Hactl - Post Company Visit Report

Information about Site Visit

Name of Company	Hactl
Location of Company	SuperTerminal1 at Hong Kong International Airport
Schedule	1. Video Showing 2. In-depth presentation 3. Q & A Session 4. Facilities Visit

Hactl is located in SuperTerminal1 at Hong Kong International Airport. It is one of the world’s leading air cargo terminals with the unique world-class facilities, highly efficient operation, and innovative technology. Since 1976, Hactl is established to support the import, export and transshipment of air cargo in Hong Kong. Hactl have 2600 employees currently. Among the frontline departments, service delivery is the largest frontline department.

The model of Hactl located at Hong Kong International Airport.

Box Storage System (BSS) provides 10,000 computer-controlled storage positions for general import, export and transshipment cargo. The area is also directly linked with the Customs Examination Hall, which enable fast customs inspection for bulk cargo.

The Custom Examination Hall located inside Hactl

Container Storage System (CSS) is fully automated and it provides more than 3,500 storage positions which allows the cargo to be transferred directly from the airside to the system.

We are also lead to the airways to see how the cargo being handled:

Hactl's ramp handling service

Airside operation

Express Centre operated by Hacis

Electronic cars used for crew transportion service

Reflection:

During the visit, the representative mentioned that Hactl has recorded a 30 per cent of business lost as Cathy Pacific, the largest customer left and built Cathy Pacific Cargo Terminal. Although this pose a threat to Hactl, Hactl is optimistic about the future. Hactl can have more resources like their employees to search for new business opportunities. Hactl have also signed the Memorandum of Understanding (MOU) between Hacis and China National Building Material Investment Logistics. This provide Hacis, a subsidiary of Hactl a powerful strategic partner in China.

In 2014, Hactl has recorded an increase in cargo volume of 12.5 per cent comparing January 2014 to January 2013. Hactl is always evolving to cope with the changing environment in the logistic industry to improve themselves.

Reference

Hactl, n.d., Media Centre, Available from: <http://www.hactl.com/en-US/Media-Centre/Press-Releases/2014/Hactl-Starts-a-New-Chapter-with-Positive-News.aspx#.U0q0GvmSy70>

HIT - Post Company Visit Report

Information about Site Visit

Name of Company	Hongkong International Terminals
Location of Company	Kwai Tsing
Date of Visit	07 April 2014
Schedule	1.Breif Introduction 2.In-depth Presentation 3.Q&A Session 4.Container Yard Visit

 

Hongkong International Terminals (HIT) is a member of HPH Trust, the first Singapore listed container port business in world. HIT is also a part of Hutchison Port Holding Limited's (HPH) global network of port and logistics operations, and continues to have access to services and resources enjoyed by companies within the HPH Group.

HIT is one of several key container port operations in Hong Kong. HIT is located at the Kwai Tsing container port area of Hong Kong that is one of the world’s busiest container ports. HIT operates twelve berths in Terminals 4, 6, 7 and 9 and two by setting up a joint venture with COSCO Pacific Limited in Terminal 8. HIT and COSCO-HIT handle most of of Kwai Tsing's container port traffic, over 50 per cent.

 

Control Tower
This is the heart of operations, controlling every aspect of operations and delivering high-quality service.

 

 

 

 

nGen System

Next generation terminal management system (nGen) is a self-developed system by HIT. It shows all real-time situation of the terminal.

 

Shuttle Bus Travel

 

Quay Crane

A quay-side view of a quay crane

 

RMGC

 

A container yard view of a rail mounted gantry crane (RMGC).

 

 

Rest Room

Here is where staffs take rest and refuge under bad weather

In the brief introduction, we learnt a lot of useful basic information of HIT and Kwai Tsing container port, such as location, facility, etc…

During the Q&A session, we have obtained many insiders’ information of HIT, for example, contingency plan under extreme weather, Hong Kong port’s actual competitiveness.

In the control center, we learnt how nGen to perform in real-time situation, how to perform it cargo allocation planning and how to optimize the utility of container yard.

During the shuttle travel, we had a valuable opportunity to sight-see the real container port, observe that operation process.

Rather than reading on paper, it is better to visit the site personally in order to learn the real operation in real business world. Eventually, we have a practical and thorough understanding in term of terminal operation and logistic related topic.

