis being ties. lenges to achieving this This case study reviews applied goal. The long narrow an initiative at the Braun outside the shape of the factory and production plant located in production warehouse buildings gave Shanghai, China in which lean rise to long travel disshop floor and principles were applied to imtances from warehouse proving manufacturing inveninto the full to production areas and tory control through streamspectrum of produced congestion lined warehouse operations supply chain of traffic and materials incorporating a kanban-driven production-warehouse activities. materials supermarket.

Figure 1 – Before: Work Order Based Batch Picking at Dynamic Location

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interface. Additionally, there was no dock leveling equipment for the loading and offloading of vehicles servicing the plant. Project Aims and Goals The major aims and goals of the project were to develop a design solution layout for the warehouse providing: • Easy and rapid access to all materials in the warehouse. • Improved material flow and labor productivity in the warehouse. • Improved service to production lines. • Improved inventory management across the plant. Project Challenges The major challenge facing the plant was accommodating increasing quantities of transactions during routine work as throughput volumes continued to increase coupled with the re-education of the warehouse staff to adapt to the new ways of working. On the facilities side, the major challenge was to greatly enhance the use of physical space and access to materials in the warehouse while at the same time maintaining very high level of health and safety compliance and material security.

Figure 2 – After: Supermarket Kanban Based Pull at Fixed Location

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CASE Study Supermarket Zone Rack SM Material

1.8M Replenishment

Put off Call Off Material

Bulky Zone Rack

Picking with Pull Card

Bulky Zone Rack

Bulky Material

Warehouse

Production Line

Figure 3- Schematic Material Flow between Warehouse and Production

Additionally, WMS system changes would need to be incorporated to support the new ways of working and the improvement in the control and accuracy of inventory.

Formulation and Implementation The Approach Because the project involved the overhaul of the current state operations rather than a simple modification, the structured approach used to tackle the challenge followed the DMEDI (for Define-MeasureExplore-Develop-Implement) improvement model. The Solution The main characteristics of the solution were as follows: • Value Streams are grouped together in order to facilitate access to replenishment and picking. • SKU item codes that are common to more than one Value Stream are located in a central passageway that is always traversed by pickers. • SKU item codes with large box sizes are also located in the central passageway adjacent to the common items. • Replenishment and picking take place in mutually exclusive dedicated aisles thus ensuring that fork lift traffic and pedestrian traffic are separated. • 80 percent of picking now takes place

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within about 30 percent of the floor area that was previously used for picking. The Data Optimizing the size of stock location for materials and the access routes to the locations required a careful analysis of both historical data and future case scenarios. The main items of data required were; • Stock movement transactions spanning a period of 12 months. • Material Master Data for each and every SKU item code. • Dimensional data by SKU with both supplier and issue pack dimensions and weights. • Current storage equipment type, location and capacity and suitability for reconfiguration. • CAD drawings of warehouse buildings, docks and yard. The Analysis A range of analyses was carried out and included a combined analysis of the Movements and Master databases. The daily and weekly movements per SKU were calculated both in terms of quantities and volume and a cross check done against the Planners’ current schedules in order to validate figures. In addition, an analysis was carried out to identify those SKUs deemed suitable for insertion into “supermarket” shelf modules

as distinct from those deemed to be “bulky” and requiring pallet pick locations. A range of criteria including dimensions, weights and throughput were used for this distinction. Finally, an analysis was carried out to identify those SKUs that were unique to a particular Value Stream as distinct from those that were common to more than one Value Stream in order to inform the layout and flow for dedicated picking routes. Getting it Done - Production Side On the Production side the specific elements of work that had to be undertaken included determining the One-Time Picking Quantity and the related information required on the kanban pull card. It was also required to determine ideal trolley size and format to transfer issue packs back and forth to the warehouse and to implement. Getting it Done - Warehouse Side On the warehouse side, it was necessary to quantify the projected warehouse workload and compare current state operations with future options. Following on from this was the definition of the physical locations for material within the racking and shelving and setting up the beginning inventory with clear visibility of information on the rack. On the systems software and hardware

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CASE Study side it was required to clarify with the system vendor the specification and functionality of the scan solution for data capture and then install, test and commission the hardware and software. A structured training programme for operatives on the new procedures was an integral and necessary component of the work.

Results and Benefits The three major benefits obtained from the implementation of the kanban supermarket were as follows: 1. Increased work efficiency. 2. Reduced material issue lead time. 3. Reduced inventory on the shop floor. Increased Work Efficiency The overall reduction in goods issue/picking time was 28 percent and this was achieved through a combination of factors. The defined delivery routes reduced the non-value added walking and consolidated the movement activities covering all materials movements. Another crucial factor was that previously work order picking had taken place on all four storage levels in the warehouse using a turret truck/order picker. With the supermarket, almost all kanban picking could

now take place from the ground. Reduce Material Issue Lead Time This was reduced from over four hours on average to less than one hour. In the previous arrangement, production was required to submit a picking slip to the warehouse one shift in advance of its requirements with resultant low flexibility. In the revamped regime, the pickers simply select the material required through kanban as a function of line demand. This provides much greater flexibility and a speedy response to changeover requirements. Reduced Inventory on the Shop Floor Previously the process orders were for one to two shifts-worth of demand. This made it very difficult to follow the 5S guidelines for an organized workplace. During changeovers there was a risk of confusion and mixing of materials. This has now reduced to two to four hours of line output.

Lessons Learned • High quality systems data is an essential foundation to conduct an accurate analysis. This is particularly true of the dimensional data on supplier and issue packs held in the Master data file. • Dimensional data is often not well maintained in enterprise system databases

for a variety of reasons. It is therefore imperative that dimensions are verified and the necessary corrections made before proceeding with analysis. • One of the crucial challenges of the solution formulation was to strike the right balance between the travel time for pickers selecting materials in the supermarket and the frequency of replenishment into the supermarket. The larger the supermarket bin-locations the lower the frequency of replenishment but the longer the dedicated pick routes. • The final solution allowed for an average of one week’s usage to be accommodated within the supermarket with all SKUs accessible by means of simple manual picking from the ground. The supermarket area now accounts for over 80 percent of all picking activity from ground level on just 30 percent of the previous footprint. Patrick Daly is Managing Director of Alba Consulting Group, which provides consulting and training to best-in-class operators in manufacturing, distribution and logistics services across Europe, Asia and North America. He can be reached at pdaly@albalogistics.com.

看板制度下催生的“原材料超市化” —以布朗在上海的生产基地为例精益生产当James Womack和Daniel Jones在 1982年访问丰田生产基地时，他们被公司高级的历程管理能力所震惊，并称之为“精益生产模式”，他们还阐释了这种模式是如何转化为丰田独特的管理能力— 所有的程序都需要在正确的时间按特定的次序来为客户创造价值”（精益化解决方案，Womack和Jones，2005）。如今，大多数跨国企业都意识到管理整个供应链的战略重要性，精益化生产的思想正被应用到生产车间之外，并已渗透到整个供应链的活动环节中去。本案例分析回顾了布朗在上海生产基地的精益化策略是如何提高生产库存控制管理的过程。通过精简仓储操作成本，以

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及“看板策略”催生的原材料超市化的应用达到优化整个供应链管理的最终目的。

布劳恩上海有限公司背景介绍布劳恩上海有限公司的生产基地位于上海市郊，由20世纪80年代遗留下的工厂改造而成。布劳恩上海有限公司的总经理Liam Cassidy介绍说“当我在2007年来到上海时，工厂的仓库还是保持十分传统的设计，相应的管理体系和操作管理也十分保守。于是我就想实践精益生产的整体规划，从供应商的选择到最终产品的调度都以此策略为准。对仓库管理的改造来说，这种思维是至关重要的” 当时在工厂的实践中的确有许多不

便之处，对实现这一目标造成了严重的挑战。例如，由于工厂和仓库建筑之间的距离过长，道路狭窄，就导致了材料运输的不便。此外，工厂当时也没有到门点的设备和交通工具来完成配载和装卸。改革策略的目标与宗旨主要目标与宗旨是开发设计个科学的仓库布局作为优化仓库管理的解决方案： •轻松快速地找到仓库里所有不同材料 •提高仓库内原材料流动率和劳动生产率 •改进生产线服务 •优化整个工厂的库存管理改革面临的挑战工厂改革最主要的挑战是如何让常规

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CASE Study

图1–改革前：完成一次选货过程需要在移动的区域内进行

图2–改革后：超市看板制选货可以在一个固定的货架即可完成

的操作实践和生产能力能适应日益增长的交易量变化，并让接受再培训的仓库人员能尽快适应新的工作模式。在设备方面，主要挑战是如何在高水准的仓储安全性前提下，同时提高仓库空间利用率，并保证材料的分类易于查找。此外，仓库管理系统的跟新也需要新的工作模式的支持，并提高库存管理的可控性和准确性。

所需的主要数据包括： •在过去一年中货物的流动率和交易量。 •每个SKU 货号的主要数据。 •供应商提供的相应SKU编码的体积数据，包括包装的尺寸和重量。 •当前的仓储设备种类，位置，功能以及重新配置的适用性分析。 •对仓库，各门店和装卸码头进行CAD绘图。

公式化制度与实施

分析

实施办法由于改革策略需要彻底改变的是当前普遍的操作模式，而不只是单单一个方面的改变，就需要运用格式化的方法来应对改革过程中的各种挑战。DMEDI（定义，评估，研究，开发，实施）这一模型就是一个很好的模式选择。

我们对货物流动和主数据进行过一系列的综合分析。每个SKU编码的日流动和周流动数据都根据数量的变化和仓储规划员当前的记录计算并验证，以得到有效准确的数据。此外，数据分析的结果还被用于识别哪些SKU编码的货物是适合被放在“超市型”的货架上，哪些大体积的货物需要被放在托盘区。我们根据货物不同的体积和重量制定了区分各货物安放区域的标准。最后，为了最大化利用选货通道并优化其布局，我们需要用数据分析的结果来将那些只和一个特定价值流有关的SKU编码和与多个价值流有关的SKU编码区分开来。

解决方案解决方案的主要特点如下： •整合各价值流，以便于及时补货和迅速的挑选。 •SKU代码可以在仓库人员需要经常攀登穿越的中心过道设置以便于识别与分类。 •带有SKU代码的大尺寸箱型也可在主要的通道区域设置，并与邻近类似的材料区分开来。 •补货和选货都在互相独立的专用通道上进行，从而确保叉车专用道和人行道也是分开的。 •80%的选货过程现在只需占用原有的选货区域的30%即可完成。数据为了优化选择原材料的库存位置和相应尺寸，以及最近选货路径，我们需要仔细分析历史数据和未来的预测数据

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应用于生产在生产过程中具体的工作需要相关工作人员弄清一次性选货的数量，并能了解仓储看板上的信息需要如何更新。同时还要设计出最合适大小的手推车（或电动小台车）来在仓库和工厂间方便快捷地运输所需货物。应用于仓库在仓储方面，有必要对当前仓库的吞吐量进行明确的量化，并和当前的操作数据进行对比，以便为未来的选择做必要的

数据参考。接下来就是定位各种原材料的实际位置，具体到某一个范围内的货架，同时应该在货架上清晰地标明货物的信息。在系统的硬件和软件设施方面，我们需要确保供应商的相关信息，数据采集和扫描功能都能做到完善和齐全，然后安装，测试并将这些合格的系统硬件与软件投入使用。当然还有一个必不可少的过程，就是对系统要求的新操作程序给员工做相关系统的培训。

