LG Electronics credits GXS e-commerce with supply chain consolidation

Consumer electronics and appliances giant LG Electronics reports successful consolidation of its supply chain operations, following implementation of GXS’ e-commerce suite. The company is using GXS Trading Grid to centralise interactions with more than 200 global trading partners, and integrate its disparate ERP base throughout Europe, the US, South America and Asia-Pacific at its HQ in Seoul, South Korea. SunYoung Oh, assistant manager of LG’s IS team, points out that the company depends on its ability to coordinate supply chain activities and share real-time information with a network of contract manufacturers, third party logistics providers and consumer electronics retailers around the world. “As we’ve grown in the last 50 years, so has the complexity of our supply chain. Reducing that complexity was as important to our company as ensuring global integration capabilities and increasing real-time visibility into our trading partner network. GXS is the only B2B integration vendor we have found that can easily support all three of these initiatives.” Prior to consolidating with GXS, LG used multiple B2B e-commerce providers managed independently by centres around the world – resulting, she says, in. duplicate processes and inconsistent capabilities and complicating LG’s efforts to manage its trading partner network.

Author Brian Tinham

Source by mcsolutions.co.uk

Building a Better Supply Chain in Three Not-So-Easy Steps

Aug. 1, 2008 -- How can you build a healthy, collaborative and profitable supply chain culture at your business? It all comes down to communication, explains Ron Cain, president and CEO of TMSI Logistics, a provider of third-party logistics services. And a key component to good communication involves the breaking down of the silos that historically isolate the various areas of a company into unconnected islands with no apparent link to any of the other islands. To establish a silo-free supply chain, Cain recommends manufacturers follow this three-step process:

1: Start by asking, "What kind of culture drives our organization?" This step requires a clear-eyed look at how your people view themselves, how they view each other and how they view the organization.

Some good questions to ask during this process are:

• Could investing in an improved workplace culture drive more effective communication? A culture that encourages communication means a business that effectively shares information. If you're eager to break the silo effect mentality, you'll need to change the culture.
• Do you have the right team? Unfortunately, not everyone can be expected to buy into changing their communication habits to improve your workplace culture.
• Are you personally willing to change -- and maybe fail? You can't expect everyone to change their way of working, communicating and collaborating while you keep your own habits. This means trying new approaches, stretching your abilities and risking failure. Creating an improved culture starts with you.

2: Identify the tools for your plan. To realize a communicative, performance-based workforce, you need both a plan and the tools to complete it. Before you start sawing floor planks, you should probably have a blueprint for your house, so let's start with the plan.

Your blueprint is a statement of your strategy and should provide a birds-eye view from 50,000 feet. It should derive from the mission statement and tell the story about how you want to create a performance-based culture.

Your tools, on the other hand, are the tactics and methods that you use to build, day-to-day, a culture that drives effective communication. A good tactical start is making sure your efforts are visible. Use technological tools to your advantage by sending e-mail updates, putting messages on pay stubs and setting up information centers to keep everyone in the culture loop.

3: Implement your plan for a culture that encourages communication -- and demolishes silos -- by creating incentives for it. These incentives will emphasize the importance of improved communications by putting your money where your mouth is. As you see improvements in communications, you should also begin to see improvements in your bottom line. And using financial incentives allows you to reward people for having an impact, both on the company's culture and its bottom line.

Source: industryweek

US firms eye green supply-chain initiatives

There is a growing level of commitment among both small and midsize US firms toward the adoption of applications that would support more environmentally friendly supply-chain initiatives, IDC said in a report today.

IDC is a Framingham firm that provides IT market intelligence.

"While the social responsibility for establishing green initiatives is now generally regarded as the norm for European companies, US firms have been slow to embrace the technologies that would support this effort,"Judy Hodges, manager of IDC's Small and Medium Business Markets: Enterprise Applications research service, said in a statement. "However, in our most recent IDC AppStats Survey,we find that small and midsize manufacturers, wholesalers, and distributors in the United States are on the path toward leveraging innovative technologies to support a green supply chain."
(By Chris Reidy, Globe staff)

Source: boston

OSRAM Sheds Light on Supply Chain With ToolsGroup Solution

Leading Lighting Manufacturer Turns to Experienced Inventory Optimization Vendor to Optimize Components Strategy.

CAMBRIDGE, MA, -- ToolsGroup, a global provider of demand-driven inventory optimization solutions, announced that OSRAM S.p.A. has contracted to implement the company's Service Optimizer 99+ (SO 99+) solution.

With sales of 4.7 billion Euros in 2007, OSRAM is one of the largest lighting manufacturers in the world. Part of the Siemens AG Group, it has a global presence with 41,000 employees in 150 countries, including 48 production and distribution sites in 17 countries. OSRAM operates in North America as OSRAM Sylvania.

OSRAM will leverage ToolsGroup's SO 99+ solution to optimize the planning processes of raw materials and components managed at its production site in Treviso, Italy.

"Our decision to implement ToolsGroup's SO 99+ solutions was principally motivated by the need to review our optimization strategy for purchased components," said Giuseppe Carrer, coordinator of the Inbound Supply Chain improvement project at Treviso. "In addition to advanced technology and targeted solutions, ToolsGroup offers us a great deal of experience in the field."

"We are proud to be able to provide a company like OSRAM with the right tools for optimizing global service levels and delivering on their operational goals," added Joseph Shamir, CEO of ToolsGroup.

About ToolsGroup

ToolsGroup is an innovation partner for companies who want to achieve outstanding customer-service levels with less global inventory. Using our demand-driven inventory optimization solutions, our customers improve daily forecast accuracy and correctly set safety stocks to achieve up to 99+ percent customer-service levels while significantly cutting inventory. ToolsGroup has more than 150 customers in 31 countries worldwide. For more information on ToolsGroup and its solutions, please visit www.ToolsGroup.com.

Media Contact:
Jonathan Bloom
For ToolsGroup
617-374-4298
Email Contact

Source: ToolsGroup

Improve the efficiency of your supply chain

14th & 15th October 2008, Hilton London Metropole

Implement demand-driven supply strategies to improve the efficiency of your supply chain and provide an unbeatable service to your customers

DDSC 08 will take place in London this October and provides the strategies you need to implement an effective pull-supply chain. This event has been produced by the Extended Supply Chain team following research undertaken with conference delegates and experts in the supply chain arena.

