Scm Tribune Article
1
T HE supply chain is generally not something that the wider public thinks about until there is a problem. Your favourite product hasn’t appeared on the shelves for weeks – I won- der if there’s an issue with the supplier. Your favourite food might be contaminated by dioxins – can I really trust where this piece of meat came from? But what you are seeing in the shops and super- markets is just the end of the supply chain, which stretch- es back through agents and wholesalers, into the facto- ries, and back out the other end as the raw materials which need to be collected to begin the assembly of the product. Anyone working in manu- facturing, logistics, whole- saling and retail has to consider the supply chain. It is not something that hap- pens as a by-product of busi- ness; in many cases, it is the business. And like any busi- ness processes, the supply chain can be streamlined to have a positive effect on pro- ductivity and the bottom line – indeed, supply chain man- agement dovetails neatly with some of the most modern business practices such as Lean and Six Sigma, and advances is technology, espe- cially in the area of trace- ability, have greatly helped the sector. In difficult times, any busi- ness advantage that a com- pany can get will be hugely beneficial, especially when that advantage impacts pos- itively on the bottom line. But these advantages can also have a positive effect across an entire industry, with sig- nificant benefits for end users. This is because the efficiency and cost savings engendered by professional supply chain management will reach throughout the entirety of a business’ processes; but it also has a knock-on effect across the whole of the supply chain, in that professionalism in one part will demand profession- alism from partners at either end. Line any chain, the sup- ply chain is only as strong as its weakest link; and in a mod- ern economy that demands accountability and traceabil- ity, it is no longer acceptably for lower standards to apply anywhere. But like any business dis- cipline, professional supply chain management is not something that happens by accident. It has to be learned, and this learning has to be spearheaded by the growing breed of managers whose sole job is the management and streamlining of the sup- ply chain. “As more and more responsibility is placed on the logistics function, the need has intensified for its practitioners to be highly skilled in the various ele- ments of Supply Chain Man- agement and to be completely up to date with best prac- tices in the industry both national and international,” said Micheál Lynham of the Chartered Institute of Logis- tics and Transport in Ireland (www.cilt.ie). “Logisticians must take their place along- side engineers and account- ants as proficient and exceptionally well-trained professionals.” Given that supply chain management was generally devolved to the person who happened to be in charge of logistics, there are a number of people across industries who will benefit from the upskilling that CILT’s Diplo- ma course can bring. There has been, until recently, a lack of structured logistics training available, but as the professional body for logistics and transport professionals, CILT is dedicated to bridging this competency gap and to enhancing the professional- ism of those involved in the industry. More than 130 profession- als graduate every year from CILT’s Diploma in Logistics & Supply Chain Manage- ment, a two-year part-time programme which explores and critically examines the latest logistics success recipes with a view to their application in the partici- pant’s own organisation. Stu- dents are awarded an Advanced Certificate in Logistics on successful com- pletion of the first year, and the Diploma at the end of year two. CILT is not the only organ- isation now providing pro- fessional supply chain management programmes and, for example, University College Cork offers a range of part-time programmes from undergraduate to postgrad- uate level “designed to improve global supply chain processes through cost reduction and value-add”. Successful supply chain man- agement requires strategic and operational alignment, which is why programmes offered by UCC include a strong emphasis on logistics, supply chain efficiency, nego- tiation, strategy, information systems, demand manage- ment, change and innovation, and integrated project man- agement. The University is also responding to a need for enhanced skills in the supply chain sector which has been identified by the highest lev- els of government. “The current environment is characterised by increasing demand for service and value, and thus supply chain man- agement has an increasing role in manufacturing and service organisations,” said Programme Academic Direc- tor Dr. Seamus O’Reilly. “The range of part-time pro- grammes in SCM (at UCC) are designed to support firms as they move up the value chain. Indeed many of the companies participating in these programmes have moved ‘from factory to serv- ice’ and aim to build global service centres.” There is also strong emphasis on Lean Supply Chain Management in UCC’s programmes, and UCC has teamed up with Lean practi- tioners The Leading Edge Group as the programme offered blend academic and practical expertise, create an interactive learning