Scm Tribune Article

THE supply chainis generally notsomething thatthe wider publicthinks aboutuntil there is a

problem. Your favouriteproduct hasn’t appeared onthe shelves for weeks – I won-der if there’s an issue withthe supplier. Your favouritefood might be contaminatedby dioxins – can I really trustwhere this piece of meatcame from? But what you areseeing in the shops and super-markets is just the end of thesupply chain, which stretch-es back through agents andwholesalers, into the facto-ries, and back out the otherend as the raw materialswhich need to be collected tobegin the assembly of theproduct.

Anyone working in manu-facturing, logistics, whole-saling and retail has toconsider the supply chain. Itis not something that hap-pens as a by-product of busi-ness; in many cases, it is thebusiness. And like any busi-ness processes, the supplychain can be streamlined tohave a positive effect on pro-ductivity and the bottom line– indeed, supply chain man-agement dovetails neatly with

some of the most modernbusiness practices such asLean and Six Sigma, andadvances is technology, espe-

cially in the area of trace-ability, have greatly helpedthe sector.

In difficult times, any busi-

ness advantage that a com-pany can get will be hugelybeneficial, especially whenthat advantage impacts pos-

itively on the bottom line. Butthese advantages can alsohave a positive effect acrossan entire industry, with sig-nificant benefits for endusers. This is because theefficiency and cost savingsengendered by professionalsupply chain managementwill reach throughout theentirety of a business’processes; but it also has aknock-on effect across thewhole of the supply chain, inthat professionalism in onepart will demand profession-alism from partners at eitherend. Line any chain, the sup-ply chain is only as strong asits weakest link; and in a mod-ern economy that demandsaccountability and traceabil-ity, it is no longer acceptablyfor lower standards to applyanywhere.

But like any business dis-cipline, professional supplychain management is notsomething that happens byaccident. It has to be learned,and this learning has to bespearheaded by the growingbreed of managers whosesole job is the managementand streamlining of the sup-ply chain.

“As more and moreresponsibility is placed onthe logistics function, the

need has intensified for itspractitioners to be highlyskilled in the various ele-ments of Supply Chain Man-agement and to be completelyup to date with best prac-tices in the industry bothnational and international,”said Micheál Lynham of theChartered Institute of Logis-tics and Transport in Ireland(www.cilt.ie). “Logisticiansmust take their place along-side engineers and account-ants as proficient andexceptionally well-trainedprofessionals.”

Given that supply chainmanagement was generallydevolved to the person whohappened to be in charge oflogistics, there are a numberof people across industrieswho will benefit from theupskilling that CILT’s Diplo-ma course can bring. Therehas been, until recently, alack of structured logisticstraining available, but as theprofessional body for logisticsand transport professionals,CILT is dedicated to bridgingthis competency gap and toenhancing the professional-ism of those involved in theindustry.

More than 130 profession-als graduate every year fromCILT’s Diploma in Logistics

& Supply Chain Manage-ment, a two-year part-timeprogramme which exploresand critically examines thelatest logistics successrecipes with a view to theirapplication in the partici-pant’s own organisation. Stu-dents are awarded anAdvanced Certificate inLogistics on successful com-pletion of the first year, andthe Diploma at the end ofyear two.

CILT is not the only organ-isation now providing pro-fessional supply chainmanagement programmesand, for example, UniversityCollege Cork offers a range ofpart-time programmes fromundergraduate to postgrad-uate level “designed toimprove global supply chainprocesses through costreduction and value-add”.Successful supply chain man-agement requires strategicand operational alignment,which is why programmesoffered by UCC include astrong emphasis on logistics,supply chain efficiency, nego-tiation, strategy, informationsystems, demand manage-ment, change and innovation,and integrated project man-agement.

The University is also

responding to a need forenhanced skills in the supplychain sector which has beenidentified by the highest lev-els of government.

“The current environmentis characterised by increasingdemand for service and value,and thus supply chain man-agement has an increasingrole in manufacturing andservice organisations,” saidProgramme Academic Direc-tor Dr. Seamus O’Reilly. “Therange of part-time pro-grammes in SCM (at UCC)are designed to support firmsas they move up the valuechain. Indeed many of thecompanies participating inthese programmes havemoved ‘from factory to serv-ice’ and aim to build globalservice centres.”

