Starsport is a major European sport equipment and apparel retailer. The company sources most of its shoes and garment from South-East Asia and particularly from Vietnam. After having received containers in Europe with an excessive amount of defective shoes, Starsport urged its Vietnam Procurement office to take immediate and long-term actions to ensure the quality of the products shipped from Vietnam suppliers.
Cemindo Co. is one of the world leaders in cement manufacturing but still a challenger in the Indonesian market. Cemindo Co. first wants to secure its current position in northern Sumatra market, and then to develop a strategy to be competitive in other Indonesian provinces. Logistics being major in the cement cost structure, Cemindo Co. decided to launch a detailed logistic benchmark over Indonesian competition and assess the current and potential strategic position. CEL, being a long-time partner of Cemindo Co. regarding logistics in the region, we were asked to support their strategy development in Indonesia.
FastMove Log Co. group
As a consequence of the global financial crisis, FastMove Log Co. group decided to freeze headcounts in all its business units, including Vietnam. In the mean time, express mail and freight market in Vietnam was still growing, urging operations to provide more capacity. The Country Manager of FastMove Log Co. asked CEL to increase operations productivity to cope with the growing demand while maintaining low fixed costs.
With 30% yearly growth the express logistic market in Vietnam is being very attractive for FDI. ExpressLog Co.established in HCMC 10 years ago and see its market share rising quickly. A very fast growing market generates a constant need for capacity while keeping costs under control. ExpressLog Co., with 27% growth per year, has to build enough capacity to allow its operations to absorb sales potentials while maintaining a high service level. The Country Manager explained that he has been making extensive sales & marketing efforts and they were paying out. The company was on a good way to double revenue objectives and he could not accept his operation center to be a bottleneck toward sales. He wanted a new operation center with international equipment, standard processes well implemented and running fast. The substantial investment (facilities, equipment) related to the project would need a quick return. Besides, he was willing to give the operations team a better sense of efficiency by establishing a 20% productivity increase in the next 4 months.
AnimalFeed Co. was experiencing supply chain issues limiting their growth and losing competitiveness in a highly competitive market. After a short diagnosis, it appeared that the company was suffering from unreliable deliveries, high inventory, increasing and uncontrolled cost. The company has had a strong position in the livestock market in Vietnam for many years, with a well-established brand and reputation. The CEO of AnimalFeed Co. asked CEL to help identify cost-saving opportunities and improve supply chain performance in collaboration with his management team.
GreenElec is a European green energy producer which mostly generate electricity with biomass fuel. Vietnam was identified as a great source of biomass fuel because of the high density of wood processing factories in Binh Duong province. Once the decision made to build a wood pellet plant in Vietnam, many supply chain related question followed:
• Which suppliers to source from?
• Where the factory should be located?
• Which transport mode and storage facility should be used?
• Which road, river and seaport infrastructure would be able to handle the flow?
• Which logistic service provider should be used?
GreenElec first priority was to set up the most reliable supply chain to avoid any shortage on the Dutch power plant side. GreenElec asked CEL to help to identify the ideal location for the plant and to design and implement the inbound and outbound logistic system, taking into account Vietnam infrastructure constraints and development plans.
Our client is one of the leading energy companies in the Netherlands. Specializing in generating power using renewable resources, our client excels in the production and transmission of gas, electricity, heat and related services. Our client is embarking on a challenging project establishing a wood pellets plant in Southern Vietnam with the capacity to produce nearly 150,000 tons of pellets per annum, supplying a power plant in Europe. Logistics being so critical to the success of this business venture, our client requested the support of CEL to design the entire supply chain in Vietnam. What is the ideal Supply Chain structure and the critical elements to support cost-efficient and reliable logistic operations?
Our Client is one of the largest building material companies in the world. Headquartered in Europe, the Client has a significant presence in Indonesia. In an effort to increase its competitiveness, our Client enlisted the help of CEL Consulting to identify ways to increase their market share while maintaining a reasonable level of profitability. CEL Consulting joined with the Client to support this initiative and lead a supply chain and operations improvement project aimed at reducing distribution cost and increasing product availability. How can we increase our competitiveness by reducing distribution cost while increasing product availability?