Business advantage has recently been gained through the use of Total Quality Management, technological advances & Lean Manufacturing methods - what's next? Industry has shifted from the factory-centric world, where the manufactures have the power to a customer-centric world where manufacturers must align themselves and their activities with the conditions of the global marketplace. Is your supply chain ready for this?

In today's competitive environment, product features and price have to obey the requirements of the market and product quality is no longer the major differentiator. Companies must now compete on the performance and quality of their delivery service, and demand driven supply chains are increasingly being utilised to go beyond customer requirements in efficiency and accuracy of supply.

If you are involved in the supply of a product where the customer's requirements matter, whether you are delivering a physical, infrastructural or electronic product, then you will benefit from attending the DDSC 08.
Event experts include:

Chris Dyson, Head of Supply Chain, Nokia Siemens will share his experiences of connecting customers to the back end to maximise supply chain excellence
Ensuring top down commitment from the boardroom to demand creation and supply capability team-working for Aidan Murphy, Managing Director, Supply Chain Bulmers Ireland

AMR Research will explain the role that globalisation, multi-channel distribution and increased competition are playing in driving forward demand driven supply chains

To find out more or reserve your place visit our website - www.ddsc2008.com - call +44 (0) 20 7970 4770 or email ddsc@centaur.co.uk Preferential rates for this event end on the 31st July 08, so get in touch soon.

Source by mhwmagazine.co.uk

Significance Of SCM For SMEs

Supply chain management (SCM) is a critical element in today’s highly complex and competitive business environment. It has direct influence on key issues like cost to market, time to market, responsiveness to changing customer demands and market dynamics and – in fact – on the overall business.

The SCM market in India, however, is still to mature and get organised. The process seems to have started but it has a long way to go.

To a great extent, due to the huge resources at their disposal, large enterprises have learnt to leverage SCM to their advantage.

Not surprisingly, most of the solutions and services available in the market tend to focus on the big players – leaving out SMEs who anyways start with a disadvantage due to their inherent resource constraints. Consequently, SMEs have been rather slow (and at times reluctant) to adopt and adapt SCM to their businesses.

However, various factors related to globalisation have now rendered implementation of SCM an imperative even for the SMEs. Mr Rajesh, MD, Rajathi Group highlights the relevance. He says, “The need for SCM is more than ever before because of the challenges unleashed on the competitiveness of the Indian industry by deregulation and globalisation.”

True, competition has now acquired a cross-border dimension and cost will play a key role with regards to competitiveness. “Effective and efficient SCM can help Indian SMEs to reduce their cost and compete aggressively in the international markets,” states Dr K Rangarajan, Head, Indian Institute of Foreign Trade (Kolkata).

The mammoth challenge for SMEs is to maintain the balance between demand and supply and, while doing so, provide the best possible products or services at the lowest possible cost. SMEs, obviously, do not have enough resources to employ at various stages of the chain. Hence, they often concentrate on individual components for optimising their internal operations.

But this is just a starting point and is never enough in the long run. The need is to optimise the supply chain in its totality and derive the highest possible value from it. “The objective of every supply chain is to maximise the overall value generated by an enterprise. It consists of all stages involved, directly or indirectly, in fulfilling a customer request,” remarks Mr Nikhil Shah, Executive Director, Elbee Express Pvt Ltd.

SCM is an ongoing process that involves precision in demand forecasting, inventory optimisation, reduction in warehouse costs and efficient as well as cost-effective handling of both incoming and outgoing stocks.

“Effective SCM brings down operating costs by a reduction in cost leakages like inventory pile-ups and reverse logistics, thereby ensuring a better planned environment wherein the production and supply sides are better synchronised and optimised,” says Mr Nikhil Sen, Director, Rosebys.

Thus, SCM is really about enhancing the efficiencies of the supply chain right from the planning stage to the execution stage while coordinating with diverse partners located at different locations. “As Indian SMEs go global it becomes even more imperative that their supply chains are linked with their global suppliers as well as vendors,” adds Mr Shah.

Efficient SCM needs an integrated approach; Indian SMEs need to start identifying and addressing various factors of their businesses so that they can enhance their supply chains accordingly. “An essential first step in the process is to assess the current supply chain capability and then linking that strategy to deliver bottom line results through SCM, competitiveness, order fulfilment, inventory management, etc,” says Mr Rajesh.

A good system will integrate not only information and processes but also people and technology. This is crucial if SMEs want to advance their market position. “An integrated SCM system can act as a powerful differentiator to significantly improve the competitiveness of the Indian SMEs,” says Mr Chittilappily, MD, V-Guard Industries.

As SMEs are gradually realising the significance of having an effective control over their supply chains, the SCM market in the country too is evolving in response. While the IT sector is gearing up to tap the growth, third party players, both at the level of consultation as well as implementation, are emerging on the landscape.

“SMEs are now increasingly relying on 3PL (Third Party Logistics) specialists to manage their entire supply chains, from procurement of raw materials to distribution of goods, in the domestic market as well as exports, so that they can focus on their core competencies,” explains Mr K Prabhakar, President and CEO, XPS.

It does make more sense to rely on specialists and to outsource it ‘to professional supply chain service providers that are well versed in the latest technologies and processes and have the cost benefit of economies of scale which they can pass on to the SMEs’ as Mr Shah says.

Although certain factors related to SCM are common to all industries, each industry vertical has its unique set of issues. Naturally, SCM requirement and implementation would differ from vertical to vertical. Mr Sivaram, Executive Director, Royal Classic Group, brings in the perspective from the apparel sector.

He says, “Being a fashion oriented business, our merchandise always has a limited shelf space and hence SCM has to be very effective. The co-ordination from design forecasting, conceptualising, samples production, bulk production, warehouse management & maintenance, effective distribution network are key activities involved in the process...” Similarly, other industries like auto-components, pharma, gems & jewellery, retail, etc. would have their distinctive SCM needs.

