安达信---伊莱克斯Network Strategy项目咨询报告(ppt 125页)(英文).ppt

ElectroluxChina“NetworkStrategy”Project,FinalReportPresentationBeijing,March10,1999,ProjectIntroductionandBackgroundCustomerSurvey-SurveyApproach-SurveyResults-FindingsandOpportunitiesLogisticsNetwork-EOQinventorymodeling-LogisticsnetworkmodelingRecommendationsandnextstepsAppendices-Processflow-Costanalysis,Contents,MajorBrandsMarketSharein1999,ElectroluxObjectives,Reduceworkingcapital,Increaseturnover(throughgreaterproductavailability),Reduceoperatingcosts,ElectroluxChinahascommittedtoachieveBestPracticeServiceandCost,asbasisforrapidbusinessgrowth,highinventorycarryingcost,in-storestock-outs,toomanywarehouses:limitedinventoryandservicecontrol:SOPsystemsandproceduresforinventorycontrolarenotsystematicallyinplace/appliedlimitedknow-howandsupportunclearresponsibilitiesandperformancecriteria,Electroluxssupplychainobjectives.,aretoimprovecurrentperformance.,todeliverrealbottomlinebenefits,ElectroluxChinahasidentifiedsupplychainimprovementsasoneofitscorporateprioritiestoimprovecustomersatisfactionandcostperformance.,Satisfyrequirementsoftargetcustomers(betterthancompetition),Achievefullcontroloftheentirelogisticsprocess,Limitedvisibilityandcontrol,appropriateperforrmancecriterianotinplace,Likelygapsinservicesatisfaction.RequiredServiceLevelsandcompetitorspositionarenotmeasured,TheoverallobjectiveofElectroluxChinaNetworkStrategyProjectistooptimizethedistributionnetworkconfigurationintermsof:-Meetingcustomerservicerequirements;-Achievingminimumcosts;and-Controllingtheentireoutboundlogisticsprocess.,IncreasedRevenue-Improvedproductavailabilityandpromisingcapabilities-Scalabilitytomeetfuturebusinessrequirements.-Improvedresponsivenesstomarketconditions.-Optimizedfillratecapability.-Moreflexible,responsivedeliveryoptions-Morevalue-addedservices.Reducedlogisticscosts-Improvedendtoendsupplychainvisibility-Lowercost-to-serveintransportationanddistributionImprovedassetproductivity-FewerstocklocationsthroughrationalizationtoachievehighernetworkproductivityReducedworkingcapital-LowerLDCstocksthroughmoreflow-throughs,smallermorefrequentorders,centralizedslowmovers,betteruseofsupplierstocksetc.,EXPECTEDRESULTS,PROJECTOBJECTIVE:,TheoverallobjectiveofElectroluxNetworkStrategyProjectistodeterminetheleastcostdistributionnetworkconfigurationtosatisfythespecificservicelevelrequirementsofitscurrentandfuturetargetcustomers,ProjectObjectiveandScopeThescopeoftheNetworkStrategyProjectistoanswerthefollowingquestions:,Whatarethecustomerservicerequirementswhichimpactchanneldesign,logisticprocessandinfrastructure?Whatisthecurrentperformance(performancemeasureandcustomersatisfaction)ofElectroluxinmeetingtheserequirementsandwhatistheGAPversusthecompetitorsaswellasagainstthe“BestPractice”achievableinChina?ShouldElectroluxprovideinventorycarryingandtransportationservicestoourclients(withappropriatepriceincrease)?WhatotheradditionallogisticservicescanprovidecompetitiveadvantagetoElectroluxinthemarketplace?ShouldElectroluxchangethestructureofitsdistributionchannelsinChina(e.g.salestoretailers,vstodistributors?)CanElectroluxgainbyplantdirectshipping?Howmanydistributioncenters(DCs)shouldElectroluxhave?HowmanyRDCsandLDCs?WhereshouldtheDCsbelocated?Whichtypes/locationofcustomersandwhichbranchshouldbeservedbyeachDC?Whichcustomersshouldbeserveddirectly?ShouldallDCscarryallproductsorshouldtheybespecializedbyproductline?ShouldElectroluxcontractforwarehousingservicesoroperateitsownDCs?WhatimpactdodifferenttransportationmodeshaveonElectroluxlogisticsnetworkrequirements?Whatinventorycontrolprocedures(highlevel)shouldElectroluxestablishinordertosatisfycustomers,minimizecostandmaintaincontrol?Whatarethesystemsandhumancompetenciesrequirementstoachievetheseobjectives?,IndevelopingtheoptimumsupplychaincapabilityforElectroluxChinaweareutilizingathree-phasedapproachtodevelopingandrolling-outthenewdistributionnetwork-ThisprojectcoversonlyPhaseI,OverallApproachtowardsNetworkOptimization,BuildLogisticsModel,Task5,AssessAlternatives,Task6,ConductReviewSessions,Task7,PresentResults,Recommen-dationstheserviceskillsandattitudeofafter-salespersonnelwhichneedtobeimproved,andtheresponsetocustomerrequirementisnotpromptandtimelyetc.UrgentOrderHandling-Electroluxshouldstrengthenitsresponsetourgentorders.Severalsalesmanagersandcustomerscomplainedofpoorhandlingofurgentorders.VendorslikeHaierhave24-hourlogisticsservicetotheircustomers.OutofOfficeHourDeliveryhenceimpactinggreatlyonthecustomersbusinessandtheirconfidenceinsellingElectroluxproducts.Distributorscomplainedthatthegoodsreturningpolicyisnotconsistentwiththemarketingcampaignwhichsaysgoodswithqualityproblemscanbereturnedimmediatelywithoutanyconditions,withinoneyearafterthepurchase.ThegoodsreturnpolicyofHaierisseentobebetterandmoreefficient,asthedamagedgoodscanbereplacedwiththenewoneswithin1to2days.Somevendors,suchasXinfeiandShangling,sellthegoodswhichareslightlydamagedatadiscountedpriceatthedistributororretailersite.,CustomerFeedback,30.PleaseprovideanyothercommentsaboutElectroluxslogisticsservicesandotheraspectswemaynothavecoveredandhowwecanimproveonit.,ImprovementOpportunities,SupportingServices-Question30,OrderProcessingLeadTimes-Shouldbeshortened.SeveralcustomersfromGuangzhou/ShenzhenindicatedthatittookonetotwoweekstogetfeedbackthataproductwasstockedoutduringpeakseasonInventoryInformationAvailability-ElectroluxsalespeopleshouldhavetheabilitytoseewhatproductsareavailableSalesandMarketingImprovements:Needstobemoreaggressive-perceivedtobeweakerthancompetitionCustomerSupport-traincustomerstaffinproductknowledgesowhenElectroluxpromotionalstaffareabsentMoresupportmaterials-notenoughbrochures,etc.SalesManagersComments-SalesmanagersinGuangzhouandShenzhenstronglyrecommendthatElectroluxneedtoclarifytheoverallorder-todeliveryprocess,redefinetherolesandresponsibilities,andestablishthelogisticsinformationsharingandtrackingsysteminthefuturesoastoimproveonproductionplanning,demandforecasting,customerservicelevels,andreducelogisticscost.-Somesalesmanagerscomplainedthatthewholesupplychain,whichincludesdemandforecasting,production,logistics,salesandmarketing,andafter-salesserviceisnotintegratedinthecurrentpractice.,AfterSalesServiceTheafter-salesrepairserviceisviewedasoneofthemostimportantfactorswhichwillinfluencesalesgrowth.Electroluxsperformanceinthisareasisviewedasweakerthanthecompetition,particularlyinGuangzhou,NorthChinaandtheNorthEasternregions.Keyproblemareascitedincludedlongerresponsetimes,shortageofstaffandlowtechnicalcapabilityHaierandSiemensarecommonlyregardedasexamplesforprovidinggoodafter-salesrepairservicesfortheirtimelyrespondingandproblemsolvingConsignmentConsignmentisusedasabargainingtoolinthebusinessbetweenvendorsandretailers,andisprovidedbyotherkeyplayers,suchasSiemens,Meiling,Changling,Rongsheng,Xinfei,Haierunderdifferentcircumstances.Usually,consignmentisusedbyvendorstoenteringintothenewmarketsandinthemarketswhichhaveweakbrandimageandmarketingpositioning.Besides,itisalsoperceivedasastrongbargainingpowerwithitsinfluentialpositioningfromretailers.Withtheincreaseofbrandpositioningandsalesvolume,cashondeliverycanbeperceivedasanalternativepaymentterminstead,-SupportingServicesPerformance-,Summary:SupportServices,SupportingServices-Summary,ProjectIntroductionandBackgroundCustomerSurvey-SurveyApproach-SurveyResults-FindingsandOpportunitiesLogisticsNetwork-EOQinventorymodeling-LogisticsnetworkmodelingRecommendationsandnextstepsAppendices-Processflow-Costanalysis,Contents,3Neutral,4Important,5VeryImportant,3Neutral,MinimumOrderSize,OrderFrequency,AbilitytoResponsetoUrgentOrders,ProductAvailability,FrequencyofDelivery,OrderFulfillment,DeliveryLeadTime:StandardOrders,DeliveryLeadTime:UrgentOrders,Punctuality,PackagingQuality,DeliveryAccuracy,ShippingFlexibility,Consignment,After-salesRepairServices,SparePartsLeadTime,AnalysisofSurveyResults,SatisfactionwithElectrolux,4Satisfied,5VerySatisfied,AreasofStrengthtoLeverage,Weaknesses,DeliveryAccuracyPunctualityOrderFulfillmentShippingFlexibilityPackagingQuality,AfterSalesServiceAbilitytoRespondtoUrgentOrdersProductAvailabilityDeliveryLeadTime:UrgentOrders,ImprovementMatrix-Consolidated,ElectroluxRefrigeratorSalesbyRegion(Units),Satisfaction,ECregionhasthehighestsalesvolumewithhighersatisfactionratefromthecustomers.ElectroluxneedtomaintaintheserviceleveltofurtherincreasesalesThoughNCregionhashighersalesvolume,customersarenotsosatisfiedwithElectroluxservicelevelCentralregionhasthehighestsatisfactionwithlowestsalesvolume,strategiesotherthanlogisticsneedtobeimplementedtoincreasesalesElectroluxserviceneedtobeimprovedinGZ,NCregionstopropelthesalesgrowth,3,4,0,10,000,20,000,30,000,40,000,50,000,60,000,70,000,Central,CS,EC,GZ,NC,NE,W,5,MarketImportancevs.Satisfaction,AnalysisofSurveyResults,L,Strength,Weakness,OpportunityAreasbyRegion,Central,CS,EC,GZ,NC,NE,W,MinimumOrderSize,J,J,J,J,J,K,J,OrderFrequency,J,L,J,J,J,K,L,AbilitytoRespondtoUrgentOrders,L,L,J,L,J,J,L,ProductAvailability,J,J,K,L,L,L,J,FrequencyofDelivery,J,J,K,J,J,J,J,OrderFulfillment,J,J,J,L,J,J,K,DeliveryLeadTime:StandardOrders,L,J,J,L,J,J,L,DeliveryLeadTime:UrgentOrders,J,J,K,L,K,L,L,Punctuality,J,J,J,L,J,L,J,PackagingQuality,L,L,J,J,J,J,K,AccuracyDelivery(Quantity),J,J,J,J,J,J,J,ShippingFlexibility(multi-site),J,J,J,J,K,L,Consignment,J,J,L,J,L,J,After-salesRepairServices,L,L,J,L,L,K,K,SparePartsLeadTime,L,L,L,L,L,K,L,AnalysisofSurveyResults,1.Mostcontractedwarehouseslackbasicmaterialhandlingequipmenttoloadandunloadshipments,resultinginhighdamageofgoods.Mostloadingandunloadingaredonemanuallyandthereareinstanceswheresparetyresareusedassupportandshockabsorbersduringunloading.Also,insufficienttrainingisprovidedtocontractwarehouseoperatorsinhandlingshipments.2.TheamountofClassB,CanddamagedgoodsinmostLDCsarestockpilingandgrowingatanalarmingrate.Forexample,inTianjinLDC,thereis500unitsofClassAgoods,whilethereare1,700unitsofClassB,Canddamagedgoods.Theproblemwilldeterioratefurtherassalesvolumesincreasesovertimeandwillbecomeaviciouscycle,restrictingsalesgrowth,assomeregionssalesarebasedoncreditlimitwhichincludestheseClassB,Cgoods.3.ThereisnoclearpolicyonhandlingofClassB,Canddamagedinventory.Forexample,somearesoldtoruralcustomersandsomearesoldtointernalElectroluxemployees.4.SalesofClassB,Cgoodsarenotconsideredwithinthesalesperformancetargetsofthesalespersonnel.Hence,thereisnoincentivetopushsalesofthesegoods,resultinginfurtherstockpiling.,Warehousing,FindingsandOpportunities,FindingsliketheexistenceofwarehousesinTaiyuenandBaotou,whicharenotunderthecontroloftheLogisticsDepartment.Thishasmademanagementcontrolandcapturingoftotallogisticscostwithinthecompanyamajorproblem.5.Thereisalackoftimelyinformationoninventory,orderstatus,salesforecast,productavailabilityandtransportationstatuswhicharerequiredsimultaneouslybyRDC,LDCs,salespersonnelandcarriers.Forexample,salespersonnelhasnovisibilityofproductavailabilityandshipmentdeliveryinformation;LDChasnovisibilityonproductavailabilityatRDCetc.,Inventorycontrol,FindingsandOpportunities,Findingsinactualfact,themaintransportationprovideralsooutsourceagaintosmallertransportationcompanies,makingcontrolandqualityofserviceprovideddifficult.AttheLDClevel,LDCco-ordinatorsagainusedanumberoflocaltransportationproviderstoservicethecustomersintheregion.2.DuetothemanytransportationprovidersattheRDCandvariousLDCs,provisionoftrainingtotransportationproviderstohandleshipmentproperlyandcorrectlyproveddifficult,resultinginthehighrateofdamagedgoods.3.Mistakesindeliveryaccuracyhappensmostlyinthewrongcolourofgoodsdelivered,sincereal-timeinformationonproductavailabilityisnotavailableandsalespersonnelhasnoimmediateupdatedinformationonexactinventoryinformationofthewarehouse.,Transportation,FindingsandOpportunities,FindingsultimatelydoingdamagetoElectroluxsbrandimage.,Others,FindingsandOpportunities,Findingsrenderingthecaptureofaccuratelogisticsrelatedcostcomponentsdifficultwithinthecompany.Withoutaffectingcustomerservicelevels,all“illegalwarehouses”willbeclosedindevelopingtheoptionsforthelogisticsnetworkmodeling.4.Thelackofaconsistentapproachtosafetystockandre-orderquantitiesbyeachLDCacrosstheregionandthelackofdifferentiationofproductsintocategoriesoffastmovingitemsvis-visslowmovingitems,causeshighinventoryleveltostockpileatthevariousLDCs.Thismakesinventorycarryingcosttobeoneofthemajorcostcomponentconsiderationinthenetworkmodelingstrategy.,Implicationsoffindingsforthelogisticsnetworkmodelingstrategy.contd,5.Fromthecustomersurveys,itwasfoundthatthemajorityofElectroluxcustomers(69%)cantoleratealeadtimebetween3-10days.WeshallusethisasabasisinsitingLDCsanditslocalservicecoveragewhendevelopingtheoptionsforthelogisticsnetworkmodeling.,Duringtheyearof1999,Electroluxhas2RDCsand24LDCsin20citiestocovermostprovincesofChina.TheonlytransportationmodeoutboundfromRDCistruck,whichischeaperandmorereliablethanrail,inChina.,LogisticsNetworkModeling,LDC,Changsha,Beijing,Shenyang,Shanghai,Chengdu,Guangzhou,Qingdao,Suzhou,Tianjin,Dalian,Kunming,ElectroluxservesitscustomerseitherbyRDCdirectlyiftheorderquantityfitsfulltruckload,orviaLDCiftheorderquantityislessthantruckloadorwhencustomerdemandsshorterleadtime.,LogisticsNetworkModeling,RDCs,DistributorsRetailers,LDCs,FTL,LTL,FTL,In1999,totallogisticscostrepresentsapprox.4.5%ofsales.Thebiggestcostcomponentwastransportationcost,and66%ofrefrigerators(177,000outof270,000)wereshippedtocustomersdirectlyfromRDC.,LogisticsNetworkModeling,LogisticsCostComponents,SalesVolumebyDistributionChannel(RDCdirectVs.ViaLDC),Note:basedonavailablesalesstatistics,thesalesvolumeofHenanprovincewascountedinNCregion.,77.8%,7.1%,15.1%,83%,17%,2416,42393,35996,64508,19006,65903