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Competitive Exporting Through Supply Chain Management

Learn how efficient supply chain management can reduce costs and help you stay competitive in the exporting industry. Discover the tools and strategies to improve sourcing, order processing, shipping, and more.

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Competitive Exporting Through Supply Chain Management

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  1. CompetitiveExportingThrough Supply Chain Management Presented by: Michelle Beck Vice President April 2, 1999

  2. “Efficient Supply Chain Management cuts 2%-8% off cost of doing business” Source: ec.com magazineOctober 1997

  3. The Opportunities are Excellent • US continues to renew “MFN” status for China • Growing number of export licenses being granted • Easier for you to travel to visit customers, and for them to visit you

  4. Competition’s Never been Greater • Strong pressure from: • Competitors in Taiwan • Competitors outside Taiwan

  5. It’s Getting Even Tougher! • Price • Quality • Standards • Delivery lead times • Reliability

  6. “You’re fast or you’re forgotten” Dolores Marcial, VP-Procurement, Adaptec Inc (computer products importer)

  7. The Consumer is KingAnd the King is more demanding • More variety • Better quality • Lower prices • More warranties and guarantees

  8. FACTORY/ OEM SUPPLIER/ EXPORTER BUYER/ IMPORTER RETAILER CONSUMER Consumer drives the supply chain • Retailers’ demands on importers are the result of consumer demands on retailers • Importers’ demands on exporters are the result of retailers’ demands on importers • Exporters’ demands on manufacturers are the result of Importers demands on Exporters

  9. What is the Supply Chain? Goods FACTORY SHIPPER WAREHOUSE RETAIL STORE BUYER’S HEAD OFFICE SUPPLIER Information

  10. Supply Chain Management is not new... • Buyers like Wal-Mart have been investing in supply chain management with domestic suppliers for decades • But it required a very large investment in money, people and time.

  11. Supply Chain Managementis now available to everyone... • Now we have: • Cheap but powerful computers • Cheap & easy to use software • The Internet

  12. Benefits: fast, low cost, efficient, digital Web Sites & CD-ROMs SOURCING Benefits: fast, low cost, efficient PRE-ORDER E-mail & structured messages Benefits: fast, low cost, efficient, no errors ORDER EDI and electronic order processing SHIPPING Barcodes and scan & pack technology Benefits: fast, low cost, efficient, no errors Supply Chain Management Today’s Tools... FACTORY/ OEM SUPPLIER/ EXPORTER BUYER/ IMPORTER RETAILER CONSUMER

  13. Benefits: fast, low cost, efficient PRE-ORDER E-mail & structured messages Benefits: fast, low cost, efficient, no errors ORDER EDI and electronic order processing SHIPPING & REORDERS Barcodes and scan & pack technology Benefits: fast, low cost, efficient, no errors Supply Chain Management Today’s Tools... FACTORY/ OEM SUPPLIER/ EXPORTER BUYER/ IMPORTER RETAILER CONSUMER Benefits: fast, low cost, efficient, digital Web Sites & CD-ROMs SOURCING

  14. Web Sites & CD-ROMs • 240 (out of 250) countries have Internet access • 100,000,000 people use the internet • 3,000,000 companies have “.com” domain names Source: Vinton Cerf/Internet Society

  15. Web Sites & CD-ROMs • Asian suppliers today get Internet and CD-ROM sales leads from more than 140 countries Source: Asian Sources data

  16. Benefits: fast, low cost, efficient, no errors ORDER EDI and electronic order processing SHIPPING & REORDERS Barcodes and scan & pack technology Benefits: fast, low cost, efficient, no errors Supply Chain Management Today’s Tools... FACTORY/ OEM SUPPLIER/ EXPORTER BUYER/ IMPORTER RETAILER CONSUMER Benefits: fast, low cost, efficient, digital Websites & CD-ROMs SOURCING Benefits: fast, low cost, efficient PRE-ORDER E-mail & structured messages

  17. E-mail and structured messages • Global Buyers use e-mail and on-line forms to get information from suppliers • Asian suppliers get over 100,000 inquiries per month using e-mail and structured data Source: Asian Sources data

  18. Benefits: fast, low cost, efficient PRE-ORDER E-mail & structured messages SHIPPING & REORDERS Barcodes and scan & pack technology Benefits: fast, low cost, efficient, no errors Supply Chain Management Today’s Tools... FACTORY/ OEM SUPPLIER/ EXPORTER BUYER/ IMPORTER RETAILER CONSUMER Benefits: fast, low cost, efficient, digital Websites & CD-ROMs SOURCING Benefits: fast, low cost, efficient, no errors ORDER EDI and electronic order processing

