The Shipping Point E-Book

Peter J. Levesque

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 351

Veröffentlichungsjahr: 2011

Beschreibung

Fascinating insights into the changing supply chain industry in China, from leading international experts A fascinating look at the enormous changes taking place in China today as it evolves from global manufacturer to global consumer marketplace, The Shipping Point: The Rise of China and the Future of Retail Supply Chain Management explores how China's ascension will have a profound impact on the future of retail supply chain management. Bringing together the knowledge and expertise of leading supply chain and retail professionals from around the world to illuminate opportunities that are likely to develop over the next decade in China, the book is essential reading for anyone working with or looking to better understand how supply chains work. Focusing on cutting edge logistics programs, processes, and technologies that will drive supply chain innovation in the twenty-first century, the book highlights innovative logistics programs that link the Asia Pacific manufacturing base, with international retailers and end consumers. Providing real examples of supply chain innovation in the marketplace to clearly illustrate the ideas in action, the book explores multi-country consolidation in China, strategies for greening the supply chain, supply chain & logistics IT systems, contingency planning strategy, and much more. * Explores the programs, processes, and technologies that will drive supply chain innovation in the years ahead, with a particular focus on China * Incorporates case studies contributed by retail executives and logistics industry professionals from around the world * Highlights innovative logistics programs that link the Asia Pacific manufacturing base with international retailers and end consumers In The Shipping Point, international transportation and logistics expert Peter Levesque and a team of contributing authors provide practical expertise and insights into present and future opportunities for consumer retail and supply chain management--and what it will take to turn those opportunities into reality.

Leseprobe

Contents

Cover

Title Page

Copyright

Acknowledgments

About the Contributors

Foreword

Introduction

Sectional Framework of the Book

Supply Chain Acronym Quick Reference Guide

Section One: The Rise of China

Chapter 1: China's Great Comeback

Chapter 2: The Development of China's Economy & Infrastructure

Why Hong Kong is so Important

Chapter 3: The Development of China's Human Capital

Business Process Outsourcing (BPO) in China

Section Two: The Changing Face of Consumer Retail

Chapter 4: The Age of Consumer Participation

The Right-Brain Supply Chain

Zara

RYZ Footwear Model

Gilt.com and Groupon.com

Best Buy

China and the Internet

Chapter 5: The Development of China's Retail Sector and Brands

Gome Stores in China

China's Retail Automobile Market

Li-Ning

Haier

Lenovo

Tingyi

Septwolves

Section Three: Retail Supply Chain Innovation

Chapter 6: Unlocking Supply Chain Innovation

A Win-Win Approach to Supply Chain Pricing

Mitigating Rate Volatility in China Trade

The Shanghai Shipping Exchange

Unlocking Innovation

What Kills Innovation?

Chapter 7: The Innovative Retail Supply Chain

Manufacturing Postponement

Logistics Postponement

Using Product Attributes To Drive Decisions Regarding Model Selection

Product Lifecycle

New Product Launches

From Launch to Response

Manufacturing Capacity

Information Technology—A Key Enabler

Quality Control/Assurance Management

Back-Order Management in the Fulfillment Industry

Direct-to-Store Shipments

Reconstructing the Basis of Product Cost

Size and Scale Considerations

Conclusion

Chapter 8: The Role of People and Technology in Dynamic Supply Chains

The Role of Technology in Dynamic Supply Chains

Radio Frequency Identification Technology

Metro Group & RFID

Supply Chain Security & Tracking Technology

Chapter 9: Building Resilience and Sustainability into the China Supply Chain

Supply Chain Terrorism

Building SCM Resiliency in China

Supply Chain Sustainability in China

The Starbucks Example

Product Packaging Redesign

Ocean Transportation Sustainability

Orcelle Concept Vessel

Section Four: Supporting the Dynamic Supply Chain

Chapter 10: SCM Leadership in China

Introduction

The Leadership Question

Defining Qualities

Who's a Credible Leader, Then?

Leadership in Asia

Global Leadership in Practice

Prospering Through Innovation

Summary and Conclusion

Chapter 11: Dynamic Supply Chains: The Origin Consolidation Model

The Art of the Deal

Terms of Sale

Purchase Order (PO) Creation

Payment Terms

Consolidation Services in China

Consolidation Management and Visibility Tools as Program Enablers

CFS versus CY

Value Added Services (VAS)

Non-Vessel Operating Common Carrier (NVOCC)

Airfreight

Measuring Success

Vendor Management in the Consolidation Model

Record Retention Compliance

Documentation

Security

Customs Clearance

Future trends in importing and the Consolidation Model

Chapter 12: The Role of China Customs

Demystifying China's Value Added Tax (VAT)

Chinese Export Warehouse Licensing

Chapter 13: Innovative Retail Supply Chain Process Flows

Direct-to-Store Flow

Origin Direct to Customer

Hong Kong as a Regional Distribution Center

Hong Kong as a Global E-Fulfillment Center

Epilogue

Selected Bibliography

Index

Copyright © 2011 John Wiley & Sons (Asia) Pte. Ltd.

Published in 2011 by John Wiley & Sons (Asia) Pte. Ltd.

1 Fusionopolis Walk, #07-01 Solaris, South Tower, Singapore 138628

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons (Asia) Pte. Ltd., 1 Fusionopolis Walk, #07-01 Solaris, South Tower, Singapore 138628, tel: [phone], fax: [phone], e-mail: [email protected].

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional person should be sought.

Neither the authors nor the Publisher are liable for any actions prompted or caused by the information presented in this book. Any views expressed herein are those of the authors and do not represent the views of the organizations they work for.

Other Wiley Editorial Offices

John Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA

John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom

John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada

John Wiley & Sons Australia Ltd, 42 McDougall Street, Milton, Queensland 4064, Australia

Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany

Library of Congress Cataloging-in-Publication Data

ISBN 978-0-470-82453-5 (Hardcover)

ISBN 978-0-470-82625-6 (e-PDF)

ISBN 978-0-470-82624-9 (e-Mobi)

ISBN 978-0-470-82626-3 (e-Pub)

Acknowledgments

I would like to thank my wife Lisa, my daughter Catherine and my sons Paul and Matthew for putting up with endless nights and weekends watching me work on my laptop from the kitchen table. They have been a constant source of unconditional support, and words cannot describe how much they mean to me.

I wish to thank the contributors to this book for their time and dedication in the midst of the global financial crisis that unfolded during the writing of this manuscript. Michael Jacobs from Toys“R”Us was instrumental in offering his insight and expertise in the technical aspects of dynamic supply chain models in China. Chris Robeson's international expertise in the area of supply chain innovation, particularly as it relates to postponement and delayed differentiation models, was invaluable to the development of the manuscript.

Tom Reilly from Next Horizon shared his perspectives on China's developing workforce and the future of business process outsourcing in China. I thank him for his insightful contribution. David Barnes from Clarkson securities in London provided valuable expertise on the container freight derivative market in Shanghai, and John Gouveia contributed his expertise in the area of geographical information systems. Special thanks to John Pattullo, chief executive officer of CEVA Logistics, for his introduction on the importance of leadership in supply chain management.

Thanks to Professor Steve DeKrey for sharing his expertise on the critically important role that leadership will play in building successful SCM organizations in the future. A special thanks to my former DHL colleague, Anne Schaefer, for her comments and suggestions during the development of the initial manuscript, to Gavin Dow from Modern Terminals Limited for his valuable review, and to Jonathan Beard PhD from the consulting group GHK, for sharing his insights on port development and cargo migration flows in China.

This book is the culmination of 20 years of experience in international supply chain management, including 14 years living and working in Hong Kong. There have been many wonderful people along the way. Thanks to David Starling, and Rod Miller from our time together at APL, also Robin Cheung and Kuang Siah, who I worked with in co-founding V-Logic Limited. And special thanks to Sean Kelly, Craig Grossgart, Charlie Wellins and Robert Sappio, who have made being in this industry so much fun over the years.

Thanks to Bill Aldridge, Maureen Saul, Lisa Schraer, May Ma, Shirley Pang, Mike Sullivan, Phil Trabulsi, Wayne Wan, and Caron Van Dyck from CEVA Logistics. A very special thanks to Margaret Li, whose administrative support and graphic design expertise helped make this project possible.

Much of the theme behind chapter one can be attributed to my former business school professor, Justin Yifu Lin, who later became the first Chinese chief economist at the World Bank. Another teaching mentor referenced in this book is Professor Keith Murnighan from the Kellogg Graduate School of Management, whose course on game theory made a lasting impression, and whose friendship over the years I very much appreciate. Thanks to the members of the American Chamber of Commerce's Transportation and Logistics Committee who have been a constant source of industry knowledge and discussion. I would also like to thank Nick Wallwork from John Wiley & Sons, for believing in the project and for getting it off the ground.

Last but not least, a special thanks to my parents, Paul and Mary Levesque, who taught me the importance of hard work, perseverance and leadership. And to David Scully, who for the last 20 years, has remained a constant source of mentoring and friendship. I am forever grateful.

About the Contributors

Peter J. Levesque Chief Commercial Officer, Modern Terminals Limited, Hong Kong

Peter Levesque has over 20 years of international transportation and logistics experience and has been working in Hong Kong since 1996. Prior to joining Modern Terminals, Mr. Levesque served as senior vice president for CEVA Logistics and as regional vice president for DHL's International Supply Chain Group in Asia Pacific. In 2000, he co-founded V-Logic Limited, a niche 3PL company based in Hong Kong, and prior to V-Logic he held several management positions with American President Lines, including managing director of (ACS) APL Logistics for North Asia.

Mr. Levesque holds a BA in Political Science from the University of Massachusetts, and an MBA from Northwestern University's J.L. Kellogg Graduate School of Management and the Hong Kong University of Science and Technology. He has served as Adjunct Professor of Entrepreneurship for the Kellogg–HKUST MBA program, and the Hong Kong University of Science and Technology's MBA program.

Mr. Levesque sits on the American Chamber of Commerce's Board of Governors in Hong Kong and is a past chairman for the Chamber's Transportation and Logistics Committee. He also serves as Treasurer of The American Club in Hong Kong and sits on the Club's board of governors. His wife Lisa and their three children reside in Hong Kong and Falmouth Massachusetts.

Michael Jacobs Senior Vice President, Logistics Toys“R”Us, Inc.

As senior vice president, Logistics, for Toys“R”Us, Inc., Michael Jacobs oversees worldwide distribution and customs compliance, global importing and exporting, fleet operations, domestic transportation, Asia operations and supply chain management for the corporation. Mr. Jacobs started his career at Toys“R”Us in 1997 as director of International Logistics.

Prior to joining Toys“R”Us, Mr. Jacobs enjoyed a career in the world of finance and supply chain management at PepsiCo and Melville Corporation.

Mr. Jacobs received both his Bachelors of Science in Finance and his Masters of Business Administration from Manhattan College. He also received a Masters of Professional Studies in Supply Chain Management from Penn State University. He lives in New Jersey with his wife Karolyn and his two sons Jonathan and Christopher.

Chris RobesonVice President, International Logistics Limited Brands, Inc. Logistics Services

Chris Robeson is vice president, International Logistics for the Logistics Services division of Limited Brands Inc. He joined Limited Brands in April 1991. In his current position, he is responsible for overseeing all international product flows. He returned to Columbus in fall 2006 following a four-year assignment in Hong Kong and now leads international air and ocean operations, customer service, and the Asia-based logistics associates residing in seven office locations globally.

Chris holds a B.S.B.A. in Marketing and Transportation/Logistics from Ohio State University. During his undergraduate studies he attended the University of Pittsburg-sponsored Semester at Sea program studying an international curriculum with associated global travel.

Chris has held board positions on the Columbus roundtable of the Council of Supply Chain Management Professionals. He has been a guest lecturer at Miami University of Ohio, and is a former member of the Hong Kong chapter of the American Chamber of Commerce.

Chris, his wife Julie, their three children, and their black lab, The Baron, reside in the Columbus suburb of Upper Arlington.

Dr. Steven DeKrey

Dr. Steven J. DeKrey has spent over 20 years in management education in Asia and the United States. He has an MBA degree from Kellogg School of Management and a PhD from the University of Iowa. He is senior associate dean of the Business School at the Hong Kong University of Science and Technology (HKUST) and is the founding director of the Kellogg-HKUST Executive MBA program, consistently ranked among the world's best programs. Professor DeKrey is active in community organizations and chaired the Board of Governors of the American Chamber of Commerce in Hong Kong in 2008.