Moreover, each of these sectors is going through a different phase and hence its needs would change accordingly. The point is – SMEs from each industry would have to go for SCM solutions that are well-suited for their industry as well as their individual requirements and not blindly follow any trend.

Being small (or mid-sized) isn’t always bad; it has its advantages. As Mr Shah says, “SMEs have an advantage over their larger competitors as their smaller size gives them less bureaucracy to change and greater agility to respond.” Due to their leaner operations they are well-positioned to implement strategic changes quicker. This agility must be used to exploit business opportunities.

“However they have to do their homework on issues like getting the right team, dealing with lower volumes in the initial stages, keeping firm process documentation in position etc,” says Mr Ramkumar, Executive Director, Gemini Communication Ltd.

Globalisation has not just thrown up new challenges but has also opened up new opportunities. Likewise, just as SMEs have certain inherent limitations, they also have definite intrinsic strengths. SCM is all about aligning your strengths to take advantage of the opportunities while overcoming weaknesses and challenges. SMEs can definitely do it.

Source by indiatimes

Church’s Chicken Enjoys Supply Chain Efficiency, Low TCO with ArrowStream OnDemand

CHICAGO - Arrowstream, a leading provider of supply chain management and logistics services for the foodservice industry, announced that it is working with Church’s Chicken to help the leading fast food chain achieve growth objectives. Church’s has more than 1,600 locations worldwide in 19 countries and sales exceeding $1 billion.

Church’s Chicken sought a new solution to manage the purchasing process for its volume of stores and 12 distribution centers, because the company desired technology that would enable it to automate critical purchasing actions such as invoice management at the restaurant level.

The company required a solution that would increase efficiencies, could be quickly utilized, would integrate readily with Church’s distributors’ systems, and would also require little to no initial investment in hardware and software.

Church’s found ArrowStream OnDemand to be the right solution that delivered fully-integrated and automated purchasing management with low total cost of ownership.

“ArrowStream was unique for three reasons. First, it allowed us to get the system running quickly, with no investment in hardware and software,” said Alan Stukalsky, CIO, Church’s Chicken. “It offered complete visibility from the supplier to the backdoor of the store and includes logistics information. And it synchronized our distributors’ data with our own.”

To effectively capture share of increasing consumer demand, Church’s has plans to expand its menu and its presence by growing the chain by almost a thousand new restaurants by 2010.

IMPROVE EFFICIENCY FOR CONSUMER AND FRANCHISE SATISFACTION

Church’s identified invoice management as an area that could quickly deliver efficiencies with ArrowStream OnDemand. Managers at each of Church’s 275 U.S. stores were spending about one and one-half hours processing invoices for each of the twice-weekly distribution deliveries.

“With the new automated system, it now takes the average manager just five minutes to enter in each invoice, offering time savings of about 500 man hours per week.” said David Taylor, director of restaurant systems for Church’s Chicken. “This allows restaurant managers to spend more time on customer service, which ultimately improves customer satisfaction and store profitability.”

These new efficiencies, according to Stukalsky, are also having an unintended benefit by creating goodwill throughout the franchise network and contributing to franchisee’s greater satisfaction with the organization’s quality.

ATTAIN FAST START UP AND INTEGRATION WITH DISTRIBUTOR SYSTEMS

ArrowStream OnDemand integrates distributor data with its other chain operator customers, enabling a rapid start-up of the system that was fully synchronized with Church’s distributors.

“ArrowStream possesses such broad expertise and relationships with distributors that we were able to begin to reap benefits immediately,” said Stukalsky.

“To gain optimal visibility from the supplier to the back door of the store, we sought a system that would readily link distributor information to our systems,” he continued. “And if a franchisee wishes to add suppliers, we can rapidly accommodate them and integrate that distributor into the system.”

AUTOMATE PURCHASING PROCESSES WITH LOW TCO

“ArrowStream OnDemand requires no initial investment in hardware and software, unlike other software application providers,” explained Stukalsky. For companies like Church’s that are trying to control overhead, this is a profitable benefit.

Stukalsky believes that low cost of ownership is also enabling Church’s to redirect resources to channels that deliver more direct value to its customers.

SUPPORT GROWTH OBJECTIVES WITH SCALABLE APPLICATIONS

As Church’s continues on its steep growth trajectory, ArrowStream OnDemand is able to rapidly scale to meet Church’s needs in functionality and scope.

“We are working with ArrowStream to adopt software applications that will continue to give us greater visibility of product movement and pricing, and help us automate limited time offer processes,” said Stukalsky.

“We have aggressive growth targets, and with ArrowSteam OnDemand, our software can easily grow with us,” said Stukalsky. “The system is fully scalable to adapt to the chain operator’s needs in terms of function and capacity,” he explained. “With ArrowStream, I have access to more resources than I could possibly gather on my own, and I have a team that is always on the cutting edge of supply chain and logistics solutions,” said Stukalsky.

###

About ArrowStream

ArrowStream has helped chain operators and distributors in the food service industry to more effectively manage their supply chain and reduce logistics costs by an average of 20 percent. ArrowStream OnDemand is a software suite that gives chain operators and manufacturers tools to synchronize and manage their supply chain data, thereby enabling panoramic visibility into the supply chain. This software suite has a lower total cost of ownership that is proven to save time and improve decision-making regarding product supply, pricing, and LTO promotion management. ArrowStream’s management team, with more than 60 years of experience in the food service, software, and logistics industries, developed an innovative logistics management network that optimizes each customer’s inventory replenishment and routing, and substantially reduces transportation costs. To learn more, visit www.ArrowStream.com.

View Company Website: http://www.arrowstream.com

How Good Is Your Supply Chain Data Quality? (Part 3)

Many companies claim that the reason that they do not measure data quality is that it is too hard to do, or that looking at all that data takes resources they do not have or that the volume of data is so large that it is an overwhelming task. A few companies have found a creative way to assess data quality, implementing a Data Cycle Count program where they “cycle” through the data in their system and “count” the number of data errors found. By looking at a sample on a regular basis the task is more manageable.

