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Warehouse platform for vendor
management inventory
STAR
BIZ, MONDAY, 06 FEBRUARY 2006
SEEING is believing.
Visitors
to Integrated Logistics Bhd's (ILB) warehouses in Shenzhen
can see the just-in-time (JIT) concept, often mentioned in
management textbooks, being practised in real life.
From
outside, ILB’s warehouses in the Futian tax-exempted
zone that borders with Hong Kong look no different from other
warehouses.
Even
inside, the lower levels are just like a normal warehouse
with thousands of big and small cartons marked with barcodes
from around the world being piled up on metal shelves.
But
it is another world on one of the top floors. You may mistakenly
think you are in an assembly plant rather than a warehouse.
Workers
are busy putting together parts sent from storerooms downstairs
to produce laptop computers. From assembly and quality testing
to kitting and packaging, all are done in the warehouse.
This
is what ILB is doing in China to make its warehouse a platform
for manufacturers to implement the JIT concept. Technically,
they call it “vendor management inventory (VMI) solutions.”
ILB
manages its clients’ raw materials inventory, ensuring
adequate stocks – not too much or too little – for
daily needs, apart from leasing its warehouse space to manufacturers
for storage and products assembly.
The
group’s inventory management projects for laptop computer
Thinkpad and IBM servers are testament to the group’s
service quality that meets international standards.
“That’s
something that we take pride in. I think we are comparable
with multinational logistics companies, if not better,”
ILB chief executive officer Tee Tuan Sem said.
In
Shenzhen’s Futian tax-exempted zone, ILB is well known
by the local authorities.
The
group’s VMI projects have driven the development of the
logistics business in Futian.
“ILB
is a role model for the logistics business in our area,”
said Chen Jie Feng, deputy chief of economic development department
at The Shenzhen Free Trade Zones Administration.
Shareholders
are happy to see the rise in income flowing into China. However,
ILB’s success has also brought a new challenge to Tee.
Integrated Logistics Bhd's warehouse
in
Shenzhen
Futian tax-exempted zone
His challenge is to lead the group to greater heights. Tee
pointed out that his current job was to motivate the staff
to work harder. He does not want them to rest on their laurels
and be complacent.
“Our
earnings are growing. But I’m sure we have not reached
the peak yet,” Tee said, adding that ILB had promising
growth prospects.
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