Domestic supply chain management Initiative 1996

Recognizing the increasing importance of SCM in the FMCG sector, GS1 Hong Kong, with the support of the Hong Kong Trade & Industry Department of the Hong Kong SAR Government, undertook a study to explore the potential benefits of SCM to the FMCG sector, and the current SCM maturity level in Hong Kong. The study focused on the FMCG industry in particular examining dry grocery products sold through distribution channels such as supermarkets, convenience stores and drug stores. Research suggests that the competitiveness of Hong Kong's retail sector in global markets is strongly dependent on its willingness to adopt efficient SCM practices and enabling technologies. The study revealed significant improvements including a vast reduction in overhead costs and inventory as a result of improved product replenishment processes and a much quicker lead time, which enables retailers to keep up with complex market changes. Together with this, it is estimated that total savings across the industry could amount to HK$5 billion, suggesting that supply chain management is a priority for the retail sector.

Pallet Standardization

Through its supply chain working party on materials handling, GS1 Hong Kong put forth a recommendation to industry to standardize the size of entry pallets into Hong Kong. The main purpose being to contribute to the smooth flow of materials across the supply chain thus facilitating distributors. The recommended dimension is 1200mm by 1000mm 4 ways. Research revealed that pallet standardization would not only be advantageous to retailers across Asia but would also bring local retailers in line with International standards. Standardization reduces the delivery and transfer costs by enabling the sharing and exchange of pallets. Racking systems can then be standardized in warehouses and distribution facilities and handling equipment, therefore contributing to the smooth flow of materials across the supply chain. For detailed information, please click HERE.

Global SCM/ECR Scorecard

The Global SCM/ECR Scorecard is a global approach developed to facilitate corporate benchmarking locally and globally. It enables worldwide companies using the same standard to evaluate their capabilities, and compare themselves against industry benchmarks. The scope of areas for assessment includes company's SCM/ECR readiness/maturity and progress, either on an individual basis or collaborative basis with trading partners. The scorecard can also assist in identifying key opportunity areas for improvement, by measuring the results of implemented SCM plans. The scorecards are structured around 4 focus areas:

1. Demand Management - looks at improving the product offering to consumers
2. Supply Management - covers initiatives such as Continuous Replenishment which is designed to improve the flow of products through the supply chain
3. Enabling Technologies - develops product identification, data management and processing capabilities for accurate communications
4. Integrators - develops Collaborative Planning Forecasting and Replenishment, and explores new ways of doing business using public standard-based networks.

You may like to visit Global ECR Scorecard, please click HERE.

Out-of-Stock Study

Initiated by ECR Hong Kong, Hong Kong Out-of-Stock (OOS) Study is examining the stock levels at retail outlets across the territory. Specifically, the study is examining a representative basket of the top 100 selling products from major Hong Kong retail supermarket, drug store and convenience store chains. For details of the Study, please click HERE.

Understanding Supply Chain Costs (USCC) Study

The Understanding Supply Chain Costs (USCC) Task Force was established in 1999. The main role of the group is to understand the true supply chain cost, to eliminate non-value-added activities and identify inefficient trade practices. The group made recommendations on areas where an industry-wide standardization would be beneficial. Highlights of the Study can be found HERE.

Vendor Managed Inventory (VMI) / Collaborative Planning, Forecasting & Replenishment (CPFR) Study

This joint taskforce examines the benefits of Vendor Managed Inventory (VMI) and Collaborative Planning, Forecasting and Replenishment (CPFR) implementation in Hong Kong. The group is focused on making information and the technology of VMI and CPFR more accessible to the public. To provide 'real-life' scenarios, pilot studies are conducted, which enable the task force to share with the industry the benefits that can be captured and make recommendations for improvement on the issues or problems that may arise. For more information about VMI implementation in Hong Kong, please click HERE.

Cross-Border Supply Chain Study

The Cross-Border Supply Chain Study aims to identify the key factors that lead to inefficiencies in cross-border transport between Hong Kong and the Mainland. By identifying the major stumbling blocks confronting local traders, a more streamlined and efficient cross-border supply chain can be developed.

B2B Data Exchange

The rapid emergence of the Internet as a key communication channel has incurred the need to develop global standard in data communication to allow automation data exchange within electronic data interchange (EDI) environment and internet-based applications.

The B2B Data Exchange Task Force of GS1 Hong Kong Electronic Commerce Advisory Board has initiated a pilot project to develop a series of global standards for Hong Kong business community. This pilot is based on the Global Commerce Internet Protocol (GCIP) developed by Global Commerce Initiative (GCI). GS1's support of this important development involves provision of a series of e-commerce standards for Item and Party Synchronization, Simple Purchase Order and Despatch (Advance Slip Notice). GS1 has set up two Global XML Pilot Projects - the XML Trading Partner Project and the XML Trade Exchange Pilot in early October 2000. These projects involve leading companies such as Royal Ahold, Johnson and Johnson, Procter and Gamble, Metro AG, UCCnet and Transora.

The local pilot not only develops global standards for XML communication, it also test the interoperability between EANCOM message and XML message which ensures the continuity of EDI communication and its connectivity to XML.