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Our NEDA 3 Regional Director
Severino S. Santos, the Chairman,
Regional Development Council-3
and Governor of Bulacan, Hon.
Wilhelmino M. Sy-Alvarado, the
President and CEO of Clark
International Airport Authority, Atty. Emigdio P. Tanjuatco, the President of
the Philippine Institute for Development Studies, Dr. Gilbert M. Llanto, the
local executives from different LGUS of this region, the officers and staff of
RDC-3, friends, ladies and gentlemen, magandang umaga po sa inyong lahat.
Hayaan nyo rin po na batiin ko na kayo ng Maligayang Pasko.
Alam nyo po, when I received the invitation to speak before you, I did not
hesitate to say yes, dahil malapit po sa aking puso ang inyong rehiyon
sapagkat ang akin pong ina ay nagmula sa lalawigan ng Nueva Ecija at
magpahanggang sa ngayon ay mga mga kapatid ako at kamag-anakan sa
bayan ng Licab, maging sa Zambales at Bataan. At marahil ay hindi lingid sa
inyong kaalaman na sa loob po ng mahabang panahon ang AIR21 at ang Lina
Group of Companies ay nagtaguyod ng cargo at logistics business dito sa
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inyong mga lalawigan...kaya marami po kaming mga kasama sa hanapbuhay
dito sa Central Luzon. Kami din po ay kasama sa mga unang tumugon sa
panawagan na mag-invest sa Subic Bay Freeport Zone at sa Clark Freeport
Zone at masasabi ko po na hindi kami nagkamali when we decided to join the
volunteers in cleaning up the rubbles and ashes left by the Pinatubo eruption
back then. We now have expanded and modernized our warehouse facility in
Clark International Airport and set up a container yard to serve the needs of
shippers in this northern corridor.
It has been 35 years since I put up
my cargo and logistics business
and as I look back, I asked myself
what was I thinking when I started
out. I would have to say, the simplest goal was to start a business that would
provide a higher level of cargo and logistics services at a fair price. We aim to
provide our clients with an accurate cargo and logistics support and process
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and help them to comply with the basic regulatory requirements and
rudiments of import and export transactions.
I had wished to have a cargo and logistics business that was fresh in its
approach to the customer, to be proactive in regards to business and
regulatory compliance, to possess old-fashioned qualities such as looking
after the customer and to recognize the fact that without the customer the
company would cease to exist. Moreover, in all these objectives, with the
guidance of our Divine Creator, thousands of skilled and talented
professionals from this region helped us bring where our organization stands
today.
Let me share with you a basic
diagram that serves as our
reference in the logistics industry
to identify the common activities
that go with the movement of
goods from the supply side to the
EndUsers
Raw materialcomponents
Packaging itemsProduct sourcing
Imported materialsBought-in parts
Productionprocess Packaging
UnitizationSub assemblyWork-inprocess
Finished Goods
Inventory
Warehouse
Depots
DistributionCenters
Supply Chain
Suppliers Logistics Customers
Materials ManagementSupply Distribution
Supply sideUpstreamInbound
Demand sideDownstream
Outbound
The Logistics Flow
Information Transport Reverse
Buying
Importation
Selling
Exportation
EndUsers
Raw materialcomponents
Packaging itemsProduct sourcing
Imported materialsBought-in parts
Productionprocess Packaging
UnitizationSub assemblyWork-inprocess
Finished Goods
Inventory
Warehouse
Depots
DistributionCenters
Supply Chain
Suppliers Logistics Customers
Materials ManagementSupply Distribution
Supply sideUpstreamInbound
Demand sideDownstream
Outbound
The Logistics Flow
Information Transport Reverse
Buying
Importation
Selling
Exportation
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demand side. In all these points are where we are coming in, whether from
the in-house materials management and procurement or to the outsourced
logistic processes like forwarding, customs documentation and customs
clearance, warehousing and distribution...yung outsourced po kami ang
gumagawa ng mga yan. At kung ating pong titingnan mabuti marami po ang
mga activities na yan ay matagal na po nating ginagawa dito sa inyong
rehiyon, with Subic and Clark serving as a major logistics hub for many
companies who located their manufacturing and distribution centers in your
freeport and economic zones.
Allow me to tackle briefly some
key developments in the global
supply chain and later on present
some simple strategies that we
have adopted to combat the
challenges brought by these
developments. Alam naman po natin, that the regional integration like our
AEC is a measure taken to counter the rapid globalization of business.
Professor Rakesh Mohan Joshi, in his book International Business (published
by the Oxford University Press in 2009), defined “economic globalization” as
the economic interdependence of national economies across the world
The Economic Globalizationand Supply Chain
The Economic Globalizationand Supply Chain
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through a rapid increase in cross-border movement of goods, service,
technology, and capital. Professor Joshi added that economic globalization
comprises the globalization of production, markets, competition, technology,
and corporations and industries. And depending on the paradigm, economic
globalization can be viewed as either positive or negative phenomenon. If I
will look back into our long association with the logistics processes in the
region through the various industries operating here....matagal na po kayong
nag-ooperate within this context.