Foreword

Leadership & Supply Chain Management

John Pattullo

It's been said that in business everything depends on leadership. The recent financial crisis has had a profound impact on the world we live in, and just as poor financial leadership helped create the crisis, transformational leadership, will surely help steer us out.

Shipping Point: “Inventory can be managed . . . people must be led.”

From a leadership perspective, times of turmoil often generate periods of intense focus, which if properly harnessed, can generate breakthrough innovation. Whether it's the development of radically more effective operations, or the invention of step change technology, innovation is often the byproduct of adversity. Leaders, who recognize crisis as a time of opportunity, can better anticipate the world that will emerge, and set a course for sustainable competitive advantage.

As a Scot, I am proud of the way that a small and poor nation has made an unusually significant contribution to global innovation. In my early school days, we were taught about Scottish technical breakthroughs from inventors such as James Watt, Lord Kelvin, Alexander Fleming and Alexander Graham Bell. These achievements were often driven by harsh economic necessity.

As chief executive officer of CEVA Logistics, I have seen the huge potential that is unleashed when talented people are empowered to lead, and to innovate. For all the technological advancement that has occurred in logistics over the last decade, supply chain management remains dependent upon the daily efforts of empowered people, supported by capable leadership.

Transformational leaders have the ability to galvanize individual efforts into team success. These leaders understand the creative potential that lies within the organization, and they enable a corporate culture that not only rewards success, but also learns from failure. Within this type of open culture, small successes build momentum and confidence, which in turn lead to larger successes, and ultimately to game-changing breakthroughs. Recognizing failure as an opportunity to learn, and a chance to start again, creates a culture of trust that rewards perseverance, and builds loyalty.

As supply chain models become more dynamic and complex, the demand for skilled logistics talent will continue to increase. Capable leadership will be critical for the recruitment, retention and career development of logistics experts around the globe. Talented recruits will expect the vision of the company to be well defined, and effectively deployed. Transformational leaders understand that their job is to cultivate more leaders, not to create more followers.

As we move beyond this most recent financial storm, we can be certain that new crises will gather on the horizon. But we can also be optimistic that the next decade will offer incredible opportunity to those who used this time of turbulence for positive change and improvement. Transformational leadership will play a critical role in the global supply chain over the months and years ahead, by unlocking the creativity and innovation of talented people to meet the rapidly changing requirements of clients around the world.

There is an old Scottish Proverb that says, “Twelve highlanders and a bagpipe make a rebellion.” I believe this speaks to what is possible when you have a few motivated people, some capable leadership, and a small dose of inspiration. We hope that The Shipping Point provides you with a dose of inspiration, and that you find it to be a useful tool in navigating your team's retail supply chain strategy over the course of the decade ahead.

John Pattullo Chief Executive Officer CEVA Logistics, Amsterdam

Introduction

Peter Levesque

There is an ancient Chinese curse that says, “May you live in interesting times.” Looking back on the seismic events that occurred at the close of this last decade who could have imagined that Lehman Brothers would crumble, that home foreclosures would become routine in America's neighborhoods, or that the American automobile industry would suddenly rely on government programs like “cash for clunkers” to stay in business. Having experienced a global economic meltdown of a magnitude not seen since the Great Depression, there can be little doubt that we are indeed living in interesting times.

Shipping Point: “A disaster is a terrible thing to waste.”

Jack Welch

The global financial crisis touched everyone and everything, in ways that were unimaginable just a short time ago. When a speaker at a recent logistics conference was asked by a member of the audience how the shipping industry was performing “aside from the disastrous global economy,” the speaker paused, and then replied, “You mean, aside from the shooting Mrs. Lincoln, how did you enjoy the play?”1 It is near impossible to define any business situation today without relating it back to the turmoil experienced over the past two years.

During the peak of the crisis the once touted benefits of globalization, free trade, and the free flow of capital were increasingly scrutinized and in some cases vilified. Theories around de-globalization became increasingly popular, and protectionist policies found their way into the stimulus packages of both China and the United States. Mitigating global contagion associated with systemic financial risk, and balancing government intervention against the longer-term consequences of nationalization and moral hazard, remains a serious challenge for global policy makers today.