某咨询伊莱克斯“NetworkStrategy”项目课件

ElectroluxChina“NetworkStrategy”ProjectFinalReportPresentationBeijing,March10,1999ElectroluxChina“NetworkStraProjectIntroductionandBackgroundCustomerSurvey

-SurveyApproach

-SurveyResults

-FindingsandOpportunitiesLogisticsNetwork

-EOQinventorymodeling

-LogisticsnetworkmodelingRecommendationsandnextstepsAppendices-Processflow-CostanalysisContentsProjectIntroductionandBackgMajorBrandsMarketSharein1999MajorBrandsMarketSharein1ElectroluxObjectivesReduceworkingcapitalIncreaseturnover(throughgreaterproductavailability)ReduceoperatingcostsElectroluxChinahascommittedtoachieveBestPracticeServiceandCost,asbasisforrapidbusinessgrowthhighinventorycarryingcostin-storestock-outstoomanywarehouses:limitedinventoryandservicecontrol:SOPsystemsandproceduresforinventorycontrolarenotsystematicallyinplace/appliedlimitedknow-howandsupportunclearresponsibilitiesandperformancecriteriaElectrolux’ssupplychainobjectives...…aretoimprovecurrentperformance...…todeliverrealbottomlinebenefitsElectroluxChinahasidentifiedsupplychainimprovementsasoneofitscorporateprioritiestoimprovecustomersatisfactionandcostperformance.Satisfyrequirementsoftargetcustomers(betterthancompetition)AchievefullcontroloftheentirelogisticsprocessLimitedvisibilityandcontrol,appropriateperforrmancecriterianotinplaceLikelygapsinservicesatisfaction.RequiredServiceLevelsandcompetitors’positionarenotmeasuredElectroluxObjectivesReducewoTheoverallobjectiveofElectroluxChinaNetworkStrategyProjectistooptimizethedistributionnetworkconfigurationintermsof:-Meetingcustomerservice requirements;-Achievingminimumcosts;and-Controllingtheentireoutbound logisticsprocess.IncreasedRevenue

-Improvedproductavailabilityandpromisingcapabilities

-Scalabilitytomeetfuturebusinessrequirements.

-Improvedresponsivenesstomarketconditions.

-Optimizedfillratecapability.

-Moreflexible,responsivedeliveryoptions

-Morevalue-addedservices.Reducedlogisticscosts

-Improvedendtoendsupplychainvisibility

-Lowercost-to-serveintransportationanddistributionImprovedassetproductivity

-FewerstocklocationsthroughrationalizationtoachievehighernetworkproductivityReducedworkingcapital

-LowerLDCstocksthroughmoreflow-throughs,smallermorefrequentorders,centralizedslowmovers,betteruseofsupplierstocksetc.EXPECTEDRESULTSPROJECTOBJECTIVE:TheoverallobjectiveofElectTheoverallobjectiveofElectroluxNetworkStrategyProjectistodeterminetheleastcostdistributionnetworkconfigurationtosatisfythespecificservicelevelrequirementsofitscurrentandfuturetargetcustomersProjectObjectiveandScopeThescopeoftheNetworkStrategyProjectistoanswerthefollowingquestions: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?TheoverallobjectiveofElectIndevelopingtheoptimumsupplychaincapabilityforElectroluxChinaweareutilizingathree-phasedapproachtodevelopingandrolling-outthenewdistributionnetwork-ThisprojectcoversonlyPhaseIOverallApproachtowardsNetworkOptimizationIndevelopingtheoptimumsuppBuild

Logistics

ModelTask5Assess

AlternativesTask6Conduct

Review

SessionsTask7PresentResults,

Recommen-

dations

&Implemen-

tation

ActionPlansTask8Conduct

Visioning

SessionsTask1a.Initiate

Data

CollectionReview

Current

OperationsTask2Under-standServiceRequire-

mentsTask3Initiate

Detailed

Project

PlanningTask1Task4Full-ScaleImplementation

RolloutPhaseIPhaseIIPhaseIIIDistributionNetwork

ProcessDesignDistributionNetworkStrategyDevelopmentCUSTOMERSURVEYNETWORKOPTIMIZATIONProjectApproachBuild

Logistics

ModelTask5Ass1InitiateDetailedProjectPlanning1.aConductVisioningSessions2ReviewCurrentOperations2a.Understandcurrentnetworksetup2b.Reviewcurrentnetworklogisticsstrategy2c.Reviewcurrentcustomerservicestrategy3UnderstandServiceRequirements(customerinterviewsandanalysis)3a.Createcustomersegmentationframeworks5IdentifyAlternatives5a.Performdemandaggregationanalysis6AssessAlternatives7ConductReviewSessions8PresentPreliminaryResults&RecommendationsKeyActivitiesbyWeek(assuming10weeks)

