Fosteringlinkstoencouragetrade · when a company looks at greening its supply chain, it seems as if...
1
R2 SANDRA O’CONNELL IF YOU’RE trying to promote a healthy, clean-cut sporting goods brand, the last thing you need is the spectre of child labour to tar- nish it.As corporate and social responsibility (CSR) gains trac- tion, more and more companies are keen to use “ethical” initiatives as a tool for competitive advan- tage. Nowhere, as Nike knows, is this more important than in supply chain management. “Ethical supply chain manage- ment, particularly the ‘greening’ of the supply chain, is now a major issue,” says John Whelan, chief executive of the Irish Exporters Association. “What it means in practice is looking at the impact of every one of your supplier compa- nies, looking at the carbon foot- print they incur in getting their goods to you, and looking at issues of sustainability as to where they supply their raw materials.” It’s then a question of asking each to consider providing greener alternatives. “You might ask them to look at alternatives to polystyrene pack- aging and they’ll come back and ask whether you are willing to accept a higher level of breakages likely to arise from the use of alter- natives,” says Whelan. “It’s then a question of negotiating the best way forward from there.” It’s a trend which is picking up steam in all parts of the supply chain, including the transport and logistics sector. Just last month, Belfast Port scored a coup by announcing it had become the world’s first harbour authority to be accredited as carbon neutral. “Across the board, from port facilities to haulage companies to shipping lines, all are working towards becoming carbon neu- tral,” notes Whelan. There are sound commercial reasons for doing so. “Initially when a company looks at greening its supply chain, it seems as if costs will go up. In fact, they ultimately go down.” In particular, being environmen- tally aware can help cut energy costs. “Right now the cost of fuel is rocketing, and ethical supply chain management means looking not just at more fuel-efficient methods of production, but the moving of raw materials and the disposal of waste afterwards too,” says Whelan. “What’s more, those small firms or suppliers who go into it early, who can go to their customers and say ‘we can help you reduce your carbon foot print’, will have a ter- rific competitive edge.” “Ethical supply chain is a huge topic right now, but the single big- gest driver of it is oil prices,” says Edward Sweeney, director of learning at the National Institute for Transport and Logistics.“A lot of things that firms took for granted, such as the outsourcing of labour to lower-cost locations, are all of a sudden not so viable anymore, which means we might see a trend towards the relocalisa- tion of manufacturing. “The economic logic that under- pinned all those decisions to out- source to far flung places in the past 10 years has changed, but things were beginning to change already as companies became more aware of corporate social responsibility (CSR) issues relating to environmental degrada- tion or child labour,” adds Sweeney.Such concerns weren’t entirely altruistic, however. “Rather they were a response to increased consumer knowledge of such issues,” he says. However, the real litmus test as to how committed firms are to eth- ical supply chain initiatives is how they fare in a downturn. “My fear is that it may prove to be a luxury issue of concern only when times are good,” says Sweeney. The indicators are good. Price- waterhouseCoopers, a profes- sional services consultancy, recently surveyed procurement executives from some of the largest retail and consumer compa- nies in eight countries. More than half referred to envi- ronmental issues, including carbon footprint, as a factor when considering new sourcing strate- gies or locations. “This is indicative of the increasing focus on the environ- ment as companies consider the future of their sourcing strate- gies,” says Bartley O’Connor, asso- ciate director, PwC Strategy Advi- sory Services. Nigel Devenish, however, com- mercial director of DSV, a trans- port and logistics company, believes it is consumers who will ultimately have the power to foster ethical supply chains. And they’ll do it by voting with their wallets. “If they want strawberries picked fresh and transported from Morocco in winter time, they’ll have to be willing to pay a pre- mium for them.” Bartley O’Connor, associate director, PwC Strategy Advisory Services Fostering links to encourage trade Supply Chain Management T O MARKET, to market – the goal has always been about getting goods to market. We live on an island, off an island, off mainland Europe. For more than a decade, while the Irish economy defied all growth predictions, we sweated our air and sea ports, our roads and our railways. But now, to keep the economy alive, it is more important than ever to make it easy to get goods and services on and off the