效果和优势看板超市制度主要有以下三个优势： 1. 提高工作效率。 2. 减少处理货物运输问题所需要的时间。 3. 降低库存流转时间。提高工作效率通过各方面的努力，可以做到将选货过程所需的时间减少28% 固定的配送路线减少了多余的步行路线，并将此方法运用于所有选货过程的路径选择中。另一个关键因素是，原先需要用推车在四层高的货架间选货的程序，如今在看板超市制度下，几乎所有的选货过程都能在平地上完成。减少处理货物运输问题所需要的时间以往平均需要4个小时的运输过程现在可以在不到一个小时内完成。照以往的程序安排，工厂需要在采购新的原材料前向仓库提交申购单，造成效率低下，缺乏灵活性。在制度改革过之后，采购人员只需要选择所需的材料，并通过看板的需求曲线

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CASE Study 功能自动补货。这就大大提高了补货的效率，对材料的需求状况作出迅速的反应。降低库存流转时间在改革前，下订单的过程需要经过 1-2人经手后才能完成。这样就难以实现 5S管理制度下的组织规则。并且在货物交接过程还有可能将不同的材料弄混的可能性。在实行新制度之后，我们已经能将整个货物输出过程的时间减低到2-4个小时。

超市区域货架

SM 物料

叫回物料

1.8M 补货区域

拖运

经验与教训 •高质量的数据管理系统是进行精准分析最重要的基础。尤其是在整理供应商提供的货物体积数据和处理主数据库的货物信息时。 •由于诸多原因，体积数据往往难以在企业的数据库系统里得到较好的保存和维护。因此，在进行分析前十分有必要对相关的体积数据进行及时的更新。 •解决所面临挑战的关键在于找到一种解决方案，来正确处理采购员在看板超市里挑选货物的时间和仓库里补货频率之间的关系。一般来说，仓储地的占地面

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出示提货卡领取货物重货区域货架

重货区域货架

重型物料仓库

生产线

图3 –原材料在仓库与生产基地间流动的示意图

积越大，补货的频率就越小，但是随之选货的时间却会更长。 •最终的解决方案是，用简单的人工地面选货方法对所有现有SKU编码利用平均

一个星期的时间来适应超市化的运作。目前仓库超市化运作的区域展区了地面 80%的选货区，而在原计划里的比例只有30%。

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FOCUS Green

Supply Chain Management readies for a green explosion

he implications of Green SCM for companies in the Asia Pacific region are wide reaching. CHaINA Magazine spoke with Nicolas Pechet, Vice President, China of GIA Group in regard to new research they have done into sustainable practices in the manufacturing and logistics industries in the Asia-Pacific region. Why is green SCM so important to international purchasing or production directors? Nicolas Pechet (NP): Ultimately, “green” supply chain management offers an expanded way to think about cost reduction and profit enhancement. We have seen how a dip in Western consumption creates severe problems for Asian suppliers, amongst both direct manufacturers and subcontractors. This creates a great deal of operating leverage between Asian manufacturers and Western markets today. Western businesses can use this leverage to push for more environmentally sustainable manufacturing, sourcing and logistics practices in the Asia Pacific region. However, pushing better green practices will require Purchasing, Supply Chain or Production directors to have a keen understanding of the local practices and unique regulatory landscape of each Asian country they operate in.

“Case studies can be incredibly insightful and yield green SCM best practices to reduce costs and increase revenues. Seasoned and well informed SCM executives study and learn from such cases continuously.” explains Mr. Nicolas Pechet

Asian examples of “green” best practices The Chinese sugar refinery and Indian paper firm case studies brilliantly apply the green “3Rs” principle of “Reduce, Reuse and Recycle”; with both firms diversified into related industries - sugar, paper, alcohol and cement – and utilizing waste products of the other industries as raw materials or for power generation. Case studies also highlight the importance of building effective incentives with external parties (suppliers, competitors, customers and government) to improve the robustness of the supply chain system on all levels: local, national and international.

Reduce, Reuse & Recycle waste products

Raw materials for another product

Energy generation for plant

Establish supporting network of external parties motivated to ensure sustainability of green supply chain

Suppliers Government

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1.Logistical centralization for economies of scale. 2.Share logistical overhead with partners for cost reduction. 3.Optimize transportation routes to further reduce costs.

Customers Competitors

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FOCUS Green

We are now seeing that countries worldwide are starting to harmonize their environmental regulatory regime with each other. It’s becoming a global phenomenon. It started in the major market economies and the emerging economies and less developed countries are following suit. Can you give an example of different Asian environmental regulations, and their implications? NP: China for example, has passed its own RoHSequivalent regulations and has enacted a comprehensive set of laws on air, water, & waste. However, enforcement continues to be an issue and comprehensive producer responsibility legislation is still being developed. India, on the other hand, has bundled many laws into the broader Environment (Protection) Act, with less liability seen along the supply chain. Material mandates deal largely with direct health impacts

and have not moved to clearly encompass a broader range of materials beyond those that are directly related to health. These issues have far reaching implications for a broad spectrum of international businesses.

Nicolas Pechet, Vice President of China, GIA Group China

What advice would you offer SCM executives working on “greening” their companies’ supply chain? NP: Companies need to look at successful cases where green practices have been implemented in the supply chain. While Green SCM is a relatively new phenomenon in China, there are cases of successful implementations and not just from foreign companies. More effort needs to be made to write these cases and bring them into the broader community to set a benchmark of best practices. One such case is that of Guitang Group, a Chinese state owned sugar refinery.

Case Study: Green manufacturing: Guitang Group has an internal GSC that allows re-use of by-products Company and Industry Background Established in 1956, Guitang Group (GG) is a state-owned enterprise operating one of China’s largest sugar refineries. The company is involved in four other businesses using residue from the sugar process: 1. alcohol plant using molasses, 2. pulp & paper plants using bagasse, 3. cement mill using carbonation filter mud, 4. compound fertilizer plant using alcohol residue. The industry included >400 sugar firms pre-2001; many were non-competitive and loss-making due to the small scale of most sugar refineries in the industry, and consequent high after-tax production costs; most plants’ margins were very low and their costs were very close to the international price of sugar. Consolidation in the industry is ongoing; there were <200 sugar firms across 24 provinces in 2007. Guitang Group’s green manufacturing plan (3-steps) 1. Maintain close, long-term relationships with main suppliers (sugarcane farmers), to ensure sufficient supply of high-quality raw materials. 2. Produce high-quality products (sugar) using best technology. 3. Develop related industries that use sugar’s co-products, by-products & residual products, leading to a “closed loop” system of material energy flows.

Sugarcane farmers

Sugar crushed, ground & refined using carbonation process that yields higher quality refined sugar (>prices that are higher by 30-35%) instead of sulfitation process used by majority of other plants due to ease of disposal of filter mud as direct fertilizer. Sources: (1) Access Asia (2008). (2) Zhu, Lowe, Wei & Barnes (2007). (3) Zhu & Cote (2004).

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Alcohol plant takes used molasses from sugar refinery as raw material; alcohol residue is used by fertilizer plant to make compound fertilizer. Carbonation filter mud residue harder to dispose of and normally needs treatment, but instead is used as raw material input for cement plant, thus earning extra revenues.

Fertilizer sold back to farmers, closing the loop.

Pith used as fuel by cogeneration power plant (50% SO2 emissions compared to coal) with alkaline wastewater used as input to “dry” & “wet” scrubbers and gypsum produced provided to farmers; cool ash used by cement plant and for road construction.

Bagasse residue used to make paper; alkali recycled from black liquor generated in pulp process; white sludge generated is used in cement process; white liquor waste from paper process recycled.

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FOCUS Cold Chain

Increasing Demand for Cold Chain Logistics in China

ew research by Jones Lang LaSalle (JLL) predicts huge potential for China’s cold chain logistics sector. According to JLL, opportunities exist for investors and developers due to the expected increase in demand and current lack of maturity in the market. “China’s consumer food market has experienced vigorous growth in the past decade,” noted Stuart Ross, Head of China Industrial, Jones Lang LaSalle. “Traditional eating habits in China are changing. As incomes rise, Chinese consumers are eating more animal protein and dairy products, as well as convenience food and snacks like frozen meals and ice cream. At the same time, Chinese consumers are becoming more aware of food safety issues. Taken together, the need to develop a more robust cold chain infrastructure has been greater than ever.” However, China’s cold chain market is seriously underdeveloped. It is estimated that only 15% of products that should be temperature-controlled are handled properly. Because of that, large amounts of fruits and vegetables spoil, putting human health at risk. The situation can be attributed to

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Millions sqm

Millions cubic meter

regulatory immaturity, inexperience and lack of awareness among Chinese consumers, undeveloped infrastructure, inadequate service providers, and lack of human capital. In some of the big cities in China, regional cold chain logistics systems are emerging. Increasing internationalization brought by events like the Olympics, the Shanghai World Expo, and the Asian Games in Guangzhou have been driving the development of cold chain in the Tier I cities. Tier II cities with large export markets such as Qingdao and Dalian are now seeing significant development as well. A growing number of foreign and domestic players are looking to build facilities in the country. Australia’s largest cold chain logistics operator, Swire Cold Storage, entered the South China market in 2008; and recently, one of the largest US operators, Preferred Freezer Services (PFS), announced its plans for a cold storage facility in Shanghai. “From a real estate perspective, we believe that in the short term, the opportunities in the cold chain logistics market will remain in the Tier I and major coastal cities,” added Ross. “Looking further ahead, we are confident that opportunities will surface across China.” The report estimates that the market for

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FOCUS Cold Chain

public refrigerated warehouses will grow Chinese consumer roughly 24 percent per year for the next five tastes are turning years in order to meet the demand of the towards refrigerated foods, which is growing consumer market and an increasingcreating demand ly dynamic food export sector. The growth for cold storage rate of cold or refrigerated warehouses is predicted to be even faster than that of regular warehousing space, a high growth market in itself, compared to the standard modern warehouse market (see figure 1 & 2). “The country will need a large amount of investment in training, business integration, and infrastructure, which we believe will generate considerable returns,” says Ross. “Meanwhile, advanced expertise will be needed and regulatory oversight will have to be consolidated and improved. The immediate actions of operators throughout the entire chain of manufacturing, processing, logistics, and retail will be required,” concluded Ross. As this magazine has reported before, China’s cold chain sector has long held both opportunity and challenge. It will be interesting to see if both the government and the private sector are truly ready to make the required effort to implement a safe and efficient cold chain.

