ElectroluxChina“NetworkStrategy”Project(英文版)
《ElectroluxChina“NetworkStrategy”Project(英文版)》由会员分享,可在线阅读,更多相关《ElectroluxChina“NetworkStrategy”Project(英文版)(126页珍藏版)》请在装配图网上搜索。
1、 Andersen Consulting 1999Electrolux China“Network Strategy”ProjectFinal Report PresentationBeijing,March 10,1999Page 1n Project Introduction and Backgroundn Customer Survey-Survey Approach-Survey Results-Findings and Opportunitiesn Logistics Network-EOQ inventory modeling-Logistics network modelingn
2、 Recommendations and next stepsn Appendices -Process flow -Cost analysisContentsPage 2Major Brands Market Share in 1999Electrolux4%Haier37%Rongsheng12%Xinfei12%Meiling8%Changling3%SH-Sharp3%National2%Others13%Samsung3%Siemens3%Page 3Reduce working capitalIncrease turnover(through greater product ava
3、ilability)Reduce operating costsElectrolux China has committed to achieve Best Practice Service and Cost,as basis for rapid business growthhigh inventory carrying cost in-store stock-outs too many warehouses:limited inventory and service control:SOP systems and procedures for inventory control are n
4、ot systematically in place/applied limited know-how and support unclear responsibilities and performance criteriaElectroluxs supply chain objectives.are to improve current performance.to deliver real bottom line benefitsElectrolux China has identified supply chain improvements as one of its corporat
5、e priorities to improve customer satisfaction and cost performance.Satisfy requirements of target customers(better than competition)Achieve full control of the entire logistics processLimited visibility and control,appropriate perforrmance criteria not in placeLikely gaps in service satisfaction.Req
6、uired Service Levels and competitors position are not measuredPage 4The overall objective of Electrolux China Network Strategy Project is to optimize the distribution network configuration in terms of:-Meeting customer service requirements;-Achieving minimum costs;and -Controlling the entire outboun
7、d logistics process.Increased Revenue-Improved product availability and promising capabilities-Scalability to meet future business requirements.-Improved responsiveness to market conditions.-Optimized fill rate capability.-More flexible,responsive delivery options-More value-added services.Reduced l
8、ogistics costs-Improved end to end supply chain visibility-Lower cost-to-serve in transportation and distribution Improved asset productivity-Fewer stock locations through rationalization to achieve higher network productivity Reduced working capital-Lower LDC stocks through more flow-throughs,small
9、er more frequent orders,centralized slow movers,better use of supplier stocks etc.EXPECTED RESULTSPROJECT OBJECTIVE:Page 5The overall objective of Electrolux Network Strategy Project is to determine the least cost distribution network configuration to satisfy the specific service level requirements
10、of its current and future target customers What are the customer service requirements which impact channel design,logistic process and infrastructure?What is the current performance(performance measure and customer satisfaction)of Electrolux in meeting these requirements and what is the GAP versus t
11、he competitors as well as against the“Best Practice”achievable in China?Should Electrolux provide inventory carrying and transportation services to our clients(with appropriate price increase)?What other additional logistic services can provide competitive advantage to Electrolux in the market place
12、?Should Electrolux change the structure of its distribution channels in China(e.g.sales to retailers,vs to distributors?)Can Electrolux gain by plant direct shipping?How many distribution centers(DCs)should Electrolux have?How many RDCs and LDCs?Where should the DCs be located?Which types/location o
13、f customers and which branch should be served by each DC?Which customers should be served directly?Should all DCs carry all products or should they be specialized by product line?Should Electrolux contract for warehousing services or operate its own DCs?What impact do different transportation modes
