某品牌轿车项目咨询报告英文(ppt 125页)
某品牌轿车项目咨询报告英文(ppt 125页)内容简介
Electrolux China “Network Strategy” Project
Final Report Presentation
Major Brands Market Share in 1999
Electrolux China has identified supply chain improvements as one of its corporate priorities to improve customer satisfaction and cost performance.
The overall objective of Electrolux Network Strategy Project is to determine the least cost distribution network configuration to satisfy the specific service level requirements of its current and future target customers
The sample for the customer survey targeted a representation of Electrolux’s current operations in China, and its current and future market
The project team focused on obtaining as much customer data through direct interviews. A customer survey was faxed out to broaden geographic coverage
In total, 81 customer survey questionnaires were collected representing a broad cross section of Electrolux customers
… and also Electrolux’s markets
8. Are you being served by Electrolux directly?
¨ Yes ¨ No
All responses were in the “Yes” category
9. Sales revenue growth in the next 1-2 years
¨ <15% ¨ 16-30% ¨ 31-40% ¨ 41-60% ¨ >60%
Response: 33% 30% 19% 3% 12%
10. What are the key brands of refrigerator in your current business and what is the proportion of these brand sales represent in your total refrigerator sales? Who sell directly? Who supplies you directly ?
11. Please specify the amount of the refrigerator sales in 1999
12. Do you experience the sales fluctuation in different months?
¨ Yes, the fluctuation is as follows ¨ No
¨ Peak months are ______________________, Sales _______________units/month
¨ Normal months are ____________________, Sales _______________units/month
¨ Low months are _______________________, Sales _______________units/month
13. What is you current order transmission mode
¨ Fax ¨ Telephone ¨ Email ¨ Other__________
Electrolux Stockouts - Frequency
Electrolux Stockouts - Value Loss
Delivery
Delivery Service Importance and Customer Satisfaction
Delivery Service (continued)
Delivery Service Importance and Customer Satisfaction
Order Fulfillment
• In most regions, customers are more satisfied with Electrolux’s order fulfillment than the other brands in general. But in both NC and GZ, the satisfaction level is below the overall level.
• Customers’ desired order fulfill rate is 96% on average, which is higher than Electrolux’s current 88% order fulfill rate.
Delivery Lead Time
• Customers’ desired lead time is 2 - 4 days.
• The survey indicated that Electrolux has no standard order lead time. It varies from the same day to 15 days. In the extreme case of Guangzhou Department Store, the interviewee said the lead time ranges from 3 -15 days.
• For urgent orders, the satisfaction with Electrolux is below the other brands in GZ, NC and NE regions. The customer desired lead time is 1.5 days in average. Currently, the Electrolux’s lead time ranges from the same day to 15 days. The case of the 15 days lead time occurred to a particular customer, Guangzhou Department Store, which also commented that there was no difference between urgent and standard order lead time.
Delivery Service Importance and Customer Satisfaction
Delivery Punctuality and Accuracy
• From the survey result, Electrolux’s delivery punctuality is 89% and the accuracy on quantity is 93%. In the GZ, NC and NE regions, the satisfaction with Electrolux delivery punctuality is below the general level. In GZ and NE regions, the customers are less satisfied with Electrolux delivery accuracy than the general level.
Packaging Quality
• In Central, GZ and NC regions, the customers are less satisfied with Electrolux packaging quality compared with the general service level. The customers mentioned the following brands for their good packaging quality: National, Siemens, Haier, Shangling and Meiling.
Other Delivery Services
• As to the delivery frequency, Electrolux delivers goods to customers based on their orders currently.
• Because most of the customers have only one site for delivery, so the need for shipping flexibility like multiple drop-off points are not that important currently.
