Providing Faster And Effective Solutions With Excellence

Tim Foster is a distinguished professional serving as the Head of Supply Chain & Logistics Advisory, APAC at Cushman & Wakefield. With extensive expertise in the field, Tim provides strategic guidance and insights to optimize supply chain and logistics operations for clients across the Asia-Pacific region. His profound knowledge and leadership skills make him a valuable asset in driving efficiency and maximizing business performance in this critical domain.

What are your current roles and responsibilities in the company, and how was your experience through the journey?

I have over 20 years of experience in supply chain and logistics consulting, focusing on the Asia Pacific region. During this time, I have worked across various industry sectors, advising clients such as manufacturers, distributors, retailers, and e-commerce players on enhancing their supply chain performance from a customer service, efficiency, and inventory management perspective. My clients are typically large multinational companies operating in multiple markets, including Europe, the U.S., the Middle East, and Africa.

As part of my role at Cushman and Wakefield, a leading real estate company, I work closely with clients to understand their supply chain challenges and help them navigate the increasingly complex environment. We have recently emerged from a highly disruptive period, but are now facing a new set of challenges, including rising inflation, interest rates, and changing consumer demands. These factors have added further complexity to supply chain teams, who must find ways to navigate through this period successfully.

From my discussions with clients, I have identified cost management as a key driver for supply chain teams at present. While they aim to serve customers and consumers effectively, there is a strong focus on cost management across various aspects of the supply chain. One major challenge is the availability and skill level required of labor, as well as the cost of hiring and retaining talent. The volatile nature of demand and markets also means that teams must be flexible in managing their labor force to meet changing needs. Additionally, energy prices and the cost of utilities are increasing, while manufacturers are dealing with rising input costs for raw materials, packaging, and other consumables. Thus, managing these costs closely is essential for companies to achieve their financial goals.

What are the current trends and challenges that exist in the supply chain market?

Maintaining a customer-centric approach in supply chain management is crucial, as supply chains exist to fulfill customer expectations. This involves ensuring product availability and providing a positive experience from order to delivery. With increasing access to customer buying behavior data, supply chain teams must focus on capturing and analyzing this data to understand demand patterns. Similarly, it is important to identify key suppliers and understand their performance and volatility in order to design a supply chain that meets customer needs while taking into account proximity to suppliers.

Designing an effective supply chain involves determining the network required, such as the location and capacity of manufacturing facilities and downstream distribution and logistics facilities. The transportation services and modes used should also be cost-effective to ensure efficient supply chain flows. Segmentation is key as not all customers require the same service, and different suppliers may operate differently. Therefore, supply chain teams must segment and cluster customers and suppliers and manage these relationships accordingly.

"Designing An Effective Supply Chain Involves Determining The Network Required, Such As The Location And Capacity Of Manufacturing Facilities And Downstream Distribution And Logistics Facilities"

Carbon is another significant concern for many companies, and supply chain teams must make trade-offs between lowercost options that may result in higher levels of carbon. It is crucial for supply chain teams to understand these trade-offs and communicate them effectively to the rest of the organization. Overall, robust analysis of available data is essential to inform supply chain decisions and design an effective supply chain that meets customer needs and achieves business goals.

What are some of the technological trends that you are implementing in your designs and strategies?

Automation is a significant trend in supply chain management and is becoming more prevalent due to rising labor costs and shortages, as well as reducing costs and improving efficiency. Automation innovations are now becoming more accessible to supply chains and can also have a positive impact on emissions. Electric vehicles (EV) are a viable option for transportation solutions and will play a critical part in supply chain teams’ decision-making processes. While driverless vehicles are still developing, EVs are already being rolled out.

In terms of execution, optimizing route planning and vehicle utilization can help achieve high utilization levels and reduce redundant capacity, resulting in cost savings and more sustainable logistics networks. Thus, transportation planning solutions are critical in creating effective and efficient supply chains that are also more cost-effective and environmentally friendly.

How do you envision digital logistics and supply chain management’s future? What is your advice to other stakeholders in the market to achieve this promising future?

I would say customer demand patterns are evolving rapidly, with shrinking lead times for order delivery. Supply chains that used to deliver within two to three days must now meet same-day or even one- to two-hour delivery windows. This necessitates adopting technology, a key enabler for supply chains to respond to customer demands quickly and efficiently.

Asia has a growing middle class with increasing income levels and customer demands. Companies must digitalize their supply chains to compete and grow, beginning with forecasting demand and patterns. The execution layer must also be highly digital, including sourcing materials, packing, and fulfilling orders.

Visibility is equally crucial, as customers want to be kept informed about their products’ locations, and supply chain teams need to know quickly where disruptions and constraints are occurring. Digital technology is critical to achieving this visibility and operating an efficient supply chain.