Häfele and its supply chain management

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Uploaded by on Nov 23, 2010

Mr. Frank Heyer Supply Chain Director - Häfele (Thailand) Limited introduces Häfele new distribution center and shares his point of view on supply chain management.

After 2 and a half year of instruction, a brand new Häfele distribution center is now ready to operate. Mr Heyer says that after they purchased the land, they had to fill the land with about 3,000 trucks load of soil in order to lift the floor level. This new distribution center is about 1,500 square meters large with about light load of 800 square meters of high-rise, which can carry about 16,000 pallet positions. He also explains that the warehouse is built in a way that it can be expanded to the land side support, in case it is running out of space in the future.

In his point of view on supply chain management, he thinks that everyone can talk about supply chain but not everyone would know what it actually means. He also adds that normal supply chain management is when you have a very clear forecasting from the customer side or actual retail data and then it flows back to the factory but in reality, it is very difficult to achieve your target when most customers are not either able or willing to share their data. Fortunately, there are now 36-37 subsidiaries within a Häfele group in which Asia is where the biggest subsidiaries are.

"We have significant opportunity for supply management to achieve some benefit. There are more than 20,000 SKUs in stock. That means all of our colleagues in South East Asia are able to draw from our stocks. They are able to see, order and sell our stocks to their customers in their country which normally they would not be able to do if they would have work on their own basically", says Mr. Heyer.

From the beginning, all products distributed from Thailand are ordered from Häfele Germany. Until today, there is 2-time a week air freight bringing items which they don't have a forecast. Therefore, Häfele can ensure to their customers that they would always have they orders; whether they're very low frequency of selling or top selling items. That is to say they have a very flexible supply chain where this new distribution center can be very beneficial and handle customer's requests.

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  • ...what an idiot ! Supply Chain also goes on after retirement. Just because you leave wont stop your SCS and doesnt mean the DC is being closed.

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