Companies have been using cycle counts to assess the accuracy of one of their most important assets, inventory, for a very long time. Accuracy of the on hand quantity is important to the success of the company. But cycle counting is more than tracking inventory accuracy; the key purpose of cycle counting is to identify items in error, thus triggering research, identification, and elimination of the cause of the errors. It is this process of continuous improvement that yields benefits.

How do you apply cycle counting to data? Data can be viewed as an asset too, and like inventory assessing, its accuracy is important to understanding if the processes in place are sufficient to control the input and maintenance of data. As in inventory cycle counting, it is the process of error identification and elimination of the cause of the error that yields benefits.

The data cycle count process is simple; you select a data record to audit, you compare it to the field requirements for that data record and then you report out the rate of the errors, perform root cause analysis tracking the errors by type. Then attack the largest error group as an improvement project to fix the source of the error. That is the basic process.

As with inventory cycle counting, deciding what to count and how often to count can vary by company. The same is true for data. Data can be grouped by type, importance, frequency of change, or how prone it is to entry error. However you choose to classify the data assigning an ABC classification will help you manage the selection of the data records to count.

What are the benefits of data cycle counts?

• Data cycle counts are a quantitative measurement of data quality, no more gut feel measurements that are prone to second guessing.
• Data cycle counts measure accuracy over time, tracking how well improvement efforts are working.
• Cycle counting data is a sampling process and is easier to execute than a full data review. The sample accuracy rate can be extended to approximate the error rate for a group of data.
• Cycle counting the data encourages an environment of problem solving and continuous improvement through ongoing corrective action.

Data cycle counting is a simple process that any company can implement and get tangible benefits from. Data is a valuable asset and it is time for companies to make the effort to measure data quality. By borrowing from measurement methodologies used in other parts of the business, companies can develop formal processes to measure and track data quality.

Accurate information and the flow of data is critical to today’s extended supply chains; data drives the choices companies make, whether tactical or strategic. It is data that is used in the measurement of processes and outcomes, so if it is not accurate, your performance measure will not be accurate. Yet, few companies measure the quality of their data or appreciate how poor data quality impacts their performance. Include data quality in your performance metrics program; it is easy to do using methods you already have in place and it will drive significant and long-lasting improvement!

Source by scdigest.com

M&S to invest £300 million in revamping supply chain

Marks & Spencer is to spend £120m to £150m a year for each of the next three years to revamp its in-store trading, supply chain, and distribution systems.

Stuart Rose, Marks & Spencer's chairman, told the retailer's annual general meeting today that the investment was needed to position M&S for the future.

He said a key focus would be to grow online sales to £500m a year by 2010. Online sales had grown 70% in the past year, and had shown strong growth again in the first quarter, he said.

Rose said he expected trading conditions to remain tough for at least two years. M&S would continue to refurbish its stores despite this, and continue to cut input and operational costs.

The expansion of online business was in addition to growing the store space, especially overseas, as this was key to growing profits, he said.

Ian Dyson, Marks & Spencer's financial director, said profits had reached £1bn for the first time, on sales of £9bn. Margins were under pressure, but despite debt rising to £3.1bn, the balance sheet remained strong, and M&S was still able to raise credit relatively cheaply.

Source by computerweekly.com

Christopher Kurtz Joins Alexza Pharmaceuticals as Vice President, Global Supply Chain and Sustainment Engineering

MOUNTAIN VIEW, Calif., July 9 /PRNewswire-FirstCall/ -- Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA) announced today that Christopher Kurtz has joined the company as Vice President, Global Supply Chain and Sustainment Engineering. He will have primary responsibilities in the development and execution of Alexza’s global supply chain strategy to support the commercialization of Alexza’s pipeline of clinical product candidates. Alexza’s lead program, AZ-004 (Staccato(R) loxapine) is in Phase 3 clinical testing for the treatment of acute agitation in schizophrenic or bipolar disorder patients.

Mr. Kurtz was most recently Vice President of Research and Development and Director, Pharmaceutical Manufacturing and Development for Novo Nordisk Delivery Technologies, Hayward, California. Prior to his tenure at Novo, Mr. Kurtz held positions as Senior Director, Process Engineering for ALZA Corporation, a division of Johnson and Johnson from January to June 2006. He was previously Director, Operations Engineering and Director Manufacturing Engineering for Nektar Therapeutics, San Carlos, California from January 2001 to January 2006 and also held previous positions at PowderJect Pharmaceuticals, PLC and Monsanto, Inc. Mr. Kurtz holds a Bachelor of Science degree in Chemical Engineering and Chemistry from University of Colorado at Boulder.

"We are very pleased to welcome Christopher to Alexza and as a member of our Executive Team," said Michael Simms, Senior Vice President, Operations and Manufacturing. "His broad experience in working with external manufacturing partners to develop, scale-up and launch drug delivery-based products will be instrumental as Alexza rapidly moves toward commercialization of its pipeline."

Alexza Pharmaceuticals is an emerging specialty pharmaceutical company focused on the development and commercialization of novel, proprietary products for the treatment of acute and intermittent conditions. The Company’s technology, the Staccato system, vaporizes unformulated drug to form a condensation aerosol that allows rapid systemic drug delivery through deep lung inhalation. The drug is quickly absorbed through the lungs into the bloodstream, providing speed of therapeutic onset that is comparable to intravenous administration, but with greater ease, patient comfort and convenience.

Alexza has six product candidates in clinical development. Alexza’s lead program, AZ-004 (Staccato loxapine) for the treatment of acute agitation in schizophrenic or bipolar disorder patients, is in Phase 3 testing and has completed the enrollment of its first Phase 3 clinical trial. AZ-001 (Staccato prochlorperazine) for the acute treatment of migraine headaches has completed Phase 2 testing. AZ-104 (Staccato loxapine) for the acute treatment of migraine headaches and AZ-002 (Staccato alprazolam) for the acute treatment of panic attacks associated with panic disorder are in Phase 2 testing. Product candidates in Phase 1 testing are AZ-003 (Staccato fentanyl) for the treatment of breakthrough pain, which is partnered with Endo Pharmaceuticals in North America, and AZ-007 (Staccato zaleplon) for the treatment of insomnia. More information, including this and past press releases from Alexza is available online at http://www.alexza.com.

