issue 12

Your Pooling Solutions Partner

Pallet Pooling Solutions

Bringing Yihaodian and Walch Together
Increasing Indomaret 's Operational Efficiency
Enhancing Wall 's Supply Chain in China
Loscam Wins FMCG Solution Award

Contents
Customer Update
MD Speak

Pallet Pooling Incentive Bring

Yihaodian and Walch Together
Indonesian Minimart Leader Adopts
Pooling Solutions
Sweet Success: Enhancing Walls
Supply Chain in China

Special Feature
Mr. Sirin Limpaitoon, Managing Director - Asia

From the MD 's desk

This issue of Across Asia highlights the commitment we have towards

our customers, devising highly customised solutions to enhance supply
chains and add value to operations.
In Thailand, we have all been impacted by the prolonged political crisis,
which has dampened consumer confidence, and lowered growth and
spending. Our retail and other clients have been hit hard, with a knock
on impact to our own business volumes. We have been working with our
customers wherever possible on solutions to help cut costs and improve
efficiencies to partly mitigate the effects of the situation.
Elsewhere in the region, we continue to expand as we promote the
benefits of adopting pallet pooling. In Vietnam, we sponsored the
countrys first pallet pooling workshop in collaboration with Vietnam
Supply Chain. The level of interest in equipment pooling was very high,
and we are now working with our clients towards the implementation of
such solutions.
For Indonesia, we provide a feature on how Loscam adds value through
pallet pooling to Indomarets operations. This development mutually
enhances our businesses as Loscam provides a superior product,
system and strong relationship with our customers, who are also
Indomarets trade partners.
In China, Loscam continues to play an active role in promoting pallet
pooling. On 9 May, we sponsored the China Chain Store & Franchise
Association (CCFA) pallet pooling conference. Additionally, we have been
working with large scale customers, such as Walls (Unilever), Walch and
Yihaodian, to boost supply chain efficiencies by lowering lead times,
reducing cost and minimizing product damage.
From new adoptees of pallet pooling to long-time customers, Loscam
aims to be a trusted business partner. We customise solutions that best
suit each clients unique needs against the backdrop of their countrys
logistics landscape.

NEXT PRACTICE born from Best

Practice

Loscam News

Leadership Training in Thailand

Loscam Holds First Pallet Pooling
Workshop in Vietnam
Loscam Pallet Pooling System Awards
Best FMCG SCM Solution in China
Loscam Participation in China ECR
Typhoon Yolanda Relief Efforts
Loscam Addresses China Pallet
Pooling Promotion Conference

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Loscam Across Asia is printed on The Forest

Stewardship Council (FSC) certified paper

Contact List
Thailand

Tel (66) 35 276 888

Fax (66) 35 276 899

China

Tel (86) 755 2680 8820 Fax (86) 755 2680 8791

Hong Kong

Tel (852) 2419 2692

Indonesia

Tel (62) 21 883 72050

Malaysia

Tel (60) 3 5511 7066

Philippines

Tel (63) 2842 7878

Singapore

Tel (65) 6863 0316

Vietnam

Tel (84) 650 3 769 199

Fax (852) 2521 5205

Fax (62) 21 883 72051
Fax (60) 3 5511 7062
Fax (63) 2850 0905
Fax (65) 6863 0312
Fax (84) 650 3 769 203

Sirin Limpaitoon

Contact us

For general enquiries, contact Jamie Lo,

tel +852 6292 1613, jamie.lo@loscam.com.
If you wish to receive the Loscam Across Asia
magazine by email please contact editor@loscam.com

Your Pooling Solutions Partner

Customer Update

Pallet Pooling Incentive Brings

Yihaodian and Walch Together

U

tilizing Loscams comprehensive pallet pooling solutions and systems, Whealthfields

LohmannGuangzhouCo., Ltd. (Walch), Chinas well known cleaning compounds and supplies
company, has successfully launched a Palletised delivery system with Yihaodian, China's
leading e-commerce firm that provides customers with a one-stop shopping platform for
essential daily goods.