14、have on Electrolux logistics network requirements?What inventory control procedures(high level)should Electrolux establish in order to satisfy customers,minimize cost and maintain control?What are the systems and human competencies requirements to achieve these objectives?Page 6In developing the opt
15、imum supply chain capability for Electrolux China we are utilizing a three-phased approach to developing and rolling-out the new distribution network-This project covers only Phase InValidation ofcurrent/future customerneedsnClearly defined scenariosnValidated networkbaselineScenario analysisnRecomm
16、endeddistribution networkstrategynBenefit and risk analysisand financial implicationsnPreliminary businesscase and transition plannOperating model detaileddesignn“Quick hits design andimplementationnDetailed implementationplannPilots of key designcomponentsnRefined business case andperformance track
17、ingmodelnImplemented changemanagement structurenInfrastructuredevelopmentnOperating model roll-outnPerformance monitoringand continuousimprovementKey Outcomes ImplementationRolloutPhase IPhase IIPhase III Distribution NetworkProcess DesignDistribution NetworkStrategy DevelopmentScope of this project
18、nPage 7BuildLogisticsModelTask 5AssessAlternativesTask 6Conduct ReviewSessionsTask 7Present Results,Recommen-dations&Implemen-tationAction PlansTask 8ConductVisioningSessionsTask 1 a.InitiateDataCollectionReviewCurrentOperationsTask 2Under-standService Require-ments Task 3InitiateDetailedProjectPlan
19、ningTask 1Task 4Full-Scale Implementation RolloutPhase IPhase IIPhase IIIDistribution NetworkProcess DesignDistribution NetworkStrategy DevelopmentCUSTOMER SURVEYNETWORK OPTIMIZATIONProject ApproachPage 81Initiate Detailed Project Planning1.a Conduct Visioning Sessions2Review Current Operations2a.Un
20、derstand current network setup2b.Review current network logistics strategy2c.Review current customer service strategy3Understand Service Requirements(customer interviews and analysis)3a.Create customer segmentation frameworks5Identify Alternatives5a.Perform demand aggregation analysis6Assess Alterna
21、tives7Conduct Review Sessions8Present Preliminary Results&RecommendationsKey Activities by Week(assuming 10 weeks)123456789103h.Analyze customer requirements and assess Electrolux GAP3k.Analyze Cost to Serve and Strategic Attractiveness3l.Develop Recommended New Service Offerings3m.Assess Logistics
22、Warehouse Netwk Strategy Implications4Initiate Data CollectionCollect Current Warehouse Network Dataa.Facility Operating Costsb.Transportation Costsc.Inventory Costsd.Demand volumes3b.Interview Customers in Location 13c.Interview Customers in Location 23d.Interview Customers in Location 33e.Intervie
23、w Customers in Location 43f.Interview Customers in Location 53g.Interview Customers in Location 65b.Selection of 5-8“best options”Project WorkplanPage 9n Project Introduction and Backgroundn Customer Survey-Survey Approach-Survey Results-Findings and Opportunitiesn Logistics Network-EOQ inventory mo
24、deling-Logistics network modelingn Recommendations and next stepsn Appendices -Process flow -Cost analysisContentsPage 10The sample for the customer survey targeted a representation of Electroluxs current operations in China,and its current and future market-Customer Sampling Methodology-Historical
25、SalesMarketGrowth&TrendsCurrent Logistics Operation Where were the highest demand areas?Where are the customers located,which has significant contribution to Electrolux revenue?What are the current customer types?Where are the key account customers?What is the current sales regions?Where would be th
26、e potential high growth areas for refrigerators?What will be the emerging channel for white goods?What are the service requirements from the emerging channel players?What is the current logistic service pattern,with regard to the LDCs”distribution and the customers which are being served?Interview A
27、reasInterview CustomersSurvey Sample Size and CoverageInterview AreasSurvey Sample Size and CoverageInterview AreasInterview CustomersSurvey Sample Size and CoveragePage 11The project team focused on obtaining as much customer data through direct interviews.A customer survey was faxed out to broaden
