“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Charlie P. VillasenorChairman of the Board - PASIA
Senior Vice President – LBC Supply Chain
“Getting To Best In Class Warehousing”
Charlie P. Villasenor, CSSP, CPSMChairman of the Board PASIA
Senior Vice President, LBC - Supply Chain
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Topic Agenda
IntroductionThe Future of Warehousing
WERC Warehouse Certification Program
Case Study
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
The Future of WarehousingA GROWING COMPLEXITY
Today’s warehousing professionals are feeling significant pressures from multipleinternal and external sources.
Now, as the economy is on upward, warehouse operations are growing again, too. Butas they grow, they are also being transformed by a number of issues that go wellbeyond simple increases in volume and throughput.
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Warehousing’s Five-Year Outlook
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Reality to Vision: The Future of Warehousing
Intense pressure to reduce inventory levels to free up capital—is now in theposition of having to quickly keep pace with today’s increased fulfillmentdemands.
The industry must also anticipate the areas in which even greater growth willoccur in the next five years and beyond.
This has vast ramifications for both operations and IT.
Assess your warehouse and its future state
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Warehouse Expansion Plans over Next 5 Years
51% 66% 70% 33% 39% 45% 54% 54%
7%3% 1.5% 5%
11% 11% 9.5% 10.7%
ANNUALINVENTORY
TURNS
EQUIPPINGSTAFF WITH
TECHNOLOGY
AUTOMATIONOF PROCESSES
SIZE OFCURRENT
LOCATION(S)
NUMBER OFLOCATIONS
NUMBER OFEMPLOYEES
VOLUMEOF ITEMSCARRIED
NUMBEROF SKUSCARRIED
DECREASING INCREASING
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
In-bound Handling: Today and Tomorrow
Receiving and put-away processes can have a domino effect on virtually everyother warehouse process.
significant cause of potential problems upstream and downstream
TRENDS 2013 2018
INBOUNDBARCODED
ITEMS
66% 83% 31% 83%
CROSS DOCKING
UTILIZATION
21% 38%
RFID SYSTEMS USAGE
16% 30%
REVERSE LOGISTICS
IMPLEMENTATION
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Storage and Inventory: Today and Tomorrow
Warehouse storage and inventory processes are poised to undergo a seismicshift, moving from still prevalent pen and paper processes to automated
Mechanized inventory solutions. New automated processes, cycle counts will be performed more often and
with less effort, increasing inventory visibility, more accuracy Fewer out of stock situations and fewer lost sales. Expanding selection and accelerating inventory turns.
2013 2018
61%
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Pick and Fill: Today and Tomorrow The picking and replenishment processes—which account for up to 70 percent of
operating costs in a warehouse—remain the top priority
As the industry continues to reduce pick and fill costs and increase worker efficiencyand productivity, it is turning to innovative processes.
2013 2018
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Outbound Handling: Today and Tomorrow Increasing pressures are being placed on warehouse managers to maximize efficiency
in packing, staging, loading and shipping.
Inaccuracy is bad for customers. At the same time, nothing cements customerrelationships better than efficient outbound material handling processes thatconsistently provide accurate, on-time deliveries and always meet downstreamcustomers’ supplier compliance initiatives.
2013 2018
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Vertical Market Warehousing: Consistencies and Differences
Not all warehouses are the same. In fact, hardly any are. There are significantdifferences across warehousing operations in the various segments of the supplychain: manufacturing, wholesaling and retailing. But there are also similarities,especially at a macro level.
2013 2018
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Vertical Market Warehousing: Consistencies and Differences
VERTICAL CONSISTENCIES
When viewed holistically, similarities existin virtually all warehouse operations. Nomatter what vertical market segment theyoperate in, most IT and operationspersonnel are committed to threecommon pillars of warehouse wisdom.
Automating and streamlining warehousing processes.
2 Providing the flexibility in technology and process management that increases efficiency, productivity and cost control.
1
Optimizing risk management across IT and operations throughout the supply chain.
3
VERTICAL DIFFERENCES
Although almost all warehouseprofessionals would agree on theseoverarching objectives, each segment alsohas its own specific issues that impactprocedures and workflows. These are mostefficiently and effectively addressedthrough unique, segment-specificstrategies and tactics for achieving flawlessfulfillment, as dictated by each vertical’sspecific business and managementmodels.
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
A 5-Year Evolution from Cost Center to Growth Area
2013 2018
The industry is re-examining its perceptions of the business.
Fewer organizations continue to view warehouses and DCs simply as commoditized links between endpoints of the supply chain.
Greater volatility, constrained capacity, evolving regulations, major shifts in customer demographics and buying patterns, and increasingly demanding customer and supplier requirements.