123456789103h.AnalyzecustomerrequirementsandassessElectroluxGAP3k.AnalyzeCosttoServeandStrategicAttractiveness3l.DevelopRecommendedNewServiceOfferings3m.AssessLogisticsWarehouseNetwkStrategyImplications4InitiateDataCollectionCollectCurrentWarehouseNetworkDataa.FacilityOperatingCostsb.TransportationCostsc.InventoryCostsd.Demandvolumes3b.InterviewCustomersinLocation13c.InterviewCustomersinLocation23d.InterviewCustomersinLocation33e.InterviewCustomersinLocation43f.InterviewCustomersinLocation53g.InterviewCustomersinLocation65b.Selectionof5-8“bestoptions”ProjectWorkplan1InitiateDetailedProjectPlaProjectIntroductionandBackgroundCustomerSurvey

-SurveyApproach

-SurveyResults

-FindingsandOpportunitiesLogisticsNetwork

-EOQinventorymodeling

-LogisticsnetworkmodelingRecommendationsandnextstepsAppendices-Processflow-CostanalysisContentsProjectIntroductionandBackgThesampleforthecustomersurveytargetedarepresentationofElectrolux’scurrentoperationsinChina,anditscurrentandfuturemarket-CustomerSamplingMethodology-

HistoricalSalesMarketGrowth&TrendsCurrentLogisticsOperationWherewerethehighestdemandareas?Wherearethecustomerslocated,whichhassignificantcontributiontoElectroluxrevenue?Whatarethecurrentcustomertypes?Wherearethekeyaccountcustomers?Whatisthecurrentsalesregions?Wherewouldbethepotentialhighgrowthareasforrefrigerators?Whatwillbetheemergingchannelforwhitegoods?Whataretheservicerequirementsfromtheemergingchannelplayers?Whatisthecurrentlogisticservicepattern,withregardtotheLDCs”distributionandthecustomerswhicharebeingserved?InterviewAreasInterviewCustomersSurveySampleSizeandCoverageInterviewAreasSurveySampleSizeandCoverageInterviewAreasInterviewCustomersSurveySampleSizeandCoverageThesampleforthecustomersuTheprojectteamfocusedonobtainingasmuchcustomerdatathroughdirectinterviews.Acustomersurveywasfaxedouttobroadengeographiccoverage-CustomerSurveyApproach-

FaxOutSurveyFocusedonseveralAC/Electroluxchosenlocations Beijing,Tianjin,Shanghai,Guangzhou,Changsha,Chengdu,Shenyang,ShenzhenCustomerTypes Distributors: Provinciallevel,citylevel Retailers: Departmentstore,homeappliance store,chainstore KeyAccounts: InternationalchainstoresBroadgeographiccoveragetoincludeareaswheredirectinterviewscouldnotbeconductedStillaimedtoachieverepresentativesamplingofdistributorsandretailersDirectInterviewsTheprojectteamfocusedonobIntotal,81customersurveyquestionnaireswerecollectedrepresentingabroadcrosssectionofElectroluxcustomers-CustomerSurveyBreakdown-

DistributorsRetailersKeyAccountsProvincialLevel728InternationalChain

StoreCityLevel12133DepartmentStoreHomeApplianceMultipleFormat10ChainStore7Total81SubTotal19593SuperMarket1Intotal,81customersurveyq-CustomerSurveyBreakdown-

RegionsNCECGZWestCentralCSNEInterviewedSurvey2121957441076068Total4140Total6228155131281…andalsoElectrolux’smarketsChangshaBeijingShenyangShanghaiChengduGuangzhouQingdaoSuzhouTianjinDalianKunmingNCNECentralECGZwCS-CustomerSurveyBreakdown-ProjectIntroductionandBackgroundCustomerSurvey

