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OliverWight benchmarking guide


OliverWight reckons organisations can provide best- in-class servicewhile halving their supply chain costs, by using performance benchmarking. The company has released a


guide to the benefits and methodology behind supply chain benchmarking for any firm with an end to end supply chain. OliverWight Partner, Jerry


Shanahan, said: “Whatever your industry, an optimized supply chain is vital for delivering excellent customer service, reducing costs and gaining that competitive advantage. But unless you knowhowwell you are performing andwhat best- in-class looks like, youwon’t knowwhere you can improve or by howmuch. Performance Benchmarking places a different lens on your business froman external perspective.


influence over supply chain


www.supplychainstandard.com Apple strengthens


Apple is strengthening its influence over the electronics supply chain, according to a newreport fromHIS iSuppli. Apple is expected to buy nearly $28 billionworth of


semiconductors this year, up 15 per cent on 2011, according to an IHS iSuppliOEMSemiconductor Spend Analysis report from information and analytics provider IHS. Second placed Samsung has fallen further behind – despite a 0.3


per cent growth, its spend is little over half Apple’s at $14.9 billion. “It’swell known that Apple has already conquered the


smartphone and tablet segments—but behind the scenes the company is engaging in another kind of conquest: the dominance of the electronics supply chain,” saidMyson Robles-Bruce, senior analyst for semiconductor spending and design activity at IHS. “Such a dominant position provides critical benefits, allowing


one to dictate semiconductor pricing, control product roadmaps and obtain guaranteed supply and delivery. For Apple, these benefits translate into competitive advantages, letting it offer more advanced products at lower prices, faster andmore reliably than the competition.” Apple is set to expand its lead in global chip purchasing in 2013,


with growth of 12.3 per cent once again leading the Top 10OEM semic onductor purchasers.


Motor industry giants sign deal on European logistics


Gefco, the PSA Peugeot Citroen subsidiary, is to take over themajority of the logistics work forGeneralMotors in Europe, as part of an alliance agreement between the two automotive giants. The deal,which takes effect next year,


represents one of the largest ever logistics agreements in the Europeanmotor industry. It covers themajority of the


Opel/Vauxhall, Chevrolet and Cadillac logistics activities in Europe (including Russia) and includes services such as material and component deliveries to manufacturing plants, delivery of finished vehicles to dealerships and the transport of aftersales spare parts to distribution centres. GMsaid the benefitwould come both through the opportunity tomake cost


savings and to focus its internal resources more on the core automotive business. GeneralMotors and PSA Peugeot


Citroen announced a broad-scale global strategic alliance on 29th February. GMvice-chairman SteveGirsky said:


“Thismarks the first step in realising benefits fromthe larger alliancewith PSA. This logistics agreementwill bring operational efficiency and costs savings to GMand allowus fully to use the proven expertise ofGefco.” In January Chevrolet hiredGefco to


distribute its vehicles including Cadillacs, Corvettes and Camaros to some 33 dealerships across theUK. And, in February, PSA Peugeot Citroen announced plans to sell a stake in its logistics business,Gefco, as part of an asset disposal programme to raise 1.5bn euros.


MolsonCoors zero landfill plan


Molson Coors expects to achieve itsUK target of sending zerowaste to landfill by the end of this year, according to a report into its 2011 environmental performance. Supply chain director Lee


Finney said: “We’re proud thatwe arewell on course to achieve zero-landfill waste this year butwe are not about to rest on our laurels.We understand the need to build on this successwhich iswhywe


are announcing ambitious targets for 2020 inwater and energy efficiency across ourwhole supply chain.” By the end of 2011, the


brewer decreased by 51 per cent the amount ofwaste it sends to landfill since it began a reviewin 2007. Molson Coors has set


global environmental targetswhich include a 25 per cent improvement on energy efficiency and 20 per cent improvement on


water efficiency by 2020 (on a 2011 baseline)with theUK contributing 22 per cent on energy and 15 per cent onwater. The brewer’s landfill


diversion currently stands at 99.2 per centwhich means almost 48,000 tonnes ofwastewas reused.This year, it aims to reduce energy andwater usage by 15 per cent by the end of 2012. It has built a wastewater plant at its Tadcaster brewery.


£3bn automotive opportunity


A government survey has highlighted supply chain opportunities worth some £3 billion in the UK automotive industry. The study by the Automotive


Council for the government shows that the total value of business placed byUK vehicle makers withUK suppliers could top £11 billion. The report has been welcomed


by the Society ofMotor Manufacturers and Traders. Chief executive Paul Everitt


said: “A strong and successful supply base is essential to ensuring the future prosperity of the wider automotive industry, and SMMT, through the Automotive Council, will continue to support activities that strengthen supply chain capabilities in the UK."


City logistics plan forChina


DHL is to carry out a study into city logistics for China’s fourth largest city, Chengdu,which has a population ofmore than 14million people. DHL Customer Solutions&Innovationwill focus


on the analysis of the supply chain of fast-moving consumer goods fromvarious sectors such as super markets,wholesalemarkets and franchised stores. A key elementwill be analysis of traffic flows of


goods in and out of the city and between its districts to reduce congestion, improve quality of air, and increase logistics efficiency. DHL has done a lot ofwork on urban freight


centres that decrease freight traffic, increase the quality of air, improve efficiency, reliability, service quality and offer a better control of the logistic processes by a higher visibility of the supply chain. Chen Zhongwei, Chief Logistics Commission


Chengdu, said: “The ideal flowof goods and services in urban areas is not only raising its living standard but also its competitive advantage.” The agreementwas signed by themayor of


Chengdu,which is the capital of Sichuan State in southwest China. andDeutsche PostDHL’s CEO Frank Appel. “With the research,DHLwill be able to gain a


good understanding of the challenges of the Chinese city to develop a tailor-made city logistics solution thatmeets Chengdu’s specific needs and can also be seen as amodel for othermegacities in China,” said JörgHanser, director solutions& innovation atDHL.


Newsupply chain chief


Renault has hiredThierry Bollorewho joins as executive vice president ofmanufacturing and supply chain. StefanMueller joins as executive vice president and chairman of the European Region.


September 2012 Supply Chain Standard


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