28、 geographic coverage-Customer Survey Approach-Fax Out Survey Focused on several AC/Electrolux chosen locationsBeijing,Tianjin,Shanghai,Guangzhou,Changsha,Chengdu,Shenyang,ShenzhenCustomer TypesDistributors:Provincial level,city level Retailers:Department store,home appliance store,chain storeKey Acc
29、ounts:International chain stores Broad geographic coverage to include areas where direct interviews could not be conducted Still aimed to achieve representative sampling of distributors and retailersDirect InterviewsPage 12In total,81 customer survey questionnaires were collected representing a broa
30、d cross section of Electrolux customers-Customer Survey Breakdown-DistributorsRetailersKey AccountsProvincial Level728International Chain StoreCity Level12133Department StoreHome Appliance Multiple Format 10Chain Store 7Total81Sub Total19593Super Market 1Page 13-Customer Survey Breakdown-RegionsNCEC
31、GZWestCentralCSNEInterviewedSurvey2121957441076068Total4140Total6228155131281 and also Electroluxs marketsChangshaBeijingShenyangShanghaiChengduGuangzhouQingdaoSuzhouTianjinDalianKunmingNCNECentralECGZwCSPage 14n Project Introduction and Backgroundn Customer Survey-Survey Approach-Survey Results-Fin
32、dings and Opportunitiesn Logistics Network-EOQ inventory modeling-Logistics network modelingn Recommendations and next stepsn Appendices -Process flow -Cost analysisContentsPage 158.Are you being served by Electrolux directly?Yes NoAll responses were in the“Yes”categoryQuestion 8Why were non-Electro
33、lux Customers not covered by the survey?Due to new survey regulations which were recently released(Dec.1999)by the State Statistical Bureau(SSB),a company must obtain permission and approval for all market surveys conducted(this approval covers survey scope,approach and also a review and approval of
34、 the survey results by the SSB before they are released clients).The obstacles put in place by the regulations(e.g.applying for permission,having a survey reviewed and approved,etc.)could have added several weeks to the project commencement date and additional time before the results can be released
35、.At this stage,we are not aware of any companies which have sought and gained approval(including Gallup).The key problem is that the survey reforms having only recently been implemented and the local branches of the SSB are still establishing the administrative system to deal with it.Therefore,the m
36、ost”practical”approach for conducting the project survey given the current environmental constraints was to cover only our existing customers since it was unlikely that they would report the survey to the SSB.Electrolux CustomerPage 169.Sales revenue growth in the next 1-2 years 60%Response:33%30%19
37、%3%12%Question 9Comments The majority of respondents were positive in their sales outlook both for their sales overall(ranging from refrigerators to general home appliances)as well as specifically for Electrolux products.Typically,growth in sales of Electrolux products responses ranged in the 10 to
38、30%band.Guangzhou,Western China,Eastern China,North Eastern and the North China regions were anticipated to experience the greatest sales growth in the next two years.Changsha and the Central regions are anticipated to have.And customers who is the new entry into the market expect higher growth rate
39、 than the others Note:Data limitation since responses were tailored based on the position of the person interviewed(i.e.a general manager of a distributor would have a broader view of sales growth to that of a sales manager only involved in the sales of Electrolux products).Sales Revenue GrowthPage
40、1710.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?Question 10Refrigerator Sales Brand NameElectrolux Haier Rongsheng Xinfei Meiling ChanglingPerc
41、entage of Total Sales(%)Purchase Directly from Vendor by RetailerGoods Shipped Directly from Vendor to Retailer Days Inventory SiemensDR60%21%DR23%27%DR19%14%DR17%13%DR9%9%DR6%8%DR8%17%92%91%84%86%86%95%91%91%94%83%72%92%86%92%1715N/AN/A15N/AN/ADRDRDRDRDRDRDR12181616161917Comments 8 out of the 26 cu
