Outsourcing Logistics and Transportation, Role of 3PL Emmanuel Bautista Managing Director IDS Logistics (Phils.), Inc.
Outsourcing Logistics and Transportation,
Role of 3PL
Emmanuel Bautista Managing Director
IDS Logistics (Phils.), Inc.
Low market acceptance of new products +
Low order fill-rates +
Rush deliveries to fulfill commitments +
Backhaul of stocks to GMA DC +
= High W&D costs, Unsatisfied Customers
Learning From Past Experience
The Philippine Logistics Terrain
Archipelago with scattered Key Demand Centers
Intricate road network in GMA & Luzon
Multi-modal freight needs for Vis-Min– Sea freight expenses are considerable
Backhauling opportunities still limited
Li & Fung Ltd. Li & Fung Retailing
Li & Fung – Founded 1906
Li & Fung (Distribution)
Li & Fung – a strong Asian heritage with well proven track record
Our Parent Group
Asia-wide Integrated-Distribution Services in
Marketing, Logistics and Manufacturing
IDS Group
(Re-listed on Main Board in 1992)
Export-trading, sourcing soft and hard goods with
operations in 38 countries. Key clients include: Kohl’s,
The Limited, Gymboree
Circle-K (Listed on GEM Board in 2001: under Convenience Retail Asia),
Toys “R” Us
Salvatore Ferragamo
promote, sell, bill, collect ship, store, deliver make, test, package
marketing logistics manufacturing
Each core business built on its own strength to compete against best-in-class competition
IDS Group – Our Core Businesses
Customised solution to meet specific customer needs, locally or regionally. Trend towards regional customer partnerships
Three Core Competencies, One Integrated Solution Across the Value-Chain
Framework for Considering Strategic Alliances
Improves market access?
Strengthens operations?
Adds technological strength?
Enhances organizational skills?
Builds financial strength?
Third Party Logistics (3PL)
Advantages– Focus on Core Strengths– Provides Technological
Flexibility
– Provides Other Flexibilities• Geographic locations• Large variety of services• Resource & workforce size
Disadvantages– Loss of Control• Interaction with customers– Managing 3PL requires different skills set
Third-Party Logistics Services
Third-Party Logistics
Trade ReturnsHandling
CustomsBrokerage
Sales OrderManagement
Third-Party Warehouse Mgt.
Supply ChainSolutions
FreightForwarding
Auxilliary Services
Transportation /Delivery
DC Management Services
Over 115,000 sq. m. of covered DC area, and 98,000 pallet spaces
Nationwide presence
24 x 6 or 24 x 7 operations
Designed to suit clients’ requirements– High- density bulk storage– Intense piece picking– Cross- docking operations
Standardized KPI measures reviewed monthly
All DCs are WMS- enabled, and centrally connected to a server
DC Management Services
Operations customized to suit clients’ requirementsHIGH- DENSITY BULK STORAGE AND PICKING
DC Management Services
Operations customized to suit clients’ requirementsINTENSE PIECE- PICKING
DC Management Services
Operations customized to suit clients’ requirementsCROSS- DOCKING OPERATIONS
Exceed 4000 serves as an O/S within our DCs
Optimizes use of the DCs, equipment and staff
Ensures compliance to customer-defined strategies
Allows capture of product-, customer-, truck- related transactional data
DC Management Services
Exceed 4000 Warehouse Management System
DC Management Services
Radio Data Terminal (RDT) Applications
SYSTEM: Checking of items and confirmation of receipt Post- pick audit before dispatch
BENEFITS: Paperless receiving done real time Higher accuracy of receipt Faster checking of items for dispatch Ability to measure and monitor picking accuracy using scan results
FUTURE: Putaway, picking, cycle counts and location replenishments using RDT
Freight Management Services
A total of 338 vehicles comprising of Multicabs, AUV’s, 4, 6, & 10 wheelers
Strong relationships with leading shipping lines
Centralized management and re-deployment of vehicles across DC’s
Monthly measurement of truckers’ KPI’s
Constant measurement of load factors to optimize utilization
Thank you