envi- ronment (including work- place and classroom learning) and enhance indi- vidual and company capabil- ity. M anufactur- ing has been mov- ing east- ward over the years and it appears to have found a permanent home in China. There are, however, still a large number of western companies who have yet to outsource their manufactur- ing processes to the East because of a lack of knowl- edge of the Chinese market and ways of doing business. An Irish company is bridg- ing the divide by taking own- ership of the outsourcing process, thereby ensuring that western manufacturers can find a Chinese factory in which they can have full trust in its ability to deliver on time, to the specifications required and all at a fraction of the cost of manufacturing them in the EU. Headquartered in Dublin, China Price already has a number of clients from Ire- land (North and South), as well as from the UK, East- ern Europe and South Africa, all of which are utilising the unique services provided by the company to find them manufacturing partners in China. China Price was founded by Paul Sandilands, an entrepreneur who estab- lished his own business sell- ing candles and giftware in Dublin while working full time in the electronics and communications industry. Sandilands’ experiences in retail, wholesale and manu- facturing led him to China, where he pioneered a service which created manufacturing partnerships between other European companies and Chinese facilities. It was this experience which led to the creation of China Price, a company with offices in Dublin and in Tianjin which currently employs 45 full time staff and which can draw on the services of dedicated experts across a number of fields of manufacturing. Indeed, China Price is con- stantly looking to update the panel of industry specialists with whom it can partner – and these professionals will benefit from the ability to tap into new markets and the lower cost bases in the East. “People in business can still have anxieties when they think of China,” said Sandi- lands. “And it’s true that there are often complications when it comes to dealing with the Chinese, in terms of lan- guage and culture. But we have built strong relation- ships with the management and staff across a number of Chinese manufacturing facil- ities and that has allowed us to break down any of the bar- riers to trade that might pre- vent companies from looking to the East.” The migration of manu- facturing to China is almost exclusively due to economic factors and these economic factors have been exacer- bated by the current reces- sion. But the move has also been facilitated by an overall acceptance of outsourcing as a means of doing business. Most companies operate some form of outsourcing, whether it is outsourcing of their financial, maintenance or IT functions; but it is not much of a stretch for a man- ufacturing company to go further and outsource its manufacturing and supply chain management functions. The advantages to out- sourcing are manifold, and they are not merely confined to cost savings. Outsourcing has long been championed because it allows a company to concentrate on its core business. So by outsourcing labour-intensive functions such as manufacturing to a lower cost base, innovative companies can get on with value-added activities such as R&D or sales and market- ing. China Price operates across four main sectors, although such is its business model that it would be possi- ble for it to find a Chinese manufacturing partner for practically any product type. These four areas are as fol- lows: Packaging, including Food-Grade Packaging; Chemicals, which are then supplied to industries as diverse as food and bever- ages, paints, pharmaceuti- cals and plastics; finished Food Products (and China Price has recently added to its list of clients by taking on one of the leading products featured on Dragon’s Den); and Technology, Construc- tion and Medical Devices. Obviously, any company will demand the highest stan- dards when it comes to the manufacturing of their prod- ucts, but this is especially true of those operating in food, technology and med- ical devices. This is why China Price has gone to great lengths to source only the top factories in China for a proj- ect. It does this by utilising the services of its specialists who are on the ground in China and who have first- hand experience of the con- ditions and practices in each facility. These specialists, in turn, understand the exact specifications of each indi- vidual industry. Every factory chosen by China Price comes with the highest standards of docu- mentation, including relevant ISO certifications and other industry specific require- ments. “We offer our clients sig- nificantly lower costs on the manufacturing, while pro- viding all the conformity and certifications required by their industries,” explained Sandilands. China Price’s services do not end with a finished prod- uct – indeed, in many cases, the finished product is only the start of the service. One of the most significant barriers to trade with China is the supply chain, from sourcing of raw materials to eventual shipping. But China Price takes all of those headaches away from its clients by con- trolling every element in the supply chain, from the han- dling of its clients’ money to the delineation of any pay- ment