Tolerated Lead Time
Customer Pickup
Lead Time
Lead Time - Sales Growth Impact
Average Electrolux Inventory
From the survey, customers are generally satisfied with Electrolux’s logistics performance, although “lead time towards urgent orders” scored a relatively low level of satisfaction
• “Order fulfillment”, “Delivery Accuracy and Punctuality” ranked the most important among the issues related to delivery performance, and Electrolux performance basically satisfies the customers with the exception of GZ region
• Almost all the retailers prefer delivery service from Electrolux to be more economic and avoid the difficulties related to internal co-ordinations and goods damages. Though delivery capability is not the key factor compare to the brand image and marketing strength, it is difficult to remove the delivery service from current customers but could be an alternative for new accounts. Another influencing factor is that other key competitors, such as Haier and Siemens are providing delivery service to key accounts
• Under the current business environment, most customers do not think shortening lead times can greatly influence sales increase given that the lower importance rating towards lead time and relatively longer lead time tolerance reported in the customer survey. The reduction of price is viewed as the faster and more straight forward way to increase sales
Supporting Services
Supporting Services Importance & Customer Satisfaction
Consignment Sales Alternative
Consignment Sales Alternative Acceptance
Consignment Sales Alternative Acceptance
Sales Increase due to Service Improvement
Electrolux Price Level
Order to Delivery Process
Sales people have no efficient communication with local logistics or RDC staff, therefore have no confidence about the inventory level and product availability. From interviews, we discovered that even local logistics people lack updated LDC inventory information (e.g. in the Guangzhou office).
There is no immediate confirmation letter to either customers or sales people on what products will be delivered until products arrive.
Both sales personnel and customers complained that the order fulfillment process is inefficient, due to the ineffectiveness of sharing inventory and product availability information among the whole company. It was claimed that the order-to-confirmation cycle usually takes 2-3 days.
Preferred Supplier Status
Electrolux’s Return Policy
• Goods returning policy is regarded by the customers as the most complex among all the vendors.
• The process of returning goods usually takes 2 weeks at the retailers and 4 weeks at the distributors, and involves a lot of handling which inflicts even more damages to the goods.
• The damaged goods verification from Electrolux after-sales people normally needs 2-4 weeks to resolve, due to the present policy which requires damaged goods to be accumulated to more than 5 units before resolution; hence impacting greatly on the customers business and their confidence in selling Electrolux products .
• Distributors complained that the goods returning policy is not consistent with the marketing campaign which says goods with quality problems can be returned immediately without any conditions, within one year after the purchase.
• The goods return policy of Haier is seen to be better and more efficient, as the damaged goods can be replaced with the new ones within 1 to 2 days. Some vendors, such as Xinfei and Shangling, sell the goods which are slightly damaged at a discounted price at the distributor or retailer site.
Improvement Opportunities
After Sales Service
• The after-sales repair service is viewed as one of the most important factors which will influence sales growth. Electrolux’ s performance in this areas is viewed as weaker than the competition, particularly in Guangzhou, North China and the North Eastern regions. Key problem areas cited included longer response times, shortage of staff and low technical capability
• Haier and Siemens are commonly regarded as examples for providing good after-sales repair services for their timely responding and problem solving
Consignment
• Consignment is used as a bargaining tool in the business between vendors and retailers, and is provided by other key players, such as Siemens, Meiling, Changling, Rongsheng, Xinfei,Haier under different circumstances. Usually, consignment is used by vendors to entering into the new markets and in the markets which have weak brand image and marketing positioning. Besides, it is also perceived as a strong bargaining power with its influential positioning from retailers.
• With the increase of brand positioning and sales volume, cash on delivery can be perceived as an alternative payment term instead
Improvement Matrix - Consolidated
Market Importance vs. Satisfaction
Our approach to calculating inventory is to develop coefficients that help us “shape the curve” that represents the relationship between throughput and inventory
• Additionally, the square root law of inventory can be applied to determine the impact on re-sizing the network
• In many instances, the impact of various network options on inventory investment can be accurately assessed from historical operating data
• The inventory and production analyses, as well as the Model inputs, are derived from a number of raw data sources. The following list details the types of data that are required for refreshing the Models.
