AGM-EFR-2006

23年 4月 15日 HMM GLOBAL FEEDER OPN 1

E . F . R Group Of E . F . R Group Of CompaniesCompaniesFirst Annual Group First Annual Group MeetingMeeting

Logistics Status Review on year 2006 and Planning for year 2007

Presented byPresented byLogistics Logistics

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Logistics Status Review on Logistics Status Review on year 2006year 2006and Planning for year 2007and Planning for year 2007

Literature ReviewLiterature Review

Full situational AnalysisFull situational Analysis

Developing Strategic, Vision, MissionsDeveloping Strategic, Vision, Missions

Setting ObjectivesSetting Objectives

Crafting a StrategyCrafting a Strategy

Implementing and executing the StrategyImplementing and executing the Strategy

Evaluating Performance and Initiating Corrective AdjustmentsEvaluating Performance and Initiating Corrective AdjustmentsPlanning for Year 2007Planning for Year 2007

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Literature ReviewLiterature Review

Era 1: Farm to market (Early 1900s)Era 1: Farm to market (Early 1900s)Physical transportation & distributionPhysical transportation & distributionwithin the marketing domainin.within the marketing domainin.

Era 2: Segmented functions (1945s)Era 2: Segmented functions (1945s)Viewed fromViewed from a functional perspective.a functional perspective. Warehousing , inventory control, materials handling, Warehousing , inventory control, materials handling, transportation of in-bound raw materials andtransportation of in-bound raw materials andoutbound finished products were seen asoutbound finished products were seen asseparate functions.separate functions.

Era 3: Integrated Functions (1960s)Era 3: Integrated Functions (1960s) began the integration of functional areas, began the integration of functional areas, "linking them together" , the term"linking them together" , the term integrated logistics"integrated logistics" was used, as was used, as

an entire system of activities.an entire system of activities.

Era 4: Customer Focus (1970s)Era 4: Customer Focus (1970s)The The customer customer was regarded as was regarded as the the primary focus primary focus of the firm. Customer service,of the firm. Customer service,of which physical distribution is a component,of which physical distribution is a component,became a significant issue.became a significant issue.

Era 5 : Logistics as Differentiator (1980s)Era 5 : Logistics as Differentiator (1980s) logistics started to be considered aslogistics started to be considered as a key means of differentiationa key means of differentiation for the firm. for the firm. The concepts emerging "how do we The concepts emerging "how do we “ “ link together the whole supply chain”link together the whole supply chain” and and create value for the consumer and be competitivecreate value for the consumer and be competitive

Era 6: Behavioral and Boundary Spanning (Today)Era 6: Behavioral and Boundary Spanning (Today) logistics processes as logistics processes as extended acrossextended across total supply chains, total supply chains, focuses on the notionfocuses on the notion that logistics can that logistics can create competitive advantagecreate competitive advantage and its link to the and its link to the marketing mix.marketing mix.

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The Role of Logistics in Value Chain

Firm Infrastracture

Human Resource management

Technology Development

Procurement

Inbound

LogisticsOperations

Outbound

Logistics

Marketing&

SalesServices

M

A

R

G

I

N

SupportActivities

Primary Activities

Value Chain

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Logistics Status Logistics Status ReviewReviewon year 2006on year 2006Full Situational Analysis of Year 2005Full Situational Analysis of Year 2005

Possibly cannot get to there where we want to bePossibly cannot get to there where we want to beunless we know where are we now?unless we know where are we now?Review what has happen, happening andReview what has happen, happening andlikely to be happenedlikely to be happenedDetermine Problem areas andDetermine Problem areas andopportunities and recommending a plan of action toopportunities and recommending a plan of action toto improve performanceto improve performance

Rationale of ActivitiesRationale of Activities(Elements of Strategic Management)(Elements of Strategic Management)

Developing Strategic Vision, Mission, ObjectivesDeveloping Strategic Vision, Mission, ObjectivesCrafting , Implement and ExecuteCrafting , Implement and Executea Strategya Strategy

Evaluate Performance andEvaluate Performance andInitiate corrective adjustmentsInitiate corrective adjustments

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What is Situation What is Situation analysis?analysis?

