Consumers & Retail

Growing Regionally with Our Clients

Our Client is a vertically integrated dairy company operating in many countries, including the Southeast Asia (SEA) region. They have a long history of partnering with dairy farmers to deliver high quality products. Previously, they were involved in the manufacturing, packaging, storing and distribution of products. The SEA region represented a significant growth opportunity, but there were challenges in the form of dispersed geographies, different distribution channels and complex government regulations and changing infrastructure. Seeking to grow their market share in emerging countries in Asia by focusing on manufacturing and marketing, they partnered with YCH Group, known for its extensive network and understanding of the region, to manage warehouse operations and distribution.

For the warehouse operations, YCH Group implemented the proprietary warehouse management system to support national distribution and product traceability. YCH Group analysed the local distribution channels and the order behaviour. Building on our experience in Asia and focusing on achieving speed in route to market, cross dock and supply points were established to support timely stock replenishment for both traditional and modern channels. This complemented a new process to accurately monitor stock levels and trigger automatic replenishment, developed in collaboration with partners along the supply chain. Familiarity with the local environment has enabled us to respond quickly to government regulations and infrastructure developments. We constantly realigned the supply chain landscape alongside the urban development in each country. When key nodes in the supply chain such as expressways were shifted, YCH Group provided services at the new node, expanding the reach for clients.

Through this partnership, the Client experienced an inventory spin with the right product mix through the conversion from a push to demand-pull replenishment system. YCH supported the Client’s double-digit growth year on year by enabling them to focus on their core competencies. The success in one country gave the Client confidence to partner with YCH Group to support their supply chain in the rest of Asia. The knowledge transfer provided consistency in deliverables and enhanced the “plug and play” migration from site to site. Quality and regulatory compliance remained at country level and the relationship has grown from strength to strength in what we term as “symbiotic partnership”. This allowed our Client to confidently expand their business in the region.

The Client: A Global FMCG market leader in Indonesia

  • 2 factories – one in Jakarta and the other in Surabaya
  • 23 Distribution Centres supply to 350 Distributors to deliver to 400,000 points
  • 700 SKUs which is categorised into Modern Trade (high frequency to shelf) and General Trade (bulk point-to-point)
  • SSA - BPCS is the key MRPII package used to manage the factories – in the process of planning a software upgrade

Objectives:

  • To review & benchmark current business processes and work flow
  • To fill gaps with an optimised and integrated business processes to operations for an efficient end-to-end SCM solution

Conclusion:

Consulting Report recommendations includes an integrated system approach to DC management to meet customer service levels as well as case fill rates. A prototype is being considered for operations and management familiarisation

The Client: Leading South East Asia F&B manufacturer and distributor

  • Manufacturer of most popular F&B brand in Singapore and Malaysia
  • Fulfil to 12000 points throughout Singapore
  • Distributor of leading brands such as Pepsi, Evian, 7up etc in South Asia

Objective:

  • To streamline and configure an optimal and cost effective way of managing distribution channels
  • To realign operational and business strategy for scalability and growth

Conclusion:

  • Equip the client with transitional plan and analysis towards asset light strategy
  • Business Process Re-engineering to achieve SGD 1 million annual savings and optimising distribution channel
  • Transform Financial & Operational models towards a more dynamic channel pricing and activity-based costing structure

The Client: A Sales & Distribution Group for FMCG in Southern China

  • Based in Guangdong, the company is a leading sales & distribution group headquartered in Zhongsan.
  • There are 25 stores spread around ShunDe, Guangzhou, ZhuHai, Zhongshan including franchisees. Plan is to expand to Shanghai, Beijing, Tianjin, Chengdu.
  • Working closely with P&G and Jusco to be their channel partners in moving consumer goods into China.

Objectives:

To provide an SCM blueprint integrating all business activities of the group from demand and distribution planning to Point-of-Sales.

Conclusion:

The SCM blueprint is adopted and to be deployed over a period of 3 years. Part of the recommendations is to build a centralised warehouse in the Pearl River Delta with a computerised retail logistics management system to tie suppliers and brand manufacturers to the retail chain giving them full visibility on inventories.

The Client: The leading European FMCG Company.

The 7PL™ Strategy

A YCH designed e2e supply chain solution and system to optimize the fulfillment of goods from materials to finished goods to delivery.A YCH designed e2e supply chain solution and system to optimize the fulfillment of goods from materials to finished goods to delivery.

ROI

  • Lower National Inventory Pipeline
  • 35 Days to 9-14 Days Nationwide
  • Higher Customer Responsiveness
  • On-Time from 60% ® 95%
  • Supply Chain Visibility and Control
  • End-2-End Pipeline Web Visibility
  • Scaleable Supply Chain Model
  • Regional Stocking Locations