1. List of Warehouses and consignment locations stock locations -
2. List of products by locations SKUs -
3. Cost of Goods Sold (COGS) inventory and carrying costs -
4. Month ending inventory by SKU by location average inventory and turns 12 months
5. Distribution Network Map distribution leadtimes -
6. Sales by SKU by month ABC analysis 12 months
7. Sales by SKU by location by month average demand 12 months
8. Fixed Ordering Cost EOQ Model input -
9. Expected customer service level by product fill rates Safety Stock Calculation -
10. Inventory Carrying Cost (ICC) by location inventory carrying costs -
There are six key factors that are used to properly size cycle stock and safety stock. Strategic business decisions will directly effect these factors, thus changing the size of the total inventory investment.
Transit stock is the inventory necessary to bridge the total leadtime between the point of demand (the stocking location) and the point of supply (the producing plant). This stock is necessary to prevent stock-outs during the lagtime between placing and receiving an order.
EOQ Model Inventory Analysis by ABC Fast/Slow moving type for 1999
Implications of findings for the logistics network modeling strategy
Implications of findings for the logistics network modeling strategy …..cont’d
During the year of 1999, Electrolux has 2 RDCs and 24 LDCs in 20 cities to cover most provinces of China. The only transportation mode outbound from RDC is truck, which is cheaper and more reliable than rail, in China.
Electrolux serves its customers either by RDC directly if the order quantity fits full truck load, or via LDC if the order quantity is less than truck load or when customer demands shorter lead time.
In 1999, total logistics cost represents approx.. 4.5% of sales. The biggest cost component was transportation cost, and 66% of refrigerators (177,000 out of 270,000) were shipped to customers directly from RDC.
In order to optimize logistics network, the following key factors would be taken into consideration:
• Electrolux’s sales strategy to put more emphasis on retailers than on wholesalers and to serve retailers directly instead of via wholesalers
Balance customer service level and cost-to-serve
Minimize total logistics cost (warehouse cost, transportation cost and inventory carrying cost)
Based on the customer requirements from 81 customer surveys, the following key implications have major impacts on logistics network modeling:
• Majority of Electrolux customers (69%) can tolerate a lead time between 3 - 10 days
• Few customers think that the shortening of the lead time is the key driver for their sales increase
• Average retailer’s order quantity is about 15 units per order, and wholesaler’s order quantity is normally greater than FTL
In the baseline model, only EOQ (Economy Order Quantity) is applied, and logistics network structure remains the same. So the warehouse and inventory carrying cost
decrease, while transportation cost is still the same.
In the model of Option A, the following criteria are considered:
• Maintain warehouses in key cities, and consolidate smaller warehouses
• Reduce double transportation as much as possible
• Lead time from any one of those LDCs to the cities within its service area is 1-2 days (£ 1000km) except Ulumuqi (2874km from Xian), Xining (1146km from Xian), Nanning (1008km from Changsha) and Fuzhou (1211km from Changsha)
In Option A, transportation cost is increased by RMB 350,000, warehouse cost is decreased by RMB 930,000, and inventory carrying cost is decreased by RMB 2,200,000.
In the model of Option B, the following criteria are considered:
• Any city having 2 or more key accounts is considered to have a LDC. Although Dongguan has 2 key accounts, it is very close to Guangzhou (61KM), so no LDC is setup in Dongguan
• Mandatory requirements of key account are satisfied in Dalian and Kunming
• Key provincial capital cities with high demand are considered to have LDC
In Option B, transportation cost is increased by RMB 520,000, warehouse cost is decreased by RMB 1,240,000 and inventory carrying cost is decreased by 2,680,000.
In the model of Option C, the following criteria are considered:
• 6 sales regions, each has 1 LDC in the major city
• Mandatory requirements of key accounts are satisfied in Dalian and Kunming
• Lead time from any one of those LDCs to the cities within its service area is 1-3 days (£ 1500km) except Ulumuqi (3114km from Chengdu) and Yinchuan (1900km from Chengdu)
In Option C, transportation cost is increased by RMB 760,000, warehouse cost is decreased by RMB 1,470,000 and inventory carrying cost is decreased by 3,070,000.
In Option D, transportation cost is increased by RMB 920,000, warehouse cost is decreased by RMB 1,600,000 and inventory carrying cost is decreased by 3,300,000.