Leveraging a Palletised delivery incentive scheme launched by Loscam last year, the Walch-Yihaodian pallet transfer model
makes the free physical flow of pallets along the supply chain possible. As early adopters of this practice, Walch and
Yihaodian have created a milestone in the pallet pooling capacity of the countrys massive retail industry.
In this system, trucks do not need to be manually unloaded during the pallet transfer stage from the suppliers account to
the receivers account. It enables the transfer of the pallets contractual rights along the supply chain. Also, as the transfer
model is compatible with overseas retail distribution systems, it helps to save even more time and drive lower costs for all
participants in the supply chain.
Yihaodian and Walch have joined their respective strengths to implement a ground-breaking initiative in pallet pooling in
China that proves to be more efficient than non-palletized or exchange systems, said Mr. Patrick Chan, Loscam Greater
China Sales Director. We can quickly see how it greatly enhances the efficiency of receiving goods, as well as removing
transportation costs for empty pallet return -- with clear lines for pallet responsibility.
Mr. Chan added, To encourage more participation from industry players for the pallet transfer system, Id like to urge more
retail industry players to join us in this Palletised delivery initiative and reap the benefits that the Walch-Yihaodian project
currently enjoys.

Mr. Hart Guo, Warehouse Operation Director of YHD (third from left), Mr. Jiang, Warehouse Manager of Walch (first from left)

Your Pooling Solutions Partner

Special Feature

NEXT PRACTICE
L

born from Best Practice

ast year was crucial year for Loscam and a lot of our customers. The anaemic and uneven
recovery after the financial crisis drove us to make sure our processes and operations were as close
to best practice across all aspects of our business. As a result we feel we are in much better shape to
take on the challenges of 2014.

Next Practice is a concept we are maturating with one of

our major customers in 2014. Whilst we are always
focused on innovating and ensuring our customers have
access to the very best and latest packaging solutions,
the notion of Next Practice conceptualizes the next
significant evolution of supply chains, and how we can
respond with products and services that enable our
customers, and their customers, to transform their
businesses.
Concepts such as de-coupled packaging are being
driven by the trend toward more SKUs in smaller pack
sizes. How can our manufacturing customers produce
and consolidate finished goods as one process and then
delay the more complex and costly packaging function
into a separate workflow? This presents a whole range of
opportunities in intermediate containers, secondary
packaging reductions and so on.

The rise of sustainability issues and the need to drive waste

(packaging) out of supply chains is becoming a real factor in global
companies. Whilst they have achieved significant reductions in
packaging and reduced their land fill impacts (best practice) their
desire to rid their supply chains of corrugated packaging and the
effect that may have on the use of returnable packaging is driving
Next Practice thinking.
As retailers seek stronger engagement with their shoppers in
fresh food and produce (a key source of competitive edge and higher
margins), how can the benefits of a
standardized returnable packaging be
merged with retailers desires to
present their produce in a more
natural, traditional manner. The recent
release of our Wood-Look plastic
crate is seeking to replicate the look
and feel of a farmers market whilst
enabling safe and efficient travel of
produce through the supply chain.
Watching Amazon struggle to get packages to their customers
over the 2013 Christmas season also highlighted the shortcomings
of current best practice in freight consolidation and shipping. There is
also a high incidence of abandoned purchases online due to
inadequate delivery options. With most members of a family working
and not at home during the day and unable to get to traditional post
offices during working hours, new ways of making ePurchases
available to customers through remote pickup locations, keyless
lockers etc is a real challenge for Next Practice thinking.

Tesco pioneered shelf ready packaging as best

practice in driving OSA as well as lowering replenishment
costs. They are also driving the use of shelf pusher
systems that bring forward packs to customers as one is
removed. We are now seeing them explore digital based
systems that monitor through imaging stock on shelf to
maximize shelf availability. How will this impact the type of
packaging used through tthe supply chain and is shelf
ready a thing of the past?

Your Pooling Solutions Partner

We are excited about the challenges that Next Practice will bring. It is
through these types of collaborative initiatives with our customers
that we will ensure Best Practice leads to Next Practice!

Customer Update

Indonesian Minimart Leader

Adopts Pooling Solutions

stablished 25 years ago, Indomaret pioneered Indonesias minimart retail market. Today the
company remains an industry leader with chain stores across the country, underpinned by a vision to
continue expanding and evolving to remain highly competitive while serving the needs of Indonesias
massive populace.

An archipelago nation, Indonesias logistics infrastructure, technology, human

resource competencies and policies are continuously developing. Having
entered the market in 1996, Loscam has leveraged its early mover advantage.
Today, the company is a market leader that enjoys close relationships with key
regional customers and major retailers; the latter is served is on exclusive basis.
With an expanding base of over 100 customers, Loscam features a semimechanised expanded facility in Cibitung (Jakarta), and a strategically located
service depot in Rungkut Industrial Estate, Surabaya.
It is no surprise that Indomaret learned about Loscam from many of its
suppliers, including Unilever, Coca Cola, AquaDanone and other FMCG
producers, and sought Loscams help to realise better efficacy in its extensive
supply chain.

