Leg-up into Australia for YCH

Leading Singapore-based logistics provider YCH Group takes over the reins of LG Electronics Australia’s total supply chain

Leg-up into Australia for YCH
Leg-up into Australia for YCH

August 12, 2011

With one of the largest supply chain distribution and storage networks across Australia, hungry Singapore-based logistics powehouse YCH will secure its place in the local market through management of LG Electronics (LGE) Australia's
total supply chain.

Under the agreement inked between the two companies earler this week, YCH Australia will streamline and optimise a critical portion of LGE’s overall supply chain activities including the national storage and distribution of LGE’s eclectic range of consumer electronic products.

The long term contract extends to the management of facilities, operations and related human resources requirements.

YCH Group Chairman and CEO Dr Robert Yap says the deal represents a significant milestone in the company’s attempts to break into the Auistralian market.

"Our relationship with LG will serves to strengthen both our network and last mile distribution capabilities to enable YCH to become one of the largest key logistics provider here in Australia," Yap says.

"We will continue to enhance our innovative and sustainable SCM solutions to facilitate the growth of world-class companies such as LG Electronics as well as many other rapidly-growing Asian companies who are keen to grow in the ANZ market.

"Furthermore, our well-established trade lanes between China and Australia will be a critical factor in enabling customers to achieve better coupling of their procurement and manufacturing processes with their distribution network requirements."

Yap says China is both the largest importer and exporter to Australia, with 15 percent of Australia’s imports (worth almost AUD 37 billion) in 2009 coming from the region, along with other sizable economies such as US and Japan.

"Correspondingly Australia also exported the highest percentage of its goods and services (19 percent of total exports, valued at AUD 48 billion) to China in the same period," he says.

"As close-knit complementary trade partners, the China-Australia market presents an exceptional opportunity for YCH to offer award-winning consumer fulfillment and various logistics value-add services through its deeply entrenched distribution networks and robust experience bases in both countries."

LG Electronics Australia Managing Director William Cho says the company decided to partner with YCH based on what it can offer in terms of best practice logistics and supply chain innovation.

"As we continue to expand our customer base in Australia, we are confident YCH’s track record in quality and security management, expertise in consumer electronics and its innovation-driven culture will be able to optimise LGE’s value chain for better efficiencies and superior service," Cho says.

"I am certain our close collaboration will reap rewards in customer experience and further drive the popularity of the LG brand in Australia."

Former LGE
Australian Director of Supply Chain Tony Harris, who was aggressively pursued by YCH and has now accepted the role of managing Director for the company, is only too aware of the gaps between overseas SCM offerings compared with the local options.

"With this in mind, I will lead YCH Australia to focus on developing YCH Group’s well-tested and sustainable business approach, tools and expertise to offer previously unachievable outcomes for Consumer Electronics companies requiring 3PL services within or via the Australia network," Harris says.

Most importantly, under Harris’ leadership, YCH will utilise sophisticated order management systems and forecasting models in conjunction with its well-established logistics infrastructure to achieve high accuracies and seamless delivery of products to its end consumers.

YCH Australia was first established in 2004 through Perth and subsequently set foot in Sydney in 2007.

Today, it boasts a network of more than 72,000 m2 of modernised, automated supply chain facilities with an operating capacity of more than 100,000 pallets across the main hubs in key Australian cities including Sydney, Melbourne, Brisbane, Perth, Adelaide and Townsville.

Apart from the ability to manage ambient, cool and Dangerous Goods cargo, YCH Australia's transport partners can service 98 percent of Australia’s population using road overnight from its
six main facilities, with 70 percent of volume being direct delivered – rather than
put through
transport hubs.

"Set to be highly optimised for peak SCM performance particularly in terms of Just-In-Time (JIT) inventory," William Cho adds.

"Supported by YCH’s proprietary The Last Mile (TLM™) solution, the YCH Australia network also leverages on cost and operational models that are consistent with Asian, US and European benchmarks."

In servicing various industry sectors across the entire Asia Pacific region, Cho says YCH Group has also been especially recognised for its excellence in the innovation and execution of supply chain solutions for the consumer electronics industry.

About YCH Group

Founded in 1955, YCH Group is the leading integrated end-to-end supply chain management and logistics partner to some of the world’s largest companies, including Dell, Motorola, Samsung, LG, Exxon Mobil, Unilever, LVMH and Royal FrieslandCampina.

YCH Group’s suite of innovative award-winning end-to-end supply chain management solutions - Intribution, Intrabution, Retrogistics, Y-Merge and V-Hub employ cutting edge web-technologies that are best-in-class across industry clusters from consumer and electronics to chemical and healthcare, to deliver powerful competitive advantages for customers.

The Singapore-based company currently operates throughout Asia-Pacific, including Malaysia, Thailand, Indonesia, Philippines, Hong Kong, Australia, China, India, Vietnam and Korea.

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