Latest Logistics Bureau News
18/08/2008 Logistics Bureau Asia (LBA) Launches Training LBA
Logistics Bureau Asia (LBA) which has its head office in Bangkok has recently launched a new training division called Training LBA.
Training LBA provides a range of public training workshops focusing on key aspects of Supply Chain and Logistics management.
Logistics Bureau Asia is also an accredited trainer for the Chartered Institute of Purchasing and Supply (CIPS) and runs a number of CIPS related courses.
Foreign factoring - Supply Chain Review Jan/Feb 2008
For Australian company Logistics Bureau, the Asian experience has been one of success through education. Greg Bush writes
Introducing supply chain and logistics management consultancy to the businesses in developing Asia has been an exciting and at times frustrating exercise for Logistics Bureau (Asia) Managing Director Colin Airdrie.
The expatriate Englishman linked with the Australian company two years ago to head up its Asian operations, which are headquartered in Bangkok.
Airdrie arrived in Thailand 12 years ago as a consultant for Inchcape, before moving to Shanghai with the company. He later formed his own consultancy before joining the Logistics Bureau.
For Airdrie, Bangkok is the ideal base for the Logistics Bureau’s Asian operations, with many South East Asian cities only two hours away by air while the major Chinese centres are an hour further.
His Asian experiences are many and varied, from negotiating the old Silk Road west from Xian to Lanzhou for a Chinese retail company, to organising warehousing in rural areas of Thailand.
While he maintains the fresh enthusiasm from his first day in the region during 1996, he’s had to learn to accept the idiosyncrasies of the Asian way.
“I came out here bright-eyed and bushy tailed thinking, ‘oh, we can change this, we can change that’, but then you suddenly are brought back to earth because there’s no point changing that if this element, which is much more difficult to change, isn’t working either,” he says.
“You’ll read articles in the business magazines how a company’s doing this with their supply chain and that sort of thing, but at ground zero that means absolutely damn all.
“You get talk of supply chain development and information flow, but they forget that until they invent the transporter beam from Star Trek, we’re going to physically have to move it. It’s no use putting information down the track in 10 milliseconds if it takes two weeks to do a truck trip because it all depends if the driver wants to drive that day.”
Airdrie says another hurdle has been that, for many companies in Thailand and China, the idea of hiring consultants is completely foreign. For others the experiences with previous consultants have been filled with the horror of mounting expenses.
To combat this mindset, Airdrie says the Logistics Bureau holds regular meetings with customers at each gateway point of the project, hence offering the opportunity of feedback and transparency.“So when it comes to the final report, there are no surprises. They know what it is already, because they’ve taken part in it,” Airdrie explains.
“What we try and say is — and it happens quite frequently during the course of the project — if we see something that’s not right, we’ll tell them there and then. They may find they’ve paid for the project before they’ve finished it because they’ve made savings on that, particularly on a networking project.
“So that’s our approach, and I think that’s the approach that people support.”
Airdrie points to the success the company has had with Thai businesses such as fashion and homemaker organisation Jaspal. For frozen food specialist CP Foods, Logistics Bureau was commissioned to produce a large-scale strategic network study to merge the logistics organisations of the company’s 16 individual business units into a single organisation.
Logistics Bureau’s Asian growth in recent years is such that, as well as having offices in Bangkok and Singapore, the opening of a base in India is under serious consideration.
According to Airdrie, 90 percent of the company’s success comes from return business or referrals from previous clients. Other ongoing benefits arrive through constant inquiries received directly and regular interactive workshops and training courses held in Bangkok.
“But you can’t live on that, you’ve got to create new work,” he continues.
“I want to develop the company and I want to employ more practical Thai people to take part and develop them as logistics consultants.
“The great thing about the Logistics Bureau, and this is why I’m very happy about being with it, is that we’ve got 40-plus consultants, who may not be in Asia, but they’re on the end of a telephone line or on the end of the internet and you can get them up here to be part of a project.
“With the Logistics Bureau, you know everyone who’s in it has got skills and expertise, as well as good general concept of it. It’s like a large family."
Ex LAA President Mal Walker Joins the Logistics Bureau
Ex Logistics Association of Australia (LAA) NSW and National President Mal Walker has been appointed as Manager Consulting to the Logistics Bureau team. Mal says “Its a pleasure joining Australasia’s leading Supply Chain Practice. I’m especially looking forward to working with Rob O'Byrne and the team, and playing a part in adding value to Logistics Bureau customers”.
Rob O'Byrne (left), Group Managing Director of Logistics Bureau remarked "I have known Mal for many years and have always admired his knowledge, professionalism and commitment to the Supply Chain and Logistics industry at large. It has taken me many years, but I am very pleased that I have finally cajoled him into joining the Logistics Bureau team"
Mal commenced his career as an engineer at Colby Handling Systems before entering management and supply chain consulting with TTC, P Breed and Partners, Symonds Henderson and Deloitte Consulting. In more recent years, Mal has worked in 3rd Party Logistics with Exel/DHL in a number of capacities including Solutions Design and Global Account Management.
