Discovery of SCM & Logistics The Integration of China & HKG ( Pan-PRD & HK )

HR Discovery of SCM & LogisticsThe Integration of China & HKG ( Pan-PRD & HK ) Speaker : Joe YANG Venue : HKBU – LMRC Date : 2005.11.05 Ideas sharing

What is the same in between HK & Pan-PRD on Logistics, SCM & DMC ? • Information ( data, IT ) • Finance ( cash ) • Commodities ( goods ) Can you identify your learning, working scope inside these 3 ?

What is the meaning of logistics market ? The formation of logistics market & covering what ? • Market –founding, explore & develop, relationship, position & rank, linkage, DNA, components & elements, stage ……… • Capacity–index, standard, identity, (goods, industries, consuming) ; demand change, supply volume & trend ……… • Structure–demand & supply …….. • Policy–present, future ( maintain, restructuring, innovation ) ….. • Operation–positioning, standard, workflow, details ………. • Outsourcing–standard, definition, tender………… • Sales & marketing–product & service, specific, win ( single, win win, total ) networking, supporting …………. • Or even more………………………………………………….

Understanding of DCM, SCM & Logistics in varied industries at China : 第一產業 : 農業第二產業 : 工業建築業第三產業 : 15

China Overview – Agricultural, Industries, Commercial, Economic ... (key) N North China North West China Home Appliances Garments, Textiles Auto, Motor Cycles Coal, Minerals Raw Materials, wool Agricultural Agricultural Products Dairy Products Minerals Low end manufactures Raw Materials, cotton Plants, forests Heilongjiang Jiling Liaoning North East China Inner Mongolia Xinjiang Beijing Heavy Industries, Ship Building Auto and parts Agricultural Hebei Shanxi Shandong Qinghai Gansu Tibet Ningxia Jiangsu Henan Anhui Hubei Shanghai Central & S.W. China Sichuan Zhejiang Jiangxi Hunan Taiwan Home Appliances Garment, Textiles China Wares Dairy Products Agricultural Products Raw Materials, cotton Minerals Plantation ……. Guishou Fujian Yunnan East China Guangdong Guangxi South China Hi Tech Products Hi-end Garments,Toys Auto Industries Agricultural Hongkong (SAR) Hi Tech Products Garments, Apparels Auto Industries Agricultural Light industries Macau (SAR) Hainan

Current Economic Development – Zones N Populations : 10,000 unit ( ROUGH ) Guangdong : 8642 Guangxi : 4489 Hainan : 787 Sichuan : 11,419 Yunan : 4288 Jiangxi : 4140 Fujian : 3471 Hunan : 6440 Guizhou : 3525 Total : 9 / 472,010,000 Road KM : ( estimated ) Shenzhen – Fuzhou : 890 Shenzhen – Guangzhou : 120 Shenzhen – Haikou : around 900 Shenzhen – Nanning : 883 Shenzhen – Kunming : 1675 Shenzhen – Nanchang : 993 Shenzhen – Changsha : 922 Shenzhen – Chengdu : 2335 Shenzhen – Guiyang : 1505 Heilongjiang • Bohai Bay Area (BBA) • Beijing • Tianjin • Shijiazhuang • Qingdao • Dalian • Xian • Jinan Jiling Xinjiang Liaoning Inner Mongolia Beijing Tianjin Traffic : By air : around 1-2 hours By road : around 15 to 40 hours Hebei Qinghai Shanxi Shandong Bohai Bay Gansu Ningxia Jiangsu Henan Shanghai Anhui Hubei Tibet Chongqing • Yangtsze River Delta (YRD) • Shanghai • Ningbo • Suzhou • Wuxi • Kunshan • Nanjing • Hangzhou Zhejiang : Yangtsze River Delta – around 15M TEU Sichuan Jiangxi Hunan : Pearl River Delta – nearly 40M TEU ( not yet included HK & Macau * ) Guizhou Fujian Taiwan Yunnan Guangxi Guangdong Hongkong (SAR) • Pearl River Delta (PRD) • Guangzhou - Yantian • Dongguan - Zhuhai • Zhongshan - Hongkong • Shenzheng - Macau Macau (SAR) Hainan

How you work on this scope & what is yr play role ? Information flow – 2 ways • Logistics is a service supporting to DCM & SCM • ( demand chain management & supply chain management ) Market Needs Commodity Design Product Development Suppliers Sourcing Manufacturer Sourcing Production Control Local Distribution I. W. D. R. Customs Formalities Shipping/Transport Arrangement Documents Prepare Warehousing Inventory Consumer Retailer Wholesaler Importer Carrier Consolidator Customs Broker Manufacturer Purchaser Vendor Supplier Logistics Demand Supply

