2016年3月15日 星期二

4th Visit - Kerry Logistics

About Kerry Logistics…


Company Background

Kerry Logistics, headquartered in Hong Kong, is a leading third party logistics company in Hong Kong. It owns 43m sq. ft. logistics facilities and hires more than 20,000 employees. It has extensive global network in 40 countries and territories, the graph below shows its network,

Besides, Kerry Logistics is an asset-based company, which means it owns its logistics center, container terminal, port terminal, etc. The benefits of owning its assets are more reliable and flexible, which can support the continue development of Kerry Logistics.

Services

The core business of Kerry Logistics includes integrated logistics, international freight forwarding and supply chain solutions.
Kerry Logistics is serving over 40 of the World’s Top 100 Brands, including fashion & lifestyle, electronics & technology, food & beverage, FMCG, to industrial & material science, automotive, and pharmaceutical & healthcare. It offers tailor-made supply chain solutions with value-added services to its customers
Value-Added Service
Different from other logistics companies, Kerry Logistics provides wide range of Value-Added Services (VAS) based on customers’ requirements. One of the example of VAS is postponement, which help its clients to replace some components into different standard in order to suit the standard of different countries and territories. For example, electronic devices such as cell phone, the socket and the instruction manual are in the standard of manufacturing country; however, when it enters into other market, the socket and the instruction manual should be in the standard of the entering country. Kerry Logistics helps to carry out this replacement in its warehouses.

The Visit
When we first entered the company, we are attracted by its interior design. The design of whole building is used the two symbolic colors of Kerry Logistics, that is orange and grey, which coherence with the image of company and provide professional feeling.

We first listened to the presentation by the speaker, he introduced the company, its core business, the special services and what make Kerry Logistics stand out from other logistics companies. The presentation was well-structure and rich in content that can deeper our understanding towards the company and logistics industry. After the presentation, it was the Q&A session. Apart from the questions we planned in class, students were active to raise additional questions. The speaker is so knowledgeable that he answered our queries with detailed explanation.



 Then, Kerry Logistics has organized a guided tour in its warehouse for us. The warehouse we visited was mainly for GAP to store its products. We separated into two groups to walk through the warehouse with a staff, who introduced the daily operations and the function of each item to us. We started from the inbound area to the storage area and finally to the outbound area, the staff explained everything very detail.

Q&A

1. As you using Asia as company headquarter, what is your comment on the Asian Transportation market? For example, the development of e-commerce in China (Taboo)?
Answer: Kerry Express is handling 2000 shipment per day for delivery B to C products. Kerry Express is the top company in the market in Taiwan and the first few company in Thailand and Vietnam. However, when comparing with DHL, UPS and FedEx such leading express companies in the market, it is no doubt that they are doing better than Kerry in the field of express. Now, Kerry is developing its express platform and building up the express capacity. However, it is very competitive since the price of using mainland express companies is very cheap.
2. Since your company is expert in warehousing management, how would you provide the premier value added services to the customer, like the services provided (labelling), as well as technologies used?
Answer: Kerry Logistics offers a wide range of value-added services (VAS) to its customers, those services can help the customers’ companies to sell its products. According to the needs of customers, Kerry will provide the suitable VAS for them. Example of VAS is the food label; Kerry helps company to replace the original food label by sticking Hong Kong standard food label.
3. What has Kerry logistics done to overcome the challenges of ever-increasing labor and fuel costs?
Answer: Fuel cost is not a concern as it is relative cheap now. For the increasing labor cost, Kerry decided to increase the productivity of labor instead of hiring more employees. It developed and provided some tools and technologies in order to smoother the operation flow and increase the productivity.
4. What kind of especial-care products still not included in logistics service currently?
Answer: There is one type of product which cannot be handled because of law is the Class 1 dangerous goods which is the explosive goods. And Kerry do not want to handle this kind of product as it is dangerous.
5. What is your core business in the future?
Answer: Vertically, Kerry wants to develop more on the drug and pharmacy industry because the demand for drug is increasing. Horizontally, Kerry plans to expand its business into express market, and it is now building up the express capability.
6. How do you determine the location of office in order to achieve an efficient network?
Answer: For better managing the operation, office is located near to the operation department.

7. perspectives would you consider when you offer tailor-made supply chain solutions for your customers?

Answer: Kerry Logistics provides integrated logistics service which is all tailor-made for customers. There are three things needed to consider when providing tailor-made solutions. The first thing with mist important is customers’ needs, Kerry designs the solutions based on the requirements of customers. The second one is the price; customers trust Kerry Logistics can help them to minimize the cost with providing professional services. And the last one is the service and system, which needed to be inter-connected and reacted very fast, if not, it is impossible to run the supply chain solution.
8. How do you allocate inventories to different warehouses?
Answer: The decision of placing inventories in which warehouse is made by customers, not the company. Kerry Logistics concerns on providing quality of services to its customers, so it makes the effort to satisfy customers’ needs and requests.

9. There are lots of cargoes movements in warehouses every day. How would you ensure they can be delivered on time? How do you plan the delivery schedules?

Answer: There are an Electronic Proof of Deliver (POD) in phone and GPS in the truck, these technologies can allow Kerry to know the exact location of the good. If there are some urgent situations, such as traffic jam or accident, that make the goods cannot be delivered on time, Kerry can ask others cars to help. In addition, the tracking system helps Kerry to calculate the approximate time for delivery. If the delivery is behind schedule, customers can know the updated delivery time.
10. What are your competitive advantages over your competitors in transportation market, such as DHL, FedEx, S.F. Express?
Answer: The other logistics companies in the market, such as DHL, FedEx and S.F. Express, are integrator, which focused on the express market. Comparing with Kerry Logistics, they only provide a few or no value-added services to customers.
Actually, they are not the direct competitors to Kerry since their core businesses are different. However, they are trying to offer more value-added service to their customers, and Kerry is developing its express service, it is believed that they will become competitors in the future.
Reflection:
Kerry Logistics has prepared a wonderful visit for us. It introduced information of Kerry Logistics and organized a guided tour in its warehouse. It showed the daily operation of the company and how to manage a warehouse in a more efficient way. We are surprised that Kerry Logistics offers a wide range value-added services and tailor-made the supply chain solutions for its customers. Facing increasing number of competitors in Hong Kong and from mainland China, Kerry Logistics still keeping its leading position because its customized services and its quality. We hope that Kerry Logistics can successfully expand into express market in the future.


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