Two ConsiderationsTwo ConsiderationsCompany’s Company’s external or macro-environmentexternal or macro-environment

Industry and competitive conditionsIndustry and competitive conditions

Company’s Company’s internal or micro-environmentinternal or micro-environment Competencies, capabilities,Competencies, capabilities, resource strengths resource strengthsand weaknesses and competitivenessand weaknesses and competitiveness

“Analysis is the critical starting point of strategic thinking.”Kenichi Ohmae

“Things are always different, the art is figuring out which differences matter”

Laszlo BirinyiGold Shipping


MACROENVIRONMENT

Legislation and

Regulation

Societal Values

and LifestylesPopulatio

n

Demographics

Technology

The Economy at Large

COMPANY

Supplier Substitutes

Shippers

NewEntrants

Rival Firms

IMMEDIATE INDUSTRY

AND COMPETITIVE ENVIRONMENT

The components of a The components of a Company Macro Company Macro environmentenvironment

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Company’s external or macro Company’s external or macro environmentenvironmentInbound lifting overview 2005 (Market Vs Inbound lifting overview 2005 (Market Vs HMM)HMM)

0

2000

4000

6000

8000

10000

Market Imp 05 5983 6129 7039 7176 8184 7140 6742 8506 6659

HMM Imp 05 58 56 85 59 35 32 24 36 24

Jan Feb Mar Apr May Jun Jul Aug Sep

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Company’s external or macro Company’s external or macro environmentenvironmentInbound lifting overview 2006 (Market Vs Inbound lifting overview 2006 (Market Vs HMM)HMM)

0

2000

4000

6000

8000

10000

Market Imp 06 7415 6060 7041 7792 6158 7790 9164 8708 8391

HMM Imp 06 109 128 49 108 122 103 70 93 138


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Company’s external or macro Company’s external or macro environmentenvironmentOutbound lifting overview 2005 (Market Vs Outbound lifting overview 2005 (Market Vs HMM)HMM)

0

2000

4000

6000

8000

10000

Market Exp 05 5902 6485 7063 6618 7643 7115 6204 7185 6877

HMM Exp 05 119 128 149 80 117 104 114 115 104


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Company’s external or macro Company’s external or macro environmentenvironmentOutbound lifting overview 2006 (Market Vs Outbound lifting overview 2006 (Market Vs HMM)HMM)

0

2000

4000

6000

8000

10000

Market Exp 06 8389 7143 8650 8145 7610 8308 7778 8894 7987

HMM Exp 06 186 180 251 122 259 274 192 276 304


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Developing Strategic Vision, Developing Strategic Vision, MissionsMissions

CraftingObjectives & Selecting

StrategiesAssess Industry & Competitive Conditions1. Industry’s dominant economic traits2. Nature of competition & strength of competitive forces3. Drivers of industry change4. Competitive position and Strategic moves of rivals5. Conclusions about industry attractiveness

Assess Company Situation1. Assessment of company’s present strategy2. Resource strengths and weaknesses, market opportunities, and external threats3.Company’s costs compared to rivals4.Strength of company’s competitive position5.Strategic issues that need to be addressed

IdentifyStrategicOptionsfor the

Company

Selectthe BestStrategyfor the

Company

Strategic Thinking and AnalysisStrategic Thinking and AnalysisLeads to Good Strategic ChoicesLeads to Good Strategic Choices


Developing Strategic Vision, Developing Strategic Vision, MissionsMissions

CraftingObjectives & Selecting

StrategiesWhere are we now?Where are we now? (Full Situational Analysis)(Full Situational Analysis)

We are in Shrinking EU MarketWe are in Shrinking EU Market

Where do we want to be?Where do we want to be? (Setting Objectives)(Setting Objectives)We want to be in growing Asia MarketWe want to be in growing Asia Market

How do we get there?How do we get there? (Crafting a Strategy)(Crafting a Strategy)Change our target marketChange our target market(Tailoring strategy to fit specific industry and(Tailoring strategy to fit specific industry andcompany situations)company situations)

Which way is the best?Which way is the best? (Implement and execute the Strategy)(Implement and execute the Strategy)

Choosing alternativesChoosing alternatives


Implement and Implement and ExecuteExecutethe Strategythe Strategy

Functional Activities

Balancing Inbound & Outbound EQ StockBalancing Inbound & Outbound EQ StockPrioritized EQ flow from surplus to deficit areasPrioritized EQ flow from surplus to deficit areasEnsuring enough EQ made availableEnsuring enough EQ made availablewhere and when requiredwhere and when required