There is also strongemphasis on Lean SupplyChain Management in UCC’sprogrammes, and UCC hasteamed up with Lean practi-tioners The Leading EdgeGroup as the programmeoffered blend academic andpractical expertise, create aninteractive learning envi-ronment (including work-place and classroomlearning) and enhance indi-vidual and company capabil-ity.

Manufactur-ing hasbeen mov-ing east-ward overthe years

and it appears to have founda permanent home in China.There are, however, still alarge number of westerncompanies who have yet tooutsource their manufactur-ing processes to the Eastbecause of a lack of knowl-edge of the Chinese marketand ways of doing business.

An Irish company is bridg-ing the divide by taking own-ership of the outsourcingprocess, thereby ensuringthat western manufacturerscan find a Chinese factory inwhich they can have full trustin its ability to deliver on time,to the specifications requiredand all at a fraction of thecost of manufacturing themin the EU.

Headquartered in Dublin,China Price already has anumber of clients from Ire-land (North and South), aswell as from the UK, East-ern Europe and South Africa,all of which are utilising theunique services provided bythe company to find themmanufacturing partners inChina. China Price wasfounded by Paul Sandilands,an entrepreneur who estab-lished his own business sell-ing candles and giftware inDublin while working fulltime in the electronics andcommunications industry.

Sandilands’ experiences inretail, wholesale and manu-facturing led him to China,where he pioneered a servicewhich created manufacturingpartnerships between otherEuropean companies andChinese facilities. It was thisexperience which led to thecreation of China Price, acompany with offices inDublin and in Tianjin whichcurrently employs 45 full timestaff and which can draw onthe services of dedicatedexperts across a number offields of manufacturing.

Indeed, China Price is con-stantly looking to update thepanel of industry specialistswith whom it can partner –and these professionals willbenefit from the ability to tapinto new markets and thelower cost bases in the East.

“People in business can stillhave anxieties when theythink of China,” said Sandi-lands. “And it’s true thatthere are often complicationswhen it comes to dealing withthe Chinese, in terms of lan-guage and culture. But wehave built strong relation-ships with the managementand staff across a number ofChinese manufacturing facil-ities and that has allowed usto break down any of the bar-riers to trade that might pre-vent companies from lookingto the East.”

The migration of manu-facturing to China is almostexclusively due to economicfactors and these economicfactors have been exacer-bated by the current reces-sion. But the move has alsobeen facilitated by an overallacceptance of outsourcing asa means of doing business.Most companies operatesome form of outsourcing,whether it is outsourcing oftheir financial, maintenanceor IT functions; but it is notmuch of a stretch for a man-

ufacturing company to gofurther and outsource itsmanufacturing and supplychain management functions.

The advantages to out-sourcing are manifold, andthey are not merely confinedto cost savings. Outsourcinghas long been championedbecause it allows a companyto concentrate on its corebusiness. So by outsourcinglabour-intensive functionssuch as manufacturing to alower cost base, innovativecompanies can get on withvalue-added activities suchas R&D or sales and market-ing.

China Price operatesacross four main sectors,although such is its businessmodel that it would be possi-ble for it to find a Chinesemanufacturing partner forpractically any product type.These four areas are as fol-lows: Packaging, includingFood-Grade Packaging;Chemicals, which are thensupplied to industries asdiverse as food and bever-ages, paints, pharmaceuti-cals and plastics; finishedFood Products (and ChinaPrice has recently added toits list of clients by taking onone of the leading productsfeatured on Dragon’s Den);and Technology, Construc-tion and Medical Devices.

Obviously, any companywill demand the highest stan-dards when it comes to themanufacturing of their prod-ucts, but this is especiallytrue of those operating infood, technology and med-ical devices. This is whyChina Price has gone to greatlengths to source only the topfactories in China for a proj-ect. It does this by utilisingthe services of its specialistswho are on the ground inChina and who have first-hand experience of the con-ditions and practices in each

facility. These specialists, inturn, understand the exactspecifications of each indi-vidual industry.

Every factory chosen byChina Price comes with thehighest standards of docu-mentation, including relevantISO certifications and otherindustry specific require-ments.

“We offer our clients sig-nificantly lower costs on themanufacturing, while pro-viding all the conformity andcertifications required bytheir industries,” explainedSandilands.