中国冷链物流市场需求不断上升

上

海，2009年9月15日――仲量联行于今天发布了其最新的报告《潜力无限的中国冷链物流市场》，其中详尽分析了中国冷链行业的现状并着重展望了未来几年这一市场的巨大发展潜力。 “中国的食品消费市场在过去的十年中经历了快速、稳健的发展。”仲量联行中国工业部总监司徒艺指出，“中国传统的饮食习惯正在发生变化，随着收入的增加，中国消费者越来越多地食用动物蛋白、奶制品以及即食类方便食品，如速冻食品和冰淇淋。与此同时，中国消费者也日益认识到食品安全的重要性。因此，在中国建立完善冷链基础设施的需求正变得空前巨大。” 但是，目前的中国冷链市场还十分不完善。据估计，在全国范围内，在需要温控处理的产品中仅有15%是以正确方式操作的，其结果是，大量的蔬菜和水果损毁，大众的健康处于潜在风险之中。究其原因，可归结为以下几点：规范标准不成熟、意识不足及经验缺乏、基础设施落后、服务提供商以及人力资源匮乏。在一些大城市，区域性冷链物流体系正在兴起。一些国际性、区域性的盛会，如北京奥运会、上海世博会和广州亚运会，使得一线城市的国际化程度日益提升，冷链市场也有了显

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中国高标准普通仓库市场租用面积预算 Millions sqm

数据来源：仲量联行中国物流地产资讯服务，供应链协会调查,仲量联行分析

中国冷库市场租用面积预算 Millions cubic meter

数据来源：国际冷冻仓储协会，仲量联行分析

著增长。而在一些二线城市，如青岛和大连，作为重要的出口市场，发展势头也非常迅猛。越来越多的国内外运营商正积极寻求机会在中国兴建冷库设施。澳大利亚最大的冷链物流提供商太古于2008年进入华南市场。最近，美国最大的冷库物流运营商之一普菲斯在上海的现代冷链储藏设施也正式奠基。 “短期来说，我们相信，冷链仓储市场的机遇仍将主要集中在一线城市和主要沿海城市。”司徒艺补充，“从更长远来看，我们有理由相信这种机遇将覆盖整个中国市场。” 报告同时指出，中国的公共冷冻仓储设施在未来的五年中将以每年约24%的速度增长，从而满足消费市场以及食品出口领域不断增长的需求。相比于现代标准仓库市场-- 这个目前被广泛认为是中国增长最快的房地产领域，冷链仓储市场的增长率会更高（见左图）。 “中国冷链物流市场的增长潜力不容忽视。中国需要在人员培训、商业整合和基础建设方面进行大规模投资，进而产生可观的回报率。此外还需先进的技术以及政策监管的有效整合。从制造、加工、物流到零售，整条业务链上的运营者需要立即行动起来，促进冷链市场的发展和完善。相信抢占先机的参与者将在这一巨大的市场中取得优势地位。” 司徒艺总结到。

NOVEMBER/DECEMBER 2009

FOCUS Vietnam

Vietnam’s Textile Industry: Opportunity & Challenge

By Tielman Nieuwoudt Vietnam’s textile industry has increased significantly since normalizing relationships with the United States in the 1990’s. Vietnam was granted most favored nation status (MFN) in December 2001, which led to a dramatic reduction in import tariffs in the US market. Vietnam’s induction to the World Trade Organization (WTO) in 2007 and the Vietnamese government’s strong support of the textile and garment sector, have provided strong incentives to attract foreign investors. The textile industry is now the second biggest exporter in Vietnam and is expected to become the biggest in 2009. However the financial crisis has had a severe affect on Vietnam’s textile industry, which has suffered from a slump in demand from key export markets in the US, Europe and Japan. Labor cost advantage In the textile industry, companies are increasingly looking for lower cost countries that can provide outsourcing opportunities. The rising cost of land and labor are diminishing China’s labor cost advantage and Vietnam is increasingly seen as a low cost sourcing alternative to China. Estimates are that wage levels in Vietnam are about one third of those in China’s coastal region. Companies that

are chasing lower labor costs are increasingly moving production to Vietnam. In a 2008 Booz Allen Hamilton survey, 88 percent of companies originally chose China for its lower labor costs. Of the companies surveyed, 55 percent believe China is losing its competitive edge to countries such as Vietnam. The survey also indicated that 63 percent named Vietnam as their top low cost sourcing alternative to China. However, costs may be rising. The Navigos Group, a leading recruitment solutions provider in Vietnam, announced early in the year that there had been a 16.47 percent increase in Vietnamese workers’ average gross salaries between April 2008 and March 2009. Low cost location However, low cost labor is hardly a competitive advantage in the long term. Labor cost keeps changing and today’s low cost location is not necessarily tomorrow’s viable outsourcing location. If it is not China or Vietnam, it could be Bangladesh or Cambodia. Ig Hortsmann, a professor of business economics at the University of Toronto’s Rotman School of Management notes that Nike originally off shored manufacturing to Japan. As labor costs increased, manufacturing was later moved to South Korea and Taiwan. When labor cost increased in South Korea and Taiwan, it was moved to China and later also to Vietnam. Justin Wood, a Director of the Economist Intelligence Unit Corporate Network in Singapore makes the point that in the last 15 years Vietnam has moved from a low to a middle income country. The move towards a middle income will likely put additional pressure on Vietnam’s low cost labor status. The Vietnam advantage Elisabeth Rolskov, founder of ER-Couture in Vietnam, notes Vietnam is still a strong market for textile manufacturing, with some production shifting there from China.

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FOCUS Vietnam

Elizabeth Rolskov says Vietnam’s tradition of embroidery is a competitive advantage.

that manufacturing advantages in Vietnam go beyond labor cost and the country has some competitive advantages compared to China. “Vietnam has very good embroidery skills and needle work”, says Rolskov. “A lot of designers and manufacturers need embroidery skills and Vietnam has kept in touch with its traditional roots,” she adds. However, for local designers, Vietnam has limitations as a sourcing location. “Sourcing material, buttons and zippers from Guangzhou is much better,” says Rolskov. “In Guangzhou you can find everything in air-conditioned shopping areas and the shopping experience is less hectic.” This can have a negative impact on a designer’s creativity as the designer is restricted by what is on offer in the local market. Rolskov thinks Vietnam is currently a great location for smaller manufacturers as the market is more flexible. “China is more volume focused,” adds Rolskov, a view supported by Rebecca Lebold, director of apparel product and technical development at Lilly Pulitzer. “Vietnam has higher production minimums than many other countries. Lower minimums would allow smaller companies to source their product in Vietnam,” Lebold notes. Intellectual property threat For many companies outsourcing to Vietnam, intellectual property (IP) remains a concern. Within the fashion industry, IP is not as enforced as it is within the film and music industries. Designers can “take inspiration” and it is seen as a major driver for setting trends in the industry. The World Intellectual Property Organization (WIPO) has called for stricter intellectual property enforcement within the fashion industry to better protect companies and promote competitiveness within the textile and clothing industries. “It is a hard thing to take care of and you just have to be faster than everybody else,” says Rolskov. For smaller designers and labels it is much easier to switch manufacturing. However to prevent the copying of designs is a challenging undertaking. Infrastructure development For Vietnam to advance as an outsourcing location, the textile

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industry supply chain needs to be considered. Local logistics are influenced by direct and indirect cost. In Vietnam’s textile industry raw materials are often imported, which increases cost compared with those countries able to source locally. Managing reverse logistics can also be a challenging undertaking in Vietnam. Procedures, processes and infrastructure are sometimes not in place to manage repairs, returns and warranties. According to a new market research report from Transport Intelligence (TI) entitled Vietnam Logistics 2009, the high cost of logistics remains one of the biggest stumbling blocks in Vietnam. According to TI analyst John Manners Bell, logistics costs are estimated at 25 percent of Vietnam’s GDP. Even with cheap labor cost, poor infrastructure remains a major barrier for entry. This is largely due to Vietnam being in the early stages of infrastructure development. Many experts believe that China’s advanced infrastructure gives it a major competitive advantage. Electricity and transportation costs will likely come down even further and and this will have a significant impact on the total cost, even if their labor is more costly. The Vietnamese government is aware of this dynamic and has invested billions of dollars in the country’s infrastructure. The government is actively encouraging foreign direct investment in the country’s infrastructure. This is visible with projects such as the Cai Mep Container Port in the Mekong River Delta and the new Long Thanh airport projected to be completed by 2015. Through assessing the overall supply chain, rather than a singular focus on labor costs, it is easier to identify where Vietnam’s opportunities and challenges lie in the textile industry. While small scale designers and manufacturers take advantage of a flexible environment, infrastructure and logistics processes will need further investment to make Vietnam an outsourcing destination and source for tomorrow’s fashionista wardrobes. Tielman Nieuwoudt, Principal, The Supply Chain Lab www.thesupplychainlab.com

NOVEMBER/DECEMBER 2009

FOCUS Region

Journey to China’s

Industrial Heartland Lying at the east of the Jianghan Plain, and the intersection of the middle reaches of the Yangtze and Han Rivers, Wuhan is the capital of Hubei province, and is the most populous city in central China. Formed out of a merging of three boroughs, Wuchang, Hankou, and Hanyang, Wuhan is known as the “thoroughfare of nine provinces” and is a major transportation hub, with dozens of railways, roads and expressways passing through the city. On October 15-16, the Global Supply Chain Council organized the first Supply Chain Road show in Wuhan with various stops at key manufacturing and logistics facilities in the city. Senior executives from these companies gave presentations to the Council group about their company’s operations and supply chain. About 40 people joined the Council road show from different places.

By Russel Beron Why Wuhan? The engine of the Wuhan thoroughfare is steel, supplied primarily by large state owned steel makers such as Wuhan Iron and Steel. A solid supply is a good reason for steel intensive manufacturers to set up in Wuhan and is a key reason why automotive manufacturers such Dongfeng Peugeot Citroen, ThyssenKrupp Metal Forming, Brose Wuhan Automotive Systems and Alstom invested Wuhan Boiler Company, are located in this city. Logistically, Wuhan is far enough from Shanghai and other Eastern seaboard port cities to question its suitability for locating an export focused factory. Travel distance from Wuhan to Shanghai is about 1,200 kilometers, which will take an hour and a half by plane, one and half days travel by truck, seven days by barge and about 18 hours by train. Most of the companies our group visited had a mix of an export and domestic focus to their production, which would justify the interior location. A road hub The first roadshow stop was appropriately at the TNT/HOAU road hub. Located in the Wuhan Dongxihu Bonded Logistics Centre, the TNT hub occupies an area of 46,620 square meters, and has access to 6,000 vehicles, 5,000,000 square meters of warehousing, 1,200 line haul lanes and 350 sets of loading equipment. Jeff Wang, Vice President of Network and Operations, TNT/Hoau gave the group a presentation about the company’s operation in Wuhan and broader strategy for China which is essentially to become the leading nationwide provider of “day-definite” transportation services. Apparently the company is well on the way to its goal and is currently second only to China Post in terms of its national network.

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The problem with China, Jeff Wang reminded the group is the fragmentation in the industry: “The top 20 providers control only two percent of China’s logistics,” Wang said. Compare this to the U.S. where the top five providers control 60 percent and Europe where the top 10 providers control 39 percent of the market. TNT/ HOAU’s key goals are to improve delivery times, optimize transportation flows and continue to grow at a rapid pace. Gateway to consumer markets Coca-Cola Bottler Manufacturing Wuhan is another company poised for rapid growth. Coca-Cola outsources much of its operations to bottlers such as CCBMC, which it has a stake in. There are 17 production sites serving 32 bottlers across China. The Wuhan facility, which makes non-carbonated beverages, a high growth product in China, is a model plant completed only months before our visit. The whole site area is 100,000 square meters including 30,000 square meters green land. Their products include: Meizhiyuan Orange Juice, QOO juice as well as their other products. Logistic Manager for CCBMC, Li Rui outlined the green focus of the operation, which was built according to LEED Silver standards, a European stand and for buildings covering various green and CSR requirements. The plant is a model facility in the Coca-Bottlers empire and no doubt will be supplying the surrounding the Wuhan area with an endless supply of soft beverages. Also serving the consumer market both in China and abroad is TPV Display Technology (Wuhan) Factory, a company you likely have never heard of, but one of the biggest manufacturers of LCD screens for TV’s and PC’s in the world. 60 percent of TPV’s goods are produced for export, with 40 percent for domestic.