Jesse also expressed that Loscam offers good

stock availability, product standardisation, and
competitive pricing for its rentals, compared to
the capital the firm would have to commit to
investing in its own pallet system. Also,
with Loscams strong infrastructure, resources
capital, industry experience, huge product
capacity, and large number of major
customers, we look forward to the benefits
and advantages their system will add to our
operations especially as Indomaret plans
its expansion of new branches and
warehouses to more cities outside JavaBali
and Sumatra Island.

We wanted to reap the time and cost efficiencies at our warehouses or DCs by
using Loscams pallet pooling system, said Mr. Jesse Octaviano, Merchandise
Manger of Indomaret. Since we first met with the Loscam team at our office,
we believed Loscam had the solutions concerning pallet rental backed by a
superior product, system, and strong relationship with other suppliers, who are
also Indomarets trade partners.

Your Pooling Solutions Partner

Customer Update

Sweet
Success:
Enhancing
E h i Wall'
W
Walllll 's Supply Chain in China
F

or Walls, Unilevers leading ice cream enterprise, Loscam played an important role in the
enhancement of its supply chain operations.

Having entered China in 1994, Walls built a typical FMCG supply chain
network, with four factories throughout the country. Four national DCs and 12
regional DCs handle product distribution to over 20,000 direct delivery points,
including supermarkets, shopping malls and retail stores.
Walls is unique in that its products are palletized when they come off the
production lines and during storage in plant-attached cold storage facilities. The
ice cream remains on pallets when they are transported to national and regional
DCs. Palletized delivery makes the most sense as products are transported in
large volumes and require quick response so as to maintain their quality.
When Walls began operations in China, the company purchased their own
pallets. However, ice cream is a product with high seasonal fluctuation. In the
winter season, the utilization rate for pallets was very low and much space was
needed to store idle pallets. Also, it was costly to ship empty pallets back to the
factories for future use, and long-haul palletized delivery caused significant wear
and tear to the pallets.
As a FMCG manufacturer, Walls is committed to improving its logistics
efficiency through continuous SCM self-optimization, rather than purely through
introduction of new equipments and technologies, explained Mr. Sundarrajan
Bhyravan, Logistics Director of Unilever China. That is why we engaged China
Merchants Loscam in 2012 to implement a new solution.
First, Loscam bought back all of Walls non-standard pallets and replaced
them with Loscams ECR standard pallets. Today, with the support of its
nationwide service network, Loscam coordinates pallet pooling among all of
Walls regional DCs, eliminating the need to return empty pallets to their original
departure point.
Also, Walls now uses pallets according to its actual need, thus decreasing
capital expenditures. Walls can also hire and de-hire pallets through Loscams
regional depots, saving 50% of the transportation costs (and lowering its
carbon emissions) for empty pallet returns. Finally, Walls no longer bears the
costs of pallet maintenance, as that falls under Loscams responsibility.

Your Pooling Solutions Partner

While efficiency and cost savings have been

realised, Walls continues to refine its palletized
delivery system, added Mr. Alan Chen, Senior
Cold Chain Logistics Manager of Unilever
China. From improving product packaging to
addressing warehouse racking and truck
specifications, Walls is committed to continuous optimisation of its supply chain operations
and we count on Loscam as a trusted partner
to support these efforts.

Sundarrajan Bhyravan, Logistics Director and Alan Chen,

Senior Cold Chain Logistics Manager of Unilever China

Loscam News

Loscam Holds First Pallet Pooling Workshop in Vietnam

oscam recently held Vietnams first

comprehensive pallet pooling workshop in the
Logistics Forum 2014. Organised by Vietnam
Supply Chain in Ho Chi Minh City, the workshop
shared experiences of successful pallet pooling
implementations, providing examples of how
pooling can increase efficiencies and economic
benefits through cross-company collaboration. It
also explored case studies concerning pallet
pooling in other countries, as well as the challenges in Vietnam.
Judging by the level of interest in what was presented and
showcased, I believe manufactures and retailers are on the cusp
of increasing supply chain efficiency through equipment pooling
and retail ready packaging, said LanAnh Do Thi, General
Manager of Loscam Vietnam.

Loscam News

Over 100 delegates from 40 retailers, FMCG and logistics

companies joined the workshop. The participants also viewed
newly launched returnable packaging exhibits, including foldable
crates, rising floor bins, small format pallets and beverage trays,
to better understand the value of reducing the use of secondary
cardboard packaging.