structures. It can man- age the handling of the goods, from packaging and pallet- ing, to shipping and distribu- tion; and depending on its clients needs, it can deliver in bulk to them, or deliver direct to their customers, bar coded and shelf-ready, if required. If its Irish clients do not want to take delivery of the entire order at once, China Price even has a warehousing facility in Greenogue in which it can store an array of goods for later delivery. It is also worth noting that China Price operates the sup- ply chain in both directions, handling imports to China from companies in the West- ern World. Jones Soda and Skinny Water are two such leading brands for which China Price handles their per- mits, media and advertising in the East. “It is a tough time out there for every businessperson,” said Sandilands. “But we are confident that the future of manufacturing lies in out- sourcing. We’re fulfilling a major part of the supply chain, from manufacturing, to the supply of products, and the only major components left to our clients are sales and marketing and research and development. But these are probably the most impor- tant things that businesses can do to generate sales into the future.” For further information on manufacturing or partnership opportunities, call 01 4264968, e-mail [email protected] or visit www.chinaprice.eu S INCE Cold Move launched its operation four years ago, its company owners has continued to invest very heavily into an I.T. infra- structure system where every stock movement on a client’s account triggers a notification to the client. “That’s how Cold Move is able to deliver on its com- mitment for total stock visi- bility at all stages of the logistics process”, explains Jason Mallon, General Man- ager of the Galway based cold logistics firm . “We have also improved our transport network and have continued to invest in staff training, because no matter how fantastic our facilities are, our people have to be the best too. To that end we ensure that all of our employees are trained in the principals of HACCP” . On a separate note, Mal- lon also said, “We are also interested in speaking to manufacturing companies looking to locate to the Gal- way area. We have several turnkey manufacturing facil- ities to let ,right beside our base in Oranmore. The opportunity to base a food manufacturing operation lit- erally next door to us, pro- vides an attractive incentive for any food manufacturer, as they will have access to trans- port and warehouse facilities on-site”. There will soon be a slip road from these manufac- turing units leading directly to the proposed new Outer Galway Ring Road and that together with the huge infra- structural improvements to the M6 Galway to Dublin route and the on-going improvements to the N18, to include the opening of the Gort by-pass later this year, ensures that Dublin, Shan- non, Limerick and Cork are all much more accessible. Assessing Cold Move’s future, he suggested, “The fundamental challenge for our business now, is to con- tinue to attract leading pro- ducers, retailers and distributors to the facility, to augment our success to date”. Supply Chain Management Advertising enquiries and general suggestions to roconnor~tribune.ie Moving up the value chain with professional supply chain management Moving Cold Logistics to a new level Taking the risk out of manufacturing in China New methodologies and technologies can make a genuine difference to a company’s bottom line, writes Dave Boland Find out more: www.coldmove.ie Cold Move | Glenasaul Industrial Park | Oranmore | Galway We have all the ingredients you need to make your business grow. Are you the owner or manager of a food production company looking to increase profits? Cold Move has everything you need to help your business increase profits, expand & succeed. Locate your manufacturing requirements to our turnkey facilities. Benefits include: Client specific manufacturing facilities Excellent location, direct access to new M6/N18 Flexibility, various business models available Low start-up capital requirement Manufacturers supported by Cold Move management structure Access to National & International logistics infrastructure Direct access to warehousing capability Contact Jason Mallon Call: +353 (0)91 792926 Email: [email protected] TEXT TODAY 086-8091893 & WE WILL CALL YOU BACK TOMORROW Jason Mallon, General Manager & Stephen Gillen, Operations Manager - Cold Move Paul Sandilands - Managing Director - China Price Graduates for 2009 Diploma in Logistics & Supply Chain Management Irish company China Price is facilitating the migration of western manufacturing to lower cost bases in the East
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Transcript of Scm Tribune Article
THE supply chainis generally notsomething thatthe wider publicthinks aboutuntil there is a
problem. Your favouriteproduct hasn’t appeared onthe shelves for weeks – I won-der if there’s an issue withthe supplier. Your favouritefood might be contaminatedby dioxins – can I really trustwhere this piece of meatcame from? But what you areseeing in the shops and super-markets is just the end of thesupply chain, which stretch-es back through agents andwholesalers, into the facto-ries, and back out the otherend as the raw materialswhich need to be collected tobegin the assembly of theproduct.