Industry professionals is seeing the bigger picture and viewing warehouses and distribution facilities as historically underleveraged centers that can drive competitive differentiation and, by doing so, increase profitable growth.
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Topic Agenda
IntroductionThe Future of Warehousing
WERC Warehouse Certification Program
Case Study
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
WERC Warehouse Certification Program
The industry's first & only best-practice certification
The WERC Warehouse Certification Program is a voluntary program that certifies an individual warehouse facility’s capabilities and its ability to perform core warehousing functions.
The program provides an industry standard-grading methodology that includes facility inspections and process assessments by independent third parties. Auditors benchmark and grade warehouse operations against a 5-point scale.
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Certification Process
Application
Pre-Audit Survey
Onsite Audit
Delivery of Results
Process Improvement Workshop
Rate, Rank & Plan
Pre-Audit
Day 1
Day 2
Warehouse excellence – we need to lead & differentiate
Receiving & Inspection
Material Handling & Putaway
Slotting
Storage & Inventory Control
114
Warehouse
Processes
Best Practice
Good Practice
Common Practice
Inadequate Practice
Poor Practice
Warehouse Management Systems
Shipping & Documentation
Picking & Packing
Load Consolidation
Plan
Step 1: Set benchmarking priorities
Step 2: Identify the key processes to be assessed
Measure Step 3: Collect data - operational and managerial
Compare
Step 4: Research and compare best-in-class performance to internal and external
standardsStep 5: Identify gaps and reasons for low performance
Step 6: Develop an improvement roadmap and set priorities
Act Step 7: Close gaps and improve/refine processes
Global Standard & Benchmarking:
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Difference between ISO and WERC Certification
ISO• Sets world class standards for products, services, and systems to ensure quality, safety and efficiency
• Applicant is audited based on a defined international standard.
• Certification is attained by meeting ISO requirement / standards.
• Non conforming findings needs to beclosed in a specific timeframe to attain certification
WERC• Gathers and establishes global warehouse and distribution best practices as basis of warehouse assessment.
• Applicant is assessed based on global best warehouse and distribution practices.
• Certification is attained by meeting grade requirement through 5-point scale systems.
• Not meeting the required grade will entail a process improvement in order to attain certification
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Who has it?
•Colgate-Palmolive Co.(4)•Gopher Sports•Hunter Fan Company•Invacare Company, Inc.•Kane is Able (2)•Kenco Logistics Services (Whirlpool*)•Kennametal NA DC•Mountain Equipment Co-op•Nexus Distribution CDC•OHL (Starbucks Coffee Company*) (3)
•Penske Logistics (Whirlpool*)•Perfetti Van Melle•REI Distribution (2)•Scholastic National Service Organization •Starbucks Coffee Company (5)*•Swagelok OFC Component Warehouse•Whirlpool (2)*
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Topic Agenda
IntroductionThe Future of Warehousing
WERC Warehouse Certification Program
Case Study
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
LBC : We like to move it to – Supply Chain
The leading provider of moving and supply chain services
Over 6,000 directly employedcustomer associates
Over1,600
owned branches world wide
Over1,500
vehicle fleet
Over 2,500 branches and
partneragents
LBC is servicing over 18
countries
Co
rpo
rate
Solu
tio
ns Solution
SupplyChain
Cargo movement
Customized services
Deliveries
Rea
til
End to end Services
Value Added Services
Supply Chain Services
Domestic remittance
Remittance
Bill payment collection & corporate
remittance payouts
Global coverage
International remittance
3
Bill payments Balikbayan Boxes
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Growing towards supply chain services
Local Network 1650 Company owned branches
Int’lNetwork
63 Overseas branches
10 Agents
Delivery & Warehouse Infrastructures
206 Delivery Teams
330 Delivery vans
1500 motorcycles
1,400 couriers/shuttler
Expanding warehouses & full Supply Chain
End to end value added services
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Leadership and Commitment
VISION
We are the customer’s choice for providing value- driven professional supply chain management services.
