Almost exactly a year ago, we had a guest columnist. He was then the new President of Fast Logistics and, very appropriately, he wrote about TPLs (entitled 3PL’s Next Level of Value Proposition to the Customer) For this issue, we have him again as guest columnist, Again he is writing appropriately, because he is the new President of SCMAP for year 2012. Ike is well known in SCM circles as a topnotch speaker in SCMAP conferences, seminars and other conferences, a past President of DMAP / SCMAP, and one of the lecturers in the SCMAP – DLSU program in SCM. — Ed Sanchez
As we transition from 2011 to 2012, it might be of interest to our followers to read about two important items: one about 2011 — ironically a hopeful year that turned out tough for many; and another — about how 2012 is looking from SCMAP perspectives.
2011 — A Difficult Year
We were bullish about what 2011 would offer all of us. The country was coming from a spectacular growth the year before. And we thought we have yet to see the potentials of the new administration.
Ironically it was tough during this hopeful year.
To cite NEDA reports, the Philippine economy grew by 3.6% the first three quarters of 2011, lower than the 8.2% growth in the same period the year before. Following this disappointing performance year on year, annual growth for the year would likely come in at 4%, falling short of the official forecast range of 4.5% to 5.5 %. This poor performance was largely attributed to the global economic slowdown which led to weak exports, and likewise due to poor production output caused by the recent typhoons.
This macro picture summed up the general experiences of SCMAP member companies as well. Achieving growth targets was a challenge. Weekly skewing of orders was badly distributed putting too much stress on the physical logistics capacity. And many had to work on or commit to cost reduction initiatives.
This emphasis on cost brings out both the good and bad side of supply chain management. On the positive perspective, the supply chain practitioners are encouraged to re-calibrate metrics to ensure optimum costs are achieved at efficiency levels above par. Negatively, this kind of thinking takes its toll on the customer-supplier relationships as it pulls down the relationship back to being cost-centric rather than collaboration-focused. We have seen too many cases of customer servicing spiraling down, due to wrong focus on absolute cost. We have heard too many customers complain about why supply chain management practices in the country never seem to progress to a different level.
2012 — A Different Year
Prospects for 2012 and the near term, the government declares, are positive. With pumped-up government spending, increased business and consumer confidence, and stable macro economy, GDP is expected to increase to 6%, even with the impact of typhoons likely to linger until mid 2012. We hope that the government learns from the 2011 experience and take on 2012 differently.
Will this positive prospect bring out different practices in the industry? Will we finally evolve from the purely cost-centric relationship to the true collaboration and partnership in supply chain management? For 2012 to be truly a different year, much is expected from the practitioners. Early on, we need to push for what is right for the industry and profession, as we wouldn’t want our projects derailed once the cost pressures build up mid stream of the year.
Even the professional organizations like SCMAP need to think along the same line — though differently this time. For SCMAP Board 2012, we believe that more than ever, the full potentials of this 20-year old organization needs to be explored in the spirit of the organization’s thrust to (1) advocate for what is fair for the industry and what is right for the profession; (2) communicate what are considered as best practices, and applicable; and (3) educate, not only members, but the industry, as well. And therefore, with the renewed call to improve engagement of members, the Board has decided in yesterday’s meeting to focus efforts under the following committees:
|1. Land & Air Transport||Lito Nepomuceno||Integrated Commissary|
|2. Sea Transport||Sherwin Gonzales||Nestle|
|3. Warehousing||Rene Casas||JG Summit|
|4. Inbound Logistics||Max Yap||Oriental & Motolite|
|5. Training & Academe||Gabby Patag||TNT Express|
|6. Knowledge Center||Al Lagera||PLDT|
|7. Events Management||Anna Quintos||Globe|
|8. Communications||Arnel Gamboa||Benby Enterprises|
|Jet Chua||Messe & Handel|
Though the new board has yet to go on full planning, directionally we could focus on following:
1. A different engagement and energy level from members
2. A different approach to advocating what is fair for the industry and what is right for the profession
3. A different level of communicating to and educating members and the industry
All these, with the fervent hope to make this year 2012, a different year; and a departure from 2011, considered by many as a difficult one.
Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email firstname.lastname@example.org. Those interested in DMAP training and other activities are requested to send their e-mail addresses.