Recently, globalization, regional integration, competitiveness, and so forth
have been our buzzwords in almost all talks and conferences. I may have to
add other words to this list and for that very reason; I cited Professor Joshi’s
definition of economic globalization so I would be able to present to you
clearly the topic that was assigned to me today.
Over the years, firms struggle
with supply chain operations -
low cost country sourcing, long
distance transport and security
uncertainty, increased pipeline
Key Developments in the GlobalSupply Chain
Key Developments in the GlobalSupply Chain
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inventory, currency fluctuations, trade regulations, tariff and non-tariff
barriers, environmental protection, and a lot more. However, the past-faced
economic globalization has drawn a different picture and introduced trends
in the global supply chain.
We, in the logistics industry, are no longer new in the international
movement of goods and services. During the 80’s when the U.S. Silicon Valley
decided to extend and set up their tests and assembly plants in the
Philippines, we have seen, witnessed and experienced moving cargo and data
in and out of the country any time of the day. Both foreign and local
technicians move back and forth to and from the head office or regional
center to either work or learn (training). And as part of these industries’
global supply chain process, 24/7 operations have been in placed in our
system – as we have to stay awake to communicate (using rotary phones and
for some, telex machines) with our overseas partners in Europe and the U.S.
Allow me to me list down some of the developments we have gone
through...I just pick three: Globally Integrated Enterprises, Trade in a smarter
planet, and Regional integration
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Globally Integrated Enterprise
GIE is a term coined in 2006 by
the CEO of IBM, Sam Palmisano,
to denote "a company that
fashions its strategy, its management, and its operations in pursuit of a new
goal: the integration of production and value delivery worldwide.”
In this example, you will see an
Australian company
headquartered in Melbourne,
Australia, which based on the GIE
model locate functions in several
parts of the world, based on the right cost, skills and environment. While it is
spread across the globe, it only has one, connected supply chain and this
approach is made possible due to the rise of globalization, and the opening of
cross borders commerce or trade liberalization. This model is very evident
Globally Integrated Enterprise
GIE is a term coined in 2006 by the then CEOof IBM, Sam Palmisano, to denote "acompany that fashions its strategy, itsmanagement, and its operations in pursuitof a new goal: the integration of productionand value delivery worldwide.”
Globally Integrated Enterprise
GIE is a term coined in 2006 by the then CEOof IBM, Sam Palmisano, to denote "acompany that fashions its strategy, itsmanagement, and its operations in pursuitof a new goal: the integration of productionand value delivery worldwide.”
Globally Integrated EnterpriseAsset management
Bratislava, - Slovakia
ProcurementShenzen - China
Accounts PayableShanghai - China
Leasing AdministrationOkinawa - Japan
HR ServicesManila - PhilippinesAccounting, Financial Planning
Kuala Lumpur - Malaysia
Tours and cruisesMelbourne - Australia
Globally Integrated EnterpriseAsset management
Bratislava, - Slovakia
ProcurementShenzen - China
Accounts PayableShanghai - China
Leasing AdministrationOkinawa - Japan
HR ServicesManila - PhilippinesAccounting, Financial Planning
Kuala Lumpur - Malaysia
Tours and cruisesMelbourne - Australia
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now in our economy as we are already providing various modalities of the
business process outsourcing (BPO).
If we are going to find, let us say
the location of our main
warehouses in NCR – we will see
it somewhere in Paranaque.
Ngayon po mas madali na dahil
google map na lang natin
hinahanap. And if we zoom into google map or gps device, we will be able to
find it’s exact location (and coordinates). Dito po Central Luzon, we have
several warehouses – Clark Freeport Zone, San Fernando, Tarlac, Subic
Freeport Zone at yung iba po ay thru our agent’s operations in Nueva Ecija,
Bulacan and Aurora.
But if we will look into the bigger picture, where will you find us in the world
map.
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Let’s spread the world map with
the Philippines at the center and
imagine yourself sourcing and
distributing your wares (goods) to
and from the various continents.
Would you consider this as a
logistical nightmare?
Of course not! We both find solutions to our logistical problems. Practically,
this is the reason we are all still here and doing our jobs as logistics
practitioners, or I may say – Experts!
Trade in a Smarter Planet
Allow me to borrow again from
the words of Mr. Palmisano,
defining how goods and services
are traded in a smarter planet. It is instrumented, interconnected and
intelligent.
Trade in a Smarter PlanetTrade in a Smarter Planet
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Sino po ba sa inyo ngayon ang bumibili online or doing bank transactions like
bills payment, funds transfer, etc. using your smart devices (iphone, ipad,
android devices, etc.)? All of these have changed dramatically on how we do
our trade activities now...it is instrumented (using various devices)...it is
interconnected (if you are buying online, you can complete your buy, pay and
ship transactions in just one site)...it is intelligent (all of the data can now be
captured and turned into intelligence because we now have the processing
power and advanced analytics to make sense of it all).