Safe Harbor Statement

This press release includes forward-looking statements regarding the development of the Company’s product candidates, projected clinical trial enrollment and data reporting timelines, and safety of the Company’s products and technologies. Any statement describing a product candidate or Alexza’s goals, expectations or beliefs is a forward-looking statement, as defined in the Private Securities Litigation Reform Act of 1995, and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those inherent in the process of developing and commercializing drugs. The Company’s forward-looking statements also involve assumptions that, if they prove incorrect, would cause its results to differ materially from those expressed or implied by such forward-looking statements. These and other risks concerning Alexza’s business are described in additional detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, and the Company’s other Periodic and Current Reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Alexza Pharmaceuticals, Inc.

Are China Manufacturers Simply Low-Cost Producers – or Serious Global Competitive Threats?

While China has obviously seen exceptional growth as a source of finished goods and component supply for Western and Japanese corporations, are Chinese companies strong threats to those same companies in terms of global competition down the road?

The answer seems clearly to be Yes, but many Western companies appear not to take the potential competitive challenge too seriously.

A recent survey of over 1000 companies by McKinsey, for example, found that 41% of executives believe overall Chinese manufacturers are “weaker” than competitors from most other countries.

McKinsey notes that “Besides lower prices, companies in China have little to offer global markets, say respondents, who particularly dismiss Chinese product quality, marketing skills, and brand strength. From the Chinese perspective, the results suggest that low costs will go only so far and that moving up the value chain is more important than ever.”

The perception that Chinese companies are laggards, McKinsey says, might explain why many executives report mounting a muted business response to Chinese competitors at best, viewing manufacturers as a low-cost source of supply and little else.

But is that view a smart one?

Chinese Dragons are Coming after Western Business

In their recent book “Dragons at Your Door: How Chinese Cost Innovation is Disrupting Global Competition,” authors Peter Williamson and Ming Zeng eloquently described how a new generation of Chinese competitors is using total “cost innovation” in product design and the supply chain – not just low labor costs – to gain competitive advantage and growing market share in a number of markets and industries. (See The Supply Chain and China's Dragons.)

(Global Supply Chain and Logistics Article - Continued Below)

Manufacturing Insights wants to modernize your supply chain

The last time I spoke to Simon Ellis, he was the supply chain futurist – one of those titles I would kill to get - at Unilever North America (www.unilever.com), a manufacturer of brands as diverse as Slim-Fast and Vaseline.

The other day, I had a chance to speak to Ellis in his new role as supply chain strategy practice director for Manufacturing Insights, an IDC Company. Manufacturing Insights provides strategic business technology and application advice to the manufacturing community.

What got us on the line together was Modernizing your Supply Chain: The Execution Imperative, a new report by Ellis and his colleagues that calls on manufacturers to implement supply chain execution systems that are of the same caliber as their planning systems. To learn more about supply chain management providers, check out Modern’s listing of the Top 20 supply chain management software providers.

The short version of the Manufacturing Insights’ new report is this: Ellis believes that manufacturers have spent a great deal of time and money upgrading their planning capabilities in order to transform themselves into demand-driven enterprises. “For many companies, that was entirely appropriate,” Ellis says. “A lot of companies needed to do that.”

At the same time, many of those same companies forgot that to be successful they have to execute against those plans. “What’s developed is a schism between the demand side of the supply chain, and the ability of the supply side of the equation to act on that demand,” Ellis says. “That’s really problematic as companies pursue low-cost sourcing in China with 90 day lead times.”

Ellis says he wants manufacturers to think about two things as they read the report.

The first is that supply chain execution systems, including warehouse, transportation and manufacturing executions systems have come a long way. “There have been dramatic improvements in the last five years, especially in transportation management systems,” Ellis says. “You really need to compare these new systems to whatever you’re using to see if you’re leaving dollars on the table.”

The second piece is whether or not the demand-driven, or build-to-order, model so highly touted since the e-commerce boom ten years ago, still makes sense for consumer packaged goods manufacturers in today’s economy. “Conceptually, a demand-driven supply chain makes a lot of sense,” says Ellis. “When you think about the supply chain in practical terms, you have factory-utilization and capacity constraints that you just can’t get past. If you’re talking about low volume, high margin products, a build-to-order model works, but I don’t know of any company selling fast-moving, low-margin consumer goods that has been able to make it work.”

While that may sound heretical – haven’t we all been told we have to satisfy a market of one – Ellis uses Dell – the poster child for the build-to-order model – to make his point. “The company is going to produce more preconfigured PCs,” Ellis says, leaving it to the reseller or retailer at the end of the chain to configure the machine to a customer’s requirements.

When Dell shifts gears because of a changing market, it might be time for all of us to take a hard look at how we make and distribute our products.

Let me know what you think about the demand-driven supply chain by posting a comment below or writing me at Robert.Trebilcock@verizon.net .

Quantum Retail Wins 'Supply Chain Excellence' at the 2008 European Retail Solutions Awards

www.quantumretail.com - Mulberry Marketing Communications Dan Brown / Russell Simmons +44.20.7928.7676 dbrown@mulberrymc.com / rsimmons@mulberrymc.com Quantum Retail has come out top in the 'Supply Chain Excellence' category at the European Retail Solutions Show for its work with leading multi-national fashion retailer, New Look.

Quantum's Q solution has been used by New Look Since October 2007 to manage its

inventory replenishment and allocation processes across its 600 locations. The excellent results yielded by Q have not gone unnoticed by the retail technology industry, a fact reflected at the European Retail Solutions Awards ceremony.

New Look's Group IT & E-Commerce Director, Adrian Thompson, said: "As a fast fashion business with our customers at the core of everything we do, we recognized that Quantum Retail's demand forecast model offered us an opportunity to gain significant competitive advantage," Thompson was also impressed with Q's return on investment: "Q went live within 7 months, and had paid for itself just 5 months later."

Over the last 12 months, New Look has increased its retail space by 20% and diversified into new online and franchised channels. In order to support its expansion and diversification, New Look required a superior replenishment solution to improve management of store/SKU demand and supply. Following an extensive review of the solutions available on the market, Quantum's Q solution was selected.