Anyone working in manu-facturing, logistics, whole-saling and retail has toconsider the supply chain. Itis not something that hap-pens as a by-product of busi-ness; in many cases, it is thebusiness. And like any busi-ness processes, the supplychain can be streamlined tohave a positive effect on pro-ductivity and the bottom line– indeed, supply chain man-agement dovetails neatly with
some of the most modernbusiness practices such asLean and Six Sigma, andadvances is technology, espe-
cially in the area of trace-ability, have greatly helpedthe sector.
In difficult times, any busi-
ness advantage that a com-pany can get will be hugelybeneficial, especially whenthat advantage impacts pos-
itively on the bottom line. Butthese advantages can alsohave a positive effect acrossan entire industry, with sig-nificant benefits for endusers. This is because theefficiency and cost savingsengendered by professionalsupply chain managementwill reach throughout theentirety of a business’processes; but it also has aknock-on effect across thewhole of the supply chain, inthat professionalism in onepart will demand profession-alism from partners at eitherend. Line any chain, the sup-ply chain is only as strong asits weakest link; and in a mod-ern economy that demandsaccountability and traceabil-ity, it is no longer acceptablyfor lower standards to applyanywhere.
But like any business dis-cipline, professional supplychain management is notsomething that happens byaccident. It has to be learned,and this learning has to bespearheaded by the growingbreed of managers whosesole job is the managementand streamlining of the sup-ply chain.
“As more and moreresponsibility is placed onthe logistics function, the
need has intensified for itspractitioners to be highlyskilled in the various ele-ments of Supply Chain Man-agement and to be completelyup to date with best prac-tices in the industry bothnational and international,”said Micheál Lynham of theChartered Institute of Logis-tics and Transport in Ireland(www.cilt.ie). “Logisticiansmust take their place along-side engineers and account-ants as proficient andexceptionally well-trainedprofessionals.”
Given that supply chainmanagement was generallydevolved to the person whohappened to be in charge oflogistics, there are a numberof people across industrieswho will benefit from theupskilling that CILT’s Diplo-ma course can bring. Therehas been, until recently, alack of structured logisticstraining available, but as theprofessional body for logisticsand transport professionals,CILT is dedicated to bridgingthis competency gap and toenhancing the professional-ism of those involved in theindustry.
More than 130 profession-als graduate every year fromCILT’s Diploma in Logistics
& Supply Chain Manage-ment, a two-year part-timeprogramme which exploresand critically examines thelatest logistics successrecipes with a view to theirapplication in the partici-pant’s own organisation. Stu-dents are awarded anAdvanced Certificate inLogistics on successful com-pletion of the first year, andthe Diploma at the end ofyear two.
CILT is not the only organ-isation now providing pro-fessional supply chainmanagement programmesand, for example, UniversityCollege Cork offers a range ofpart-time programmes fromundergraduate to postgrad-uate level “designed toimprove global supply chainprocesses through costreduction and value-add”.Successful supply chain man-agement requires strategicand operational alignment,which is why programmesoffered by UCC include astrong emphasis on logistics,supply chain efficiency, nego-tiation, strategy, informationsystems, demand manage-ment, change and innovation,and integrated project man-agement.
The University is also
responding to a need forenhanced skills in the supplychain sector which has beenidentified by the highest lev-els of government.
“The current environmentis characterised by increasingdemand for service and value,and thus supply chain man-agement has an increasingrole in manufacturing andservice organisations,” saidProgramme Academic Direc-tor Dr. Seamus O’Reilly. “Therange of part-time pro-grammes in SCM (at UCC)are designed to support firmsas they move up the valuechain. Indeed many of thecompanies participating inthese programmes havemoved ‘from factory to serv-ice’ and aim to build globalservice centres.”
There is also strongemphasis on Lean SupplyChain Management in UCC’sprogrammes, and UCC hasteamed up with Lean practi-tioners The Leading EdgeGroup as the programmeoffered blend academic andpractical expertise, create aninteractive learning envi-ronment (including work-place and classroomlearning) and enhance indi-vidual and company capabil-ity.
