1. The Glass Pipeline It’s all about Supply Chain Visibility
Wilson Lee
Director of Information Technology

2. What is Supply Chain Visibility
Why is it important to us?
Event Management
Collaboration
Execution & Planning
Monitoring & Visibility
Manufacturing and retail industry leaders are now looking at end-to-end supply chain processes and it has significantly increased the visibility capabilities a 3PL needs in order to match their requirements

3. What happened in the last 50 years…
Domestic Manufacturing
Domestic Distribution
Domestic Market
60’s
Age of
Brand
Building
Domestic Manufacturing Outsource
Domestic Distribution
Domestic Market
70’s
Age of
Manufacturing
Optimization
Offshore Outsource Manufacturing
Domestic Distribution
International Market
International Freight to Destination DC
80’s
Sourcing
90’s
Offshore Outsource Manufacturing
Multi-modal International Freight/Express
International Tiered Market
Distributed Offshore Distribution
Age of
Supply Chain
Optimization
00’s
Supply Chain Management

4. Imagine you are… the VP, Logistics of a MNC
How to close down the DC against the Union?
How can I move those activities along the supply chain out of this expensive place? Who can I trust?
You’re continuously regarded as a heavy cost center or a costly supporting function out of the Corporation’s core competence. Frontline Brands have increasing demand on cutting cost.
One day, you are sitting in your US Headquarters office struggling with your survival in the Corporation, what are you thinking now ?

5. An Opportunity for us
We have the established network of facilities, partners and relationships throughout China & Asia.
Low cost country sourcing and distribution hubs are continuously shifting into the region.
Major foreign companies have higher expectations on their logistics service providers, both in terms of the services offered and the levels of performance.
These foreign companies are forced to look to their major 3PL partners to support expanded global operations.
Logistics operation is further regarded as their non-core competence to be outsourced. The matter is how the service providers can provide the confidence for these companies to let go their supply chain control.
We have the logistics infrastructure in place, it needs to be able to offer the services that these large foreign companies regard as compelling in order to maximize market potential.

6. Today’s Global 3PL Services Model
Domestic Logistics Center
Domestic Delivery Destination
Overseas Logistics Hub
Overseas Factory
Affiliated Customs Broker
Forwarding
Delivery
Forwarding/Delivery
Export
Import
Logistics for Manufacturing
Logistics for Sales
Logistics for Overseas
Order Placement for Customers
Customer (Factory)
Raw Material Manufacturers
OMS
WMS
TMS
FMS
Key Success Factor – A tool to manage this complex scenario.
Give confidence to Supply Chain owner to be hands-off from their Supply Chain !

7. The SCM Value Proposition
Supply Chain Owner’s feeling on Outsourcing:
Willing to
Supply Chain Solution
Supply Chain Modeling Total Supply Chain Outsourcing
Ability to Design
Comfortable
Supply Chain Management
Supply Chain Visibility & Proactive Management
Ability to Manage
Worry
Discrete Logistics Services
Operational Capabilities (WMS, TMS, FMS, T&T)
Ability to
Operate
Value Added

8. The SCM Value Proposition
Highly Sustainable Business
Supply Chain Solution
Supply Chain Modeling Total Supply Chain Outsourcing
Margin
Revenue
Margin
Ability to Design
Customer Retention
Ability to Manage
Supply Chain Management
Supply Chain Visibility & Proactive Management
Ability to
Operate
Value Added
Discrete Logistics Services
Operational Capabilities (WMS, TMS, FMS, T&T)

9. What is Supply Chain Visibility?
Supply Chain Modeling
Supply Chain Visibility
Pipeline Visibility
Cost Visibility
Event Management

10. Three Elements of Visibility
Pipeline Visibility
Cross Business Units / Service Providers Item Tracking Capability.
Event Management
Relationship Management between Supply Chain Nodes with event triggered actions to enable proactive Supply Chain Management.
Cost Visibility
Cost Element Identification down to piece level in each of the Supply Chain Nodes.

11. The Kerry Logistics Approach - KerrierVISION A Service Oriented Architecture
Initial Goal – Pipeline Visibility
Ultimate Goal – Cost Visibility
Medium Term Goal – Supply Chain Event Management
KerrierVISION SCV Portal
Standard
EVENTS
SERVICE
Application
Systems E1 E2 E3 E4 E5 E6 S1 S2 S3 S4 S5 S6
Other Application Sources
???
Kerrier Applications
WMS
TMS
FMS
SSS

12. Visualized Supply Chain

13. Integrated View along the Supply Chain

14. Event Driven Alert & Action

15. SKU Level Visibility

16. Forecast Capability

17. Importance of Visibility
According to Aberdeen research … fully 79% of executives at large enterprises (over US$1B) point to poor supply chain visibility as their top concern for managing their global supply chain operations.
Supply chain visibility technology users are:
2.4 times as likely to have reduced their inventory levels since 2004.
Three times as likely to have faster order to delivery times.
Twice as likely to have an on-time delivery rate of 95 percent or higher.
The Supply Chain Visibility Roadmap, November 2006, Aberdeen Group

18. Design the supply chain
The High End Job
Hong Kong’s edge
Design the supply chain
Develop HK as the regional supply chain designer.
Control the supply chain
Develop HK as the regional supply chain control center.
Business Intelligence.
Business Performance Management.
Information Brokerage.
DESIGN
EXECUTE

19. Excessive Stock is just a matter of supply chain inefficiency
Excessive Stock is just a matter of supply chain inefficiency! Thank You