..............................
Final Report Presentation
Major Brands Market Share in 1999
Electrolux China has identified supply chain improvements as one of its corporate priorities to improve customer satisfaction and cost performance.
The overall objective of Electrolux Network Strategy Project is to determine the least cost distribution network configuration to satisfy the specific service level requirements of its current and future target customers
The sample for the customer survey targeted a representation of Electrolux’s current operations in China, and its current and future market
The project team focused on obtaining as much customer data through direct interviews. A customer survey was faxed out to broaden geographic coverage
In total, 81 customer survey questionnaires were collected representing a broad cross section of Electrolux customers
… and also Electrolux’s markets
8. Are you being served by Electrolux directly?
¨ Yes ¨ No
All responses were in the “Yes” category
9. Sales revenue growth in the next 1-2 years
¨ <15% ¨ 16-30% ¨ 31-40% ¨ 41-60% ¨ >60%
Response: 33% 30% 19% 3% 12%
10. What are the key brands of refrigerator in your current business and what is the proportion of these brand sales represent in your total refrigerator sales? Who sell directly? Who supplies you directly ?
11. Please specify the amount of the refrigerator sales in 1999
12. Do you experience the sales fluctuation in different months?
¨ Yes, the fluctuation is as follows ¨ No
¨ Peak months are ______________________, Sales _______________units/month
¨ Normal months are ____________________, Sales _______________units/month
¨ Low months are _______________________, Sales _______________units/month
13. What is you current order transmission mode
¨ Fax ¨ Telephone ¨ Email ¨ Other__________
Electrolux Stockouts - Frequency
Electrolux Stockouts - Value Loss
Delivery
Delivery Service Importance and Customer Satisfaction
Delivery Service (continued)
Delivery Service Importance and Customer Satisfaction
Order Fulfillment
• In most regions, customers are more satisfied with Electrolux’s order fulfillment than the other brands in general. But in both NC and GZ, the satisfaction level is below the overall level.
• Customers’ desired order fulfill rate is 96% on average, which is higher than Electrolux’s current 88% order fulfill rate.
Delivery Lead Time
• Customers’ desired lead time is 2 - 4 days.
• The survey indicated that Electrolux has no standard order lead time. It varies from the same day to 15 days. In the extreme case of Guangzhou Department Store, the interviewee said the lead time ranges from 3 -15 days.
• For urgent orders, the satisfaction with Electrolux is below the other brands in GZ, NC and NE regions. The customer desired lead time is 1.5 days in average. Currently, the Electrolux’s lead time ranges from the same day to 15 days. The case of the 15 days lead time occurred to a particular customer, Guangzhou Department Store, which also commented that there was no difference between urgent and standard order lead time.
Delivery Service Importance and Customer Satisfaction
Delivery Punctuality and Accuracy
• From the survey result, Electrolux’s delivery punctuality is 89% and the accuracy on quantity is 93%. In the GZ, NC and NE regions, the satisfaction with Electrolux delivery punctuality is below the general level. In GZ and NE regions, the customers are less satisfied with Electrolux delivery accuracy than the general level.
Packaging Quality
• In Central, GZ and NC regions, the customers are less satisfied with Electrolux packaging quality compared with the general service level. The customers mentioned the following brands for their good packaging quality: National, Siemens, Haier, Shangling and Meiling.
Other Delivery Services
• As to the delivery frequency, Electrolux delivers goods to customers based on their orders currently.
• Because most of the customers have only one site for delivery, so the need for shipping flexibility like multiple drop-off points are not that important currently.