Creative understanding about the Chains : • info chain 資訊鏈 • demand chain 需求鏈 • educational chain 教育鏈 • food & beverage chain 飲食鏈 • infectious chain 傳染鏈 • production chain 制造鏈 • transport chain 運輸鏈 • enterprise chain 企業鏈 • criminal chain 罪案鏈 • financial chain 金融鏈 • account chain 會計鏈 • and ………………. Have you develop your own chain – job chain, working chain, industrial chains, life chain ….. ? Services Chain 服務鏈 TRAVEL CHAIN : 旅遊鏈 ( 人流 ) Industrial Chains …………

Can you identify yr correct play role inside this chain ? . . . . . M A N U F A C T U R E R Origin Sourcing The 3rd Vendor Raw materials Supplier The 2nd Vendor Parts/attachments Supplier The 1ST Vendor Accessories Supplier R E C Y L I N G Collection, Re-production, Logistics, Transport, New resources, Materials … The 3rd Customer Retailer Direct market The 2nd Customer Regional/District Distributor The 1ST Customer Trader/Agent Wholesaler Final Customer End-user ………… ………… . . . . . . .. .. .. .. ..

P R O D U C T I O N PRODUCING SERVICING SUPPLYING DELIVERY SELLING TRAINING OTHERS … D E L I V E R Y PRODUCTS SERVICES PROFIT CONSUMING WAGES ENTERTAINMENT OTHERS … HR FACTORY MATERIAL EQUIPMENT INFO INVESTMENT OTHERS … I N P U T O U T P U T D E M A N D ………….. Product or Services / Product & Services …………... S U P P L Y Auto- Mobile Factory Land, House Property, Architect Tailor Merchant, Garment, Fashion .. Fast Food Chain Health Care : Product,Service Travel Service, Hotel, Recreational Education, Academy, Training .. Hospital, Medical care Public Services, Transport. Civil servants Others : Media, Finance, Insurance, Agency, Broker ………………

Future : 3 A supply chain ? Preparation ! Standard ! Harmony ! Balance ! Total win ! ……… ! ! ! Agility 反應敏捷 Adaptability 適應 Alignment 利益一致 Reasons behind – value & service chains factors

What is the key & 1st priority consideration for following industries to be cost effective in supply chain & logistics : cow, vegetables cocoa bean all fresh items cow cotton cotton & farming mineral, fuel ……….. • USA Mcdonald – • Swiss Lindt – • food Supermarket – • ice-cream – • Levis – jeans • shirts – • BMW – • ……….

成長 砍伐 Log Seeding Wood Pulp P R O D U C T E X A M P L E 切屑 • How can you imagine the life of a PAPER ? 移植 Seed Trees 處理成品化 Paper Reel Raw Paper 運輸 Paper Packing 切割加工 Paper Diversification 配送采購回收 End-user 再造 Recycling Whole-sale Retailer 銷售 New sources, New products, New chains ………. What you can imagine yr logistics, DCM & SCM services inside this product cycle ?

Well use on common knowledge : • What you should have but lack ? • Where you should go (direction) but miss ? • Which part you are strong but not yet ? • When you will be prepared but not yet ? • How you are going to do next but not plan ? • Who are you but you don’t know ? AGAIN : • HOW many you know about PPRD/HK or China ? * • WHAT is the trend of SCM & logistics in PPRD/HK ? • WHICH industry you are interested for yr career in PPRD/HK ? • WHERE is the best place to start in PPRD/HK ? • WHEN you will be valuable in PPRD/HK markets ? • WHO is your target after you achieved all above ?

How much you can achieve ? • 1. creative & imagination ….. • 2. broad insight, awareness & confidence • 3. systematic, organizing, standardization … • 4. code of conduct, corporate governance … • 5. trust & initiative, immediate response …. • 6. reliable & sustainable, time management …. • 7. service orientated, measurement tools ….. • 8. What else …………..

What is China future, how is the market ? • green SCM • green logistics • agricultural technology • agricultural innovation • standardization & systematic improvement • servicing industry & industrial chains integration • sourcing optimization, integration ……. • code of conduct & corporate governance • human, corporate culture & branding • some more …………..

Common language in China & HK ? • Agricultural history & traditional • Industry & manufacturing society • Knowledge Economic • Conceptual age

What HK possess & more !! • Better & Correct Knowledge ( knowledge economy ) • Better & Right Concept ( conceptual age ) • Service orientated • Standardization & Systematize • International trust & Global credibility • Broad knowledge & free info What else ……………..