 

 

 

 

Reference

HIT, n.d., Company Profile, Available from: <http://www.hit.com.hk/en/About-Hit/Company-Profile.html>

 

Yakult - Post Company Visit Report

Information about the site visit

Name of Company	Hong Kong Yakult Co., Ltd.
Location of Company	Tai Po Industrial Estate
Date of Visit	24 March 2014
Schedule	1. Video Showing 2. Q & A Session 3. Tasting 4. Factory visit

During the visit, we were first given a video to show the company background and philosophy. Then, the company let us taste their brand new product, Yakult (Low Sugar). We were invited to visit its factory for producing the drink.


Company’s Philosophy

Long time ago, the founder of Yakult, Dr Minoru Shirota wanted to help people avoid from sickness and so started the microorganism research with his philosophy - " Preventive medicine ", " A healthy intestinal tract leads to a long life " and " A price anyone can afford" .

In 1935, Dr Minoru Shirota utilized the results of his scientific research into the products to bring hope for human health and happiness. And, the lactobacillusbased, inexpensive and good tasting beverage was born in 1935 to let people benefit from Lactobacillus casei strain Shirota, which reaches the intestines alive and promotes intestinal health.

Company Background
Yakult Honsha Co., Ltd has a history of researching, producing and selling fermented dairy and it is one of the famous lactic acid bacteria beverage manufacturers in the world. It was founded in 1935 and headquartered in Japan. Currently, Yakult owns branches in 32 countries and regions around the world and its business involves in food, cosmetics, pharmaceutical, healthcare industry and so on.

Business in Hong Kong

Hong Kong Yakult Co., Ltd. was established in 1969 and focuses on manufacturing and selling beverage products. Its factory was located at Kwun Tong at first and is moved to Tai Po Industrial Estate at present. Early, it hires Yakult Ladies to sell the products to consumers directly by the “direct marketing strategy ". Today, its products can be founded in the famous chains of supermarkets and convenience stores in Hong Kong.

Old factory in Wai Yip Street, Kwun Tong

Present factory in Tai Po Industrial Estate

Products in Hong Kong

In Hong Kong, we can these 3 drinks in the market, which are Yakult (Original), Yakult LT (Low Sugar) and Bansoreicha. For the first 2 drinks, Yakult and Yakult LT are produced in Hong Kong. And for the last one, Bansoreicha is imported from Japan.

​​Factory visit

In this part, the company showed us the manufacturing process of Yakult from producing the containers to filling the containers.

First stage of the production is in the Molding Room. It injects the PS Rubbers into the molding machines, dissolves the rubbers under 250 degree and make the Yakult’s containers.

The second stage is in Processing Room. In this stage, it involves 3 processes.

A. First, raw materials like skim milk powder, sugar and dextrose are dissolved and mixed with filtered, sterilised water to make a sweet milky solution and then the solution is cooled down. Next, the live Lactobacillus casei Shirota strain is added to the solution, and the solution is allowed to ferment in the tank for 7 days.

B. The concentrate is mixed with the sterilised and chilled syrup solution.

C. The concentrate is diluted with filtered, sterile water at a preset ratio.

The last stage is in the Filling Room. The bottles are filled with Yakult (100ml/bottle), then they are capped with a foil lid, printed with a use-by date, sealed and transferred along the conveyor belt to the packaging facility. Then, five or three bottles of Yakult are wrapped in polyethylene film. And 10 x five/three packs are grouped together and wrapped again in polyethylene film.


Reflection

After the visit, we understand more about Yakult, such as company information and the operation of Yakult’s production lines. We find that quality control is vital in the manufacturing process for the beverage, just like HK Yakult Co. Ltd maintains a comprehensive Quality Management Program in order to ensure that their product is of the highest quality. For example, staffs seat nearby the conveyor belts to check the packages of the finished products.

Moreover, keeping the products fresh is important for HK Yakult Co. Ltd. Since, the shelf life of Yakult is short (about 1 month), so the time between finishing the products and launching to the market should be as short as possible. That is why HK Yakult Co. Ltd. products Yakult by its own local factory instead of importing from other countries.