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FOCUS Region

Coca-Cola Bottlers Manufacturing Company’s Wuhan facility is the company’s newest production center for noncarbonated Coca-Cola products. Coca-Cola has 17 production sites serving 32 bottlers across China.

Cars for everyone Powering the new China The automotive industry is one of the strong points of Wuhan, with One of the most impressive factories in terms of scale and potenDongfeng Peugeot Citroën (DPCA) a key player. DPCA is a 50/50 JV tial is the Alstom invested, Wuhan Boiler Company. Located in the between Dongfeng Motor and PSA Peugeot Citroën. The company’s East Lake Development Zone in Wuhan, with a 140,000 square memanufacturing, component and castings plants produce 178,000 ter covered area, and an office of 15,000 square meters, the state cars per year, including the Citroën Fukang, Elysee, Picasso, Tri- of the art facility was designed and built by French design and build omphe, Xsara, and Peugeot 307 and 206. Patrice Troublanc, Lo- company, GSE. The facility is a global showpiece for Alstom, which gistics Vice Director at DPCA, told the group from 2007-2009 the first arrived in China in 1958 to supply Diesel locomotives. company will produce a whole new line of products, with the goal With the capacity to produce 600 MW supercritical boilers, 1,000 of only 5 percent of the content coming from Europe. “We want to MW ultra supercritical boilers, as well as large circulating fluidized make a 90 percent Chinese car,” said Troublanc. How do they do bed boilers, the goal for the facility, Jean-Jacques Bryckaert, Industhis? “We reduce costs in technical savings and purchasing negotia- trial Director for Alstom, told the group, is to become the R&D centions,” Troublanc noted. tre and exporting base for Alstom in Asia-Pacific. The boilers are Keeping DPCA and other automakers in Wuhan supplied with used to fuel steam turbines which produce electricity via coal plants, parts are companies such as family-owned Brose Wuhan, a Ger- which are being built at the rate of one a week in China. How will man auto parts supplier which makes window regulators and seat Alstom compete with lower priced competitors? “Through bringing systems for GM, DPCA and also domestic OEMs such as Geely and the most advance technology to China and being the seller of the Chery. Marc Bourgeois, Brose Wuhan’s General Manager informed technology,” said Bryckaert. the group about Brose’s logistics processes and high targets of SEC Areva is another state-of-the art factory, completed in May tripling revenue growth by 2011. “There are lots of opportunities of 2009. Areva is proud to bill the plant, which makes Ultra High to localize,” Bourgeois said, referring to the potential to serve Chi- Voltage transformers, as a benchmark for green factories in China. nese customers. One of the issues in Wuhan is “finding people with Maria Ma, Supply Chain Manager at Areva gave the group a tour certain skills,” Bourgeois told the group. of the facility which was built in ac“We’ve had the best luck with bringing cordance with energy savings and people back from other cities that have a CO2 emission reduction specificaWuhan background.” tions. Thyssen Krupp Metal Forming is anState of the art facilities such other supplier focused on the auto sector, as Areva, Wuhan Boiler Company making chassis and body parts. The comand Coca-Cola Bottlers give the impany supplies a variety of OEMs such as pression that China is much further Chang’An Ford Mazda, DPCA, SVW, BMWalong the manufacturing valueBrilliance among others. “The two Thyssen chain than is commonly believed. Krupp plants in Wuhan have a locational The impression Wuhan gives is advantage in that they are close to suppliof a strong heart pumping China’s ers and customers,” said Yongwei Jiang, manufacturing life-blood. Jeff Wang of TNT leads the Council group through TNT’s Wuhan hub. Deputy General Manager, ThyssenKrupp.

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NOVEMBER/DECEMBER 2009

FOCUS Event

What's up

with RFID in China? James L. McLean Owner, JL Mclean Consulting

ccording to James Maclean, an old hand in Radio Frequency Identification (RFID) circles who now consults to the industry, “The RFID market principally in Europe and North America, and the emerging markets in Asia, to date, has struggled to reach large scale adoption for reasons of a common standard, product performance, costs and benefits over existing methodologies.” Speaking at a Council workgroup in September, Maclean gave an update to the group on improvements in RFID solutions designed for supply chain management. “If you look at the history of RFID tags,” said Maclean, “One of the expectations that came out was that RFID tags would be very low cost, which hurt RFID all the way through.” Past problems include a lack of materials and standards. An accepted standard was finally passed in April 2005, which covers the way data is formatted and presented. “In the past, there were problems with readers operating in close proximity,” he said. Since 2005, many of the issues that have plagued RFID applications have been overcome, but there is still obviously room to improve and to apply RFID more widely across every part of the supply chain. Change has been driven by the endusers of the technology, such as Metro, who have demanded that readers and antenna companies improve their technology so that readers will be able to read multiple tags, Maclean told the group. “Projects failed in the past because of the higher cost and range of tags.” Metro has demanded a reliability figure of 98 percent among RFID technology provid-

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ers such as Intermec, Sirit and Avery Denison. In tests that Metro has done on pallet tagging in their “Future Store,” a facility designed to test for testing purposes, Metro was able to tag 99 percent of their products, Maclean said. As the range of technology continues to improve with Bi-directional phased array (BIFAR) and radar used more widely to do things such as manage inventory and plan store layouts, more widespread usage should occur. “The new innovations will help prevent shrinkage and bring much wider use for the tags,” Maclean noted. RFID usage in China is also on the rise, as the Chinese government uses the technology more frequently in an attempt to comply with Western companies who need their products tagged. The government’s next five year plan includes usage for RFID tags in areas such as automobile identification, vehicle plate management and other ways to manage the Chinese populace such as in ID cards. Given China’s fast growing consumer market, we expect to hear a lot more about RFID in coming years.

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FOCUS Event

The Search for

a China Pallet Standard Continental Automotive takes the lead on bringing pallet standardization to China.

ymptomatic of the fragmentation in China’s logistics sector is the lack of standardization in truck and pallet sizes among the thousands of players in the logistics industry. Speaking at a Global Supply Chain Council workgroup in Shanghai in September, Farid Pazun, a logistics specialist in freight and packaging at Continental Automotive, said that “The diversity of pallet sizes and the incompatibility of pallets and containers with Chinese trucks decrease the efficiency of logistics processes.”

The big question is which size to use as a standard: the Euro pallet with 1200 x 800mm Euro pallet, the 1200x1000mm pallet or the 1100x1100mm pallet or one of the many others? According to Pazun, all of these pallet sizes show relatively low utilization factors in the Chinese trucks. However, there are two pallet sizes, which show very good utilization rates in sea freight containers and trucks. These are the 1140 x 980mm and 1140 x 790 mm pallets. Based on Continental’s analysis, depending on the type of goods transported, either pallet achieves a high utilization in standard containers and truck cargo areas. Both also prove compatible with most Chinese trucks in current use. Pazun also notes that both of these two pallet sizes have a small difference in size to the two most common pallet sizes: 1200 x 800mm and 1200 x 800mm.

The problem As China went through an accelerated industrial revolution, foreign players arrived in droves bringing with them a multitude of manufacturing processes and standards which extended to packaging. In many cases they did not take into account local conditions. The solution “The result is a huge diversity of pallet sizes and low and improper According to Pazun, “These two pallet sizes present an opporutilization rates of pallets in Chinese trucks tunity to set a standard which is beneficial and in standard sea freight containers,” Pafor the Chinese economy and different zun said. supply chain parties in terms of reducing An analysis of Continental Automotive their transportation costs, which can reach Group’s tier one suppliers revealed that about 50 percent of total logistics spendseven out of nine plants in China showed ing.” The recommended pallet sizes will be a packaging diversity of about 20 different implemented by Continental Asia’s sourcing pallet sizes and more than 40 different box supply chain and usage will also be encoursizes currently cycling in the supply chain. aged on the distribution side. Farid Pazun The survey, conducted by the Continental Continental’s pallet standardization projLogistics Automotive Asia team, revealed ect has been introduced to governmenthat among just four different automotive tal organisations such as the ministry of suppliers, there are 34 different pallet siztransportation and other automotive supReducing this es in use. “Reducing this number of pallet pliers such as Bosch, ZF, Behr and Brose number of pallet sizes in the Chinese market to just one or as well as to OEM’s such as Shanghai GM two brings huge supply chain and monetary sizes in the Chinese and Shanghai VW. “The feedback has been benefits to the OEMs” said Pazun. very positive so far and the implementation market to just one in the supply chain is already in progress,” or two brings huge The analysis says Pazun. supply chain and Currently used pallets, especially the Professor Qingyi Wu, the founder of the Euro pallet, with a size of 1200x800 mm monetary benefits Pallet Committee China and the vice chairshow very low ground utilization factors and man of the China Federation of Logistics & to the OEMs result in customers shipping a lot more air. Purchasing, noted that “These sizes need The utilization rate of the Euro pallet in a to be introduced to Chinese suppliers and standard 20’ container is about 77 percent and in Chinese trucks OEM’s to make sure it is implemented in the whole Chinese domesaverages about 80 percent. The inefficiency and cost saving poten- tic market. This increases the efficiency, supports the standardisatials are obvious. tion process and makes for a smoother supply chain.”

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NOVEMBER/DECEMBER 2009

FOCUS Expert

Planning for Economic Recovery:

Establishing a Regional Distribution Centre in China By Damon Ross Paling The luxury retail industry is one sector that has weathered the economic downturn well and is now planning to grow from strength to strength. This article summarizes the experiences of a US luxury retailer as they evaluated options for establishing a Regional Distribution Centre (RDC) on Mainland China. What was the regional footprint of the business in Asia? Well-established third party manufacturers (services providers) were located in China, Vietnam and India. Related party distributors existed in Japan, China, Hong Kong, and Macau whilst third party distributors supported the remaining markets in Asia. The third party manufacturers sold and shipped products to headquarters in the US, where a global RDC existed. Headquarters then sold and shipped products to the respective related and related party distributors in Asia. With markets in the West suffering and all markets in Asia yielding revenue growth for the company, particularly Mainland China, it become imperative to reduce logistics costs and lead times by locating inventory destined for consumption in Asia nearer to distributors. What location options were considered? An internal study identified a short-list of potential locations on the Mainland, namely Futian, Yantian, and Shanghai. Hong Kong was also included in the short-list due to the presence of a mature logistics infrastructure and well established international service provides. The internal study confirmed that Hong Kong was comparatively more expensive – up to three times in storage costs – which forced further study in respect of options on the Mainland.

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What were the key considerations when evaluating Mainland China? We recognized that the range of bonded zones available has rapidly evolved, so deciphering which zone(s) was best placed to support our business needs was the primary obstacle to overcome. Thereafter, we aimed to focus on more specific issues of comparison, such as the ease of customs clearance and management, exemption from quarantine and inspection and other nontariff barriers, relaxed foreign exchange controls, and use of Free Trade Agreements. Last but not least, we did not want to adversely disrupt or create additional costs for our third party manufacturers regarding export VAT refund and logistics costs. How was evaluation of the bonded zones in Mainland China approached? As noted above, we firstly acknowledged that the landscape in China has rapidly changed from having very few, if any, bonded zone options that may support an Asia RDC, to having several. We saw this as a risk to manage as well as an opportunity for our business. Firstly, we methodically evaluated the various bonded zones, focusing on the following: • Bonded Logistic Park (BLP) • Bonded Logistics Centre (BLC) • Bonded Port Area (BPA) • Bonded Warehouse (BW) • Export Processing Zone (EPZ) • Free Trade Zone (FTZ) • Integrated Bonded Zones (IBZ) We quickly sought to evaluate the pros and cons of the different types of bonded zones, as related to the needs of our business, experience and resources. Some key issues identified are for certain zones were as follows: EPZ • Logistics function is only newly established and underdeveloped.

