2012 China Logistics Full Review

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2012 China Logistics Full Review by Mind Map: 2012 China Logistics Full Review

1. China

1.1. HKG

1.1.1. HK biz in PRD +/-

1.1.1.1. CH2: cost, market, utilities, law, customs, culture, IPR, import/export issues

1.1.1.2. labor cost, land cost, scale up production, exploit, domestic sales, asked by customers, cluster effect, closer to transportation hub, right mix of skills, tax incentives

1.1.2. HK as trading port, +/-

1.1.2.1. cost, law, skill, connections, government, finance, China as base, sourcing center, geographic center, insurance, SME.... space, competition, people

1.2. PRD

1.2.1. YRD

1.2.1.1. cities

1.2.2. ports: sea and air

1.3. China macro

1.3.1. ministries

1.3.2. working in China

1.3.2.1. 18ys, no criminal records, job offer

1.3.3. ranking

1.3.3.1. GDP

1.3.3.2. goods

1.3.4. risks

1.3.4.1. service mindset, legal, customs, local vs central gov, infrastructure, standardization, small companies, IPR, ....

1.3.5. CH4: 12th five year plan

2. domestics vs international

2.1. CH6: languages, culture, FX, customs, cost, competition, politics, infrastructure, regulations, insurance, packaging, documentation...

3. Globalisation

3.1. why globalize

3.1.1. CH1: reasons: technology, WTO, deregulations in world trade, strong retailer, world is flat, market expansion, customer base, cost, consumer behavior changes

3.1.1.1. internet world

3.1.1.1.1. supply chain efficiency, effectiveness, customer service, reduce logistics costs, lower inventory, improve profitability, lower long distance costs

3.1.2. CH1: stages: export, license, JV, manufacture, FDI, sell in local market with adaption

3.1.2.1. licensing +/-

3.1.2.1.1. minimize risk, investment, speed of entry, higer ROI, circumvent trade barrier

3.1.2.1.2. lack full control create competitors, trade secrets and knowledges, limited license period

3.2. competition

3.2.1. CH1: PEST

3.2.2. CH1: Porter 5 forces

3.2.2.1. internal rivalry, new entrant, substitute, buyers suppliers

3.3. LSP

3.3.1. CH8: 3PL: standard and add value services

3.3.1.1. e.g. Li&Fung, DHL....

3.3.1.2. consolidation, shipping, forwarding, local forwarding, customs clearance, copacking, repacking, product development, raw material sourcing, factory sourcing, manufacturing control, reverse supply chain, repair, recycle, back office works

4. Strategies

4.1. supply chain

4.1.1. inventory, transportation, warehousing, purchasing

4.2. key strategies, cost: fix, variable, customer services (quality, time)

4.2.1. reduce inventory

4.2.1.1. smaller frequent orders, use premium transportation, demand pull, eliminate slow moving stocks, reduce sku complexity, forecast accuracy, FIFO, simplify business process

4.3. time compression

4.3.1. lean

4.3.1.1. 7 wastes(muda)

4.3.1.1.1. TIMWOOD : Transportation, inventory, Motion, Waiting, Over-processing, Over-production, Defect

4.3.2. military

4.3.2.1. speed, focus control, murphy's law, optimize not maximize, anticipate...

4.3.3. strategies: simplify, integrate, variance control, automate, standardize, multi-skill, concurrent work, ...

4.4. make or buy decision

4.4.1. outsource

4.4.1.1. strategic, tactical

4.4.1.1.1. focus, world class capability, reengineering, risk, resources, cost, reduce internal conflict...

4.4.1.2. what to outsource

4.4.1.2.1. low tech, no IPR, long term relationship, non-core, many transactions...

4.4.2. cost benefit analysis

4.4.2.1. hard $ saving, soft $ saving, cost avoidance

5. KPI

5.1. CH6: inventory turn, case fill, order fill, ONIF, ABC inventory control, landed cost, ...

5.2. balanced scorecard

5.2.1. financial, customer, peer, training

5.2.2. customer service

5.2.2.1. answer the phone, keep promise, positive attitude, courteous and knowledgeable, listen, something extra, complete record, follow up, checklist, take the extra steps

6. logistics

6.1. road, air, rail, water, pipe

6.1.1. how to choose among them

6.1.1.1. cost, reliability, service, speed, security, rate, damages, frequency, loss...

6.2. supply chain

6.2.1. buy, make, distribute... recycle, repair, plan, quality, customer service, warehouse, government relation, CSR, ....