SCM Present a Ion Final

8/8/2019 SCM Present a Ion Final

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1.Fr eight fo rw a rding Old concept:

Transportation a merchant and accompanying goods to adestination of sale.

Modern concept:In addition to the transportation undertook the service of

matching the supply and demand associated with the growthof commerce and industry.

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2 .C hanging expectationsD istributionD etailed product flow information.Worldwide capabilities.

Greater emphasis on Managing supply chains.High level service capabilities supported by trained anddedicated professionals.Supply chain managementShorten product life cycle.Minimizing inventory.

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C ontA bility to pin point the bottle neck.Need for global supply chain

FF started offering SCM services together with their traditionalactivities.

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3 .Tr ends in Asia-Pacific regiony FF was well established especially Hong Kong.y Influenced by continental Europe.y Myriad number of challenges and opportunities.y Four categories of countries Shared similar characteristics in

distribution of products.y D ifficult to develop integrated SCM logistics capabilities.

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H u rdles to Integ rated S CMy Vast differences between countries in region.

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4 .C ompetition in Asia-Pacific regiony L ocal FF providersy Integratorsy Third party out sourcing agentsy IT service providersy Consultantsy Other FF competitors.

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5 . Adaptability the key to successy From Cotton transport to Grain, timber sugar, feed stuffs.y Grabs the early mover advantage in post war Europe jumps

into airfreight business.y

Becomes the leading forwarder in project forwarding.(i.e. Bringing together factory components for large project

developments)

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Adaptability the key to successy Was the first European to sep up own Far East operations.y Becomes first German to acquire an ElectronicD ata

Processing (ED P) system.y

Invested huge capital in a pan- European transportwarehousing and distribution system.

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6 .Kuehne and Nagels Asia-Pacificope ration : A geog raphical ove r vie w..y A sia pacific region covering South East

A sia,China,Japan,A ustralia and Oceania.y A sia pacific business was limited to sea and airfreight

distribution only.y Majorly providing port to port service.y The provision for panA sia pacific SCM logistics was

somewhat superficial in nature.

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C onty Optimistic growth prospect for SCM logistics was

anticipated.y D emand for one- stop- shop by MNCsy

There is almost 49 countries inA sia Pacific region.

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7 .P roblemy A sia pacific region covering South East

A sia,China,Japan,A ustralia and Oceania.y A sia pacific business was limited to sea and airfreight

distribution only.y Majorly providing port to port service.y Port to interior service was highly limited.y The provision for panA sia pacific SCM logistics was

somewhat superficial in nature.

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O ppo r tunitiesThe strategic alliance withD HL presents opportunity tomaximize the resource capability.Exceptionally high growth prospect for SCM logistics was

anticipated.MNCs findingA sia Pacific as a lucrative future region toconduct the business.D emand for one- stop- shop by MNCs

There is almost 49 countries inA sia Pacific region.

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8 . Possible alte rnative st r ategies - Iy It can integrate its SCM by sharing the facilities of other

existing business unit.e.g. it has already entered into a global strategic alliance withD

HL

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Possible alte rnative st r ategies - IIy A s it was concentrating mostly on port to port services it can

acquire ,merge or make alliance with small service providersalso to complete the small links of the missing services.

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e.g. it can take the help of the local service provider for doorto door vender service and other facilities

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SCM Present a Ion Final

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