Tolerated Lead Time
Customer Pickup
Lead Time
Lead Time - Sales Growth Impact
Average Electrolux Inventory
From the survey, customers are generally satisfied with Electrolux’s logistics performance, although “lead time towards urgent orders” scored a relatively low level of satisfaction
• “Order fulfillment”, “Delivery Accuracy and Punctuality” ranked the most important among the issues related to delivery performance, and Electrolux performance basically satisfies the customers with the exception of GZ region
• Almost all the retailers prefer delivery service from Electrolux to be more economic and avoid the difficulties related to internal co-ordinations and goods damages. Though delivery capability is not the key factor compare to the brand image and marketing strength, it is difficult to remove the delivery service from current customers but could be an alternative for new accounts. Another influencing factor is that other key competitors, such as Haier and Siemens are providing delivery service to key accounts
• Under the current business environment, most customers do not think shortening lead times can greatly influence sales increase given that the lower importance rating towards lead time and relatively longer lead time tolerance reported in the customer survey. The reduction of price is viewed as the faster and more straight forward way to increase sales
Supporting Services
Supporting Services Importance & Customer Satisfaction
Consignment Sales Alternative
Consignment Sales Alternative Acceptance
Consignment Sales Alternative Acceptance
Sales Increase due to Service Improvement
Electrolux Price Level
Order to Delivery Process
Sales people have no efficient communication with local logistics or RDC staff, therefore have no confidence about the inventory level and product availability. From interviews, we discovered that even local logistics people lack updated LDC inventory information (e.g. in the Guangzhou office).
There is no immediate confirmation letter to either customers or sales people on what products will be delivered until products arrive.
Both sales personnel and customers complained that the order fulfillment process is inefficient, due to the ineffectiveness of sharing inventory and product availability information among the whole company. It was claimed that the order-to-confirmation cycle usually takes 2-3 days.
Preferred Supplier Status
Electrolux’s Return Policy
• Goods returning policy is regarded by the customers as the most complex among all the vendors.
• The process of returning goods usually takes 2 weeks at the retailers and 4 weeks at the distributors, and involves a lot of handling which inflicts even more damages to the goods.
• The damaged goods verification from Electrolux after-sales people normally needs 2-4 weeks to resolve, due to the present policy which requires damaged goods to be accumulated to more than 5 units before resolution; hence impacting greatly on the customers business and their confidence in selling Electrolux products .
• Distributors complained that the goods returning policy is not consistent with the marketing campaign which says goods with quality problems can be returned immediately without any conditions, within one year after the purchase.
• The goods return policy of Haier is seen to be better and more efficient, as the damaged goods can be replaced with the new ones within 1 to 2 days. Some vendors, such as Xinfei and Shangling, sell the goods which are slightly damaged at a discounted price at the distributor or retailer site.
Improvement Opportunities
After Sales Service
• The after-sales repair service is viewed as one of the most important factors which will influence sales growth. Electrolux’ s performance in this areas is viewed as weaker than the competition, particularly in Guangzhou, North China and the North Eastern regions. Key problem areas cited included longer response times, shortage of staff and low technical capability
• Haier and Siemens are commonly regarded as examples for providing good after-sales repair services for their timely responding and problem solving
Consignment
• Consignment is used as a bargaining tool in the business between vendors and retailers, and is provided by other key players, such as Siemens, Meiling, Changling, Rongsheng, Xinfei,Haier under different circumstances. Usually, consignment is used by vendors to entering into the new markets and in the markets which have weak brand image and marketing positioning. Besides, it is also perceived as a strong bargaining power with its influential positioning from retailers.
• With the increase of brand positioning and sales volume, cash on delivery can be perceived as an alternative payment term instead
Improvement Matrix - Consolidated
Market Importance vs. Satisfaction
Our approach to calculating inventory is to develop coefficients that help us “shape the curve” that represents the relationship between throughput and inventory
• Additionally, the square root law of inventory can be applied to determine the impact on re-sizing the network
• In many instances, the impact of various network options on inventory investment can be accurately assessed from historical operating data
• The inventory and production analyses, as well as the Model inputs, are derived from a number of raw data sources. The following list details the types of data that are required for refreshing the Models.