With qualifications in engineering, Business Administration and Logistics, Mal has over 30 years experience in the industry with a solid track record of domestic and international supply chain assignments across a range of supply chain and logistic disciplines. His specialities include supply chain design and strategy, feasibility studies, materials handling, distribution centre design, 3rd party logistics, vendor managed and postponement inventory strategies, international supply chain development, project management and implementation.
Mal can be contacted directly on +61 (0) 412 271 503 or Email
17/01/2008: LOGISTICS BUREAU ASIA LINKS WITH CHARTERED INSTITUTE OF PURCHASING AND SUPPLY (CIPS)
Logistics Bureau (Asia) Limited has been appointed as tuition provider in support of the programme of professional qualifications offered by the Chartered Institute of Purchasing and Supply. We will be providing instruction at the Certificate and Diploma levels to delegates from the ASEAN region.
CIPS qualifications are widely regarded as an international benchmark of excellence, enhancing standards of professionalism throughout purchasing supply. LBA, with its already established training programmes and its management consultancy activities developing throughout the region is an ideal partner for CIPS.
The courses of instruction we are authorised to provide are:
• International Certificate
• International Advanced Certificate
• Certificate in Purchasing & Supply - Level 3
• Foundation Diploma in Purchasing & Supply - Level 4
• Advanced Diploma in Purchasing & Supply - Level 5
We are setting up our initial courses to culminate in the examinations scheduled for the end of November 2008. Details of course dates, fees, formats, timings, venues etc, will be published on this site in the near future.
Initially we will be conducting the courses based in Thailand. In time it is planned to roll the programmes out to other ASEAN countries.
For more information, please contact Khun Prapas Chinskul in our offices in Bangkok at E-mail or Telephone
+66 2 277 3071
26/11/2007: NEW SUPPLY CHAIN REPORT TO ADDRESS THE STATE OF
THE INDUSTRY IN AUSTRALIA
The Logistics Association of Australia Ltd (LAA) and leading international supply
chain and logistics management consultant, Logistics Bureau, have signed a
Memorandum of Agreement signalling the commencement of a definitive report on
the state of the logistics and supply chain industry in Australia.
LAA President Brad Harrison spoke enthusiastically about this program. “We are
delighted that Logistics Bureau has come on board to research this report which will
provide a regular annual update on the state of the industry for all our members.”
Under the agreement, Logistics Bureau will provide research content and analysis on
its research findings once a year. The first annual report will comprise an economic
update and a market update; define market participants and review Australian
industry performance. It is anticipated that second annual report will also include
findings on employment and training and regulatory environment.
Commenting on the new Supply Chain Report, Logistics Bureau Group Managing
Director Rob O’Byrne said that he welcomed the opportunity of partnering with the
LAA on this initiative. “Undertaking to deliver this research report reflects our commitment to promoting
logistics and supply chain management practices, analysis and benchmarking for the
benefit of the industry,” he said.
Based in Sydney and SE Asia, consultant Logistics Bureau provides direction and
support in driving improved profitability, improved customer service and increased
supply chain flexibility for a wide range of businesses. Logistics Bureau is also a
Friend of the LAA and has been instrumental in adding value to the industry through
its strong support of a number of the LAA’ s education and research programs.
Further information:
Joene Baker, Executive Manager LAA Ltd Tel: +61 2 9635 3422, email laamanager@laa.asn.au
24/08/2007: Logistics Bureau acquires Dawson Consulting
Logistics Bureau, the specialist logistics and supply chain consultancy, based in Australia and SE Asia announce the acquisition of Dawson Consulting, long recognised as Australia's largest full service Supply Chain Management Consultancy. (Note, that this acquisition does not include Microlistics, which still operates as a seperate business entity).
Rob O'Byrne, Managing Director of Logistics Bureau, stated "I have long admired Mark Dawson, the founder of Dawson Consulting, and his fellow Directors for their success in stamping Dawson Consulting firmly on the map as a quality and reliable consulting business in the Australian market. Bringing the Dawson team into the Logistics Bureau family will add enormously to our resources and capabilities not only in Australia, but our rapidly growing overseas businesses as well. I was lucky enough to work with the Dawson's team some years ago, and it is great to have them join Logistics Bureau".
John Dunphy, previously Managing Director of Dawson Consulting, remarked, "The acquisition by Logistics Bureau makes perfect sense, bringing the two major players in this space together. I look forward to working within the new business and seeing our success continue under the Logistics Bureau banner".