island. More than a decade since the boom took off in the mid-1990s, the crucial factors about capacity and connectivity are still the same. Just getting to the island’s regional cities is a work in progress. The inter-urban roads programme, connecting Dublin to Waterford, Cork, Limerick, Galway and the Border is sched- uled to be complete by 2010. And while all of the contracts are cur- rently under way, all of these roads lead to Dublin, and connections between the cities themselves are something of a work in progress. We are still some distance from completing Euroroute One – the motorway envisaged from Larne, Co Antrim to Rosslare, Co Wex- ford. Yet few routes could be more important. According to a March 2008 report from the all-Ireland body IntertradeIreland, growth in con- tainerised trade through Irish ports has increased by 125 per cent in the last decade to 2,006 units, while numbers of Roll-On, Roll-Off vehicles increased by 70 per cent, the majority of it on the busy eastern seaboard. But whether it is Cork, Shannon, Rosslare or Dublin, once on the island, problems of conges- tion come into play. While we have developed the Dublin Port Tunnel and are busily expanding the M50, we seem to be constantly playing catch-up. Edward Sweeney, of the National Institute for Transport and Logistics, believes the invest- ment in infrastructure – which runs to about ¤20 billion on the major roads alone – has barely kept pace with the growth of recent decades. He warns that with a faltering economy, it is now more important than ever that capacity issues be addressed. One of the main findings of the IntertradeIreland report is that in order to break this cycle of catch-up, we should develop a system of forecasting capacity and demand with some certainty for the coming years. John Whelan, chief executive of the Irish Exporters Association, agrees. He decries the uncertainty over Dublin Port, pointing out that both the Minister for Transport Noel Dempsey and the Minister for the Environment John Gormley have set up committees to examine future options for Dublin Bay. People are being asked to make investment deci- sions, he says, and they don’t have basic information on Government policy. He is also frustrated by the recent rejection by An Bord Pleanála of expansion plans at Rin- gaskiddy. Among the board’s rea- sons were the lack of rail freight to the port and poor access to the N28. But Whelan says that these are issues under the control of the Department of Transport, and he wonders why a single department could not identify an integrated solution. Air and sea ports are the focal points through which we connect with the global economy. They need to be efficient and importers /exporters need to know that capacity issues at Dublin Airport and the city’s docklands will be sorted. The shipping industry is awaiting sight of the Harbour (Amendment) Bill 2008, which is to reorganise management of the ports. Even when decisions are made, there is inevitably a delay of some years between approval being given for a major new port facility and the time when it becomes fully available. In such an environment, busi- ness efficiency can be critical and some businesses are better than others at managing distribution inside Ireland. The major super- markets – like Tesco and Marks & Spencer – and industrialists such as Dell have well worked out supply chain logistics, because they have to. We expect, for example, the same level of pro- duce and the same prices in Tesco in Ballina, Co Mayo, as we do in Belfast or Waterford. Centralised distribution sys- tems used to be all about rail freight – but all freight was com- pletely wound down in Northern Ireland in 2003 and in the south it accounts for less than 2 per cent of freight movements. Barry Kenny of Irish Rail says the vast majority of freight jour- neys from Dublin Port end within Leinster. Coillte and Tara mines are among the last few users of rail freight. But there are attitude problems too. While IntertradeIreland has recommended a maximum height for lorries, based on the British standard of 4.95 metres, former taoiseach Bertie Ahern famously – or infamously – told the haulage industry the State didn’t want such lorries. They should, he said, be turned around in the port and sent back. And so the height of Dublin Port Tunnel is set in stone at 4.65 metres, meaning more lor- ries on the roads, with more con- gestion and more carbon emis- sions. The Irish Road Haulage Associa- tion is currently in discussions with the Government on another big problem caused by periphery; fuel prices. In recent years, the Govern- ment gave excise duty concessions and grants to encourage the take up of biofuels. Then, after considerable invest- ment by hauliers, the Government has announced it is rethinking the strategy in light of the “food or fuel” debate in relation to biofuels. Jerry Kiersey of Green Tiger Express is one of those who has invested heavily in engine conver- sions, only to be hit by the Govern- ment’s dithering. There is enough spare capacity on lands which could be used to grow sugar beet to provide fuel for 5,000 lorries, he says. It would give farmers an alternative source of income, lower carbon emissions and pro- vide certainty of supply and a buffer against rising fuel prices. Ultimately, while we have an expanded economy, the problems remain just as they were in the mid-1990s. The most serious logistics issues faced by Ireland are: periphery; inadequate infrastructure; fuel prices and traffic congestion. Putting the ethical initiative to good use ‘When you have clarity it becomes easier.’ Padraig Henry, IT director at SerCom Solutions ‘Why can a single department not identify an integrated solution?’ John Whelan, IEA chief executive I NFORMATION IS crucial to maintaining efficiency in a supply chain and information technology (IT) has a strong role to play in delivering this data. In order for a supply chain to be at its most effective, businesses need to have accurate real time information. “The key to a successful supply chain is having end-to-end data. This enables firms to track goods in real time,” says Barry Collins, sales director at PCH. Technologies like enterprise resource planning (ERP) and cus- tomer relationship management (CRM) systems are providing busi- nesses with access to this informa- tion.“ERP plays a central role in supply chain management (SCM),” says Padraig Henry, IT director at SerCom Solutions. Henry says an ERP system acts as an information hub within a supply chain: “ERP allows sup- pliers and customers to share real time information.” As the data is delivered in real time, firms can use what an ERP tells them to better manage inven- tory and reduce overall stock. “When you have clarity it becomes a lot easier to manage the supply chain,” says Henry. With ERP platforms becoming increasingly popular with busi- nesses, the potential for consolida- tion in the market is high. Systems that are currently just offerings in the market may become the standard tools. This in turn could lead to fur- ther growth in the sector as greater clarity is provided to firms in terms of finding the option that best suits a business. IT is also aiding firms that are outsourcing many business func- tions. Businesses are now better placed to keep track of goods that are under the control of third par- ties. “As companies turn over the manufacturing of key components and products to third party sup- pliers, if not properly managed they can lose visibility and control over key business processes,” says Conor McNamara, consultant in Advisory Performance Improve- ment with Pricewaterhouse- Coopers. “The need for a fully integrated technology solution across all supply chain components is essen- tial in order to enable the business to make informed on-time deci- sions,” says McNamara. Essentially, it’s all about data. Businesses need technologies that can provide information quickly in order to monitor the movement of goods. Radio frequency identification (RFID) is one technology that is helping firms achieve this goal. This form of tagging, which could roughly be described as a high- tech form of barcodes, enables businesses to monitor the move- ments of individual goods. For all the benefits tools like RFID bring to the table, these tech- nologies are not the be all and end all of SCM.In order for a supply chain to make the most of IT, busi- nesses need to have staff that are able to manage this kind of tech- nology. “Systems are only a tool and like wars, are still won with soldiers on the battlefield, well-trained, moti- vated, mentored staff will continue to be the key driver to efficiency, accuracy and effectively driven supply chains,” says Nigel Devenish, commercial director with DSV Solutions. He says the system is a business implement to aid a supply chain. “ERPs and CRMs are and remain only a business tool; and they work extremely well when their applica- tion and execution is heralded from the top down,” says Devenish. “Used properly, they offer excel- lent value, but unsupported by key functional managers and their teams, the value is quickly dissi- pated.” Devenish says it is critical that businesses accept that there is no one-size-fits-all solution to SCM. Some systems are right for some businesses, but in other cases, the technology just doesn’t fit right. “SCM technology has a key role to play in the supply chain, but it has to be ‘fit for purpose’ and not applied simply because it is just technology,” he says. Businesses need to understand the costs and benefits. Those seeking to use technology must first know exactly what their own business processes are, and what exactly they want. This is crucial, as some of the better-known SCM technologies are only currently suited to some businesses. “The much-vaunted RFID clearly has a key role in today’s market, but its cost allied to its key application will not cost-effectively fit the multifarious supply chain needs of