Manufactur-ing hasbeen mov-ing east-ward overthe years
and it appears to have founda permanent home in China.There are, however, still alarge number of westerncompanies who have yet tooutsource their manufactur-ing processes to the Eastbecause of a lack of knowl-edge of the Chinese marketand ways of doing business.
An Irish company is bridg-ing the divide by taking own-ership of the outsourcingprocess, thereby ensuringthat western manufacturerscan find a Chinese factory inwhich they can have full trustin its ability to deliver on time,to the specifications requiredand all at a fraction of thecost of manufacturing themin the EU.
Headquartered in Dublin,China Price already has anumber of clients from Ire-land (North and South), aswell as from the UK, East-ern Europe and South Africa,all of which are utilising theunique services provided bythe company to find themmanufacturing partners inChina. China Price wasfounded by Paul Sandilands,an entrepreneur who estab-lished his own business sell-ing candles and giftware inDublin while working fulltime in the electronics andcommunications industry.
Sandilands’ experiences inretail, wholesale and manu-facturing led him to China,where he pioneered a servicewhich created manufacturingpartnerships between otherEuropean companies andChinese facilities. It was thisexperience which led to thecreation of China Price, acompany with offices inDublin and in Tianjin whichcurrently employs 45 full timestaff and which can draw onthe services of dedicatedexperts across a number offields of manufacturing.
Indeed, China Price is con-stantly looking to update thepanel of industry specialistswith whom it can partner –and these professionals willbenefit from the ability to tapinto new markets and thelower cost bases in the East.
“People in business can stillhave anxieties when theythink of China,” said Sandi-lands. “And it’s true thatthere are often complicationswhen it comes to dealing withthe Chinese, in terms of lan-guage and culture. But wehave built strong relation-ships with the managementand staff across a number ofChinese manufacturing facil-ities and that has allowed usto break down any of the bar-riers to trade that might pre-vent companies from lookingto the East.”
The migration of manu-facturing to China is almostexclusively due to economicfactors and these economicfactors have been exacer-bated by the current reces-sion. But the move has alsobeen facilitated by an overallacceptance of outsourcing asa means of doing business.Most companies operatesome form of outsourcing,whether it is outsourcing oftheir financial, maintenanceor IT functions; but it is notmuch of a stretch for a man-
ufacturing company to gofurther and outsource itsmanufacturing and supplychain management functions.
The advantages to out-sourcing are manifold, andthey are not merely confinedto cost savings. Outsourcinghas long been championedbecause it allows a companyto concentrate on its corebusiness. So by outsourcinglabour-intensive functionssuch as manufacturing to alower cost base, innovativecompanies can get on withvalue-added activities suchas R&D or sales and market-ing.
China Price operatesacross four main sectors,although such is its businessmodel that it would be possi-ble for it to find a Chinesemanufacturing partner forpractically any product type.These four areas are as fol-lows: Packaging, includingFood-Grade Packaging;Chemicals, which are thensupplied to industries asdiverse as food and bever-ages, paints, pharmaceuti-cals and plastics; finishedFood Products (and ChinaPrice has recently added toits list of clients by taking onone of the leading productsfeatured on Dragon’s Den);and Technology, Construc-tion and Medical Devices.
Obviously, any companywill demand the highest stan-dards when it comes to themanufacturing of their prod-ucts, but this is especiallytrue of those operating infood, technology and med-ical devices. This is whyChina Price has gone to greatlengths to source only the topfactories in China for a proj-ect. It does this by utilisingthe services of its specialistswho are on the ground inChina and who have first-hand experience of the con-ditions and practices in each
facility. These specialists, inturn, understand the exactspecifications of each indi-vidual industry.
Every factory chosen byChina Price comes with thehighest standards of docu-mentation, including relevantISO certifications and otherindustry specific require-ments.
“We offer our clients sig-nificantly lower costs on themanufacturing, while pro-viding all the conformity andcertifications required bytheir industries,” explainedSandilands.