Ensuring necessary slots and routes are establishedEnsuring necessary slots and routes are establishedfocus on marketfocus on market

Evaluate performance and initiate correctiveEvaluate performance and initiate correctiveadjustmentsadjustments

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HMM Total Inbound Lifting HMM Total Inbound Lifting Review (2005-2006)Review (2005-2006)

0

20

40

60

80

100

120

140

160

Yr2005 58 56 85 59 35 32 24 36 24

Yr2006 109 128 49 108 122 103 70 93 138



HMM Total Outbound Lifting HMM Total Outbound Lifting Review (2005-2006)Review (2005-2006)

0

50

100

150

200

250

300

350

Yr2005 119 128 149 80 117 104 114 115 104

Yr2006 186 180 251 122 259 274 192 276 304



Objectives for year Objectives for year 20072007

To gain 10% market share within year 2007~2010To gain 10% market share within year 2007~2010

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Increase net profit by 15% annuallyIncrease net profit by 15% annuallye - business Promotion to get ahead of competitorse - business Promotion to get ahead of competitorsBetter customer oriented services than rivalsBetter customer oriented services than rivalsBetter co-operative and energize workplaceBetter co-operative and energize workplaceEffective & efficient operations than rivalsEffective & efficient operations than rivals


Planning for year Planning for year 20072007

Strategies for Achieving Objectives

Business Process Re-engineeringBusiness Process Re-engineering

Learning OrganizationLearning Organization


Business Process Re-Business Process Re-engineeringengineering

Fundamental re-thinkingFundamental re-thinking

to achieveto achieve

dramatic improvementsdramatic improvements

In performanceIn performance

Re-designing of workRe-designing of workemerging theemerging the verticalvertical& horizontal integration& horizontal integration( Consistency between( Consistency betweenBusiness & HR capabilities)Business & HR capabilities)

Re-structuring work intoRe-structuring work intoselfself managed work teamsmanaged work teamsand managerial accountabilitiesand managerial accountabilitiesis shifted to front linesis shifted to front lines

Senior Management’sSenior Management’s

Commitment to the SuccessCommitment to the Success

( ( Of ParamountOf Paramount))

Ability to set ambitious goalsAbility to set ambitious goals

( Through Strong Leadership and( Through Strong Leadership and

Strong Corporate Culture)Strong Corporate Culture)


The Learning The Learning OrganizationOrganization

Emphasis the needEmphasis the needto to change change and paid attentionand paid attentiononon feedback feedback and possibilitiesand possibilitiesfor for effecting the changeseffecting the changes

Consider theConsider the contextcontext which iswhich isleading to changesleading to changes rather thanrather thansimply responding to problemssimply responding to problemsor failures by corrective actionsor failures by corrective actionsin respect to existing practicesin respect to existing practices

Questioned Questioned the operatingthe operatingpractices and procedures andpractices and procedures andexplore the policy, culture andexplore the policy, culture andattitude spanning the boundariesattitude spanning the boundaries

TheThe useuse of information andof information andknowledge toknowledge to generate ideas andgenerate ideas andnew ways of thinkingnew ways of thinking rather thanrather thancommunication of informationcommunication of informationand knowledgeand knowledge

““The essence of strategy lies in creating tomorrow’s competitive advantagesThe essence of strategy lies in creating tomorrow’s competitive advantagesfaster than competitors mimic the ones you possess today.”faster than competitors mimic the ones you possess today.”

Gary Hamel and C.K. PrahaladGary Hamel and C.K. Prahalad


Formation of Abstract Concepts

and Generalizations

ConcreteExperience

Observationand

Reflections

Applying / Testingthe ImplicationsOf Concepts in New Situations

Reflections

- Attempt what Experience means - Identify what happened - Questioned practices & Policy - Consider the context leads to change

Application

- Active Experiment - Identify the outcomes - Get results and feedback - New experience and began circle

Conceptualization

- Generalize individual experience - Look the other ways it can be used - Consider Principle & trends - Develop common pattern applicable to new situations

Experience

- Structured or Planned - May be accidental - With us or with others - Take for further learning

Learning Organization

Learning Circle


Only them there will be a

The River will Flow for Ever

Lasting improvement in performance and will achieve continuous Success

Complete in full of this cyclical process will leadeffective learning to take place

E . F. R Group Of Companies

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Thank You

E . F. R Group Of Companies

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Documents

AGM-EFR-2006