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FOCUS Expert

• Location is slightly inland, therefore requiring bonded transport and increased lead-times and cost for certain product flow movements. BLP / BLC • Specifically designed to support RDC operations • So-called “inbound China originating goods” qualify for export VAT refund. • Warehousing costs may be comparatively high and re-imported goods of Chinese origin will be assessed customs duty and import VAT. We also compared the bonded zone options in a number of areas, including: • Storage period • Maturity of rules • Administration of the actual bonded zone • Sea freight options in terms of frequency and coverage for intra-Asia trade • The distance from the sea/airport for bonded transfer costs and delivery times • Export VAT refund for third party manufacturers, which is particularly sensitive for the apparel and textile sector We were therefore able to narrow the list of potential zones to a BLP. The question was whether to be based in Futian, Yantian or Shanghai. How was ‘ease of Customs clearance and management’ measured? As we all know, many statistics and reports address the question of how easy it is to clear products in and out of a country. Key indicators include declaration time, inspection rate as well as authorisation and documentation requirements. All of these need to be built into the decision making process so that no unnecessary or unexpected barriers crop up at implementation. To the greatest extent possible we benchmarked these across the different bonded zones. At the same, we also noted that an individual Customs Officer may still impact on processes, but planned for this to be the exception, rather than the rule. What concerns existed about the declared dutiable value of goods? We noted that customs valuation issues when moving goods into and out of a bonded zone can be sensitive. Depending on which entity is responsible for import declarations and regardless of whether any import taxes are due, determination of the appropriate import value can be complex. We mapped out our transaction scenarios and based on the customs valuation rules in China developed

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a standard operating procedure for determining the dutiable value declared to Customs and appearing on invoices. What concerns existed about quarantine and inspection and other non-tariff barriers? One the attractions for considering locating in Hong Kong were the certainties surrounding quarantine and inspection and other non-tariff barriers. However, the operating cost of being located in Hong Kong was prohibitive, hence the necessity to turn towards the Mainland. We all know that quarantine and inspection requirements are another main element to impact the efficiency and effectiveness of an RDC. Based on the HS Codes of products and the bonded zone in question we evaluated just how complex the requirements are to apparel and textile products and related accessories. We sought to establish standard operating procedures so as to ensure compliance, without putting in place too much headcount to support the operation. What concerns existed in terms of foreign exchange controls? Similar to the quarantine and non-tariff barriers, this was a concern relative to Hong Kong, but just another issue that we methodically approached. However, to enhance the privilege of bonded zones and support the development of RDC business in Mainland China, there are relaxed controls and management of foreign exchange in certain bonded zones. Were Free Trade Agreements a consideration? Absolutely. Apparel, textile and related accessories are still subject to high tariffs, so taking advantage of Free Trade Agreements was important. Asia is one of the most mature regions in terms of Free Trade Agreements implemented. We noted that shipping products through an RDC in China may cause them to lose their eligibility for reduced duty rates when imported into the ultimate destination market. If so, the additional expense of such duties may be prohibitive. We worked to identify what products and markets were key ‘beneficiaries’ of Free Trade Agreements and validated with authorities to understand what Certificates of Origin could be granted, to whom and under what circumstances. Based on the outcome of this study, we felt that Free Trade Agreements could still be used, but subject to certain criteria being fulfilled and some administrative effort.

Damon R. Paling is a partner at PricewaterhouseCoopers. Based in Shanghai, he consults on customs, trade and supply chain issues.

NOVEMBER/DECEMBER 2009

LIFE Cars

The PORSCHE for VIPS Luxury goes local If you live in Shanghai and already own a Louis Vuitton handbag, your next aspiration might be a Porsche Cayenne. Mostly coated in government black, an ever increasing number of these cars are appearing in the streets and traffic jams of China. In a move aimed at the VIP market, the debut of the Cayenne Edition Style earlier this year added another layer of exclusivity to a market which loves VIP status. Limited to just 500 units, the Cayenne Edition Style was developed exclusively for the Chinese market, and according to Porsche, “offers drivers even greater distinction on the road.” Priced at RMB976,000, Porsche bills the car as “an excellent long term investment.” The exterior colours –

Basalt Black Metallic or Macadamia Metallic - serve to enhance the car’s undoubted exclusivity. Other than the name and the limited edition, we’re not clear what exactly makes this car different, but no doubt if you wanted one, you’re probably too late. Earlier this year, at their “Fascination Porsche” event in Beijing, which followed the annual auto show, the company displayed some of their vehicles including the Porsche Cayenne and the new Panamera luxury sedan. In a move noteworthy of China’s strategic importance, the company chose China to launch their Panamera, a luxury sedan designed to compete against the BMW 7 series and Audi A8. Porsche is hoping to sell 20,000 Panamera’s per year.

Standard Equipment Highlights for China Engine 3.6 L, V6, 213 kW (290 hp) Transmission/Chassis • 6-speed Tiptronic S • Air intake grilles aluminium finish matte • 18-inch Cayenne Turbo II wheel • 18-inch Collapsible spare wheel • Wheel centres with full-colour Porsche Crest

NOVEMBER/DECEMBER 2009

Exterior • Basalt Black Metallic Macadamia Metallic • Bi-Xenon headlamps • ParkAssist, front and rear • Air suspension • Electrically operated sunroof

Audio Communication • CD auto changer (6-disc) • Porsche Communication Management • China navigation

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LIFE Cars

The Executive Standard in Luxury Sedans

Porsche faces some solid competition with its entry into the luxury sedan market in China. The BMW 7 series (in multiple colors) and the Audi 8 (mostly in black) are de rigueur for government officials and corporate execs in China.

Audi A8

Porsche Panamera

BMW 7 Series

Price: from RMB858,000

Price: From RMB918,000

Engine: 4.8L V8 engine, 400hp (294kW). Acceleration to 100km/h comes in 5.4 seconds, top speed is 283km/h. Transmission/Chassis: Optional rear wheel power transmitted by sevenspeed Doppelkupplungsgetriebe (PDK) double-clutch gearbox, PTM, Porsche Traction Management, high-volume adjustable air suspension, standard steel suspension Emissions: 199 g/km CO

Exterior: Space Frame ASF with lower weight but 60 percent more rigid than its predecessor, single-frame radiator grille Communication: Bang & Olufsen Advanced Sound System, 14-channel Digital Signal Processing platform (DSP) Transmission/Chassis: Static torsional rigidity has been increased by 60 percent Notable: Audis continue to sell like hotcakes, with 45 percent of the luxury vehicle market in China. Two of Audi’s models are the best selling luxury models in China, the A6L and the entrylevel luxury A4.

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Notable: China is Porsche’s third largest market, selling 8,000 cars last year. They launched the Panamera globally at the Shanghai Auto Show in April.

Engine: 6-cylinder petrol engine (258 hp), top speed of 245km/h Communication: Digital roadmaps, Bluetooth interface, USB Audio interface Tr a n s m i s s i o n / C h a s s i s : Integral Active Steering system, integral V rear axle, self-levelling air suspension Notable: BMW sells a wider variety models in China than in any other market around the world. Most exclusive? The 760Li produced for China’s 60th Anniversary celebrations. Only 60 of the BMW with Chinese characteristics were made, so you’ve probably already lost your chance to snap one up.

NOVEMBER/DECEMBER 2009

LIFE Books

How China’s Leaders Think The Inside Story of China’s Reform and What This Means for the Future Author: Robert Lawrence Kuhn

Publication Date: 14 September 2009 Price: US$34.95 Length: 576 pages

Published in English in time for China’s 60th anniversary celebration, How China’s Leaders Think – The Inside Story of China’s Reform and What This Means for the Future, takes a deep look at what’s on the agenda for China’s leadership and what this means for both China and the world. To tackle this big subject, author Dr. Robert Lawrence Kuhn draws on personal conversations with over 100 Chinese leaders across all sectors. He then structures the book according to guiding principles he uses as a framework for the book. An odd combination of investment banker, brain researcher and public intellectual Dr. Kuhne has had a long interest in China, advising China’s leadership since 1989 on restructuring, mergers and acquisitions, science and technology, media and culture, among other issues. He is also the author of The Man Who Changed China: The Life and Legacy of Jiang Zemin, a bestselling biography in China. “To understand China, especially in the light of China’s resurgence and power—and in the face of media distortions—the international community needs to appreciate how China’s leaders think,” said Dr. Kuhn. According to Wiley, his publisher, “Dr. Kuhn asks China’s leaders what they make of economic imbalances, pollution, unsustainable development, corruption, migrant workers, unemployment and crime. He also confronts China’s leaders on the issues of human rights, censorship, religious freedom, ethnic clashes, international conflicts and superpower rivalries.” “This book focuses on the country’s most senior leaders, current and future, and on officials and intellectuals in diverse sectors, who collectively form the foundation of thought and drive the commitment to further reform in China today,” said Dr. Kuhn. “ My task is to portray their personas, to give voice to their thoughts and life to their feelings, as well as to describe their works and deeds.” Whether or not a foreigner is qualified to understand the way China’s leaders think is a good question to consider about this book. Regardless it’s worth a look for the historical perspective and the insight into where China may be heading and for the business strategist to understand potential opportunities. Kuhne is decidedly respectful and admiring of China’s leadership. If not it seems unlikely his work would see the light of day in China. He also holds no grudges against government censors and acknowledges that losing 20 percent is acceptable to get the book out in a country where censorship is the norm. At 576 pages, there’s still plenty left to digest.

NOVEMBER/DECEMBER 2009

Where East Eats West: The Street Smarts Guide to Business in China Sam Goodman, 2008 Goodman cuts the crap and tells it like it is about starting a business in China. Easy to read and full of anecdotes from his own experiences as a “serial entrepreneur,” his cliffnotes-esque guide to China is a fast read and has more than a few nuggets of truth. The Next Asia: Opportunities and Challenges for a New Globalization Stephen Roach, 2009 Morgan Stanley’s Asia Chairman lays out Asia’s importance for the global economy and where the Asian economy will take us. Covering an overview of the economic crisis, and then moving on to discuss China’s economy, its relationship with the US and pan-Asian challenges, the book is a comprehensive look at what Asia has to offer. Good Value: Reflections on money, morality, and an uncertain world Stephen Green, 2009 Stephen Green, chairman of HSBC and ordained priest, muses on economics, spirituality, philosophy, and history. The result is anything but dry. Drawing on a wealth of inspirations, from classics like TS Elliot and the Bible to recent financial writings by Fareed Zakaria and Milton Friedman, Green gives an overview of the development of the global economy and asks questions about how one should ethically create wealth.