today,” says Devenish. “It is not yet a panacea for all things that move.” While RFID has yet to become cost effective for many businesses, the technology has potential to benefit firms in the future. “It could give us even crisper vis- ibility,” says Henry. “ IT is also aiding firms that are outsourcing many business functions. Businesses are now better placed to keep track of goods that are under the control of third parties. After more than a decade of boom, the barriers to growth in trade remain the same: poor infrastructure, fuel prices and traffic congestion. Tim O’Brien reports Tracking goods is essential for supply chain success, and maintaining the most up-to-date sources is becoming increasingly critical for business, writes Emmet Ryan “ To keep the economy alive, it is more important than ever to make it easy to get goods and services on and off the island IT key to keeping supply chain on track Service offerings include Supply Chain Management, third & fourth party logistics, reverse logistics, consultancy services, warehouse design, preparation & value adding services, cross-docking and full island of Ireland direct distribution. DSV Solutions help clients with the introduction of Supply Chain technology, and the adoption of new systems for clients can often be a complex process. ‘The choice of solutions has to match the needs of the operation,’continued Nigel Devenish. ‘We seek both a technology tool and a partner we can work in collaboration with to deliver an optimum solution. DSV can add value to those customers seeking efficiency & effectiveness in the Irish market & across the world.’ The acquisition of Roadferry Holdings Ltd has enabled DSV to become market leader in the vital market between Great Britain & Ireland; sim- ply proving how the company is going from strength to strength. More recently DSV is set to grow further following the announcement in June this year that DSV joined forces with ABX Logistics. The combination of these two European leaders will create one strong global transportation and logistics player. With 19,000 employees worldwide DSV is already a true global player, and the acquisition of ABX will strengthen this position further, making it an attractive option for some of the world’s leading multinational companies based in Ireland. For more details contact: Nigel Devenish Commercial Director DSV Solutions Limited Tougher Business Park Ladytown Naas, Co Kildare. T: 045 444 777 F: 045 444 893 E: [email protected] ADVERTISEMENT Looking at Irelands Dependency on Quality Logistics services As an island Ireland is heavily dependent upon its infrastructure, however without efficient logistics management the benefits are restrict- ed; on-time delivery systems are hard to manage with congestion, however greater achievements can be made by integrating transport services rather than simply increasing traffic speed. DSV is the prime example –with DSV Road, which has 15,000 trucks on the European roads everyday, and DSV AirSea – this allows DSV Solutions to design solutions through its partner divisions and meet the demanding needs of supply chains for its Irish & European customers. ‘Innovative supply chain management concepts is gen- erating interest as cost pressures on clients mount, the demand for logistics solutions that combine commercial flexibility and continuous performance improvement allied to the more established buying criteria is increasing. These are often consultancy led propositions that take customer relationships to a more strategic level that offer the scope for step change improvements through lower cost and enhanced service and product availability.’ Explains Nigel Devenish, Commercial Director, DSV Solutions Ireland who advise leading indigenous and international companies on a range of transport & logistics matters. One of the outstanding reasons for the high quality services offered by DSV Solutions is the experience & expertise of their 300 Irish staff. DSV employees examine each customer’s requirements individually with a focus on achieving results. As an island nation Ireland is more dependant than many nations on high quality links and service operators in the country’s supply chain DSV Ireland are a global player in supply chain solutions. To keep the economy alive, it is more important than ever to make it easy to get goods and services on and off the island of Ireland. Photograph: iStockPhoto A SPECIAL REPORT 24 THE IRISH TIMES Thursday, July 10, 2008
Transcript of Fosteringlinkstoencouragetrade · when a company looks at greening its supply chain, it seems as if...
R2
SANDRA O’CONNELL
IF YOU’RE trying to promote ahealthy, clean-cut sporting goodsbrand, the last thing you need isthe spectre of child labour to tar-nish it.As corporate and socialresponsibility (CSR) gains trac-tion, more and more companiesare keen to use “ethical” initiativesas a tool for competitive advan-tage. Nowhere, as Nike knows, isthis more important than insupply chain management.