Reference:
Company History & Product Information, n.d. Available from: < http://www.yakult.com.hk/home.htm > [11 April 2014]
Company Profile, n.d. Available from: < http://www.yakult.co.jp/english/company/index.html> [11 April 2014]
How is Yakult Made?, n.d. Available from: < http://www.yakult.com.au/product04.htm > [11 April 2014]

TAL - Post Company Visit Report

Information about Site Visit

Name of Company	TAL Apparel Limited
Location of Company	Tsim Sha Tsui
Schedule	1. Video Showing 2. Garment Display 3. Introduction of Supply Chain Model 4. Q & A Session

 

TAL Apparel Limited (also called The Innofacturer) is a garment manufacturer headquartered in Hong Kong. It was founded in 1947 and now is one of the world’s largest apparel manufacturers in the production of innovative clothes that combine style, comfort and functionality. Its products include shirts, blouses, trousers, tailored suits and outerwear. TAL currently produces over 55 million pieces of apparel annually and supplies to markets in North America, Europe and Asia which 1 out of 6 dress shirts sold in the US was made by TAL.



After watching a video showing its history, vision and customer profile, TAL has prepared a garment display which impressed us a lot. Giving the chance to touch with its shirts and trousers, we could get a better understanding how TAL used those superior and innovative technologies to extend the longer product cycle than competitors. The followings are some distinguishing features to ensure the garments produced are in high quality and performance which match consumers’ life styles and needs:

 

 

Special Features

1. Wrinkle Free Technology (SofTAL Process)

• No need to iron
• Color retention after numerous washes

2. Innovative Nanotechnology (WOR-nano technology)

• Stain resistant

3. Moisture Wicking System (DriXpert)

• Keep the skin cool and dry

Later, a staff from supply chain department held a talk to give us more detailed information about TAL’s tailor-made supply chain solutions, for instance, we understood more about the differences between each level’s replenishment model (QR, CR, WH VMI, Store VMI) and how TAL provided these value-added service to form a collaborative partnership with its customers. Moreover, the talk showed the whole process of Made-to-measure (MTM) apparel offering and TAL has used a scorecard approach to measure its performance for continuous improvement.

The followings are descriptions of each level’s replenishment model:


Quick Response (QR)

In the QR program, customers will first prepare a sales projection and share with TAL and therefore TAL can start the material procurement. In this way, fabric can be already arrived before receiving the customer orders. Later, after receiving the order, TAL can start the production immediately and transit the garment to the warehouse in a faster way. This program can speed up responsive time and lower chance of stock-outs.

Continuous Replenishment (CR)

In the CR program, customers will do the demand forecast by themselves and then send the data to TAL. Then TAL will calculate the appropriate replenishment quantity by doing the material and capacity planning and design the quantity for each shipment. This model can align the demand and supply equilibrium and shorten the lead time.


Warehouse Vender Managed Inventory (WH VMI)

TAL does the demand creation and inventory replenishment for warehouse automatically based on the information of warehouse. TAL will monitor the inventory level and deliver the products to warehouse without consulting its customers.


Store Vender Managed Inventory (Store VMI)

TAL does the demand creation and fulfillment based on the point of sales information of customers’ stores. TAL will deliver the garments to the store directly without consulting its customers. The benefits of VMI program includes shorter replenishment cycle and reduced inventory cost.

Lastly, the Managing Director and other senior staff shared their valuable experiences to us. During the Q&A section, they told us more about TAL’s global strategic plan (e.g. target segment, development of IT system), company culture (e.g. local management and focus on staff), and policies to deal with emergency accidents and privacy problem. We quite appreciate they have the whole picture about global apparel industry and exert so much effort to develop innovative technologies and strategies to identify customers needs accurately and instantly.



Kerry Logistics - Post Company Visit Report

Company Background

Kerry Logistics is the largest third party logistics (3PL) in Hong Kong, providing logistics services to trans-national corporates (TNCs) such as H&M and Canon. With the vision of “be[ing] the leading Asia based logistics service provider” (“Our Vision” n.d.), Kerry has developed “the largest distribution network and hub operations in Greater China and the ASEAN region” (About Us, n.d.). Currently, it has near 60 warehouses and logistics centers across East, Southeast Asia, and Australia.

Company Visit

On 3rd March, 2014, our team has visited the Kerry Cargo Centre at Kwai Chung, Hong Kong to learn its business model and visited its distribution center for Hong Kong Disneyland.