Chris Garschagen, previously Managing Partner with Dawson Consulting, will now be leading Logistics Bureau's Melbourne team. Chris commented that, "Bringing our two businesses together is very exciting and will provide an unbeatable breadth and depth of consulting services and resources in the Region"
| Contact: |
Rob O'Byrne Logistics Bureau +61 2 8799 2175 eMail: robyrne@logisticsbureau.com |
19/08/2007: Warehouse Design & Operations Training
A 3-day interactive workshop.
When: Next Course is 28th - 30th November 2007
Where: Landmark Hotel, 138 Sukhumvit Road, Bangkok, Thailand
Learning objectives
To introduce delegates to the fundamentals of Warehouse Design, Materials Storage and Handling and Warehouse Operations.
To show delegates how to apply these principles in a way that is financially beneficial to their companies' operations and balance sheets.
(Note: All tuition will be conducted in English. Delegates should bring calculators for use during the practical exercises)
Warehouse Design & Operations - Course DetailsKhun Prapas Chinskul in our offices in Bangkok at E-mail or Telephone +66 2 277 3071
| Contact: |
Khun Prapas Chinskul + 66 2 277 3071 |
14/06/2007: Mark Powell boosts Logistics Bureau's Retail capabilities
Logistics Bureau, the specialist logistics and supply chain consultancy, based in Australia, SE Asia and Europe announce the appointment of Mark Powell as Non-Executive Director. Mark Powell is recognised as a leading authority on Retail Supply Chains, having held roles such as Stores Board Director Logistics - Tesco plc and President SCM Tibbet & Britten Canada - Wal Mart.
Mark Powell's contribution to Logistics Bureau will be to provide specialist advice and direction in the area of retail Supply Chains.
Rob O'Byrne Managing Director of Logistics Bureau commented that "Mark and I first met whilst studying together at Cranfield University in the UK and I remember back then, that his knowledge and experience in retail Supply Chains, as well as his ability to quickly grasp the key issues within any given Supply Chain were very impressive...they still are! Mark and I have kept in close touch over the years, and we look forward to working together with Logistics Bureau's retail sector customers "
Logistics Bureau:
Supply Chain and Logistics Management Consultants that actually guarantee results! Logistics Bureau only provides experienced and well qualified management consultants that specialise in Supply Chain and Logistics. This experience includes understanding broader business strategy issues and the role of supply chain and logistics in supporting wider corporate objectives.
For businesses looking to increase competitive advantage, Logistics Bureau provides direction and support to drive improvements in profitability, customer service and supply chain flexibility. This is achieved by increased product availability; reduced working capital; reduced cost of goods sold; reduced cost of doing business; elimination of waste; the development and execution of practical, robust solutions along with the provision of regional and global reach.
Logistics Bureau appreciate that every one of their client's businesses is different, with different challenges and different objectives. That is why each of their projects is carefully planned in conjunction with their client's management. Logistics Bureau is confident that their knowledge and experience of consulting in a very broad range of supply chain and logistics areas will deliver excellent results.
| Contact: |
Rob O'Byrne ~ Managing Director Logistics Bureau e: robyrne@logisticsbureau.com t: +61 417 417 307 Mark Powell ~ Non Executive Director Logistics Bureau e: mpowell@logisticsbureau.com t: + +64 216 332 00 |
26/01/2007: Cost to Serve - The Devil is in the Detail
Cost To Serve - The devil is in the detail.
Most companies fail to recognise the true profitability of their customer and product/services mix. Traditional reporting methods aggregate revenues and costs, to the extent that poorly performing sectors of the business are hidden from view. Cost To Serve enables companies to reduce cost and improve EBIT performance by up to 20%. Evaluating the benefits of Cost To Serve, is a 'must do' for those companies new to the concept.
What is Cost To Serve ?
Cost To Serve can best be explained as understanding the total cost of servicing individual customers and individual products, so that the business can match service and cost, to achieve business goals. Cost To Serve is not; quantifying distribution cost as % of sales, knowing the cost of processing an order, or knowing the case/pallet throughput cost. These common measures are generally based on aggregated data that takes no account of the unique needs and cost drivers of certain customer and product types within the Supply Chain.
It is a rare business that has such a limited range of products and customers, that they can service their whole market with a generic service policy. Conversely, it would be rare for a business to incur similar costs for servicing what can be a complex matrix of customers and products. Unraveling this pot pouri of information, is what Cost To Serve is all about.
The Steps to Quantifying Cost To Serve
The critical steps in undertaking a Cost To Serve review are:
Step 1. Identify the characteristics of your customers and products. For example, typical order size, order frequency, geographic location, special handling needs, account management needs, brand support and so on.
Step 2. Identify the cost drivers within the Supply Chain. Processes and functions that will impact Cost To Serve will include purchasing, storage, transport, customer service, sales, account management as well as head office overheads.