Spencer Maynard, Head of Stock Optimization at New Look added: "Q has enabled us to proactively manage products by exception, whilst the Q system takes care of the day-to-day decisions. We can now focus our attentions on expanding the business and exploring new routes to market."

The prestigious European Retail Solutions Awards is an annual event focused on recognizing retailers and suppliers for excellence and innovation in retail technology. The awards ceremony was held at Old Billingsgate Market in London, following the second day of the Retail Solutions Show.

Chris Allan, Co-Founder of Quantum Retail was delighted with Quantum's achievement: "We are proud to be acknowledged as the leading retail supply chain technology solution at the European Retail Solutions Awards. We believe our solution is the best way to allocate and replenish goods, and we are glad to see that the retail industry has seen the definitive and tangible benefits of the Q system."

Phil Wrigley, New Look's Chairman, concluded: "The Quantum implementation at New Look has been first class. It has placed the customer at the heart of our stock management, and has delivered impressive financial payback."

About Quantum Retail Technology, Inc.

Quantum Retail Technology, Inc. is a leading provider of software solutions that enable demand driven supply networks. Quantum's flagship solution, Q, allows retailers to optimize inventory availability and supply network performance with low risk and high ROI. Q helps retailers continually achieve the merchandise and financial goal for every item in every location. By leveraging item assortment strategies and goals, Q links the art of merchandising with the science of inventory fulfillment. Q is available as an annual subscription and Quantum Retail offers low-impact pilots to ensure value delivery, alignment of investment to benefits and rapid ROI. Q can be deployed in either hosted or customer deployed environments. Quantum Retail's customers include Guitar Center and New Look. For additional information email info@quantumretail.com or visit www.quantumretail.com

About New Look

New Look has 598 stores in the UK and Eire, and 265 stores in France & Belgium trading under the name Mim. In addition, New Look has 15 New Look branded stores in France and Belgium, and has recently opened franchise stores in Dubai, Kuwait and Saudi Arabia.

New Look has a volume share of 5.6% in the Women's Outer/Sportswear age 16+ market, and is the 3rd largest retailer by volume in this market. New Look also has a growing market share in Mens & Kidswear.

New Look is now the number 1 retailer of women's shoes in the UK by volume, with a market share of 7.4%. (Source - TNS).

38% of the British female population(1) has purchased an item of Womenswear(2) from New Look in the past year (52 w/e 30th March 2008). This amounts to just under 9.2 million individuals. The average age of shoppers in New Look is 31.

Further information can be found on www.newlook.co.uk and Product and Management photos are available upon request.

(1) aged 12+ years; excluding Northern Ireland

(2) includes Women's Outer/Sports, Nightwear, Underwear, Hosiery, Footwear & Accessories

Quantum's Q software is recognized for its achievements with fast
fashion retailer New Look

Source by pr-inside.com

Quantum Retail Wins ‘Supply Chain Excellence’ at the 2008 European Retail Solutions Awards

MINNEAPOLIS--(BUSINESS WIRE)--Quantum Retail has come out top in the ‘Supply Chain Excellence’ category at the European Retail Solutions Show for its work with leading multi-national fashion retailer, New Look.

Quantum’s Q solution has been used by New Look since October 2007 to manage its inventory replenishment and allocation processes across its 600 locations. The excellent results yielded by Q have not gone unnoticed by the retail technology industry, a fact reflected at the European Retail Solutions Awards ceremony.

New Look’s Group IT & E-Commerce Director, Adrian Thompson, said: “As a fast fashion business with our customers at the core of everything we do, we recognized that Quantum Retail’s demand forecast model offered us an opportunity to gain significant competitive advantage,” Thompson was also impressed with Q’s return on investment: “Q went live within 7 months, and had paid for itself just 5 months later.”

Over the last 12 months, New Look has increased its retail space by 20% and diversified into new online and franchised channels. In order to support its expansion and diversification, New Look required a superior replenishment solution to improve management of store/SKU demand and supply. Following an extensive review of the solutions available on the market, Quantum’s Q solution was selected.

Spencer Maynard, Head of Stock Optimization at New Look added: “Q has enabled us to proactively manage products by exception, whilst the Q system takes care of the day-to-day decisions. We can now focus our attentions on expanding the business and exploring new routes to market.”

The prestigious European Retail Solutions Awards is an annual event focused on recognizing retailers and suppliers for excellence and innovation in retail technology. The awards ceremony was held at Old Billingsgate Market in London, following the second day of the Retail Solutions Show.

Chris Allan, Co-Founder of Quantum Retail was delighted with Quantum’s achievement: “We are proud to be acknowledged as the leading retail supply chain technology solution at the European Retail Solutions Awards. We believe our solution is the best way to allocate and replenish goods, and we are glad to see that the retail industry has seen the definitive and tangible benefits of the Q system.”

Phil Wrigley, New Look’s Chairman, concluded: “The Quantum implementation at New Look has been first class. It has placed the customer at the heart of our stock management, and has delivered impressive financial payback.”

About Quantum Retail Technology, Inc.

Quantum Retail Technology, Inc. is a leading provider of software solutions that enable demand driven supply networks. Quantum’s flagship solution, Q, allows retailers to optimize inventory availability and supply network performance with low risk and high ROI. Q helps retailers continually achieve the merchandise and financial goal for every item in every location. By leveraging item assortment strategies and goals, Q links the art of merchandising with the science of inventory fulfillment. Q is available as an annual subscription and Quantum Retail offers low-impact pilots to ensure value delivery, alignment of investment to benefits and rapid ROI. Q can be deployed in either hosted or customer deployed environments. Quantum Retail’s customers include Guitar Center and New Look. For additional information email info@quantumretail.com or visit www.quantumretail.com

About New Look

New Look has 598 stores in the UK and Eire, and 265 stores in France & Belgium trading under the name Mim. In addition, New Look has 15 New Look branded stores in France and Belgium, and has recently opened franchise stores in Dubai, Kuwait and Saudi Arabia.

New Look has a volume share of 5.6% in the Women’s Outer/Sportswear age 16+ market, and is the 3rd largest retailer by volume in this market. New Look also has a growing market share in Mens & Kidswear.