“Ethical supply chain manage-ment, particularly the ‘greening’of the supply chain, is now a majorissue,” says John Whelan, chiefexecutive of the Irish ExportersAssociation. “What it means inpractice is looking at the impact ofevery one of your supplier compa-nies, looking at the carbon foot-print they incur in getting theirgoods to you, and looking at issuesof sustainability as to where theysupply their raw materials.”
It’s then a question of askingeach to consider providinggreener alternatives.
“You might ask them to look atalternatives to polystyrene pack-aging and they’ll come back andask whether you are willing toaccept a higher level of breakageslikely to arise from the use of alter-natives,” says Whelan. “It’s then aquestion of negotiating the bestway forward from there.”
It’s a trend which is picking upsteam in all parts of the supplychain, including the transport andlogistics sector. Just last month,Belfast Port scored a coup byannouncing it had become theworld’s first harbour authority tobe accredited as carbon neutral.
“Across the board, from portfacilities to haulage companies toshipping lines, all are workingtowards becoming carbon neu-tral,” notes Whelan.
There are sound commercialreasons for doing so. “Initiallywhen a company looks at greeningits supply chain, it seems as if costswill go up. In fact, they ultimatelygo down.”
In particular, being environmen-tally aware can help cut energycosts. “Right now the cost of fuel isrocketing, and ethical supplychain management means lookingnot just at more fuel-efficientmethods of production, but themoving of raw materials and thedisposal of waste afterwards too,”says Whelan.
“What’s more, those small firmsor suppliers who go into it early,who can go to their customers andsay ‘we can help you reduce yourcarbon foot print’, will have a ter-rific competitive edge.”
“Ethical supply chain is a hugetopic right now, but the single big-gest driver of it is oil prices,” saysEdward Sweeney, director oflearning at the National Institutefor Transport and Logistics.“A lotof things that firms took forgranted, such as the outsourcing
of labour to lower-cost locations,are all of a sudden not so viableanymore, which means we mightsee a trend towards the relocalisa-tion of manufacturing.
“The economic logic that under-pinned all those decisions to out-source to far flung places in thepast 10 years has changed, butthings were beginning to changealready as companies becamemore aware of corporate socialresponsibility (CSR) issuesrelating to environmental degrada-tion or child labour,” addsSweeney.Such concerns weren’tentirely altruistic, however.“Rather they were a response toincreased consumer knowledge ofsuch issues,” he says.
However, the real litmus test asto how committed firms are to eth-ical supply chain initiatives is howthey fare in a downturn. “My fearis that it may prove to be a luxuryissue of concern only when timesare good,” says Sweeney.
The indicators are good. Price-waterhouseCoopers, a profes-sional services consultancy,recently surveyed procurementexecutives from some of thelargest retail and consumer compa-nies in eight countries.
More than half referred to envi-ronmental issues, includingcarbon footprint, as a factor whenconsidering new sourcing strate-gies or locations.
“This is indicative of theincreasing focus on the environ-ment as companies consider thefuture of their sourcing strate-gies,” says Bartley O’Connor, asso-ciate director, PwC Strategy Advi-sory Services.
Nigel Devenish, however, com-mercial director of DSV, a trans-port and logistics company,believes it is consumers who willultimately have the power tofoster ethical supply chains. Andthey’ll do it by voting with theirwallets.
“If they want strawberriespicked fresh and transported fromMorocco in winter time, they’llhave to be willing to pay a pre-mium for them.”
Bartley O’Connor, associatedirector, PwC Strategy AdvisoryServices
Fostering links to encourage trade
Supply Chain Management
TO MARKET, to market –the goal has always beenabout getting goods tomarket. We live on anisland, off an island, off
mainland Europe. For more than adecade, while the Irish economydefied all growth predictions, wesweated our air and sea ports, ourroads and our railways. But now,to keep the economy alive, it ismore important than ever to makeit easy to get goods and services onand off the island.
More than a decade since theboom took off in the mid-1990s,the crucial factors about capacityand connectivity are still the same.Just getting to the island’s
regional cities is a work inprogress. The inter-urban roadsprogramme, connecting Dublin toWaterford, Cork, Limerick,Galway and the Border is sched-uled to be complete by 2010. Andwhile all of the contracts are cur-rently under way, all of these roadslead to Dublin, and connectionsbetween the cities themselves aresomething of a work in progress.