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FINAL Word

When Global Manufacturing Leadership Fails By Robert Dixon

few months ago I was in Wuxi China for lunch with a long term resident. He’s lived there all of his life, as did his ancestors. He told me how Wuxi has changed in the last 15 years. How multi-national businesses, large and small moved into the city for manufacturing. I expected he would describe how the lives of the residents improved. Instead, he told me about his son’s wish. This wish represents a powerful message to companies and individuals who come to China in search of low cost labor and profits. His son’s wish was to fish in the river next to their home, take what they caught to his mother to cook for a meal with his father. He explained to his son they could not fish in the river because the water was not safe and eating the fish could make them sick. I saw his difficulty as he told me he has fished in that same river with his father. They took what they caught home, where his mother cooked a meal for him to share with his father, creating a bond between them and beginning the ritual of passage into becoming a man. Why did this father have to tell his son they could not fish in the river? The answer describes the frightening consequences of leadership focused only on profits and not its responsibilities. His son couldn’t fish in the river because of two companies that came to Wuxi, built facilities, hired employees and shipped millions of products. They failed to tell anyone they were discharging their waste into the ground. Eventually, this waste found the river. The water became polluted and anything in the water inedible. It was only discovered after people started to get sick. Like his son, this father had a wish. He

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told me he hoped, before he died, he would be able to take his son to fish in that river. In his heart, he knew that would never happen. His son would never enjoy what this father had enjoyed with his father. A father son tradition and legacy was broken by the actions of strangers, who came to his city in search of profits. For the first time in my life, I was unable to find a single word of encouragement or comfort for this father. I was disgusted to be part of the global manufacturing movement because that river was destroyed due to a total and complete failure of the companies’ leadership as they ignored their responsibilities to the people of Wuxi and China. It was preventable by real leadership. Regardless of the country of origin, every CEO, executive and employee of companies located in a low-cost country must accept they have the same responsibilities to the people who live in that country, as they do to the people in their home country. When they leave, if the country where they were is not better because they were there, they failed in their responsibilities. As leaders they get to decide what their individual and corporate legacy will be to the people of that country. It’s a personal choice as well as a corporate responsibility. They have the responsibility and power to insure a father and a son can fish any river, pond or lake in any country that they have located a facility. If they cannot make those choices or accept those responsibilities, they should stay home.

Corporations should be more responsible to the communities they operate in, argues Robert Dixon.

Bob Dixon is a consultant and keynote speaker to corporations, universities and organizations on topics such as; Supplier Customer Relationship Management, Asia Pacific Sourcing and Leadership. He lives in Suzhou and can be reached at robertdixon499@hotmail.com

NOVEMBER/DECEMBER 2009

DON’T MISS OUT!

List your company in the most comprehensive directory of supply chain & logistics related services in China.

VENDORS’ DIRECTORY

2009 ON: CHINA EDITI

Q3/Q4

Q1/Q2, 2010 edition to be published in March, 2010 Early bird deadline (receive a 10% discount): January 15, 2010

• Logistics Services

• IT & Software Solutions

• Professional Services

• Equipment Providers

• Real Estate Services A comprehensive bilingual listing of vendors, service and equipment providers, consultants and IT solutions providers for the supply chain and logistics industry STICS

AIN & LOGI

SUPPLY CH

’ VENDORS Y DIRECTOR

录

供应商名应链及物流

供

n Companies are listed according to their specific service offering n In-depth company profiles including contact details and full description of services and solutions n Free and complete online access at www.supplychains.com

Gazeley China

 China head office 中国代表 Suite 80 , Ker 总部 y Ce tre, 1515 We t N njing Road, Shang hai 200 40 上海市南京西路1 515号嘉里中心8 05室邮编200040  +86 (21) 5298 6622  +86 (2 ) 5298 5098  www.gaze y.com

 K y Contacts

Who should list in the VENDORS’ DIRECTORY? Any company that provides services, solutions and equipment in supply chain logistics procurement should be listed.

How much does a company listing cost? A 12 month listing in the Vendors’ Directory costs US$ 750 (RMB 5,000) or US$ 450 (RMB 3,000) for Global Supply Chain Council members. This includes two issues, one in Q1/ Q2 and one in Q3/Q4.

盖世理中国

 Corpo ate HQ 公司总部 Dub i, UAE 阿联酋迪拜  Estab ished in hina 在中国成 2006 年 Shang 立于 hai 上海  Lega stat s in China 企业性质 WOFE 外商独资企业

Noel Gul iver  +86 (21) 5298 6622  +86 (2 ) 5298 5098  Noe .Gu ive @ezw.ae Arnaud Sa tel  +86 (21) 5298 6622  +86 (2 ) 5298 5098  arnau .sa te @gazel y.com

 Highlights • Founded in 1987 in the UK 1987年成立于英国 • Acquired y EZW in 2008 200 年被EZ W收购 • Oper tion l in the UK, France, Belgium, Spai Germany, Ita y, Indi , Mexic o and the UAE China, 业务遍及英国，法国，比利时，西班德国，意大利，中牙，国，印度，墨西哥联酋和阿

 Company

Introduction

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 Services

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Our c t-effec tive su tainab and di t ib le warehouses tion me t the needs centres are designed to of tod y’s and etai e , manu omorr w’s a e a or , p oviding ture , and third-party • Gaze y’s visi oparge sites and es in t egic : To be a glob wa ehousp ovider f ocations th l logi tics space and e ficie t wi l e ive t goods to delive ed in a su tainab fast age and di e tributio . 盖世理致力于成为 w y’ We unde stand 全球化可持续发展 the impo 间的供应商物流空 tance f i to our c tomer tening fer to s it their s so we can tai or our • Gaze y’s su ftainable design based on flexib needs exa t y Our f cept launch coner is e lease , ed in O tober velopment uil - o-suit 2004 盖世理公司于20 , and specu de4年10月提出 l tive unit . 设计理念可持续性我们建造的有经济效为满足各行业客益的可持续仓库和配送中心 • Su tainabi i y measures 是户的需求，如 embedded 第三方物流提零售商，制造 in a the wareh 供商等。在战商及 ouse bui dings 略性的地区提的仓储空间，可持续环保措施应供大面积保证快捷、高用于全球所有仓储效地进行货物送。项目储存和配 • Co -e fe tive and high-q ua ity bui dings 我们深谙倾听客户需求的重有经济效益的高质要性，因而能为他们度身定够准确地量仓库制独特租期灵活，多元化的方。我们提供的配送空 • On-budget, 间开发模式 on-schedu 按需承建和标准化造，而满足不 e de ive y 严格遵守预算的如同客户的建需求。期交付

REAL ESTA TE SERV ICES

Who reads the VENDORS’ DIRECTORY?

The Directory is read and used by key decision-makers in companies that regularly buy and use supply chain and logistics services and facilities in Asia. These are the people that decide which supply chain and logistics service providers to use.

How is the VENDORS’ DIRECTORY distributed and promoted? Targeted at qualified decision-makers, the directory is distributed free-of-charge to subscribers of CHaINA Magazine and companies based in Asia who request a copy (companies are only asked to cover the mailing cost). Copies are distributed by direct mail and are given out at more than 100 supply chain and logistics-focused events each year.

To find out more about how the VENDORS’ DIRECTORY can contribute to your marketing needs in China, please contact: ) +86 (21) 6280 1731

+ directory@supplychain.cn

8 www.supplychain.cn

CLASSIFIED Listings

LOGISTICS SERVICES

LOGISTICS SERVICES +86 (21) 6445 1452 www.clasquin.com

120/F Broadway Centre, 93 Kwai Fuk Road, Kwai Chung, NT, Hong Kong, China

香港新界葵涌葵福路93号百汇中心19楼 +852 2211 8721 www.agilitylogistics.com www.alls-sh.com APL Logistics 5/F Raffles City Office Tower, 268 Middle Xizang Road, Shanghai 200001 上海西藏中路268号来福士办公楼5楼，邮编：200001 +86 (21) 2301 2800 www.apllogistics.com Arvato Services B-1/F XingHong Science & Technology Industrial Park, Feng Huang Gang Village, Xi Xiang, Bao’an District, Shenzhen 200231 深圳宝安区，宝安西乡前进二路凤凰岗村星宏科技园，邮编：518102 +86 (755) 3386 1666 www.arvatoservices com cn BDP International Unit 2101-2110, Shanghai Bund Int’l Tower, 99 Huangpu Road, Shanghai 200080 上海市虹口区黄浦路99号上海滩国际大厦 2101-2110室，邮编：200080 +86 (21) 6364 9336 www.bdpinternational com Ceva Logistics 19/F, Jiang Nan Shipyard Building 600 Luban Road, Shanghai 200023 上海鲁班路600号江南造船大厦19楼 +86 (21) 5302 9988 www.cevalogistics.com Clasquin Room 203, Qingke Mansion, 138 Fen yang Road, Shanghai 200031 上海市汾阳路203号轻科大厦138室，邮编：200031

3000 South Lianhua Road, Prologis Logistics Park, Minhang, Shanghai, 201109

上海莲花南路3000号，普洛斯闵行物流园区内，邮编：201109 +86 (21) 6309 8336 +86 (21) 3430 6999 www.dajin.com.cn

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Deret Logistics Asia Suite 1703 Shanghai Bund International Tower, 99 Huangpu Road, Shanghai 200080 上海市黄浦路99号上海滩国际大厦 1703室，邮编：200080 +86 (21) 6306 2592 www.trans-access.com.cn DHL Exel Supply Chain 3398, Xiupu Road, Shanghai 201315 上海市秀浦路3398号，邮编: 201315 +86 (21) 3825 6585 www.dhl.com DSV Logistics 38/F, 1 Grand Gateway, 1 Hongqiao Road, Shanghai 200030 +86 (21) 5406 9800 www.dsv com www.dsv com/cn Elee 375, Kefu Road, Nanxiang Town, Jiading District, Shanghai 上海嘉定区南翔镇科福路375号 +86 (21) 3912 4360 www.eleechina com

3 West Guangzhou Road, Taicang EDZ Jiangsu Province.

江苏省太仓市经济开发区广州西路3号 +86 (573) 8527 3072 www.fmlogistic.com

Havi Logistics 6 Xingsheng Jie, Beijing Economic & Technological Development Area, Beijing 100176 北京经济技术开发区兴盛街6号，邮编：100176 +86 (10) 6788 3335 www.havi-logisitics asia D Logistics Room 19D, Dong Tai Plaza, 309 Tanggu Road, Shanghai 上海市塘沽路309号19D +86 (21) 6306 7083 www.id-logistics.com DS Logistics 8/F Tower Block, LiFung Plaza 2000 Yishan Road, Shanghai 201103 上海市闵行区宜山路2000号利丰广场主楼8楼，邮编：201103 +86 (21) 2416 4700 www.idslogistics.com Kuehne & Nagel Block 1, 11-16F, 1868 Gong He Xin Road Shanghai 200072 上海共和新路1868号大宁国际商业广场第一幢11-16楼，邮编：200072 +86 (21) 2602 8000 www.kuehne-nagel.com

LOGISTICS SERVICES

Linfox Road Transport 26-F, Cross Region Plaza, 899 Ling Ling Road, Xuhui District, Shanghai 200030 上海市徐汇区零陵路899号飞洲国际广场26 楼F座，邮编：200030 +86 (21) 5150 6699 www linfox.com Linkstar Logistics 49A, 199 North Riying Road, Waigaoqiao Free Trade Zone, Shanghai 200131 上海市外高桥保税区日樱北路199号49A, 邮编：200131 +86 (21) 5046 1865 www linkstarlogistics com Logisfashion Transportation Tower, Room 1101 218, Hengfeng Road, Shanghai 上海市现代交通大厦恒丰路218号1101室 +86 (21) 5180 1781 www logisfashion.com Logwin 5/F & 6/F, Ocean Towers, 550 East Yan’an Road, Shanghai 200001 上海市延安东路550号海洋大厦5楼和6楼，邮编：200001 +86 (21) 2326 2000 www logwin-logistics com Maersk Logistics 24/F, Tian An Centre, 338 West Nanjing Road, Shanghai 200003 上海黄浦区南京西路338号天安中心24楼，邮编：200003 +86 (21) 2306 2666 www maersklogistics.com Menlo Worldwide Logistics 13/F Tower, Golden Eagle Mansion, 1518 Min Sheng Road, Shanghai 200135 上海浦东新区民生路1518号金鹰大厦A座13楼，邮编：200135 +86 (21) 6160 1190 www menloworld.com

