ASEAN logistic Trend and Preferences ASEAN logistic trend and preferences have been dramatically changing since the world’s economy and production growth have been shifting toward ASEAN countries. However, the high logistic costs among these countries are unable to promote high quality and wide range of logistic service to international customers. Still, these countries acquire to eliminate the high costs to provide customer satisfaction and being cost efficiency.
The inefficiency of logistic in ASEAN countries, particularly Indonesia, Malaysia and Thailand, is mainly due to lack of skilled and professional personnel, insufficient support of facilities and infrastructure which can raise defect the movement of cargos and distribution goods. For example, in Singapore has professional skilled workforce, high quality and wide range of logistic services, highly efficient logistics operations and excellent infrastructure and information system had lead to more sustainable supply chains and cost effectiveness.
Unlike Singapore, some of the Asian countries must build the requirements to meet supply chains efficiency. Especially Thailand wants to become a regional transport center; Thailand must improve its infrastructure linkages to connect with neighboring countries. On the other hand, these countries must be proactive to take advantage of its location because this is a golden opportunity. To provide cost saving and flexible value added services, these countries must take initiative changes and improvement to proof that they are capable of offering logistic efficiency.
Meanwhile, these counties must increase the quality of its reliability of inventory management and order fulfillment . i. e they must keep up with the effective and efficient logistic service. To fulfill the customer’s order, the logistic service in these countries must know the right product, right quantity, right condition, right place, right time, and right customer at the right cost. Focusing on existing network coverage is also a key to success in logistic management for these countries because it is a very important criterion where company can attract international trade customers.
It is most likely that transportation is the most outsourcing logistic activity at inbound and outbound supply chain. Other out bound logistic activities are warehousing which is value added service, packaging, and labeling. Transportation, warehousing, freight forwarding must be managed well in order to provide cost effectiveness and high quality logistic service which can achieve high customer satisfaction. Finding Supply Chain Solutions Technology can help individual to improve their supply chains, cost efficient, high productivity, and customer satisfaction.
Technologies nowadays are so advanced that they can provide any possible solution for supply chains and productions. The latest software offers to promote demand planning, advanced planning and advanced scheduling. They can also minimize the wastage and maximize productivity level at lower long term operation costs with high quality. Nowadays, many of the manufacturer and enterprise use technology to increase their revenue. When comes to warehousing, technology can improve performance efficiency by calculating the right storage at the right space, minimizing defective or expired product, delay and maximizing efficiency.
In considering the huge quantity and diverse categories of products, holding costs and production costs must be managed with the right method. Implying low cost and random selection of inefficient storage could cause delay delivery, cost of lost of sales, the transportation of goods, and high incidence of missing stock. To avoid these barriers, the most up to dated computer software is available to assist the logistic manager to track delivery, freight forwarding, order fulfillment and ultimately customer service.
When the company decided to set up a plan, he must take into account of transportation cost. It must meet customer’s needs and cost effective, and order fulfillment at any situation. So it requites to consider locations of plants and market place, actual distance of linkages, frequency of delivery, number of routes, volume of goods, product categories, and on time delivery. Supplier Development When it comes to business, all managers must be proactive and innovative. They also need to build and keep loyal and close relationship with their supplier.
On the other hands, in the market economy system, everyone is supplier in one way or another. So having single supplier is not smart choice to play the game in the free market. Having one or few suppliers can cause not only limited control but also threats to the business. Thus, the best ways to be proactive and cost effective is having multiple sources or supplier which provides lowers costs, and innovation. But need inspection to monitor the quality. In order to do so, the companies should be able to outsource its production.
In outsourcing, it is most likely to reduce the fixed cost and other costs. So developing alternative sources for raw material, manufacturing, or transpiration is likely to account for value chain. A smart business man would construct the strategic sources of supplier to avoid risks. Then they are willing to keep closed relationship with major suppliers by partnership to share costing, investment, and long term agreements. It is true that building loyal supplier relationship is competitive advantage in logistic management. Targeting New Potential Market
Muslims world is becoming next target for logistic services considering the estimated 1. 7 billion consumers across the world. Now, it is time for the manufacturer and logistic service provider to shine among the Muslims. The consumer needs and wants Halal that they can trust and rely on. Thus, the Halal compliance should be addressed to the sourcing and distribution because this is a potential opportunity for the logistic to accumulate as a new mega trend. As the opportunity and benefits seem to be huge, the investment is also a large one.
To provide perfect logistic service, it is require understanding the market, culture, religion, way of consumption point and behavior in Muslims societies. The new standardization is compulsory in inters of supply chain which is material and information flows through manufacturing, transportation, storage, warehousing, distribution. So, the companies must select the targeted location of production and distribution, imply and conduct the new standards, control high quality and safety of food to gain huge potential growth of market.