How can you engage with Threat, but Grasp the Chance Every trend is a threat to someone who knows nothing about it. But, it is also a great opportunity if you understand it. It seemed that quality rather than quantity distinguishes the master. What you are seeking for – quantity, quality or both ? Can you find the Way or Direction based on these 2 ? ?

TIMES UP ! • Thank you so much • Welcome for more input …………. ……………………………………………………………… Example of some learning edge fm creative : China Map, Common senses & Motto : as attached

China Provincial identification : • 34 Provinces, Municipalities & Autonomous Regions ; and Special Administrative Regions • - 1 China • 2 SAR 特別行政區 • 23 Provinces 省 • 4 Municipalities 直轄市 • 5 Autonomous Regions 自治區 • 1 Capital • 28 省1級行政中心 ; 4 直轄市 • 333 1st Cities 地級市/autonomous自治州/City • districts地區/州/盟 • 2,862 2nd Cities areas • 市轄區/縣級市/縣/自治縣/旗/自冶旗/特區/林區 • 43,275 Town 鄉鎮 / village 村, 街

China Figure Components 1, 2, 3, 4, 5. 54 43 33.5 1 China included : 2 SAR & 31 Provinces/Administrational Cities/Municipalities = 33 省,市,自治區 / 33 > ( 22 省* + 4 直轄市 + 5 自治區 # ) 2 SAR & 32 Provinces/Administrational Cities/Municipalities = 34 省,市,自治區 / 34 > ( 23 省* + 4 直轄市 + 5 自治區 # ) * A 台灣 / # 新彊維吾爾 ; 宁夏回族 ; 廣西壯族 ; 西藏 ; 內蒙古 ; S. 華南地區 : Hainan 海南, Guangdong 廣東, Hunan 湖南, Jiangxi 江西, Fujian 福建 ; 5 S.W. 西南地區 : Guangxi 廣西, Yunan 云南, Guizhou 貴州, Sichuan 四川 ; 4 N. 華北地區 : Hubei 河北, Shangdong 山東, Shanxi 山西, Inner-mongolia 內蒙古 ; 4 N.E. 東北地區 : Heilongjiang 黑龍江, Jilin 吉林, Liaoning 遼宁 ; 3 E. 華東地區 : Jiangsu 江蘇, Zhejiang 浙江, Anhui 安徽 ; 3 C. 華中地區 : Hubei 湖北, Henan 河南, Shaanxi 陝西 ; 3 N.W. 西北地區 : Ningxia 宁夏, Gansu 甘肅, Qinghai 青海, Xinjiang 新彊, Tibet 西藏 ; 5 直轄市 : 北京 , 上海 , 天津 , 重慶 ;

China Figure 中國三圍 • 43 33.5 • or • 43 33.5 54 Any better idea to think about China map ? 3 4 South : 5 South west : 4 North : 4 North east : 3 East : 3 Central : 3 North west : 5 North : 4 North east : 3 East : 3 Central : 3 North west : 5 South : 5 South west : 4 5 3 3 OR 4 A * 5 *

Appendix 1 –just some common sense, but easy absent minded ! Future = 5-10 years • 1. Who is yr current customers ? Who will be yr customer in the future ? • 2. What channel you are going to approach yr clients ? What kind of channel you are going to approach yr clients in the future ? • 3. Who is yr current competitors ? Who will be yr future competitors ? • 4. What is yr current core competence & base ? What is yr future core competence & base ? • 5. Where is yr profit engaged now ? Where is yr future profit engagement ? • 6. What is yr specific in the market now ? What will be yr future specific ? • 7. What is yr product & services range in current market ? What is yr product & services range in the future ? • 8. Why you are able to survive in current market ? Why you are still able to survive in the future via forecasting ? • 9. How you are going to do next in current market ? How you are able to maintain& always stepping at the front in the future ? • 10. When you are prepared well for current market ? When you are able to command yourself or career in the future ?

Appendix 2 –common sense fm GE, also easy absent minded ! • A. In Globalization or Regional China market, what is yr industry core competence & how is the competitive environment ? • B. In the past 3 years, what you have done or learned fm above markets ? And what yr competitors have done or learned as well ? • C. In the future, how yr competitors will hack on you ? • D. In the coming, what strategies you will have to overcome others ? 參考格言 : • 預思未來, • 卸下感情包袱, • 站得高、看得遠, • 學得闊、能力強, • 想得通、价值高 ………. ………香港品牌、优質人材 ………….中國品牌、优質資源

Discovery of SCM & Logistics The Integration of China & HKG ( Pan-PRD & HK )