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Shippers' interests take centerstage in SCMAP Perspective, written by Ed Sanchez, executive director of the Supply Chain Management Association of the Philippines. SCMAP is the association of logistics and distribution managers in the Philippines.


You are now in: SCMAP Perspective Archive : 2005 Q2



*No Competition (April 18, 2005)

*From Logistics to Supply Chain AGRILINK/Foodlink 2005 held its first co-organizers meeting last week. (May 2, 2005)

 
No Competition

THE joke of the day is something said by a Dept. Secretary in a cabinet meeting. This is the version of the story that we heard. A proposed EO allowing the conversion of private non-commercial ports into commercial ports was being discussed.

After the proponent said that the EO would foster competition, the President said that that was good. To which the secretary said, Ma'm, hindi pwede sa amin 'yan; here in my department, we have no competition. Talking about the President, she is expected to be the keynote speaker at the Western Mindanao Roro Shipping Conference slated on April 27 in Zamboanga City.

DMAP is also invited to provide a speaker on 'Success Stories in RORO Shipping'. Most likely it will be DMAP past President Cora Curay who would go there. Key government transport officials are also expected, including DOTC Sec. Leandro Mendoza, MARINA Administrator Vic Suazo, PSB Executive Director Pete Mendoza and PPA GM Oscar Sevilla.

The Zamboanga conference will nearly coincide with the 3rd Philippine Shipping and Ports Conference, to be held at the Manila Peninsula on April 28-29. We also heard that the Oversight Committee held a hearing about Cong. Ed Zialcita's speech "Where there's smoke, there's fire". This concerns the stance of the PPA with respect to ATI, ICTSI and Harbour Centre.

A second hearing is to be held next Wednesday. Meanwhile, dismissed PPA official Leopoldo Bungubung is still sitting in his office. In domestic shipping, everything is quiet at this time about shipping rates. At the MARINA, Ric Romero has now been designated Deputy Administrator for Operations. Forum on Measuring Supply Chain Performance Last chance to join this half-day forum on April 22 at the Astoria Plaza.

It features a panel of speakers who will share their wide experience on:

What measures are important?

* Overall logistics and supply chain measures
* Warehousing, transportation, inventory management, customer service, etc.
* How do you measure service providers

What do top Philippine companies do? The panel of speakers includes:

* Ike Castillo (James Hardie, formerly Zuellig Pharma, Nestle)
* Cora Curay (XVC Logistics, formerly Coca-Cola)
* Jun Gabrino (Splash)
* Boy Arceo (Smart)


I will do the intro and summary. Next in the lineup of DMAP training activities is the Shipping Immersion Course, scheduled for May 6 to 8. It is a seminar on board the Mary Queen of Peace, a Negros Navigation vessel, while en route to Boracay.

Speakers will include maritime industry experts, Ric Romero (designated MARINA Deputy Administrator), Hector Miole (PPA), Atty. Pete Mendoza (PSB), Prof. Henry Basilio (UA&P) and Cora Curay (DMAP).

Still on training, the DMAP-DLSU program on Logistics Management is ongoing at the DLSU Greenhills campus. Ongoing are Modules 1 (Evolution of SCM) and 3 (Inventory Management).

DMAP's contest for this year's conference theme was selected at DMAP's last Board meeting on April 5. The winning theme is "Seamless Supply Chain in an Archipelagic Environment: A Continuing Challenge".

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From Logistics to Supply Chain AGRILINK/Foodlink 2005 held its first co-organizers meeting last week

DMAP is a co-organizer for the second year in a row. After last year's theme on Transport, this year's theme is "Supply Chain Efficiency: Key to Competitiveness". What a theme! Right down DMAP's alley. Supply chain efficiency is something sorely needed, not only by agriculture, but by all industry. In industry, logistics cost is in the region of 8 to 12% of sales value.

In agriculture it is probably in excess of 25%, higher for highly perishable products. In general, the % tends to be higher for products that use refrigeration (fresh meats, fruits, ice cream) or have returnables (beverages), or use air transport (highly perishable, high value, small items), while the % tends to be lower for very high-value products (pharmaceuticals).

For its own annual conference to be held in September, DMAP's theme also mentions Supply Chain. Its theme is "Seamless Supply Chain in an Archipelagic Environment: A Continuing Challenge". See below for more details on the conference. We can now see clear moves towards Supply Chain thinking from Logistics thinking, not only here in the Philippines, but elsewhere.

It is interesting to note that the Council of Logistics Management (CLM), the largest organization of logistics professionals in the world (perhaps with over 12,000 members), has, starting Jan. 1, 2005, changed its name to Council of Supply Chain Management Professionals (CSCMP).

A few years back it had deliberated on the correctness of such a move, but decided otherwise. It seems that the reason for deciding against the change then was that Supply Chain was seen then as too big an area for the CLM to cover.

What is the significance of this shift from Logistics thinking to Supply Chain thinking? For now, we will quote the definitions of Logistics and Supply Chain Management given by the CLM/CSCMP, and also a group of US professors. We will examine the definitions and the concepts in a future issue.

According to the CLM, Logistics is that part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to conform to customers' requirements.

According to the CSCMP, Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.

In essence, Supply Chain Management integrates supply and demand management within and across companies. A research team led by University of Tennessee professor John Mentzer has developed the following definition of Supply Chain Management.

The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole. Shipping Immersion Course. Last chance to join this seminar on board a vessel. scheduled for May 6 to 8.

It will be on board the Mary Queen of Peace, a Negros Navigation vessel, while en route to Boracay. Speakers will include maritime industry experts, Ric Romero (designated MARINA Deputy Administrator), Hector Miole (PPA), Atty. Pete Mendoza (PSB), Prof. Henry Basilio (UA&P) and Cora Curay (DMAP). Still on training, the DMAP-DLSU program on Logistics Management (we have also begun to call this Supply Chain Management) is ongoing at the DLSU Greenhills campus. Ongoing are Modules 1 (Evolution of SCM) and 3 (Inventory Management). Module 4 on Warehousing will follow Module 3. DMAP's contest for this year's conference theme ended with its selection at DMAP's last Board meeting on April 5.

The winning theme, as mentioned above, is "Seamless Supply Chain in an Archipelagic Environment: A Continuing Challenge". It was submitted by Avel Acedo of Smart Communications.

DMAP very recently released its invitations for conference sponsors and advertisers. Donations and advertising rates are the same as in past years. Principal sponsor P60,000 Regular sponsor 30,000 Cocktails sponsor 150,000 Luncheon sponsor (2 slots available) 100,000 Break sponsor (4 slots available) 50,000 Principal, Luncheon and Cocktails sponsors are entitled to a 3 meter x 3 meter exhibit booth.

Regular and Break sponsors are entitled to a 3 meter x 2 meter exhibit booth. All sponsors are entitled to one page space in the souvenir program. Advertising rates for non-sponsors (VAT included) are: One whole page P6,600 One-half page 3,300 One-fourth page 1,650.

 

Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email dmap@i-manila.com.ph. Those interested in DMAP training and other activities are requested to send their e-mail addresses.