Step 3. Determine cost allocation rules for each unique customer and product grouping identified.
Step 4. Conduct a trial data set through the model to test assumptions and results.
Step 5. Implement the Cost To Serve discipline and identify the areas of opportunity to a) reduce costs, and b) improve sales.
Cost To Serve typically highlights unprofitable products and customers This enables the company to reduce the Cost To Serve by allowing them to adopt alternative approaches to servicing their customers, such as; changing market channels, varying the service level to certain customers, utilising lower cost transport solutions for certain geographic locations, re-balancing inventory across the business to improve service and reduce costs. So the bottom line benefits can be substantial.
What Cost To Serve is not!
Cost To Serve is not just Activity Based Costing (ABC). ABC generally operates at a higher, aggregated level, and fails to identify the impact of different product and customer characteristics and service needs. ABC is often inwardly focused, Cost To Serve is market focused.
Leveraging Cost To Serve
The knee jerk reaction within many businesses when realising that certain customers and products have a negative impact on the bottom line, is to try to delete them from the range or customer base. Wrong. The opportunity is to use the knowledge that Cost To Serve provides, to turn those customers and products into improved profit.
| Contact: |
Rob O'Byrne Logistics Bureau +61 2 8799 2175 eMail: robyrne@logisticsbureau.com |
04/07/2005: "Enter the Dragon" - Is your supply chain ready for the growth in China?
A recent global economic study identified, that according to two of the key indicators for the size of the economy;
. Energy consumption, and
. Resources demand,
China is now a larger economy than the United States. A startling statistic!
Many businesses have supply chains which now include China, whether as a source or destination for their goods and services. These businesses have felt the impact of this economic growth already. But what of the rest of us? For companies that are not importing from or exporting to China, how is their supply chain performance likely to be effected by this growing economy? Is that performance under threat?
In several recent meetings of our Benchmarking and Improvement Peer Groups this topic has been discussed at length. The answer is increasingly that the effects on regional and global supply chains are growing in significance. The effect has been apparent through changes in; the availability of goods (less available) and the lead times to source goods (growing longer). For example:
. A major utility which conducts significant MRO activities has had to increase planning horizons for major works from 10 weeks to up to 16 months due to competition for materials that are now flowing into China.
. A supply organization has seen prices for goods where they are competing against China jump by as much as 40%.
. An Australian based FMCG manufacturer faced a reduction in capacity due to the lack of availability of shipping which was to bring essential ingredients into Australia.
Consider the implications for your business of facing similar issues. Is your business prepared? Reviewing our database of over 650 companies, answers to the following questions revealed the current state of preparedness.
In answer to the question: Do you have a documented supply chain (logistics or supply) plan that is a sub-set of the corporate plan and that details objectives and performance targets? The results (see below) showed only 55% of companies had supply chain plan that had been updated in the past 12 months. A further 17% had a plan that was either out of date or note linked to corporate objectives. 29% had no plan at all!!
Only 37% of companies have an up-to-date procurement policy and 34% an up-to-date inventory policy. How do you compare?
There was better news when we looked at the level of supplier agreements that were in place. More than 60% of companies had service contracts in place of at least 12 months duration. More than 70% had service level agreements in place for at least part of their supplier base.
Understanding where your business performance is positioned compared to those in the market place is essential to knowing how to compete and where to put the improvement emphasis. The Benchmarking Success database provides a fact based reference for companies wishing to understand their comparative performance.
About the author: Artie Leslie is Managing Director of Benchmarking Success; he can be contacted on +61 408 493 257 or at www.benchmarkingsuccess.com.au
| Contact: |
Artie Leslie Benchmarking Success 0419 597 744 eMail: info@benchmarkingsuccess.com.au |
04/06/2005: SMART 2005 CONFERENCE: Staying in the fast lane - from planning to execution
More than 1000 delegates are expected to attend Smart 2005 Conference, Australia's leading supply chain management conference, 1 - 2 June 2005, Sydney Convention and Exhibition Centre, Darling Harbour, Sydney, Australia.
This highly regarded biennial event will attract more than 60 speakers from both Australia and overseas who are leading supply chain industry practitioners in their area of expertise.
The Smart 2005 program, developed as a result of extensive research and in consultation with major industry associations, will have 10 specialist content streams each led by plenary sessions.
The conference will cover all the latest and best cutting edge technologies and processes at all stages of the supply chain, with a strong emphasis on case study presentations.
Secure your place before 7 May, and receive an early bird discount.
Logistics Bureau will present a paper on Cost to Serve (Rob O'Byrne), and are proud sponsors of the Welcome Cocktail Party.
Visit here for an Introduction to Logistics Bureau - Supply Chain & Logistics Consultants
