In February, the Executive Masters in International Logistics & Supply Chain Strategy (EMIL-SCS) class of 2011 blistered the cold and arrived in Seoul, Korea for their fourth residence, and last international residence.  The final and fifth residence for this class was held in May 2011 in Louisville, KY, Columbus, OH, and Atlanta, GA.  Mark Beeson Winthrop, Professor in Political Science and International Relations at the University of Western Australia and author of Regionalism & Globalization in East Asia, Politics, and Security & Economic Development, provided an introduction of geopolitics and a macro economic overview of Asia.  While in Seoul, EMIL-SCS visited with Hanjin Shipping Company. They received an overview of the ports in Korea, and of Intermodal – Logistics Infrastructure in Korea.  They also participated in a lively discussion on the current state of the industry in the recovering global economy.

The class then traveled to Shanghai to begin their submergence into China Logistics.  The first visit was to GM International Headquarters in Pudong.  The class was welcomed with a corporate overview, and then transitioned into the 'China customer', specifically looking at market nuances and how they differ.  Discussions were held on the background on auto dealerships and aftermarket retail network in China, differences across provinces, and the evolution of imports versus domestic supply. 

Following the presentation and discussion with GM, Professor Changkai, in the School of Labor and Human Resources at Renmin University of China, provided an overview of the labor climate in China.  Professor Changkai discussed  social, political, and economical influences on the labor market; work rules, practices, and government regulation in the work force; wage creep ending cheap labor in China; labor migration away from the eastern cities; and the impact of ASEAN labor, especially the rise of Vietnam.  

The class traveled from Shanghai to Changshu to visit UPM Kymemme Paper Mill to explore the commodities sector in China.  The UPM Paper Mill is the biggest producer of uncoated fine papers in China.  Two thirds of the mill’s production is sold through UPM’s sales network to the Chinese market.  The class  delved into the history of the mill in China, the drivers for manufacturing in China, customers and competitors, the uncertainties of the commodities sector, sourcing raw materials into China, navigating China customs regulations, tax strategies, currency valuation, exports of finished goods internationally, and movement of finished goods to satisfy domestic demand. 

On the last day in Shanghai, the class met with Home Depot China and Schneider Trucking in China.  Ms. Hua Li, Managing Director-ASO from Home Depot discussed sourcing strategies in Asia, and provided a comprehensive look at retail in China.  Martin Winchell, Managing Director of Schneider Global Logistics Tianjin, provided an overview on trucking in China.  He also discussed the fundamental differences between China and the United States, provincial and territorial constraints, road infrastructure, and driver availability with professional training certification.  After a half day of lecture, the class boarded a flight to Hong Kong for their second week.

Week two began with an intense discussion on strategic sourcing and procurement strategy with Francis Cherian (EMIL-SCS 2008), Supply Chain Strategy Consultant.  The lecture focused on how to develop a strategic sourcing methodology, supplier relationship management, supplier rationalization, and enablers, specifically, how to execute and create a framework for initiating strategic sourcing within your company.

The class also visited Hong Kong Air Cargo Terminals Limited (HACTL), the world’s leading international air cargo terminal operator, located at Hong Kong International Airport. The class explored issues around facility capacity, throughput of air cargo volume, automated terminal storage and retrieval systems, software information management system, major airlines partnering with HACTL, custom issues, and security issues.  There was also discussion around airports in southern China (Guangzhou, Shenzhen, and Yantian) competing for their volume.

The class visited Modern Terminals, an EMIL-SCS tradition, for a class discussion on berth capacity at the port, throughput, yard and terminal storage, yard management system, gate dwell time, peak volume, and the major steamships partners.  The class also toured the port and control tower.

The next day, the class boarded a train to Guangzhou to meet with Jabil Circuits and Guangzhou International Airport Administration. Jabil is an electronics solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies.  The class was given an overview of their global operations and China operations, reviewed market trends in contract manufacturing, and discussed sourcing, design, and logistics.  Prior to their arrival, Jabil asked for the class to examine a specific problem they are having in two air cargo lanes.  The tour completed with class presentations.

On the last day of class, after two packed weeks, the class met with the Hong Kong Trade and Development Council.  While there, they also met with the Hong Kong Logistics Association to discuss logistics infrastructure in Hong Kong, in the Pearl River Basin, and the role Hong Kong will play as China continues their huge development in South China.  That afternoon, the class visited Li & Fung Limited, which is the export trading arm of the Li & Fung Group, managing supply chains for major brands and retailers worldwide.  Following the overview and discussion, the class toured the massive showroom that mimics their designs and products extremely familiar to consumers all over the world.

For more on the EMIL-SCS Program, contact Erin Howlette at erin.howlette@isye.gatech.edu or visit http://www.emil.gatech.edu/.