The document summarizes key topics from a session on supply chain planning in Asia. It discusses the primary objective of synchronizing supply and demand. It also covers planning priorities like establishing inventories and infrastructure. Unique challenges of planning for Asia include cultural differences, supply chain complexity, and tax considerations. Risk management plans are also necessary to address disruptions.

1. The Supply Chain Leadership Forum 2011: Walt Disney World® Resort, Lake Buena Vista, FL
Supply Chain Planning in Asia
Gene Tyndall, EVP, Tompkins Associates
& Steve Ganster, EVP, Tompkins Associates

2. Session Scope
This Session Will Focus On:
• Primary objective of supply chain planning in Asia
• Planning top priorities
• S&OP process challenges
• Sourcing and distributing in Asia
• Move, store and fulfillment in Asia
• Planning for risk management
• Other needs for supply chain planning for Asia
• Discussion
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 2

3. Primary Objective
Primary Objective of Supply Chain Planning in Asia
• Synchronizing product supply with demand
S Business Strategy and Goals C
U Financial Management …. U
P Operations and Technology Management S
P Performance Management (Metrics and Reports)
T
L O
I DELIVER M
PLAN BUY MAKE MOVE STORE & T
E E
O
SELL
R R
M
SE
S Material Flow R
Information Flow S
Cash Flow
Work Flow
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 3

4. Planning Top Priorities
Top Priorities
• Establish how inventories will be created
• Establish the network infrastructure of facilities and
flows
• Plan for supply chain risks
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5. S&OP Process
Challenges of Conducting an Effective S&OP
Process in Asia
• Cultural differences
• Communication
• Greater variability in
processes
• Decision-making
complexity
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 5

6. Sourcing and Distributing in Asia
Unique challenges posed by sourcing and/or
distributing in Asia
• Variability in lead times
• Supply chain delays and disruptions
• Cost overruns
• Supplier performance
• Item visibility
Yet this is Critical for Optimizing
Efficiency and Logistics.
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 6

7. Move, Store and Fulfillment in Asia
Planning for Move, Store and Fulfill in Asia
• Supply chain complexity and length
• Infrastructure issues such as ongoing work on roads
and rail and airport facilities
• Sheer size and magnitude of population centers
• Continuous change
• Capacity issues
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8. Move, Store and Fulfillment in Asia
Planning for Move, Store and Fulfill in Asia
• Distribution network must balance costs
Sweet Spot: Optimal Margin
and Service Mix
Maximum Profit
Total Delivered Costs
Total Logistics Cost
Sweet Spot: Optimal Logistics
Cost and Service Mix
Gross Margin
DC Operating Cost
Inventory Cost
Transportation Cost
Number of Facilities
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 8

9. Move, Store and Fulfillment in Asia
Planning for Move, Store and Fulfill in Asia
• Integrated to the network design is what are the
requirements for each facility
– Availability of land
– Transportation infrastructure
– Incentives
– Capabilities of people,
processes and technology
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 9

10. Move, Store and Fulfillment in Asia
Production
Products Capacity &
Facility, Inventory Flows
& Transportation
Inventory Optimization Customer
Policies Demand &
Flows
Process
Technology
People Facilities:
Transportation
DCs, Hubs,
Flows &
Network etc
Cost
Modeling &
Optimization
Taxes Supplier
Flows
Competitor Global
Strategies Business Trade Laws
Strategy & Rules
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 10

11. Move, Store and Fulfillment in Asia
Planning for Move, Store and Fulfill in Asia
• An important factor that is often overlooked is Tax-
Effective Supply Chain Management
• There are multiple categories of tax obligations
– Income tax
– Sales tax
– Real estate tax
– Customs
Facility Location, Selling of Products and Flow of
Goods All Impact Corporate Taxes, as Well as
Management of Currencies
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 11

12. Risk Management
Planning for Risk Management
• Supply chain flow disruptions
• Financial or currency variations
• Security, theft and counterfeiting
Plans for business continuity are
necessary in Asia, as they are globally.
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 12

13. Supply Chain Planning for Asia
Other Needs
• Setting targets for operating margins, inventory turns
and other KPIs
• Special events
• New products
• Planning tools capabilities
Planning is the Critical Integrator for
Asian Supply Chains
Copyright © 2011 Tompkins Supply Chain Consortium. All rights reserved. www.supplychainconsortium.com 13

14. The Supply Chain Leadership Forum 2011: Walt Disney World® Resort, Lake Buena Vista, FL
Discussion