Ken is the Vice President of Global Supply Chain for Happy-Health, a multi-national company that manufactures healthcare products. The company's manufacturing plants are located in America and Europe. Products are shipped directly to its distributors' warehouses in the ASEAN countries. Due to the long manufacturing lead time and the extensive supply chain, Ken's distributors either face stock out issues or stock obsolescence for the smaller distributors as the manufacturing plants impose a minimum order quantity leading to over stock situation. Ken's supply chain costs are also escalating as faster and more expensive transport are often used to meet committed delivery timelines.
You are the Business Development Director of a third party logistics company, Good 3PL Service. You met Ken at a supply chain conference and Ken shared with you his supply chain challenges. You believe the solution for Ken's problems is to set up a regional warehouse in Singapore. Explain to Ken the advantages of such a regional warehouse and its benefits for his supply chain.
1) Line of inventory
2) Line of manufacting
3) Transportation Saving
4) Adminstration Simplication - like example - Saving operation
5) Lead time - very responsive
6) Others