ST-Anda Logistics 18/F, Times Plaza, 1 Taizi Road, Shekou, Shenzhen 518067 深圳蛇口太予路1号新时代广场1801室，邮编：518067 +86 (755) 2681 9188 www st-anda.com Werner Global Logistics 5/F South Harbour Building, 1 Fenghe Road, Shanghai 上海市浦东新区丰和路1号港务大厦南5楼 +86 (21) 3887 9520 www.werner.com Worldwide Group Room C-F 12/F and 16/F, Alison international Tower, 8 Fu You Road, Shanghai 200010 福佑路8号埃力森国际大厦12楼C-F座， 16楼，邮编：200010 +86 (21) 6132 2333 www.worldwide-logistics.cn Yatfai Logistics 39-H, Fortune Building, 88 Fuhua San Road Futian District, Shenzhen, Guangdong Province 广东省深圳市福田区福华三路88号，财富大厦39楼H座 +86 (755) 3336 6898 www.yatfai com YRC Logistics Room 1307-08, Lan Sheng Building, 8 Middle Huai Hai Road Shanghai 200021. 上海淮海中路8号兰生大厦1307-08室，邮编：200021 +86 (21) 6137 7668 www.yrclogistics com

PROFESSIONAL SERVICES Accenture 30/F, Central Plaza, No. 381 Huaihai Road, Shanghai 200020 上海市淮海中路381号中环广场30楼，邮编：200020 +86 (21) 2305 3333 www accenture cn

Penske Logistics Room 20A, 567, Weihai Road, Shanghai 200041 上海威海路567号晶采世纪大厦20A，邮编：200041 +86 (21) 6288 9226 www penskelogistics.com Schneider Logistics UC Tower,Suite 1605, 500 Fu Shan Road, Shanghai 上海浦东福山路500号城建国际中心1605室 +86 (21) 5058 7970 www schneider.com SDV International Logitics 20/F, East Building, New Hualian Mansion, 755 Middle Huai Hai Road Shanghai 200020 上海市淮海中路755号新华联大厦东楼20 楼，邮编：200020 +86 (21) 3395 0600 www sdvchina.com Sinotrans 7/F, Contract Logistics Division, Sinotrans Plaza A, A43, Xizhimen Beidajie, Beijing 100044 北京西直门北大街甲43号金运大厦A座7层合同物流事业部，邮编：100044 +86 (10) 6229 5600 www sinotransone com

Araia Shanghai Times Square Suite 1709, 93 Middle Huai Hai Zhong Road, Shanghai 200021 上海市淮海中路93号大上海时代广场办公楼 1709室，邮编：200021 +86 (21) 6391 8356 www araia com Arvato Services 20/F, Cloud Nine Tower, 1018 Changning Road, Shanghai 200042 上海市长宁路1018号龙之梦大厦20层，邮编：200042 +86 (21) 6161 1866 www arvatoservices.com.cn Baker & McKenzine Suite 3401 China World Tower 2 China World Trade Center,1 Jianguomenwai Dajie, Beijing 100004 +86 (10) 6535 3800 www bakernet com Barkawi A 705,69 Dong fang Road, Eton Place, Pudong New District, Shanghai 200120 上海市浦东新区东方路裕景国际商务广场 A705室，邮编：200120 +86 21 6859 9686 www barkawi.com

NOVEMBER/DECEMBER 2009

CLASSIFIED Listings

PROFESSIONAL SERVICES

PROFESSIONAL SERVICES 上海市延安东路550号海洋大厦20楼，邮编：2000012 +86 (21) 5158 5700 www.lr.org www.lloydsregisterasia.com

17/F Lippo Plaza, 222 Middle Huaihai Road, Shanghai,

上海市淮海中路222号力宝广场17楼 +86 (21) 5396 5600 www.e-bbk.com

Logistics Executive Suite 13G, Shanghai Ind’l Investment Bldg. 18 North Caoxi Road, Shanghai 200030 上海市徐汇区漕溪北路18号上海实业大厦 13楼G座，邮编：200030 +86 (21) 6427 6697 www.logisticsrecruitment.com.cn LowendalMasai 1505 Hai Tong Tower, 689 Guangdong Road, Shanghai 200001 上海市黄浦区广东路689号海通证券大厦 1505室，邮编：200001 +86 (21) 6341 1255 www.lowendalmasaichina.cn

Control Risks Suite 1001 East Tower China Merchants Plaza, 333 North Chengdu Road, Shanghai 200041 上海市成都北路333号招商局广场东楼1001 室，邮编：200041 +86 (21) 5298 1800 www.control-risks.com

Michael Page International 601-603 Shanghai Kerry Centre 1515 West Nanjing Road Shanghai 200040 上海南京西路1515号嘉里中心601- 603 邮编：200040 +86 (21) 3222 4758 www.michaelpage.com.cn

Demand Management Systems PO Box 6180, Norwest Business Park, Baulkham Hills BC NSW 2153 +612 9659 4555

Positive Purchasing Lynher Building, Queen Anne’s Battery, Plymouth, PL4 OLP, UK +44 845 331 3312 www.positivepurchasing com

Dragon Sourcing Suite 1502, Jin Tian Di International Mansions 998, Renmin Road Shanghai 200021 上海市人民路998号今天地国际大厦 1502室，邮编：20002 +86 21 61413955 www.dragonsourcing.com

Poyry Room 809, Silver Tower, Chaoyang District, Beijing 100027 北京市朝阳区东三环北路2号南银大厦809 室，邮编：100027 +86 (10) 6410 6550 www.poyry.com

easySOURC NG easySOURC NG Hong Kong www.easy-sourcing.com ET2C International 13A, East Tower, King World Hi-Tech Building, 668 East Beijing Road, Shanghai 200001 上海北京东路668号科技京城东楼13A室，邮编：200001 +86 21 5308 1220 www.et2cint.com

Procur Asia Renheng Building, Unit 14A 58 Qindian Ave, Shanghai 200120 上海市钦殿街58号仁恒大厦14A室，邮编：200120 +86 (21) 6875 4993 www.procurasia.com

Ivie Asia Room 1507, You You International Plaza, 76 Pu Jian Road, Pu Dong New District, Shanghai 200127 上海市浦东新区浦建路76号由由国际广场1507单元，邮编：200127 +86 (21) 6165 9100 www.ivieinc.com

11/F PricewaterhouseCoopers Center, 202 Hu Bin Road, Shanghai 200021, China

上海市湖滨路202号普华永道中心11楼，邮编：200021

Korn/Ferry International Suite 3208, CITIC Square, 1168 West Nanjing Road, Shanghai 200041 上海市南京西路1168号中兴泰富广场3208 室，邮编：200041 +86 (21) 6256 7333 www.kornferryasia.com

+86 (21) 2323 8888 www.pwccn.com

KLB Group Room 2205, Universal Mansion Building, 172 Yuyuan Road, Shanghai 200040 上海愚园路172号世界环球大厦2205室，邮编：200040 +86 (21) 62480735 www.klb-group com

Resources Global Professionals Room 2705-06, Lippo Plaza, 222 Middle Huaihai Road, Shanghai 200020 上海市卢湾区淮海中路222号力宝广场 2705-06室，邮编：200020 +86 (21) 6386 8710 www.resourcesglobal.com

Lloyd’s Register Asia 20/F Ocean Towers, 550 East Yan’an Road, Shanghai 200001

Smart Sourcing 1210-1213 Guo-Li Plaza, 1465 West Beijing Road, Shanghai 200040

NOVEMBER/DECEMBER 2009

PROFESSIONAL SERVICES 上海市北京西路1465号国立大厦1210-1213 室，邮编：200040 +86 (21) 5212 1200 www smart-sourcing.com Teamswork 23/F Citigroup Tower, 33 Huayuanshiqiao Road, Shanghai 200120 上海市浦东花园石桥路33号花旗集团大厦 23楼，邮编：200120 +86 (21) 6101 0486 www globalteamswork.com Tractus Asia Suite B, 22/F, Zhaofeng Universe Building, 1800 West Zhongshan Road, Shanghai 200235 上海中山西路1800号兆丰环球大厦22楼B座，邮编：200235 +86 (21) 6440 0990 www tractus-asia.com REAL ESTATE SERVICES AMB Property Suite 2908, Plaza 66 II, 1366 West Nanjing Road , Shanghai 200040 上海南京西路1366号恒隆广场二座 2908单元，邮编：200040 +86 (21) 6135 1688 www amb.com Blogis International Logistics +86 (755) 2669 4211 www blogis.com.cn CB Richard Ellis Suite 3201 K Wah Center 1010 Middle Huaihai Road, Shanghai 200031 上海淮海中路1010号嘉华中心3201室，邮编：200031 +86 (21) 2401 1200 www cbre.com.cn Colliers International 16/F Hong Kong New World Tower, 300 Middle Huaihai Road, Shanghai 200021 上海淮海中路300号，香港新世界大厦16 楼，邮编：200021 +86 (21) 6141 3688 www colliers.com/china Gazeley Suite 805, Kerry Centre, 1515 West Nanjing Road , Shanghai 200040 上海市南京西路1515号嘉里中心805室，邮编： 200040 +86 (21) 5298 6622 www gazeley com

REAL ESTATE SERVICES Jones Lang LaSalle 25/F, Tower 2 Plaza 66 , 1366 West Nanjing Road , Shanghai 200040 上海市南京西路1366号恒隆广场2期25 楼，邮编：200040 +86 (21) 6393 3333 www.joneslanglasalle com cn Knight Frank Room 1206 Evergo Tower, 1325 Middle Huaihai Road, Xuhui District, Shanghai 200031 上海市徐汇区，淮海中路1325号，爱美高大厦1206室，邮编：200031 +86 (21) 6445 9968 www.knightfrank.com Mapletree Suite A-D,14/F, Times Square Office Building, 500 Zhangyang Road, Pudong, Shanghai 200122 上海市浦东新区张扬路500号,华润时代广场办公楼14楼ABCD单元，邮编：200122 +86 (21) 5836 7177 www.mapletree com sg

18 Duangong Road, Nanjing, Jiangsu, 211100 +86 25 6698 8988

南京江宁区端拱路18号邮编：211100

+86 (25) 6698 8988 www.nsic.com.cn Realty Vailog Room 702, City Gateway, 398 North Caoxi Road, Shanghai 200030 +86 (21) 6090 5292 www.realtyvailog.com Tongsheng Logistics Park 10/F, Unit B, Shanghai Deepwater Port Business Plaza, Luchaogang, Nanhui, Shanghai 201308 上海南汇芦潮港上海深水港商务广场B座 10楼，邮编：201308 +86 (21) 6828 1992 www.shtslp com

Global Logistic Properties Room 2708 Azia Center, 1233 Lujiazui Ring Road, Shanghai 200120 上海市陆家嘴环路1233号汇亚大厦2708 室，邮编：200120 +86 (21) 6105 3999 www.GLProp.com Goodman Group 2107 - 2109, Shui On Plaza, 333 Middle Huai Hai Road, Shanghai 200021 上海淮海中路333号瑞安广场2107-2109 室，邮编：200021 +86 (21) 6133 2000 www goodman.com GSE 27C Industry Building, 18 North Cao Xi Road, Shanghai 200030 上海市徐家汇漕溪北路18号实业大厦27C, 邮编：200030 +86 (21) 6090 1388 www gsegroup.com