New Look is now the number 1 retailer of women’s shoes in the UK by volume, with a market share of 7.4%. (Source – TNS).

38% of the British female population¹ has purchased an item of Womenswear² from New Look in the past year (52 w/e 30th March 2008). This amounts to just under 9.2 million individuals. The average age of shoppers in New Look is 31.

Further information can be found on www.newlook.co.uk and Product and Management photos are available upon request.

¹ aged 12+ years; excluding Northern Ireland

² includes Women’s Outer/Sports, Nightwear, Underwear, Hosiery, Footwear & Accessories

Source by Businesswire

SSAB steels itself for supply chain success

SSAB’s steel plate division says it is upgrading its use of i2’s supply chain solutions and migrating to the i2 Agile Business Process Platform to improve efficiency and supply chain visibility.

Mats Carlsson, quality, planning and service manager at SSAB, explains that the company has been using i2 for forecasting, planning and order management, but that migrating to the new platform will further improve ease of use, as well as business process and workflow management.

“With this upgrade, SSAB Plate Division will ensure stability on a very important part in our order fulfilment process and also gain some advantages of new functionality,” he adds.

That’s because i2’s Agile Business Process Platform has better supply chain data management, staging and integration, an enhanced studio for development, testing and deployment, and an expanded collection of the company’s best practices and supply chain workflows.

i2 distributor ROCE Partners is the prime contractor.

Source by mcsolutions.co.uk

When expenses squeeze a company's bottom line, assistance is vital

Six paradigms to consider before outsourcing to 3PLsJohn Fitzgerald, vice-president of global sales and marketing for SEKO, a US global provider of supply chain solutions, gives his opinion on the outsourcing of supply chain servicesOutsourcing of supply chain services is still increasing despite the weakened US eco-nomy, but the decision for a company to outsource to third party logistics providers is not an all or nothing proposition, and requires an in-depth evaluation of the entire supply chain process.In today's dynamic global business environment with enhanced technologies and vastly extended supply chains, companies are often confused by the many logistics options available to them. Before making a decision on how to best implement a supply chain management process, companies should evaluate their own cultural alignment, core competencies and business capabilities.A company's cultural alignment and cross-departmental capabilities, especially as they relate to technology, will provide the factors in determining whether it should keep supply chain management services in-house, outsource them to a third party logistics provider, or employ a combination of both.John Fitzgerald of SEKO suggests six paradigms that companies should abide by when making an outsourcing decision: Determine the state of your warehouse management system: How state-of-the art is the WMS system you have in place? If your company is consistently out-of-stock with finished products for your customers, your in-house system probably does not have the IT capabilities to avoid poor lead times and missed shipments for your customers. You need to outsource or lose customers. If, on the other hand, your company has the wherewithal to provide the proper implementation of an enhanced and robust IT infrastructure, you may be able to realise cost-savings and efficiencies by avoiding the need to outsource your logistics functions. Take a good look at your production facilities: If you find that your production facilities are down for long periods of time and your logistics operations are not flexible enough to meet the requirements of after-hours deliveries and expedited service, you may have no choice but to pay the extra costs by outsourcing your logistics process on top of paying for large overhead for an inflexible logistics operation. Evaluate your delivery date success: If the targeted dates for your time-sensitive product launches are not consistently being met, it is a good indication your internal staffing and facility capacity cannot keep up with your customer demand. Your company probably requires the assistance of a 3PL. Assess your overhead and fixed logistics costs: If these expenses are squeezing your bottom line, you may realise virtually instant savings by consolidating your warehouse operations with a "shared" facility operated by a 3PL. This can enable you to move fixed costs to a variable expense, which provides flexibility in responding to market dynamics.Examine your company's IT capabilities: If your in-house technology is unable to adapt to your growing supply chain needs, you should consider outsourcing your company's logistics data and integrating it with that of a 3PL that specialises in customised supply chain solutions. Rather than waiting years for a new system to be developed internally, you may find that outsourcing both the technology and logistics process to a suitable 3PL will realise cost savings, while expediting the supply chain process. Evaluate your company's Cus-toms compliance readiness: If your company is unable to develop compliance and cost goals, formal policies, training programmes, internal revenues and supplier compliance programmes, the selection of a suitable 3PL to provide the required skill sets to establish a process-based compliance function is critical.Ultimately, following an in-depth evaluation of the entire supply chain process, many companies find that including a mix of in-house and outsourced logistics functions may provide the best solution for them.In a global economy, where there is no set criterion for supply chain success, companies have to carefully analyse their requirements and determine what logistics processes are best suited to meeting their specific and unique global distribution needs.

Source by cargonewsasia.com

Problems must be monitored throughout food supply chain

Health experts have been warning Americans to limit the processed, "fast" foods we eat because of our country's near-epidemic of obesity, diabetes and other conditions caused by poor diet.

But the swing to eating more fresh foods, even organic produce, has been given pause in recent years as potentially deadly bacteria have cropped up in beef, spinach and, most recently tomatoes.

Carefree eating has, by necessity, become a thing of the past.

The outbreak of E. coli in spinach in 2006 killed five people and sickened hundreds. The outbreak of salmonella in round and plum tomatoes has made 552 Americans in 32 states and the District of Columbia ill so far, with the number expected to rise, according to the Centers for Disease Control and Prevention.

The earliest known salmonella victim got sick April 10, and the latest on June 5, the CDC says. While government officials believe the tainted tomatoes came from Mexico and possibly central Florida, the investigation is continuing. The fact is that such a common bacteria is hard to trace to its source, because there are so many ways it can enter the food chain.

Rooting out pathogens is a major concern, and this editorial page has previously called for greatly expanding the federal food inspection system in the United States. Spurred by public outrage over tainted products from China, the Bush administration has finally agreed to ramp up the Food and Drug Administration, a hopeful sign.

But the tomato problem illustrates the difficult path ahead. Just when health officials thought the outbreak was subsiding, more than 200 new cases cropped up. It is a significant change from the spinach outbreak, probably because about 50 percent of Americans regularly eat tomatoes, compared to only 4 percent who eat spinach. Still, the oversight of our food supply must improve and range from before the crop is planted until it reaches the supermarket shelf.