42、stomers who distribute Electrolux refrigerators only sell Electrolux products.Over 90%of the customers purchase directly from Electrolux and are also directly served by Electrolux Foreign players,such as Carrefour,Ito Yokado,keep low inventory levels,typically less than 5 days.In contrast,the averag
43、e inventory level for local players varies from 7 to 30 days.Customers in CS and NE holding higher inventory level than other regions Electrolux has lower inventory level than the competitors at its retailer shop,but has higher inventory level at its distributor sites LegendD:DistributorR:RetailerPa
44、ge 1811.Please specify the amount of the refrigerator sales in 1999Question 11CommentsWholesaleRetailAverage Volume 19994,752 units,4,640 unitsMarket Share(%)28%24%Wholesale Retail Volume (number)Market Share(%)Refrigerator SalesNote:These results are only for high level reference(1)Except 8 out of
45、19 distributors who are purely doing distribution sales and 36%of retailers who only have retail sales,the rest are all carry on multiple roles in both distribution and retail sales.(2)The distribution sales is quite low because survey includes a number of new distributors,and the sales number is al
46、so skewed by retailers who have weak distribution sales.(3)The retail sales number is skewed by a couple of retailers whose retail sales is even higher than most of distributors sales during a year(4)The market share of retailers looks higher since the data is skewed by some dominant local retail ch
47、ains and dominant retailers in county level cities.Page 1912.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 Question 12Survey ResultsComme
48、ntsn 92%of respondents confirmed the seasonal nature of their salesn The period just prior to Chinese New Year and the summer months are the two peak seasons with sales volumes around 80%higher than transitional periods.n The 2-3 months after Chinese New Year and November are the low season months w
49、ith average sales volume 26%lower than transitional periods.n May,October and December are the transitional month from normal season to peak season.Peak seasonsAverage Sales(Units/month)MonthsTransitional period(s)Low seasonsJanuary(pre-Chinese New Year),June to SeptemberMay,October,DecemberFebruary
50、 to April(post New Year)November849472351SeasonSales FluctuationPage 20 Importance Satisfaction(Electrolux)SatisfactionGenerally DesiredLevel Best Worst Electrolux Average MinimumOrder Size 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 No.ofunits Data Company OrderFrequency 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 No.oforders
51、 per Data Month Company Ability torespond to 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Yes/No Data urgentorders Company Productavailability 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 PercentageAvailable Data Company OrderingOrdering-Table APage 21Ordering Service Importance and Customer SatisfactionProduct AvailabilityAbili
52、ty to Respond to Urgent Orders Order FrequencyMinimumOrder Size1.41.31.21.1Ordering1.ItemsNo.Satisfaction(Electrolux)Importance4.1421354.1421353.642135Satisfaction Generally3.9421354.1421354.3421354.6421354.6421354.0421353.53.5421353.7421353.7421353.6421353.84213542135aRate from Electrolux Sales Man
53、agers Rate from Electrolux customers A3.74.93.83.34.41.94.03.8Ordering-Table APage 22“Ability to Respond to Urgent Orders”,and“Product Availability”ranked the most important factors from the surveyThough above average,the customer satisfaction rate towards Electroluxs ability to respond to urgent or
54、ders scored relatively the lowest among all the factors.Customers from most of the regions,such as Carrefour Beijing,Guangzhou Department Store complained that there is no differentiation in response levels between the normal orders and urgent ordersThe overall customer satisfactory rate towards Ele