Once we were arrived, a presentation about Kerry was given to us. First, the representative briefly told us the situation among different regions and how Kerry faces this (see table. 1).

Region	Situation	Kerry Response
Hong Kong	30% of frozen food market is handled by Kerry.	Two warehouses specified to frozen food were built.
Taiwan	Tai Dong is less accessible owing to its low population and topography.	Kerry focuses on Tai Bei and Tai Nan.
Southeast Asia (SEA)	Thailand is regarded as Eastern Detroit since it produces many cars.	Kerry put more focuses on Thailand.
China + SEA	Generally, the sea transport is cheap but slow while air transport is fast but expensive.	Kerry launches the Kerry Asia Road Transport (KART), a cross border road transportation network, to balance both the advantages of sea and air transport.
Australia	Railway is the major transport.	Kerry follows suit.

Table 1. The situation and Kerry’s solution among different regions


Then, Kerry representative presented us the success of Kerry Logistics. Kerry provides combined integrated logistics and international freight forwarding supply chain solutions to customers. To generate the best result, Kerry has a separate IT department to increase programmers’ flexibility for providing solution; and provides quality and value-added services (see table 2). Kerry further assures quality services by gaining the ISO 27001 Information Security and HKQAA Fine Wine Storage and Transportation which the representative stressed it is hard to get.

Services	Detail	Purpose
Garment on Hanger	Garments are hanged instead of packed in boxes throughout the storage and transport.	- Prevent wrinkle - Ensure garment in best quality
Last Mile Customization	Services such as QC, labeling, assembling are provided in last minute	- Better coup with the market demand - Flexibility
Security	- CCTVs are installed - Workers need to pass through metal detector when leaving the warehouse - Lockers are provided to workers.	- Prevent theft

Table 2. Examples of value-added and quality services Kerry provided


After the presentation, we visited the distribution center For Hong Kong Disney Land to see how Kerry put its key to success into practice. We learnt the basic process flow Kerry developed (see figure 1).

Throughout the visit, we can find how Kerry pays efforts to provide quality service. Smoothening pickup and delivery flow, Kerry has set up storage zone and pickup zone separately to prevent chaotic situation from happening. Besides, Kerry has invested a machine which specifically store small items like keychain in a bid to smoothen pickup process and prevent inventory loss.

It also deploys barcode scanners with the function of receiving pickup order. This result in monitoring workers’ working condition; minimizing time used on receiving order; ensuring the goods are picked; and maximizing the box usage since the arrangement of ordered goods has already been calculated to utilize the box . These measures maximize the effectiveness of the supply chain.

Reflection

From this visit, we can experience how the supply chain planners can develop effective logistics solutions, providing quality services and save cost in the long run. In our opinion, Hong Kong Disneyland supply chain focuses more on effective rather than efficiency in short term as we can find that the set up cost and fixed cost is high. Deploying multi-functional barcode scanners need to have a support system, which cost a lot to build. Setting two different zones implies more space is needed, increasing land cost.

Yet, we see a smooth, systematic process flow is beneficial, especially in long term. One of the pros is inventory cost which “are a significant portion of total logistics costs for many firms” (Shou, n.d.: 33) can be minimized. Setting two zones can reduce inventory loss caused during transferring the goods. Machine specializing in storing small items can prevent inventory loss when picking up. Other than that, transport cost can be reduced since the boxes for storing goods are fully utilized. In the long run, these accumulated costs will be huge if measures are not implemented.

All in all, the visit gives us a good example on how the effectiveness of the supply chain can be. This reference can come into handy if we have a chance to set up a warehouse supply chain.

Reference:

About Us, n.d.. Available from: <http://www.kerrylogistics.com/eng/OUR_COMPANY/About_Us/About%20Us.jsp>. [11 April 2014].
Ho, Hin Chi 2014, Post Visit Report – Kerry Logistics. Report, City University of Hong Kong.

Our Vision, n.d. Availble from: <https://www.kerrylogistics.com/eng/OUR_COMPANY/About_Us/philosophy/ourvision/ourvision.jsp>. [11 April 2014].

Shou, Biying n.d., Procurement and Inventory Management, lecture notes distributed in MS3122 Logistics and Supply Chain Analysis at City University of Hong Kong, Hong Kong.