We are still some distance fromcompleting Euroroute One – themotorway envisaged from Larne,Co Antrim to Rosslare, Co Wex-ford. Yet few routes could be moreimportant.
According to a March 2008report from the all-Ireland bodyIntertradeIreland, growth in con-tainerised trade through Irishports has increased by 125 per centin the last decade to 2,006 units,while numbers of Roll-On, Roll-Offvehicles increased by 70 per cent,the majority of it on the busyeastern seaboard.
But whether it is Cork,Shannon, Rosslare or Dublin, onceon the island, problems of conges-tion come into play. While we havedeveloped the Dublin Port Tunneland are busily expanding the M50,we seem to be constantly playingcatch-up. Edward Sweeney, of the
National Institute for Transportand Logistics, believes the invest-ment in infrastructure – whichruns to about ¤20 billion on themajor roads alone – has barelykept pace with the growth ofrecent decades. He warns thatwith a faltering economy, it is nowmore important than ever thatcapacity issues be addressed.
One of the main findings of theIntertradeIreland report is that inorder to break this cycle ofcatch-up, we should develop asystem of forecasting capacity anddemand with some certainty forthe coming years.
John Whelan, chief executive ofthe Irish Exporters Association,agrees. He decries the uncertaintyover Dublin Port, pointing out thatboth the Minister for TransportNoel Dempsey and the Ministerfor the Environment John
Gormley have set up committeesto examine future options forDublin Bay. People are beingasked to make investment deci-sions, he says, and they don’t havebasic information on Governmentpolicy.
He is also frustrated by therecent rejection by An BordPleanála of expansion plans at Rin-gaskiddy. Among the board’s rea-sons were the lack of rail freight tothe port and poor access to theN28. But Whelan says that theseare issues under the control of theDepartment of Transport, and hewonders why a single departmentcould not identify an integratedsolution.
Air and sea ports are the focalpoints through which we connectwith the global economy. Theyneed to be efficient and importers/exporters need to know thatcapacity issues at Dublin Airportand the city’s docklands will besorted.
The shipping industry isawaiting sight of the Harbour(Amendment) Bill 2008, which isto reorganise management of theports. Even when decisions aremade, there is inevitably a delay ofsome years between approvalbeing given for a major new port
facility and the time when itbecomes fully available.
In such an environment, busi-ness efficiency can be critical andsome businesses are better thanothers at managing distributioninside Ireland. The major super-markets – like Tesco and Marks &Spencer – and industrialists suchas Dell have well worked outsupply chain logistics, becausethey have to. We expect, forexample, the same level of pro-duce and the same prices in Tescoin Ballina, Co Mayo, as we do inBelfast or Waterford.
Centralised distribution sys-tems used to be all about railfreight – but all freight was com-pletely wound down in NorthernIreland in 2003 and in the south itaccounts for less than 2 per cent offreight movements.
Barry Kenny of Irish Rail saysthe vast majority of freight jour-neys from Dublin Port end withinLeinster. Coillte and Tara minesare among the last few users of railfreight.
But there are attitude problemstoo. While IntertradeIreland hasrecommended a maximum heightfor lorries, based on the Britishstandard of 4.95 metres, formertaoiseach Bertie Ahern famously –
or infamously – told the haulageindustry the State didn’t want suchlorries. They should, he said, beturned around in the port and sentback. And so the height of DublinPort Tunnel is set in stone at4.65 metres, meaning more lor-ries on the roads, with more con-gestion and more carbon emis-sions.
The Irish Road Haulage Associa-tion is currently in discussionswith the Government on anotherbig problem caused by periphery;fuel prices.
In recent years, the Govern-ment gave excise duty concessionsand grants to encourage the takeup of biofuels.
Then, after considerable invest-ment by hauliers, the Governmenthas announced it is rethinking thestrategy in light of the “food orfuel” debate in relation to biofuels.