China Price’s services donot end with a finished prod-uct – indeed, in many cases,the finished product is onlythe start of the service. One ofthe most significant barriersto trade with China is thesupply chain, from sourcingof raw materials to eventualshipping. But China Pricetakes all of those headachesaway from its clients by con-trolling every element in thesupply chain, from the han-dling of its clients’ money tothe delineation of any pay-ment structures. It can man-age the handling of the goods,from packaging and pallet-ing, to shipping and distribu-tion; and depending on itsclients needs, it can deliver inbulk to them, or deliver directto their customers, bar codedand shelf-ready, if required.
If its Irish clients do notwant to take delivery of theentire order at once, ChinaPrice even has a warehousingfacility in Greenogue in whichit can store an array of goodsfor later delivery.
It is also worth noting thatChina Price operates the sup-ply chain in both directions,handling imports to Chinafrom companies in the West-ern World. Jones Soda andSkinny Water are two suchleading brands for whichChina Price handles their per-mits, media and advertisingin the East.
“It is a tough time out therefor every businessperson,”said Sandilands. “But we areconfident that the future ofmanufacturing lies in out-sourcing. We’re fulfilling amajor part of the supplychain, from manufacturing,to the supply of products, andthe only major componentsleft to our clients are salesand marketing and researchand development. But theseare probably the most impor-tant things that businessescan do to generate sales intothe future.” For further information onmanufacturing or partnershipopportunities, call 01 4264968,e-mail [email protected] orvisit www.chinaprice.eu
SINCE ColdMove launchedits operationfour years ago,its companyowners has
continued to invest veryheavily into an I.T. infra-structure system whereevery stock movement on aclient’s account triggers anotification to the client.
“That’s how Cold Move isable to deliver on its com-mitment for total stock visi-bility at all stages of thelogistics process”, explainsJason Mallon, General Man-ager of the Galway basedcold logistics firm .
“We have also improvedour transport network andhave continued to invest instaff training, because nomatter how fantastic ourfacilities are, our people haveto be the best too. To thatend we ensure that all of ouremployees are trained in the
principals of HACCP” .On a separate note, Mal-
lon also said, “We are alsointerested in speaking tomanufacturing companieslooking to locate to the Gal-way area. We have severalturnkey manufacturing facil-
ities to let ,right beside ourbase in Oranmore. Theopportunity to base a foodmanufacturing operation lit-erally next door to us, pro-vides an attractive incentivefor any food manufacturer, asthey will have access to trans-
port and warehouse facilitieson-site”.
There will soon be a sliproad from these manufac-turing units leading directlyto the proposed new OuterGalway Ring Road and thattogether with the huge infra-structural improvements tothe M6 Galway to Dublinroute and the on-goingimprovements to the N18, toinclude the opening of theGort by-pass later this year,ensures that Dublin, Shan-non, Limerick and Cork areall much more accessible.
Assessing Cold Move’sfuture, he suggested, “Thefundamental challenge forour business now, is to con-tinue to attract leading pro-ducers, retailers anddistributors to the facility, toaugment our success todate”.
Supply Chain ManagementAdvertising enquiries and general suggestions to roconnor~tribune.ie
Moving up the value chain with professional supply chain management
Moving Cold Logistics to anew level
Taking the risk out of manufacturingin China
New methodologies and technologies can make a genuine difference to a company’s bottom line, writes Dave Boland
Find out more: www.coldmove.ie
Cold Move | Glenasaul Industrial Park | Oranmore | Galway
We have all the ingredients you need to make your business grow. Are you the owner or manager of a food production company looking to increase profits? Cold Move has everything you need to help your business increase profits, expand & succeed.
Locate your manufacturing requirements to our turnkey facilities. Benefits include:
Client specific manufacturing facilities
Excellent location, direct access to new M6/N18
Flexibility, various business models available
Low start-up capital requirement
Manufacturers supported by Cold Move management structure
Access to National & International logistics infrastructure
Direct access to warehousing capability
Contact Jason Mallon Call: +353 (0)91 792926 Email: [email protected]
TEXT TODAY 086-8091893 & WE WILL CALL YOU BACK TOMORROW
Jason Mallon, General Manager & Stephen Gillen, Operations Manager - Cold Move
Paul Sandilands - Managing Director - China Price
Graduates for 2009 Diploma in Logistics & Supply Chain Management
Irish company China Price is facilitating the migration of westernmanufacturing to lower cost bases in the East