China Price’s services donot end with a finished prod-uct – indeed, in many cases,the finished product is onlythe start of the service. One ofthe most significant barriersto trade with China is thesupply chain, from sourcingof raw materials to eventualshipping. But China Pricetakes all of those headachesaway from its clients by con-trolling every element in thesupply chain, from the han-dling of its clients’ money tothe delineation of any pay-ment structures. It can man-age the handling of the goods,from packaging and pallet-ing, to shipping and distribu-tion; and depending on itsclients needs, it can deliver inbulk to them, or deliver directto their customers, bar codedand shelf-ready, if required.

If its Irish clients do notwant to take delivery of theentire order at once, ChinaPrice even has a warehousingfacility in Greenogue in whichit can store an array of goodsfor later delivery.

It is also worth noting thatChina Price operates the sup-ply chain in both directions,handling imports to Chinafrom companies in the West-ern World. Jones Soda andSkinny Water are two suchleading brands for whichChina Price handles their per-mits, media and advertisingin the East.

“It is a tough time out therefor every businessperson,”said Sandilands. “But we areconfident that the future ofmanufacturing lies in out-sourcing. We’re fulfilling amajor part of the supplychain, from manufacturing,to the supply of products, andthe only major componentsleft to our clients are salesand marketing and researchand development. But theseare probably the most impor-tant things that businessescan do to generate sales intothe future.” For further information onmanufacturing or partnershipopportunities, call 01 4264968,e-mail info@chinaprice.eu orvisit www.chinaprice.eu

SINCE ColdMove launchedits operationfour years ago,its companyowners has

continued to invest veryheavily into an I.T. infra-structure system whereevery stock movement on aclient’s account triggers anotification to the client.

“That’s how Cold Move isable to deliver on its com-mitment for total stock visi-bility at all stages of thelogistics process”, explainsJason Mallon, General Man-ager of the Galway basedcold logistics firm .

“We have also improvedour transport network andhave continued to invest instaff training, because nomatter how fantastic ourfacilities are, our people haveto be the best too. To thatend we ensure that all of ouremployees are trained in the

principals of HACCP” .On a separate note, Mal-

lon also said, “We are alsointerested in speaking tomanufacturing companieslooking to locate to the Gal-way area. We have severalturnkey manufacturing facil-

ities to let ,right beside ourbase in Oranmore. Theopportunity to base a foodmanufacturing operation lit-erally next door to us, pro-vides an attractive incentivefor any food manufacturer, asthey will have access to trans-

port and warehouse facilitieson-site”.

There will soon be a sliproad from these manufac-turing units leading directlyto the proposed new OuterGalway Ring Road and thattogether with the huge infra-structural improvements tothe M6 Galway to Dublinroute and the on-goingimprovements to the N18, toinclude the opening of theGort by-pass later this year,ensures that Dublin, Shan-non, Limerick and Cork areall much more accessible.

Assessing Cold Move’sfuture, he suggested, “Thefundamental challenge forour business now, is to con-tinue to attract leading pro-ducers, retailers anddistributors to the facility, toaugment our success todate”.

Supply Chain ManagementAdvertising enquiries and general suggestions to roconnor~tribune.ie

Moving up the value chain with professional supply chain management

Moving Cold Logistics to anew level

Taking the risk out of manufacturingin China

New methodologies and technologies can make a genuine difference to a company’s bottom line, writes Dave Boland

Find out more: www.coldmove.ie

Cold Move | Glenasaul Industrial Park | Oranmore | Galway

We have all the ingredients you need to make your business grow. Are you the owner or manager of a food production company looking to increase profits? Cold Move has everything you need to help your business increase profits, expand & succeed.

Locate your manufacturing requirements to our turnkey facilities. Benefits include:

Client specific manufacturing facilities

Excellent location, direct access to new M6/N18

Flexibility, various business models available

Low start-up capital requirement

Manufacturers supported by Cold Move management structure

Access to National & International logistics infrastructure

Direct access to warehousing capability

Contact Jason Mallon Call: +353 (0)91 792926 Email: innovation@coldmove.ie

TEXT TODAY 086-8091893 & WE WILL CALL YOU BACK TOMORROW

Jason Mallon, General Manager & Stephen Gillen, Operations Manager - Cold Move

Paul Sandilands - Managing Director - China Price

Graduates for 2009 Diploma in Logistics & Supply Chain Management

Irish company China Price is facilitating the migration of westernmanufacturing to lower cost bases in the East