Jerry Kiersey of Green TigerExpress is one of those who hasinvested heavily in engine conver-sions, only to be hit by the Govern-ment’s dithering. There is enoughspare capacity on lands whichcould be used to grow sugar beetto provide fuel for 5,000 lorries,he says. It would give farmers analternative source of income,lower carbon emissions and pro-vide certainty of supply and abuffer against rising fuel prices.
Ultimately, while we have anexpanded economy, the problemsremain just as they were in themid-1990s.
The most serious logistics issuesfaced by Ireland are: periphery;inadequate infrastructure; fuelprices and traffic congestion.
Putting theethical initiativeto good use
‘When you have clarity itbecomes easier.’ Padraig Henry,IT director at SerCom Solutions
‘Why can a single departmentnot identify an integratedsolution?’ John Whelan, IEAchief executive
INFORMATION IS crucial tomaintaining efficiency in asupply chain and information
technology (IT) has a strong roleto play in delivering this data.
In order for a supply chain to beat its most effective, businessesneed to have accurate real timeinformation.
“The key to a successful supplychain is having end-to-end data.This enables firms to track goodsin real time,” says Barry Collins,sales director at PCH.
Technologies like enterpriseresource planning (ERP) and cus-tomer relationship management(CRM) systems are providing busi-nesses with access to this informa-tion.“ERP plays a central role insupply chain management(SCM),” says Padraig Henry, ITdirector at SerCom Solutions.
Henry says an ERP system actsas an information hub within asupply chain: “ERP allows sup-pliers and customers to share realtime information.”
As the data is delivered in realtime, firms can use what an ERPtells them to better manage inven-
tory and reduce overall stock.“When you have clarity it
becomes a lot easier to managethe supply chain,” says Henry.
With ERP platforms becomingincreasingly popular with busi-nesses, the potential for consolida-tion in the market is high.
Systems that are currently justofferings in the market maybecome the standard tools.
This in turn could lead to fur-ther growth in the sector asgreater clarity is provided to firmsin terms of finding the option thatbest suits a business.
IT is also aiding firms that areoutsourcing many business func-tions. Businesses are now betterplaced to keep track of goods thatare under the control of third par-ties.
“As companies turn over themanufacturing of key componentsand products to third party sup-pliers, if not properly managedthey can lose visibility and controlover key business processes,” saysConor McNamara, consultant inAdvisory Performance Improve-ment with Pricewaterhouse-
Coopers.“The need for a fully integrated
technology solution across allsupply chain components is essen-tial in order to enable the businessto make informed on-time deci-sions,” says McNamara.
Essentially, it’s all about data.Businesses need technologies thatcan provide information quickly inorder to monitor the movement ofgoods.
Radio frequency identification(RFID) is one technology that ishelping firms achieve this goal.This form of tagging, which couldroughly be described as a high-tech form of barcodes, enablesbusinesses to monitor the move-ments of individual goods.
For all the benefits tools likeRFID bring to the table, these tech-nologies are not the be all and endall of SCM.In order for a supply
chain to make the most of IT, busi-nesses need to have staff that areable to manage this kind of tech-nology.
“Systems are only a tool and likewars, are still won with soldiers onthe battlefield, well-trained, moti-vated, mentored staff will continueto be the key driver to efficiency,accuracy and effectively drivensupply chains,” says NigelDevenish, commercial directorwith DSV Solutions.
He says the system is a businessimplement to aid a supply chain.“ERPs and CRMs are and remainonly a business tool; and they workextremely well when their applica-tion and execution is heraldedfrom the top down,” saysDevenish.
“Used properly, they offer excel-lent value, but unsupported by keyfunctional managers and theirteams, the value is quickly dissi-pated.”
Devenish says it is critical thatbusinesses accept that there is noone-size-fits-all solution to SCM.
Some systems are right forsome businesses, but in othercases, the technology just doesn’tfit right.
“SCM technology has a key roleto play in the supply chain, but ithas to be ‘fit for purpose’ and notapplied simply because it is justtechnology,” he says.
Businesses need to understandthe costs and benefits. Thoseseeking to use technology must
first know exactly what their ownbusiness processes are, and whatexactly they want.