  19. EDI and electronic order processing • Liz Claiborne connects with 28 suppliers electronically from their HK buying office • Order management software and EDI communications have reduced costs and average lead times down from 7-10 days to 2-3 days

  20. Benefits: fast, low cost, efficient PRE-ORDER E-mail & structured messages Electronic commerce tools for supply chain management FACTORY/ OEM SUPPLIER/ EXPORTER BUYER/ IMPORTER RETAILER CONSUMER Benefits: fast, low cost, efficient, digital Websites & CD-ROMs SOURCING Benefits: fast, low cost, efficient, no errors ORDER EDI and electronic order processing SHIPPING Barcodes and scan & pack technology Benefits: fast, low cost, efficient, no errors

  21. Barcodes and Scanning Technologies • Polo’s suppliers use EDI, barcode and scanning technologies to send immediate, 100% accurate Advance Ship Notices (ASNs) to Polo

  22. Supply Chain Management Tools • Cut the cost of communicating • Reduce errors • Shorten lead times • Allow you to be more response • Cuts the cost of inventory • Make you competitive!

  23. Retailers & Importers totally rely on these tools • Work only with electronically enabled suppliers • Source using Electronic Buyer Catalogs • Negotiate electronically • Place orders and ship electronically • Re-order electronically

  24. Some of the Companies with Private Buyer Catalogs hosted by Asian Sources Private

  25. Some of the Companies with Private Buyer Catalogs hosted by Asian Sources

  26. Supply Chain Management is changing the way business is done.5 Steps On how you can respond

  27. How can you respond? STEP 1: The basics • Get a computer • Recommended: Pentium II 350mhz, 64MB RAM, 4GB HD, 56K(v.90) modem • Get internet access • Recommended: Hinet or GCNet • Get an e-mail address & e-mail box • Free: yourcompany@asiansources.com

  28. How can you respond? Step 1: The basics E-mail account Internet Your PC • Forecast return: US$500+ per month in IDD communications alone* E-mailbox US$1,000 US$0.00 US$20 per month *Based on 50% saving off average US$1,000 IDD bill (phone & fax)

  29. How can you respond? Step 2: Electronic Catalog • Put your product catalog on the internet • Regularly update the catalog with new information and new products • Respond to inquiries within 24 hours electronically via e-mail

  30. E-mailbox How can you respond? Step 2: Electronic Catalog • Forecast return: Cost-effective marketing, reduced print catalog & mailing costs, reduced communication costs for the buyer Internet Electronic Catalog Existing Customers

  31. How can you respond? STEP 3: Promote your Electronic Catalog • Put your web site address on all your stationary and name cards • Register with the search engines regularly • Advertise your web site in trade magazines, at trade shows and at trade related web sites. • E-mail new products to qualified buyers

  32. E-mailbox New Customers How can you respond? STEP 3: Promote your electronic catalog Internet Electronic Catalog

  33. SUPPLIER BUYER REQUEST FOR QUOTATION QUOTATION PURCHASE ORDER INVOICE PACKING LIST ADVANCE SHIP NOTICE LETTER OF CREDIT How can you respond? STEP 4:Electronic Order Processing • Reduce communication • costs by up to 95% • Reduce data-entry costs • by up to 50%

  34. How can you respond? Step 5: Scan & Pack Orders • Guarantee correct packing mix • Avoid penalties for short packing • 100% accurate Carton Labels • 100% accurate Packing lists • Advance Shipping Notices sent automatically

  35. How can you respond? 5 Steps: The benefits • Reduced communications costs • One-time data entry, reduce errors • Auto-generate trade documents • Reduce turnaround/lead times • Better control over your business • Better service to your customers

  36. What you need to remember about Supply Chain Management • Opportunities are great but competition is global • The consumer controls the Supply Chain • Cheap computers & the internet change everything • Electronic commerce tools are available to everyone • Supply Chain Management means competitiveness • Begin with the basics and expand as you learn

  37. When should you respond? • “ Through the combination of computer network technology and international trade, we can promote China’s exports in the global marketplace…This implies more trade opportunities, fewer procedures, and lower cost” • Shi Guang Sheng, Minister • Ministry of Foreign Trade & Economic Cooperation

  38. When should you respond? • When it is important for you: • To reduce your costs • To provide better service • To increase your competitive advantage • To increase your profitability

  39. When should you respond? • Before your Buyers! • Before your Competitors! • Before it is too late.

  40. When should you respond? “You’re fast or you’re forgotten” Dolores Marcial, VP-Procurement, Adaptec Inc

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