An Overview of ever changing Inter ASEAN trade and its impact on warehousing and supply chain

Transcription

1 An Overview of ever changing Inter ASEAN trade and its impact on warehousing and supply chain Watcharapoj Sapsanguanboon, Ph.D., CSCP, SCOR-P Graduate School of Management and Innovation King Mongkut s University of Technology Thonburi

2 Agenda Intra-ASEAN trade Future value proposition Warehousing roles in supply chain Changes and its impact on warehousing and supply chain

3 ASEAN Strategic Direction in 2017 Source: OECD Development Center

4 Trade opportunities for Thailand Thailand shares common land borders with 4 neighboring countries at a total length of 5,582 km Source: Thailand Board of Investment

5 Major trade trends Cross boarder trade E-commerce

6 Thailand as a logistics hub The Cabinet has approved the Ministry of Transport s Infrastructure Development Plan ( ) which calls for an investment of at least THB 1.8 trillion (USD 51 billion) for 20 mega-projects in all modes of transportation, covering roads, rail, air transport and ports throughout Thailand. The efficiency of Thai logistics operations has been improved by incorporating e-logistics, paperless customs procedures across the borders of the Greater Mekong Sub-region; and a One Stop Export Service Center, which comprises 17 public and private export related organizations

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8 Technological Change In the past Today

9 Buying products In the past Today

10 Warehousing In the past Today

11 Distribution In the past Today

12 Logistics Evolution

13 Outlook The dramatic growth in e-commerce, which a recent report from Research and Markets, predicted B2C E-Commerce sales in Asia- Pacific would continue to increase at double-digit rates through 2019 has changed how distribution centres operate.

14 Future value proposition Value proposition in the past - Economies of scale - Cost effectiveness - Lack of flexibility Value proposition in the future - Economies of scope - Customizable - Fast and flexible

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17 Warehouse roles in Supply Chain

18 Supply Chain Information flow Tier 2 materials supplier Tier 2 materials supplier Tier 1 materials supplier Distributor Customer Customer Tier 2 service supplier Tier 1 materials supplier Manufacturer Customer Tier 2 materials supplier Distributor Tier 2 service supplier Tier 1 service supplier Primary product flow Primary cash flow Customer

19 Distribution The activities associated with the movement of materials usually finished goods from the manufacturer to the customer These activities encompass the functions of; Transportation Warehousing Inventory control Material handling Order administration Site and location analysis Packaging Data processing Source: APICS Dictionary

20 Distribution Center Distribution centers are usually thought of as being demand driven A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center The name by which the distribution center is known is commonly based on the purpose of the operation

21 Supply Chain Transformation

22 Future warehouse management Omni-Channel Order Fulfillment

23 Future warehouse management Technology-based Fulfillment

24 Future warehouse management

25 Future warehouse management

26 Future warehouse management Warehouse Management System As e-commerce continues to grow, ensuring distribution centre efficiency must be a top priority. This can be achieved with help from a warehouse management system (WMS) whose algorithms can ensure that processing a number of the same simple orders at once is handled as efficiently as if you were processing just one single order.

27 Future warehouse management Handling return Distribution centres of the future must strive to make the return process as easy as possible, both for them and for the consumer. One example of an effective practice is when distribution centres include a label for return shipping inside the original package, allowing dissatisfied customers to return their packages with minimal hassle for both parties.