Sydney, AUSTRALIA, 17 August 2011 - Leading Singapore-based logistics and supply chain management (SCM) company YCH Group officially announced the amplification of its network presence in Australia with the recent acquisition of the LG Electronics Australia ("LGE") supply chain business. Under this agreement, YCH Australia will streamline and optimize a critical portion of LGE's overall supply chain activities involved with the national storage and distribution of LGE's eclectic range of consumer electronic products. The agreement extends to the management of facilities, operations and related human resources aspects.
YCH Australia was first established in Sydney in the late 90s. Today, it boasts a network of more than 72,000 m2 of modernized, automated supply chain facilities with an operating capacity of more than 100,000 pallets (or 130,000 c.b.m.) 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 DG (Dangerous Goods) cargo, YCH Australia also has very strong transport partners able to service 98% of Australia's population via road overnight from its 6 main facilities with 70% of volume being direct delivered - not via transport hubs.
Set to be highly optimized for peak SCM performance particularly in terms of Just-In-Time (JIT) inventory and 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 to ensure world-class logistics standards are not only met, but exceeded. In servicing various industry sectors across the entire Asia Pacific region, YCH Group has also been especially recognized for its excellence in the innovation and execution of supply chain solutions for the consumer electronics industry.
Chairman & CEO of YCH Group Dr Robert Yap said, "YCH is excited about making this significant breakthrough Down Under as we strengthen both our network and last mile distribution capabilities to become one of the largest key logistics provider here in Australia. 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 MNCs who are keen to grow in the ANZ market. Furthermore, our well-established trade lanes between China and Australia (ChinAusT) will also be a critical factor in enabling customers to achieve better coupling of their procurement and manufacturing processes with their distribution network requirements."
China is both the largest importer and exporter to Australia. 15% of Australia's imports (worth almost AUD 37 billion) in 2009 came from China, followed by other sizable economies such as US and Japan. Correspondingly Australia also exported the highest percentage of its goods and services (19% of total exports, valued at AUD 48 billion) to China in the same period. 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.
At the same time, YCH is also committed to bring further value to the organization of LGE's regional supply chain administration and processes in Asia Pacific through leveraging best-in-class SCM solutions. Joining the list of YCH's prestigious MNC customers, the LGE-YCH partnership signifies a collaboration of the top innovators in the respective electronics and SCM industry to gain market-leading KPIs; for instance, the ability to rack-and-stack both white and brown goods of different sizes (such as refrigerators, wide screen TVs and other out-of-gauge products) using minimum space, in an extremely safe and secure environment.
William Cho, Managing Director of LG Electronics Australia said, "We are delighted to be partnering with YCH and what they can offer in terms of best practice in logistics and supply chain innovation as we continue to expand our customer base in Australia. With YCH's track record in quality and security management, expertise in consumer electronics and their innovation-driven culture we are confident that YCH is the best SCM partner who will be able to optimize LG's value chain for better efficiencies and superior service. I am certain that our close collaboration will reap rewards in customer experience and further drive the popularity of the LG brand in Australia."
Working closely with LGE management, YCH Australia has already formulated a winning approach to provide superior service, close control and efficient support of LG's wide range of products, and will continue to embark on a highly synchronized SCM process to ensure the sustained growth of the LGE business.
About YCH Australia
First set up in 2004, YCH Australia has grown from strength-to-strength in the last few years. Having recently boosted its SCM capabilities for the consumer goods and electronics sectors, the specific design of the YCH facilities coupled with customized MHE and strong operating systems enable YCH to offer industry-leading service levels and cost models not previously available in Australia.
The team is particularly excited about offering the local market an end-to-end supply chain solutions approach which is consistent with the expectations of customers' overseas head offices - manufacturers and brand owners who know the benefits of seamless 3PL operations from their North American, European and Asian experiences but have been challenged in getting these same outcomes in Australia.
Tony Harris, who was LGE's Australian Director of Supply Chain prior to taking up his current MD role for YCH Australia, was only too aware of the gaps between overseas SCM offerings compared with the local options. With this in mind, he 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. Most importantly, under Tony's leadership, YCH will utilize 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.
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.
A strong proponent of innovation, YCH is recognized for its 7PL™ approach in seamlessly integrating supply chain strategy with execution to attain success in the SCM industry. YCH attained the highly-regarded Singapore Innovation Class in October 2005 and clinched Top Honours as Winner of the IDC Enterprise Innovation Awards 2010. As a forerunner in worldwide supply chain security, YCH is the first recipient of the ISO 28000: 2007 certification for excellent security management in the global SCM industry. YCH also won the prestigious National Infocomm Award 2008 for its RFID-enabled 'High Performance Supply Chain Nerve Centre' and was conferred the 'Asian 3PL of the Year' award by Supply Chain Asia for four consecutive times from 2007 to 2010. More recently, YCH was named 'Most Admired Large Enterprise (Innovation)' in the high-level ASEAN Business Awards 2010 and 'Enterprise of the Year' at the Singapore Business Awards 2011.
More information about YCH can be found on www.ych.com
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