The burden is not all on the federal government. Farmers and their suppliers should take a hard look at their practices. While not certain, it is a strong possibility that salmonella, which begins in the intestines of animals, made its way into the tomatoes through fertilizer made from livestock waste. Even organically produced manure can carry salmonella and other pathogens from livestock.

More farmers may have to turn to plant compost, for example, to avoid future problems. Meanwhile, processors and distributors of farm products should examine safety standards, as well. Food can become tainted from substances in the water used to clean it. Lastly, we as consumers have the ultimate responsibility for our health and safety. In many cases, foodborne illnesses can be avoided by heeding safe practices.

All fresh produce should be washed (regardless of the "triple-washed" promise on the package), and safe handling and cooking directions followed for meat, dairy and produce, including washing of food-preparation surfaces so that bacteria can't be spread to other foods, as well. In the current salmonella outbreak, washing tomatoes is not a sure-fire protection, the CDC says, but cooking the tomatoes is.

It's true that most of us are busy people who feel we have little time to pore over food labels and food preparation. But the threat of illness -- and worse -- is ever-present in our food supply. We must follow some common-sense practices, or ignore them at our peril.

Source by bucyrustelegraphforum.com

NHS Supply Chain extends iSOFT contract

NHS Supply Chain has extended iSOFT's contract to host its e-commerce and logistics applications until 2010, the IT provider has announced.

The contract is an extension of a ten-year partnership that began with NHS Supply Chain’s predecessor NHS Logistics.

The solution provided by iSOFT, which is part of the IBA Health Group, includes a fully hosted management service and a dual data centre operation. Applications are run in tandem at two separate data centres to safeguard against potential disasters.

Warehouse and management distributions applications are developed and supported by IBA subsidiary iB solutions under a separate contract.

Paul Richards, managing director of iSOFT UK and Ireland, said: “The long-standing relationship with NHS Supply Chain is built on a true partnership in which we constantly review and develop our service model with the customer to ensure we continually meet its evolving business requirements.”

NHS Supply Chain delivers equipment and supplies to 600 NHS hospitals, GP surgeries and other healthcare organisations from six regional distribution centres, as well as providing an online ordering facility and other e-commerce services.

Source: hesmagazine.com

DSI Launches the Supply Chain Development Award 2008

FAIRFAX, Va.--(BUSINESS WIRE)--In 2002, Michael R. Aevermann created DSI (Distribution & Services, Inc.), a company offering food supply chain services to the onboard industry, and has ever since turned it into a fast growing business, thanks to the support of his customers, employees, suppliers and trade community.

Today, in 2008, with more than 20 years of relationships, ventures and successes, it’s “pay-it-forward” time for Michael R. Aevermann and DSI; time to contribute back to a community they like and owe so much.

Through the DSI Supply Chain Development Award, DSI is happy to distinguish a new leader in supply chain, revealing vision, agility, focus, fortitude and determination, and help the recipient seize future opportunities in the 2008 fast moving onboard service industry. The DSI Supply Chain Development Award is launched with the support of the International Flight Services Association Foundation. It provides the opportunity for an individual involved in onboard food supply chain to further their education. The amount of the award is $4,000USD, which includes tuition, living expenses, books and associated costs.

Candidates for the DSI Supply Chain Development Award must complete an application which is available via the IFSA web site at www.ifsanet.com by August 30th, 2008. The recipient of the Award will be notified early September 2008 and will be invited to attend the IFSA Annual Conference September 13-16, 2008 in Orlando, Florida.

For all information about the award, application, award considerations and programs: www.ifsanet.com.

Applications must be sent by mail at

IFSA Foundation/ DSI Supply Chain development Award

Attn: Traci Gibson

1100 Johnson Ferry Road, Suite 300

Atlanta, GA 30342

About DSI

360° Food Supply Chain.

Created in 2002, by Michael R. Aevermann, DSI is a fast growing private company, fully committed to delivering global supply chain services to each of its customers. Its dedicated team of food supply chain operational experts has developed close partnerships with the travel and hospitality industries, providing them with reliable tailor made services through a unique 360° knowledge and approach. DSI 360° food supply services cover every aspect of the food supply chain, from menu design to inventory management, including worldwide sourcing, centralized purchasing, import/export, warehousing, transportation, forecasting and reporting.

News Release Canada, US Sign Mutual Recognition Arrangement Covering Supply Chain Security Programs, PIP and C-TPAT

(Ottawa: July 3, 2008) -- On balance, the Canadian Trucking Alliance is giving the thumbs up to an announcement from the Canada Border Services Agency (CBSA) and US Customs and Border Protection (CBP) that they have signed a mutual recognition arrangement covering the departments’ respective supply chain security programs -- Partners in Protection (PIP) and the Customs-Trade Partnership Against Terrorism (C-TPAT). The June 28^th signing follows months of discussion between CBSA and business groups, including CTA, on ways to bring PIP into line with the more stringent C-TPAT program in the US.

Carriers who were members of the PIP program before June 30^th, 2008, will have six months to re-apply to the re-vamped program. They will be required to complete a security profile, which will be reviewed by CBSA. A follow-up site validation may be required, but CBSA has indicated that this step may not be undertaken if a C-TPAT validation has been carried out within the past two years. Ultimately carriers will be required to sign a Memorandum of Understanding with CBSA that sets out the roles and responsibilities of the respective parties.

“If a carrier is already a C-TPAT member, this should be a relatively straightforward exercise, and they will continue to receive the benefits these programs provide, such as access to FAST lanes at busy international crossings”, says CTA Chief Executive Officer David Bradley. “I’m also pleased to see that CBSA listened to CTA and others in the business community and significantly revised an initial suspend/cancel policy that would have literally driven carriers out of the program. I am confident that the trucking industry, the single largest industry sector in PIP, will be able to comply with these tougher new requirements.”

However, Bradley admits that he “remains disappointed that CBSA and CBP have fallen short of the goal of full mutual recognition – that is, a situation where a carrier need only apply to PIP or C-TPAT, but not both. But we have at least taken an important step forward, and I’m hopeful that we will get there eventually.”

Source by cantruck.com