1. List of Warehouses and consignment locations stock locations -
2. List of products by locations SKUs -
3. Cost of Goods Sold (COGS) inventory and carrying costs -
4. Month ending inventory by SKU by location average inventory and turns 12 months
5. Distribution Network Map distribution leadtimes -
6. Sales by SKU by month ABC analysis 12 months
7. Sales by SKU by location by month average demand 12 months
8. Fixed Ordering Cost EOQ Model input -
9. Expected customer service level by product fill rates Safety Stock Calculation -
10. Inventory Carrying Cost (ICC) by location inventory carrying costs -
There are six key factors that are used to properly size cycle stock and safety stock. Strategic business decisions will directly effect these factors, thus changing the size of the total inventory investment.
Transit stock is the inventory necessary to bridge the total leadtime between the point of demand (the stocking location) and the point of supply (the producing plant). This stock is necessary to prevent stock-outs during the lagtime between placing and receiving an order.
EOQ Model Inventory Analysis by ABC Fast/Slow moving type for 1999
Implications of findings for the logistics network modeling strategy
Implications of findings for the logistics network modeling strategy …..cont’d
During the year of 1999, Electrolux has 2 RDCs and 24 LDCs in 20 cities to cover most provinces of China. The only transportation mode outbound from RDC is truck, which is cheaper and more reliable than rail, in China.
Electrolux serves its customers either by RDC directly if the order quantity fits full truck load, or via LDC if the order quantity is less than truck load or when customer demands shorter lead time.
In 1999, total logistics cost represents approx.. 4.5% of sales. The biggest cost component was transportation cost, and 66% of refrigerators (177,000 out of 270,000) were shipped to customers directly from RDC.
In order to optimize logistics network, the following key factors would be taken into consideration:
• Electrolux’s sales strategy to put more emphasis on retailers than on wholesalers and to serve retailers directly instead of via wholesalers
Balance customer service level and cost-to-serve
Minimize total logistics cost (warehouse cost, transportation cost and inventory carrying cost)
Based on the customer requirements from 81 customer surveys, the following key implications have major impacts on logistics network modeling:
• Majority of Electrolux customers (69%) can tolerate a lead time between 3 - 10 days
• Few customers think that the shortening of the lead time is the key driver for their sales increase
• Average retailer’s order quantity is about 15 units per order, and wholesaler’s order quantity is normally greater than FTL
In the baseline model, only EOQ (Economy Order Quantity) is applied, and logistics network structure remains the same. So the warehouse and inventory carrying cost
decrease, while transportation cost is still the same.
In the model of Option A, the following criteria are considered:
• Maintain warehouses in key cities, and consolidate smaller warehouses
• Reduce double transportation as much as possible
• Lead time from any one of those LDCs to the cities within its service area is 1-2 days (£ 1000km) except Ulumuqi (2874km from Xian), Xining (1146km from Xian), Nanning (1008km from Changsha) and Fuzhou (1211km from Changsha)
In Option A, transportation cost is increased by RMB 350,000, warehouse cost is decreased by RMB 930,000, and inventory carrying cost is decreased by RMB 2,200,000.
In the model of Option B, the following criteria are considered:
• Any city having 2 or more key accounts is considered to have a LDC. Although Dongguan has 2 key accounts, it is very close to Guangzhou (61KM), so no LDC is setup in Dongguan
• Mandatory requirements of key account are satisfied in Dalian and Kunming
• Key provincial capital cities with high demand are considered to have LDC
In Option B, transportation cost is increased by RMB 520,000, warehouse cost is decreased by RMB 1,240,000 and inventory carrying cost is decreased by 2,680,000.
In the model of Option C, the following criteria are considered:
• 6 sales regions, each has 1 LDC in the major city
• Mandatory requirements of key accounts are satisfied in Dalian and Kunming
• Lead time from any one of those LDCs to the cities within its service area is 1-3 days (£ 1500km) except Ulumuqi (3114km from Chengdu) and Yinchuan (1900km from Chengdu)
In Option C, transportation cost is increased by RMB 760,000, warehouse cost is decreased by RMB 1,470,000 and inventory carrying cost is decreased by 3,070,000.
In Option D, transportation cost is increased by RMB 920,000, warehouse cost is decreased by RMB 1,600,000 and inventory carrying cost is decreased by 3,300,000.
..............................
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