Leadership Training in Thailand

ith the broad goals of becoming a trusted

business partner and introducing a sense of Loscams
five guiding principles -- Loyalty, Trust, Teamwork,
Communications and Solutions into the organisation,
Loscam held a one-day leadership training programme in
Thailand. Taking place in two sessions, on 15 May and 10
June, the programme was geared towards managers,
supervisors and senior staff, combining group learning
with fun, light-hearted activities.
The sessions focused on leadership essentials, with participants sharing
their perceptions of both good and bad leaders, as well as the important
leadership qualities. The latter includes having a long term vision and short
term goals; anticipating and avoiding potential problems; motivating and
inspiring the team; making crucial decisions; aligning the right person with
the right job; and reducing manual processes, among many others.

The level of participation in the programme was very

good, after some initial encouragement. It helped to
establish expectations of good, effective leaders, while
opening up new ideas for the participants to consider. For
example, the groups agreed on the importance of clear
communications, teamwork and good leadership traits.
They also discussed specific techniques on how to deliver
feedback, motivate others and understand why people
communicate differently.
On the whole, participants reported that they learned a
lot, while having fun and meeting new colleagues. It was a
good start to ongoing efforts to improve internal communications, which will help boost efficiency among the
units. Ultimately, better understanding and communications among managers, supervisors and teams will
enhance Loscams customer service capacity.

Your Pooling Solutions Partner

Loscam News

Hart Guo, Warehouse Operation Director, YHD

and Patrick Chan, Sales Director, Loscam Greater China

Loscam Pallet Pooling System

Awards "Best FMCG SCM
Solution in China"

oscam along with Yihaodian (YHD), Chinas leading

e-commerce company, jointly received the Best FMCG
SCM Solution award at the 4th China FMCG SCM
Summit in Tianjin on 17 April 2014. The award highlights
the successful implementation of palletized delivery
between YHD and its suppliers using Loscams
pooled pallets.
At the summit, Scott Chi, Senior Solutions Manager of
Loscam, explained how palletised delivery helped both
traditional and e-commerce retailers to improve their
supply chain efficiency and reduce logistics costs. The
benefits of palletized delivery were then demonstrated
by Mr. Hart Guo, Logistics Director of YHD, who
elaborated on the success of palletised delivery on
optimizing YHDs supply chain management.

Loscam
Addresses
China
Pallet Pooling Promotion Conference
O

n 9 May, Loscam was invited to address the Pallet

Pooling Promotion Conference, jointly held by Chinas
Ministry of Commerce and the China Chain Store &
Franchise Association (CCFA) in Beijing. This marked the first
nationwide pallet pooling promotion event ever held in China,
aiming to promote pallet pooling and standardisation in the
countrys retail industry. At the conference, officials from the
Ministry of Commerce stressed that a national pallet pooling
system is bound to increase supply chain efficiency and
lower national logistics costs.
Mr. Zhengnan Dai, General Manager of Loscam Greater
China, expressed during his speech, Driven by the current
macro economy and national policies, China retail industry has
begun to realise the importance of pallet pooling. In recent
years, leading retailers have cooperated with Loscam in
numerous pooling projects. Additionally, Mr. Sirin Limpaitoon,
Regional Director of Loscam Southeast Asia, shared
Loscam's successful experiences of pallet pooling in his
region. He pointed out that Southeast Asia had experienced
similar problems and challenges as China in the context of
pallet pooling development, but eventually, the standardised
pooling model achieved success. Mr. Sirin was confident that
China's pooling system is sure to grow and prosper through
the contributions and efforts of all stakeholders in the industry.

This summit was organized by the Logistics & Material

Handling Magazine, one of the most prominent
publications in Chinas logistics equipment and
technology sector.

Loscam Participation in China ECR

he 12th ECR China Conference was held in Guangzhou

from 10 to 12 June, with a focus on sharing best practices
and advances in the FMCG industry in China.

Typhoon Yolanda Relief Efforts

yphoon Yolanda was one of the strongest tropical

cyclones ever recorded, which devastated portions of
Southeast Asia, particularly the Philippines, on
November 8, 2013. LOSCAM Philippines donated PHP
256,913 to the victims through Christ for Commission
Fellowship, a local church.
Meanwhile, LOSCAM Thailand, a sponsor of the Thai
Red Cross Society, donated THB 200,000 to aid relief
efforts for the typhoons victims in Thailand.

Upcoming Event
8

Your Pooling Solutions Partner

As a leading equipment pooling service provider, Loscams

pooling solutions help improve supply chain efficiency and
reduce costs for FMCG industry players. Scoot Chi, Senior
Solutions Manager of Loscam Greater China, shared the
key benefits of palletised delivery among manufacturers
and retailers.