,40626,Inordertooptimizelogisticsnetwork,thefollowingkeyfactorswouldbetakenintoconsideration:,LogisticsNetworkModeling,ElectroluxssalesstrategytoputmoreemphasisonretailersthanonwholesalersandtoserveretailersdirectlyinsteadofviawholesalersBalancecustomerservicelevelandcost-to-serveMinimizetotallogisticscost(warehousecost,transportationcostandinventorycarryingcost),Apparently,thecheapestwaytoservecustomersistoshipallgoodsfromRDCtothemdirectlywithFTLquantities.ButitconflictswithElectroluxssaleschannelstrategyandcouldnotmeetcustomerservicelevel.,Basedonthecustomerrequirementsfrom81customersurveys,thefollowingkeyimplicationshavemajorimpactsonlogisticsnetworkmodeling:,MajorityofElectroluxcustomers(69%)cantoleratealeadtimebetween3-10daysFewcustomersthinkthattheshorteningoftheleadtimeisthekeydriverfortheirsalesincreaseAverageretailersorderquantityisabout15unitsperorder,andwholesalersorderquantityisnormallygreaterthanFTL,Giventheabovecustomerrequirements,5networkoptionsareconsidered:Baselinewith20LDCs,Option1with8LDCs,Option2with18LDCs,Option3with12LDCsandOption4with6LDCs,with2RDCsasacommondenominatorforalltheoptions.,LogisticsNetworkModeling,Someassumptionsaremadetosimplifycalculationoftransportationcost,whichincludesalltierstransportationcostsatcitylevel.,Basedon1999contracttransportationunitprice,theunitpricenotcoveredbythe1999transportationservicecontractisinferredasfollowing:0-1000KM0.090RMB/KM/UNIT1001-2000KM0.057RMB/KM/UNIT2001KMandabove0.044RMB/KM/UNITIn-towndeliveryrateis10RMB/UnitforallLDCs.60%ofLDCsin-townsaleswillbedeliveredtocustomers,therestwillbepickedupbycustomersorpaidbylocalsalesoffice,and100%ofLDCsout-of-townsaleswillbedeliveredtocustomersbyFTLTotalsalesvolumeisfromfinancialdepartmentexcludinggoodsreturnswhicharenegativenumbers.RDCsalesvolumeisfromlogisticsRDCoutboundrecord,andLDCsalesvolumeequalstotalsalesminusRDCsalesAllshipmentsfromRDCareconsideredshippedfromChangsha,LogisticsNetworkModeling,Inthebaselinemodel,onlyEOQ(EconomyOrderQuantity)isapplied,andlogisticsnetworkstructureremainsthesame.Sothewarehouseandinventorycarryingcostdecrease,whiletransportationcostisstillthesame.,ThetotalsavingisRMB2,090,000.,LogisticsNetworkModeling,31,720,000,29,630,000,32,060,000,InthemodelofOptionA,thefollowingcriteriaareconsidered:,Maintainwarehousesinkeycities,andconsolidatesmallerwarehousesReducedoubletransportationasmuchaspossibleLeadtimefromanyoneofthoseLDCstothecitieswithinitsserviceareais1-2days(1000km)exceptUlumuqi(2874kmfromXian),Xining(1146kmfromXian),Nanning(1008kmfromChangsha)andFuzhou(1211kmfromChangsha),LogisticsNetworkModeling,InOptionA,transportationcostisincreasedbyRMB350,000,warehousecostisdecreasedbyRMB930,000,andinventorycarryingcostisdecreasedbyRMB2,200,000.,ThetotalsavingisRMB2,780,000.,LogisticsNetworkModeling,31,720,000,28,940,000,31,050,000,InthemodelofOptionB,thefollowingcriteriaareconsidered:,Anycityhaving2ormorekeyaccountsisconsideredtohaveaLDC.AlthoughDongguanhas2keyaccounts,itisveryclosetoGuangzhou(61KM),sonoLDCissetupinDongguanMandatoryrequirementsofkeyaccountaresatisfiedinDalianandKunmingKeyprovincialcapitalcitieswithhighdemandareconsideredtohaveLDC,LogisticsNetworkModeling,Option3,LDC,Changsha,Beijing,Shenyang,Shanghai,Chengdu,Guangzhou,Qingdao,Suzhou,Tianjin,Dalian,Kunming,InOptionB,transportationcostisincreasedbyRMB520,000,warehousecostisdecreasedbyRMB1,240,000andinventorycarryingcostisdecreasedby2,6