Regional integration
As globalizations sets in,
cooperation also increasingly
become popular as regional bloc
like ASEAN moved together in
strengthening intra-regional trade and service transactions. This may poses
as a challenge for some but at the same time open the door of opportunity
for those who possses the right mindset, attitude and preparations to survive
ASEAN FormedIndonesiaMalaysiaPhilippinesSingaporeThailand
ASEAN Timeline
PTA
Brunei Darussalam joined
AFTAVietnam joined
AFAS
Burma and Laos joined
AIA
Bali Accord IICebu declaration
ASEAN Charter
Free flow of• Goods• Services• Investments• Skilled laborFreer flow of capita;
ASEAN EconomicCommunity (AEC)Cambodia joined
ASEAN FormedIndonesiaMalaysiaPhilippinesSingaporeThailand
ASEAN Timeline
PTA
Brunei Darussalam joined
AFTAVietnam joined
AFAS
Burma and Laos joined
AIA
Bali Accord IICebu declaration
ASEAN Charter
Free flow of• Goods• Services• Investments• Skilled laborFreer flow of capita;
ASEAN EconomicCommunity (AEC)Cambodia joined
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the perceived competition. As you will see in this timeline....the ASEAN
regional cooperation started way back in 1967...with the ultimate aim for the
ASEAN Economic Community by end of 2015. Malapit na po eto, napakabilis
ng 365 days at eto po ang dahilan kung bakit naririto po tayong lahat sa
forum ngayon.
Here I am showing you the
current profile of the ASEAN
industries and you will see that
our country is a combination of
manufacturing oriented and
service oriented type of
industries. Primarily, we are a great source of skilled talents for the regional
and global industries operating in the country or in major markets in Asia.
So where the challenges are now? It rests upon us now to develop and
deploy our own strategies on how to stay competitive in the global supply
chain.
ASEAN IndustriesASEAN Industries
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Let me share with you our action
plan, which we call the I CAN
Strategy: Innovate, Collaborate,
Activate, Nurture
Innovate
We have seen so much
innovation in various industries
that located their manufacturing
centers here, and we in the
logistics business have to catch up with all these developments. We have to
upscale our competencies and find ways on how to do things better or even
differently to bring about change in the supply chain environment.
Action PlanInnovate
CollaborateActivateNurture
Action PlanInnovate
CollaborateActivateNurture
INNOVATEINNOVATE
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Traditionally, if you may want to
expand your business coverage or
stores, you may start with a main
one in Manila, and then the
smaller ones may start sprouting
across the archipelago.
How about doing it differently
following this model?
Or expanding operations in abigger regional network ofASEAN?
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One aspect of innovation is to
leverage on technology...one of
the major strategies that we also
took in LGC.
There is a new concept saying
that collaboration is the new
competition. Leaders and
organizations should
acknowledge that even their best
individual efforts could not stack
up against today’s complex and interconnected problems.
When we say activate – this is a
call to action. Are we going to
participate or just remain as
spectator? How can we expect
inclusive growth and
development...kung hindi po tayo
COLLABORATECOLLABORATE
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sasama sa mga action plans? I am happy that your RDC sa pamumuno ng
inyong Chairman at pakikipag-ugnayan sa NEDA at mga kasapi ninyo are
taking this challenges seriously at isa na rito ang pagdaraos ng ganitong
forum...it is an opportunity for everyone to learn, share and collaborate.
Finally, how are we going tonurture it...each step isimportant but sustaining theaction is far more important.Minsan po, ang sabi sa atingmga Filipino...ningas-kugon dawpo tayo....magaling mag-umpisa
pero di natatapos. This may be a behavioral perception about us and weshould turn this into a positive one. Marami din po ang naniniwala sakakayahan ng ating mga manggagawa at propesyonal...we just need to helpin educating the trading community and in continuously developing ourhuman capital. Alam nyo po...last week I had the opportunity to meet anddiscuss with the new Chairman of the Professional RegulationsCommission...and we both agreed on a common goal...go back to basics andcontinuously hone the talents and potentials of our people. Our educationdoes not stop when we went out of school but every opportunity should betaken as an avenue for us to learn...and for some to teach and impartknowledge to others.
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One of the major components of
the AEC blueprint is the
development of human
capital...kaya’t kasabay po ng iba
pang pillars na nakita nyo na sa
iba pang mga papers and
presentation...dito po kami naka-focus sa ngayon.
Alam nyo po sa amin sa LGC...everybody is required to complete a minimum
of 60 hours training every year...mula po sa Chairman at mga
Presidente...kay si Mr. Lina, hanggang ngayon aral pa rin ng aral. We even
have our onsite MBA program in partnership with Pamantasan ng Lungsod
ng Maynila...at ang amin pong first batch, kung may awa ang Diyos,
magmamartsa na po this coming March 2015.
So as a way of our contribution
to the logistics industry,
minarapat na po namin na by
next year...we will expand the
program offering of our
The AIR21 Academy Video Intro
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corporate training center, ang tawag po namin dyan ay ang AIR21 Academy
of Developmental Logistics.
In closing, hayaan po ninyong i-play namin etong aming short introductory
video about the AIR21 Academy.
Magandang hapon po at Maraming salamat sa inyong pakikinig!
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