Logistics and Supply chain guys

[AndrewV]

thought i'd set up a thread where the aforementioned industry could be discussed.

the outlook seems pretty good for now(specially in contract logistics), while shipping seems to be suffering due to the obvious glut of supply and reduced global trade. On another note, singapore's LNG terminal expansion to offer more opportunities?

[AndrewV]

anybody in the industry?

[Strong Eagle]

I don't know what "contract logistics" are but I do know that most MNC's are combining IT and logistics under a single unit since so much of IT is about supply chain.

[AndrewV]

I don't know what "contract logistics" are but I do know that most MNC's are combining IT and logistics under a single unit since so much of IT is about supply chain.

contract logistics are when a logistics service provider takes over the supply chain of another company promising to run it under a stipulated contract.

combining IT and logistics under a single unit? that's news to me . Unless you mean things like procuring laptop and outsourced services.

It takes way more than procurement experience to run an IT dept. Commoditizing your IT dept will make it difficult to build your systems in such a way that allows them to deliver ahead of the curve.

[Strong Eagle]

combining IT and logistics under a single unit?

I didn't say logistics. I said supply chain. Once you get past financial systems, the far larger and more complex IT systems are supply chain... as you know, everything from inbound materials shipping, warehousing, customs, etc, to everything outbound... and the vendor, material, scheduling databases that must all support it.

The demand model for IT services is changing. What used to be an "IT department" providing services to other departments is morphing into becoming an adjunct to the most important service areas, supply chain being one of them, finance another, and HR yet a third.

So what I'm saying is that rather than some CIO exercising demand management and setting priorities for systems, the supply chain VP will set the priorities and needs, to be coordinated by the CIO with other similar integrations.

[Steve1960]

combining IT and logistics under a single unit?

I didn't say logistics. I said supply chain. Once you get past financial systems, the far larger and more complex IT systems are supply chain... as you know, everything from inbound materials shipping, warehousing, customs, etc, to everything outbound... and the vendor, material, scheduling databases that must all support it.

The demand model for IT services is changing. What used to be an "IT department" providing services to other departments is morphing into becoming an adjunct to the most important service areas, supply chain being one of them, finance another, and HR yet a third.

So what I'm saying is that rather than some CIO exercising demand management and setting priorities for systems, the supply chain VP will set the priorities and needs, to be coordinated by the CIO with other similar integrations.

Perfectly described. This is exactly how I operate as Supply Chain VP

[Strong Eagle]

It changes the budget model, too. Your division will still be billed for the infrastructure to support IT, but instead of being billed for your SAP systems, etc, they become the responsibility of the supply chain division... so that cost accountability is more effectively placed where it needs to be.

[AndrewV]

It changes the budget model, too. Your division will still be billed for the infrastructure to support IT, but instead of being billed for your SAP systems, etc, they become the responsibility of the supply chain division... so that cost accountability is more effectively placed where it needs to be.

Good insight from the users perspective of supply chain. From the providers perspective (dedicated shipping/logistics company's), they are more open to modernization of their systems to keep in line with developing trends. Most company's are getting rid of their 20 year old mainframes and switching to solutions such as Oracle TM, JDA, Manhattan Asociates, etc...
SAP couldn't stay away from this pie for too long so they come up with SAP TM (which shouldn't be out in the market at all; anyone who takes a look at it will feel like he's using a piece of beta-release software which SAP is using to gather requirements rather than present a respectable solution at all)

Industry wise, there seems to be more specialization with several shipping company's merging their operations for economies of scale.

[AndrewV]

Looks like the Fire in the bangladesh factory is getting people talking about supply chain processes and standardization again. Walmart is relooking at their Chain.

[Strong Eagle]

Looks like the Fire in the bangladesh factory is getting people talking about supply chain processes and standardization again. Walmart is relooking at their Chain.

It's not about supply chain processes, it's about FIRE SAFETY and chickenshit firms like Walmart refusing to pay for additional fire safety upgrades.

Walmart doesn't need to look at their 'chain', they need to look at their worthless record for employee rights to see why they couldn't join a consortium of clothing makers that were going to spend USD 20 million to improve fire safety in 70 factories.

F*ck Walmart. And f*ck the Waltons.

[AndrewV]

Looks like the Fire in the bangladesh factory is getting people talking about supply chain processes and standardization again. Walmart is relooking at their Chain.

It's not about supply chain processes, it's about FIRE SAFETY and chickenshit firms like Walmart refusing to pay for additional fire safety upgrades.

Walmart doesn't need to look at their 'chain', they need to look at their worthless record for employee rights to see why they couldn't join a consortium of clothing makers that were going to spend USD 20 million to improve fire safety in 70 factories.

F*ck Walmart. And f*ck the Waltons.

you maybe right, but the various lawsuits its facing and it's share price reflects that people are watching this unravel with interest.

[AndrewV]

seems like same day shipping is going to be the next big thing
also google is getting into the supply chain tracking things