YCH Group - Supply Chain Challenge 2015

1
YCH Group
Case : Efficient Dock Management for YCH Group at Supply Chain
CityTM (SCC)
Corporate Profile
Founded in 1955, YCH Group is the leading
integrated end-to-end supply chain partner. Focused
on boosting productivity and sustainability for
customers, YCH's proprietary suite of award-winning
solutions are best-in-class across industry clusters
from consumer and electronics to chemical and
healthcare.
A strong proponent of innovation, YCH is recognized for its 7PL TM approach in seamlessly
integrating supply hai strateg
ith e e utio . The o pa ’s su ess is alidated
its
ability to serve some of the world's largest MNCs and aspiring growth companies, including
Dell, Motorola, Samsung, LG, Exxon Mobil, Unilever, LVMH and Royal FrieslandCampina.
YCH has expanded overseas operations significantly over the last few decades and presently
have operations spanning throughout Asia Pacific, including Singapore, Malaysia, Thailand,
Indonesia, Philippines, Vietnam, Australia, Korea, India and Greater China.
General Information:
Covering over 6.5 hectares of land, Supply
Chain CityTM is expected to be completed by
second half of 2016. Leveraging the latest in
supply chain innovations, technologies and
industry best practices, Supply Chain CityTM
will be the first of its kind to successfully
pioneer seamless fusion of ASRS and Ramp-up
warehouse. Upon completion of Supply Chain
CityTM, majority of operations which are
situated in 4 different sites within Singapore
will be consolidated to one site within SCC
which adds to the complexities.
2
Issues Encountered:
The main challenges facing Supply Chain and Logistics companies in Singapore today are
manpower crunch, space constraints and transportation complexities. One key operations
area affected by these 3 constraints listed above is Dock (Loading Bays) Management.
In order to achieve Operations Excellence, YCH needs to come out with an efficient
management of transport resources, yard space management and turnaround of stuffing and
unstuffing activities within the warehouse.
Presently, some of the common issues faced within the warehouse dock are:
Issue 1 : Congestion
Stuffing/Unstuffing team unable to catch up with incoming containers, causing congestion at
both the loading bay and container yard.
Issue 2 : Container Turnaround Time
Transport team unable to turn the containers despite Stuffing/Unstuffing team able to
complete on time due to lack of vehicles or drivers.
Issue 3 : Communication
Lack of communication or miscommunication between Warehouse team and Transport Team
causing delays at docks, it ill also i pa ts usto er’s KPI i order fulfil e t oth i Tur around-time and accuracy. This could be due to order changes that require additional picking,
urgent orders or returns. Without effective communication, inventory accuracy is also affected.
Issue 4 : Bullwhip Effect
Demand patterns can surge causing large movement of goods through the dock in a short
period of time. This results in congestion at the docks.
Requirements
Considering the three constraints and the four issues highlighted, address the areas below :
1. How to improve management of the limited resources like Loading Bays and Yards
Spaces, Manpower, Equipment to ensure a smooth operating Dock Management with
minimal delays, improved productivity and higher utilization of scarce resources?
2. How would technology help to improve Dock Management? Technological innovation
can be hardware / equipment or information technology and software?