MISSION
We provide customer focused services which optimize customer value by implementing cost effective supply chain services
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Industry pioneer
Started serving the needs ofoverseas Filipinos,for their cargo requirements bound anywhere in the Philippines
Expanded its Money Transfer Services segment by offering bill paymentcollection services in the Philippines
1999
2006
2012
2013
Rebranded with new corporate slogan to “Welike to move it",and a shift in emphasis in thecorporate culture
2014
2015
Supply Chain
LBC Air Cargo ("LBC Express") became the 1st
Filipino-owned courier company infusing timesensitive cargo deliveries
Pioneered24-hour door-to- doordelivery
LBC dominated the cargo, courier and money remittance marketsand became known as the “Hari ng Padala”
Achieved a 62% share of overall domesticexpress marketin the Philippines
Began to provide corporate remittance fulfillmentservices
19501973
1985
1990
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Our Brand
Clear Certain Convenient
We believe in providingtransparent and timelyinformation to give customerspeace of mind. We want to payparticular attention to:
The process of movingitems or money
The schedule andtiming of your delivery
Clear communication of ourcost
We believe in providing ourvarious stakeholders withcertainty through:
Presenting relevantoptions for different needs
Our staff’s commitmentto set expectations anddeliver on our promises
Fair and timelyupdates of information
We promise to make yourexperience as hassle‐free aspossible by: Constantly improving
our processes
Adding new andrelevant capabilities
Easy access to call centreand frontline staff
Growing of our networkcoverage
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
LBC Corporate Solutions Services
Corporate logistics typically involves moving goods from A to B, as well as additional value-added services such as warehousing, fulfillment processing, packaging and repacking, printing and mailing of invoices, reverse logistics.Such value-added services are fully reflected in our pricing
Air solutions Corporate remittancesolutions
Courier
Parcel
General cargo
International cargo
Sea solutions
Bills Xpress payment
Bill Xpress online
Corporate IPP
PesoPak
Credit-to-bank account
Send and swipe
Corporate speed check
Mail-room management
Database curing
Direct mail
FCL
LCL
Full distribution
Cross docking
Land solutions
Bulk mail
Mail room solutions
Printing solutions
Mail solutions
Warehousing
Logistics master planning
Supply chain & integrated logistics
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Air Solutions
Guaranteed safe and efficient transport of goods for both domestic and international via air freight
Courier and parcel
Bulk mail
Quick, secure and efficient delivery or pickup of documents,parcels and small packages to anywhere in the Philippines
Delivery of high volume documents such as bills, statement ofaccounts and promotional mailers
General cargo
Transportation to a variety of larger items to anywhere in the Philippines
International cargo
On-time delivery of packages to international territories
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Land Solutions
Nationwide distribution of cargoes, packages and documents using the fully equipped on-ground fleet of LBC
Full truck load
Less than a truck load
Delivery of cargoes sent by shipper that maximizes a full payload or capacity of a truck and transported via land
Delivery of loose cargoes sent by shippers that cannot maximize a full payload or capacity
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Sea Solutions
Transportation of cargoes via sea through various modes such as pier-to-pier, pier-to-door, door-to-door and door-to-pier
Full container load
Less-than-a-container load
Delivery of cargoes sent by a single shipper that maximizes afull payload or capacity using a standard container and istransported by sea
Delivery of loose items sent by shippers that cannot maximize a full payload or capacity
RORO Service offered by LBC that allows sea-freight customers to
drive their vehicles in and out of the Roll-on-Roll-off vessel
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Printing Solutions
Various printing solutions that will address your business communications and logistics needs
Full colour variable printing
Transpromo printing
A form of digital printing wherein text, graphics, and images may be changed to from one printed piece to the next without changing the printing process. Samples are statementof accounts, invoices, letters and direct mailers
Direct mail printing
Combining personalized materials with transactional printing inorder for us to make use of their transactional documents as amedium for advertisements
Printing of traditional and non-traditional direct mailers targeted to a specified demographic, using LBC database, orthat of clients
Book printing LBC provides solutions for short runs, Full Color or Black
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Use of Radio Frequency Scanner Battery Operated Reach Trucks and Forklifts
LBC Owned Trucks Nationwide LBC Track and Trace for Deliveries
Warehouse Management Solutions
A supply chain provider not easily duplicated
SAP
BPO
Supply Chain
E-Payment
Reverse
Logistics
Delivery
Warehouse
Management
Tolling /
Production
Sourcing
S&OP
Planning
Infor
Oracle
Others - Proactis
Seller
Seller
Seller
Seller
Seller
Buyer
Buyer
Buyer
Buyer
Buyer
When super-typhoon Yolanda hit in 2013,
LBC offered free shipping services for relief goods
from any of their stores worldwide.
Photo source: http://lifestyle.inquirer.net/136927/your-super-guide-to-helping-the-victims-of-yolanda
The Story
Video: Thank You LBC Foundation
“2020 Vision: Competitive Procurement, Logistics and Supply Chain”2015 PASIAWorld Annual Conference
Sustainability as a Strategic Agenda
BC Foundation aims to give back to Filipino families andtheir ommunities with the help of more than 7,000employees, its wide etwork reach and the company’s resources.The Foundation is in charge f coming up with projects andtools for its people to exercise social esponsibility throughtheir major advocacies.