55、ctroluxs ordering service level is particularly low in the Guangdong region Most of the retailers showed lack of understanding for minimum order quantity and order frequency as they are presently ordering based on demand and payment credit,and regard minimum order quantity as less important in affec
56、ting their business revenues.Several customers indicated“1”as desired minimum order sizeOrdering Service Importance and Customer SatisfactionOrdering-CommentsPage 23Ordering Service-Best Minimum Order SizeElectroluxHaierSiemensRongshengXinfeiChanglingSamsungShanglingMeilingSharpNationalTotalCentralC
57、S1113EC21115GZ11NC11NE11W1214Total433121115Order FrequencyElectroluxHaierSiemensRongshengXinfeiChanglingSamsungShanglingMeilingSharpNationalTotalCentralCSEC11114GZ112NCNE11W11Total2211118Urgent Order ResponseElectroluxHaierSiemensRongshengXinfeiChanglingSamsungShanglingMeilingSharpNationalTotalCentr
58、alCS11EC224GZNC11NE112W1113Total2413111Product AvailabilityElectroluxHaierSiemensRongshengXinfeiChanglingSamsungShanglingMeilingSharpNationalTotalCentralCS123EC121116GZ11NCNE11W112Total23112111113Page 24Ordering Service-Competitor Feedback from Surveys Ordering-Competitor1.Minimum Order SizeBestWors
59、tElectrolux4(2-EC)Haier33(2-W)Siemens3(2-W)Xinfei2Best -Overall,Electrolux does have the most answers for best,but the responses were quite spread out geographically.Electrolux appears to be slightly stronger in Eastern China,while Siemens appears to be slightly stronger in Western China.Worst -Haie
60、r clearly has the most mentions and it appears to be weakest in the West.Data -Data is scattered across answers.Minimum order size is 1,but it is very much dependent on who the customer is.Similarly for the worse2.Order FrequencyBestWorstHaier22Electrolux2Best&Worse-Scattered results across several
61、players with no clear indication of best playersSlim leads by Haier and Electrolux both rated 2 mentions in the best category.Interesting note,is that Haiers responses in EC rates it as the best by one distributor while it is the worse by the retailerData-No specifics3.Ability to respond to Urgent O
62、rdersBestWorstElectrolux3Haier42(2-EC)Samsung32Xinfei2Rongsheng2Best-Haier has the most mentions with 4(which are spread throughout China).Electrolux next has 3 mentions but all focused on EC(2 retailers,1 distributor).Samsung also appears moderately better with 3 mentions overall,2 being in EC.Wors
63、e-Most of the worse case mentions were fairly distributed with the exception of Haier which had 2 mentions in EC.4.Product AvailabilityBestWorstElectrolux2Haier3(2-SC)7(4-EC,)Xinfei2(2-EC)Siemens4(2-CS)Rongsheng2Best-Moderate feedback with best for Electrolux,Haier and Xinfei.Haier appears slightly
64、stronger for product availability in SC while Xinfei is stronger in EC.Worst-Haier appears to have the worse problems with product availability,particularly in EC.Siemens also appears to have some problems(focusing on CS).Data-Only several pieces of data given for best(ranges from 70 to 100%)Page 25
65、13.What is you current order transmission mode Fax Telephone Email Other_Ordering-Question 13Order Transmission ModeSurvey ResultCommentsn Many customers have a preference for utilizing“interactive”(i.e.telephone or face to face)ordering modes so that they can get a clear idea of product availabilit
66、yn Currently,no respondents use e-mail to place orders.Presumably this is because of the low level of IT infrastructure in China and that vendors have not developed this type of service.Customers in Guangzhou region are more open to adopting new technologies than those in the North China and Central areas.n Customers and sales staff indicated problems with current order processing related to the heavily manual work process involved,multiple hand-offs(between Electrolux logistics and sales depts)
- 温馨提示:
1: 本站所有资源如无特殊说明,都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
2: 本站的文档不包含任何第三方提供的附件图纸等,如果需要附件,请联系上传者。文件的所有权益归上传用户所有。
3.本站RAR压缩包中若带图纸,网页内容里面会有图纸预览,若没有图纸预览就没有图纸。
4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
5. 装配图网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对用户上传分享的文档内容本身不做任何修改或编辑,并不能对任何下载内容负责。
6. 下载文件中如有侵权或不适当内容,请与我们联系,我们立即纠正。
7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。