This is crucial, as some of thebetter-known SCM technologiesare only currently suited to somebusinesses.
“The much-vaunted RFIDclearly has a key role in today’smarket, but its cost allied to its keyapplication will not cost-effectivelyfit the multifarious supply chainneeds of today,” says Devenish.
“It is not yet a panacea for allthings that move.”
While RFID has yet to becomecost effective for many businesses,the technology has potential tobenefit firms in the future.
“It could give us even crisper vis-ibility,” says Henry.
“IT is also aidingfirms that are
outsourcing manybusiness functions.Businesses are nowbetter placed to keeptrack of goods that areunder the control ofthird parties.
After more than a decade of boom, the barriersto growth in trade remain the same: poorinfrastructure, fuel prices and traffic congestion.Tim O’Brien reports
Tracking goods is essential for supply chainsuccess, and maintaining the most up-to-datesources is becoming increasingly critical forbusiness, writes Emmet Ryan
“To keep the economy alive,it is more important than
ever to make it easy to get goodsand services on and off the island
IT key to keeping supply chain on track
Service offerings include Supply Chain
Management, third & fourth party
logistics, reverse logistics, consultancy
services, warehouse design, preparation
& value adding services, cross-docking
and full island of Ireland direct
distribution. DSV Solutions help clients
with the introduction of Supply Chain
technology, and the adoption of new
systems for clients can often be a
complex process. ‘The choice of
solutions has to match the needs of the
operation,’continued Nigel Devenish.
‘We seek both a technology tool and
a partner we can work in collaboration
with to deliver an optimum solution.
DSV can add value to those customers
seeking efficiency & effectiveness in
the Irish market & across the world.’
The acquisition of Roadferry Holdings
Ltd has enabled DSV to become
market leader in the vital market
between Great Britain & Ireland; sim-
ply proving how the company is
going from strength to strength. More
recently DSV is set to grow further
following the announcement in June
this year that DSV joined forces with
ABX Logistics.
The combination of these two
European leaders will create one
strong global transportation and
logistics player. With 19,000 employees
worldwide DSV is already a true global
player, and the acquisition of ABX
will strengthen this position further,
making it an attractive option for some
of the world’s leading multinational
companies based in Ireland.
For more details contact:
Nigel Devenish
Commercial Director
DSV Solutions Limited
Tougher Business Park
Ladytown
Naas, Co Kildare.
T: 045 444 777
F: 045 444 893
ADVERTISEMENT
Looking at Irelands Dependencyon Quali ty Logist ics services
As an island Ireland is heavily
dependent upon its infrastructure,
however without efficient logistics
management the benefits are restrict-
ed; on-time delivery systems are hard
to manage with congestion, however
greater achievements can be made by
integrating transport services rather
than simply increasing traffic speed.
DSV is the prime example–with DSV
Road, which has 15,000 trucks on the
European roads everyday, and DSV
AirSea – this allows DSV Solutions to
design solutions through its partner
divisions and meet the demanding
needs of supply chains for its Irish &
European customers. ‘Innovative supply
chain management concepts is gen-
erating interest as cost pressures on
clients mount, the demand for logistics
solutions that combine commercial
flexibility and continuous performance
improvement allied to the more
established buying criteria is increasing.
These are often consultancy led
propositions that take customer
relationships to a more strategic level
that offer the scope for step change
improvements through lower cost and
enhanced service and product
availability.’ Explains Nigel Devenish,
Commercial Director, DSV Solutions
Ireland who advise leading indigenous
and international companies on a range
of transport & logistics matters.
One of the outstanding reasons for the
high quality services offered by DSV
Solutions is the experience & expertise
of their 300 Irish staff. DSV employees
examine each customer’s requirements
individually with a focus on achieving
results.
As an island nation Ireland is moredependant than many nations on high qualitylinks and service operators in the country’s supply chain
DSV Ireland are a global player in supply chain solutions.
To keep the economy alive, it is more important than ever to make it easy to get goods and services on and off the island of Ireland. Photograph: iStockPhoto
A SPECIAL REPORT
24 THE IRISH TIMES Thursday, July 10, 2008