Yupei Building, 2500 Jinchang Road, Shanghai 200331

上海市普陀区金昌路 2500号宇培大厦，邮编：200331 +86 (21) 6627 7577 www.yupeigroup.com

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CLASSIFIED Listings

IT & SOFTWARE SOLUTIONS Apprise Software 6009 Changjiang Science Building 40 Nanchang Road, Nanjing 210037 江苏省南京市南昌路40号长江科技园大厦 6009室，邮编：210037 +86 (25) 8345 5308 www.apprise.com

MagicBusCreative

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Grant-oh! Buchwald

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ATMS Number One, Holt Court, Aston Science Park, Birmingham, B7 4EJ, UK +44 121 628 9000 www.atmsplc.com Barloword Optimus 15/F NCI Tower, 12A Jianguomenwai Avenue, Chaoyang District Beijing 100022 北京市朝阳区建国门外大街甲12号新华保险大厦15楼邮编，邮编：100022 +86 (10) 8523 3103 www.barloworldoptimus.com BravoSolution 19F-08, Chinese Overseas Building, 129 West Yan’an Road, Shanghai 200040 上海市静安区延安西路129号华侨大厦19楼 08室，邮编：200040 +86 (21) 6145 8500 www.bravosolution.com Core Solutions Unit 2903, 113 Argyle Street Mongkok, Kowloon, Hong Kong +852 2378 6300 www.coresolutions.com Epicor Software 2008 Cross Tower, 318 Fuzhou Road Huangpu District, Shanghai 200001 上海市黄浦区福州路318号高腾大厦2008单元，邮编：200001 +86 (21) 63912808 www.epicor com

GXS International Room 1602, 16/F, Grand Gateway Tower 1, 1 Hongqiao Road, Shanghai 200030 上海市虹桥路1号港汇广场1座1602室，邮编：200030 +86 (21) 6120 1088 www.gxschina.com.cn INFOR 15/F Raffles City Office Tower 268 Middle Xizang Road, Shanghai 200001 上海市西藏中路268号来福士广场15楼，邮编：200001 +86 (21) 5359 9666 www.infor.com

www.chainaonline.com

IT & SOFTWARE SOLUTIONS JDA Software 2905 United Plaza, 1468 West Nanjing Road, Shanghai 200040 上海市南京西路1468号中欣大厦2905室，邮编：200040 +86 (21) 6289 7979 www.jda com Manhattan Associates Software Unit 2110, 21/F, Shui On Plaza, 333 Middle Huaihai Road, Shanghai 200021 上海淮海中路333号瑞安广场21楼2110室，邮编：200021 +86 (21) 6386 8800 www.manh com Seeburger 1409B Cimic Tower,800 Shangcheng Road, Shanghai 200120 上海浦东新区商城路800号斯米克大厦 14层1409B, 邮编：200120 +86 (21) 5835 4735 www.seeburger.cn SoftBrands Asia 4/F, The TEDA Building 256, Jiefangnan Road, Hexi District, Tianjin 300042 天津市河西区解放南路256号泰达大厦第四层，邮编：300042 +86 (22) 2320 2260 www.fourthshiftedition com SupplyOn Suite 1508, Silver Centre, 1388 North Shanxi Road, Putuo District, Shanghai 200060 上海普陀区陕西北路1388号银座中心1508 室，邮编：200060 +86 (21) 6419 8042 www.supplyon com Tradecard F1101-02, Block A, Hailrun Complex, 6021 ShenZhen Blvd, ShenZhen 518040 深圳市福田区深南大道6021号喜年中心A 座，1101-02室，邮编：518040 +86 (755) 8830 9265 www.tradecard.com

+86 (21) 51021617 or +86 (21) 51021618

EQUIPMENT PROVIDERS +86 (21) 6127 2488 www.chep.com Hormann Door Production 13 Zhong He Street, BDA, Beijing 100176 北京经济开发区中和街13号，邮编：100176 3/F, Qing Shui Wan Hotel Wing Office Building, 1309 North Kaixuan Road Shanghai 200063 上海市凯旋北路1309号清水湾大酒店综合楼3楼，邮编200063 +86 (10) 6788 8371 +86 (21) 5251 3216 www.hoermann.cn Loscam Packing Equipment Room 508, 707 ZhangYang Road, Pudong, Shanghai 200120 上海市浦东新区张扬路707号508室，邮编：200120 +86 (21) 6104 8156 www.loscam.com

Email: ad@supplychain.cn

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Anwood 3F-D4 Jiacheng Mansion, 128 Jinjihu Road, Suzhou 苏州市金鸡湖路128号加城大厦3F-D4 +86 (512) 6761 5558 www.anwood com cn Chep 40/F, Suites 8-10, 2 Grand Gateway, 3 Hongqiao Road, Shanghai 200030 上海市虹桥路3号港汇二座40楼08-10室，邮编：200030

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No. 1018-A, Lane 999, Wangqiao Road, Shanghai 201201 上海市王桥路999弄， 1018-A室邮编：201201

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Schoeller Arca Systems Unit 5/A, Guangdong Development Bank Tower, 555 Xu Jia Hui Road, Shanghai 200023 上海徐家汇路555号,广东发展银行大厦5 楼A座，邮编：200023 +86 (21) 6390 1261/62 www.schoellerarcasystems com

+86 (21) 6103 5715 www.ddslogistics.com/cn

phone: +86 136 4165 6924 email: magicbuscreative@mac.com www.flickr.com/photos/gmartini

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Suite 2605,26/F, Hong Kong Plaza, 283 Huaihai Road Shanghai, 200021 上海市淮海路283号香港广场26楼2605室，邮编：200021

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COMPANYINDEX

adidas �� 23 Agility �� 55, 60 Airbus �� 10 AlixPartners Asia �� 23,26 Alstom �� 44, 45 AMB Property Corp �� 13 APL Logistics �� 2 Apple �� 8, 22 Audi �� 50, 51 Autoliv �� 21 Avery Denison �� 46 Avichina Industry & Technology �� 10 Axway �� 29 BBK �� 19, 56 Behr �� 47 Beijing Benz �� 22, 25 BMW �� 21, 50, 51 BMWBrilliance �� 45 Booz Allen Hamilton �� 42 Bosch �� 20, 24, 47 Braun Shanghai �� 32, 34 Brose �� 47 Brose Wuhan �� 44, 45 Bulgari �� 13 CB Richard Ellis �� 14 CCBMC �� 44 Chang’An Ford Mazda �� 45 CMR Group �� 12 China Post �� 44 Citigroup �� 11 Coca-Cola �� 44, 45 Continental AG �� 21 Continental Automotive �� 47 Cosco Pacific �� 29 Dajin Logistics �� 55 DDS �� 57 Diesel �� 45 Dongfeng Motor �� 45 DPSA �� 44, 45 EIU Corporate Network �� 42 ER-Couture �� 42, 43 Flextronics �� 9 FM Logistics �� 55 Foxconn �� 22 Gap �� 2, 12 George Fischer AG �� 21 GIA �� 38, 39 GM �� 9 Goodman �� 27 GSE �� 45 Guitang Group �� 39 H&M �� 2, 8 Hafei Aviation �� 10 Harbin Aircraft Group �� 10 Harbin Development Zone Heli Infrastructure Development . �� 10 Harman Intl �� 20, 21, 25 HSBC �� 52 Hyundai �� 22 Ikea �� 2 Intermec �� 46

EVENTSCALENDAR

Japan Climate Systems �� 21 J.D. Power �� 22, 23, 26 Jones Lang Lasalle �� 40, 41 KPMG �� 21 Le Meridian �� 21, 24 Lilly Pulitzer �� 43 Louis Vuitton �� 50 Lufthansa Cargo Group �� 13 Magic Bus Creative �� 57 Magna Stey �� 22 Manhattan �� 36 Mercedes �� 21, 22 Messe Munchen International �� 37 Metro �� 46 Morgan Stanley �� 52 The Navigos Group �� 42 N ke �� 23, 42 Nissan �� 22 NSIC �� 56 Outrigger Group �� 21, 24 Penguin �� 22 Philips �� 23 Planet Retail �� 23 2 Porsche �� 50, 51 Preferred Freezer �� 40, 41 PwC �� 49, 56, 59 DPSA �� 44, 45 Schenker Intl �� 13 SEC Areva �� 45 SharMoon EZ Garments �� 13 Shanghai E&P Intl �� 29 Shanghai GM �� 47 Shanghai VW �� 47 Sirit �� 46 SKF Group �� 21 Steelcase �� 14, 15, 16 SVW �� 45 Swire Cold Storage �� 40, 41 Taobao �� 8 Tata AutoComp �� 23 Tata Motors �� 23 26 Techlink �� 57 Toyota �� 32, 34 Transport Intelligence �� 43 The Supply Chain Lab �� 43 Thyssen Krupp �� 43, 45 TNT/HOAU �� 2, 44 TPV (Wuhan) �� 44 Unicom �� 8 Unilever �� 9 U.S. Steel Corp �� 7 UTI InfrastructurePE �� 11 Vertical Retail �� 12 Webasto AG �� 21 Yuguang Gold and Lead �� 9 Yupei Group �� 56 Wuhan Boiler Co........44, 45 Zara �� 2 Zegna Group �� 13 ZF Friedrichshafen �� 21, 47

NOVEMBER/DECEMBER 2009

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Land of Opportunities Offshore Sourcing and Supply Chain Management

机会之地海外采购和供应链管理

China has emerged as one of the leading low cost markets for global sourcing. However, the recent economic downturn has created unprecedented risk for businesses and their supply chain managers. Companies that are sourcing offshore have always needed to consider procurement holistically to be successful. Today, supply chain managers must be cognizant of a large number of risks that are difficult to detect in any market – but even more so in less developed markets. Gaining insight to and mitigating risks in this market requires a different set of tools than in a past. However, if managed effectively the opportunities and benefits remain achievable.

中国是全球采购重要的低成本市场之一。然而，当前全球金融危机给公司及其供应链经理带来了空前的风险。实施全球采购的公司必须通盘考虑以确保采购成功。当今，供应链经理必须认识到在任何市场都存在大量难以觉察的风险，尤其是在发展中国家的市场中。洞悉和管控风险需要用与以往不同的方法，同时有效管理仍然可以带来吸引人的机会和收益。普华永道利用其全球视野和本土知识经验，为企业提供创新的，切实可行的解决方案，并为企业拓展业务和实现可持续发展提供新的机遇。

With our global insight and local knowledge, PricewaterhouseCoopers provide innovative and practical solutions to address these key business challenges and turn them into opportunities to expand your business and result in sustainable growth.

了解更多的业务范围，请访问普华永道网站：pwccn.com，或联系：

To find out more on how we can address your needs, please visit pwccn.com or contact:

Damon Paling 电话:+86 (21) 2323 2877 电子邮件:damon.ross.paling@cn.pwc.com

Robert Barrett Tel: +86 (21) 2323 3818 Email: robert.barrett@cn.pwc.com Damon Paling Tel: +86 (21) 2323 2877 Email: damon.ross.paling@cn.pwc.com © 2009 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the China firm of PricewaterhouseCoopers or, as the context requires, the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

Robert Barrett 电话:+86 (21) 2323 3818 电子邮件:robert.barrett@cn.pwc.com