-SurveyApproach

-SurveyResults

-FindingsandOpportunitiesLogisticsNetwork

-EOQinventorymodeling

-LogisticsnetworkmodelingRecommendationsandnextstepsAppendices-Processflow-CostanalysisContentsProjectIntroductionandBackg8.AreyoubeingservedbyElectroluxdirectly?Yes NoAllresponseswereinthe“Yes”categoryQuestion8Whywerenon-ElectroluxCustomersnotcoveredbythesurvey?Duetonewsurveyregulationswhichwererecentlyreleased(Dec.1999)bytheStateStatisticalBureau(SSB),acompanymustobtainpermissionandapprovalforallmarketsurveysconducted(thisapprovalcoverssurveyscope,approachandalsoareviewandapprovalofthesurveyresultsbytheSSBbeforetheyarereleasedclients).Theobstaclesputinplacebytheregulations(e.g.applyingforpermission,havingasurveyreviewedandapproved,etc.)couldhaveaddedseveralweekstotheprojectcommencementdateandadditionaltimebeforetheresultscanbereleased.Atthisstage,wearenotawareofanycompanieswhichhavesoughtandgainedapproval(includingGallup).ThekeyproblemisthatthesurveyreformshavingonlyrecentlybeenimplementedandthelocalbranchesoftheSSBarestillestablishingtheadministrativesystemtodealwithit.Therefore,themost”practical”approachforconductingtheprojectsurveygiventhecurrentenvironmentalconstraintswastocoveronlyourexistingcustomerssinceitwasunlikelythattheywouldreportthesurveytotheSSB.ElectroluxCustomer8.AreyoubeingservedbyEle9.Salesrevenuegrowthinthenext1-2years <15% 16-30% 31-40% 41-60% >60%Response: 33% 30% 19% 3% 12%Question9CommentsThemajorityofrespondentswerepositiveintheirsalesoutlookbothfortheirsalesoverall(rangingfromrefrigeratorstogeneralhomeappliances)aswellasspecificallyforElectroluxproducts.Typically,growthinsalesofElectroluxproductsresponsesrangedinthe10to30%band.Guangzhou,WesternChina,EasternChina,NorthEasternandtheNorthChinaregionswereanticipatedtoexperiencethegreatestsalesgrowthinthenexttwoyears.ChangshaandtheCentralregionsareanticipatedtohave.AndcustomerswhoisthenewentryintothemarketexpecthighergrowthratethantheothersNote:Datalimitationsinceresponsesweretailoredbasedonthepositionofthepersoninterviewed(i.e.ageneralmanagerofadistributorwouldhaveabroaderviewofsalesgrowthtothatofasalesmanageronlyinvolvedinthesalesofElectroluxproducts).SalesRevenueGrowth9.Salesrevenuegrowthinthe10.Whatarethekeybrandsofrefrigeratorinyourcurrentbusinessandwhatistheproportionofthesebrandsalesrepresentinyourtotalrefrigeratorsales?Whoselldirectly?Whosuppliesyoudirectly?Question10RefrigeratorSales

BrandNameElectrolux

Haier

Rongsheng

Xinfei

Meiling

ChanglingPercentageof

TotalSales(%)PurchaseDirectly

fromVendorbyRetailerGoodsShippedDirectly

fromVendortoRetailer

DaysInventory

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/ADRDRDRDRDRDRDR12181616161917Comments8outofthe26customerswhodistributeElectroluxrefrigeratorsonlysellElectroluxproducts.Over90%ofthecustomerspurchasedirectlyfromElectroluxandarealsodirectlyservedbyElectroluxForeignplayers,suchasCarrefour,ItoYokado,keeplowinventorylevels,typicallylessthan5days.Incontrast,theaverageinventorylevelforlocalplayersvariesfrom7to30days.CustomersinCSandNEholdinghigherinventorylevelthanotherregionsElectroluxhaslowerinventorylevelthanthecompetitorsatitsretailershop,buthashigherinventorylevelatitsdistributorsitesLegendD:DistributorR:Retailer10.Whatarethekeybrandsof11.Pleasespecifytheamountoftherefrigeratorsalesin1999Question11Comments Wholesale RetailAverageVolume1999 4,752units, 4,640unitsMarketShare(%) 28% 24%RefrigeratorSalesNote:Theseresultsareonlyforhighlevelreference (1)Except8outof19distributorswhoarepurelydoingdistributionsalesand36%ofretailerswhoonlyhaveretailsales,therestareallcarryonmultiplerolesinbothdistributionandretailsales. (2)Thedistributionsalesisquitelowbecausesurveyincludesanumberofnewdistributors,andthesalesnumberisalsoskewedbyretailerswhohaveweakdistributionsales. (3)Theretailsalesnumberisskewedbyacoupleofretailerswhoseretailsalesisevenhigherthanmostofdistributorssalesduringayear (4)Themarketshareofretailerslookshighersincethedataisskewedbysomedominantlocalretailchainsanddominantretailersincountylevelcities.11.Pleasespecifytheamount12.Doyouexperiencethesalesfluctuationindifferentmonths?

Yes,thefluctuationisasfollows NoPeakmonthsare______________________,Sales_______________units/monthNormalmonthsare____________________,Sales_______________units/monthLowmonthsare_______________________,Sales_______________units/month

Question12SurveyResultsComments92%ofrespondentsconfirmedtheseasonalnatureoftheirsalesTheperiodjustpriortoChineseNewYearandthesummermonthsarethetwopeakseasonswithsalesvolumesaround80%higherthantransitionalperiods.The2-3monthsafterChineseNewYearandNovemberarethelowseasonmonthswithaveragesalesvolume26%lowerthantransitionalperiods.May,OctoberandDecemberarethetransitionalmonthfromnormalseasontopeakseason.PeakseasonsAverageSales(Units/month)MonthsTransitionalperiod(s)LowseasonsJanuary(pre-ChineseNewYear),JunetoSeptemberMay,October,DecemberFebruarytoApril(postNewYear)November849472351SeasonSalesFluctuation12.DoyouexperiencethesaleOrderingOrdering-TableAOrderingOrdering-TableAOrderingServiceImportanceandCustomerSatisfactionProductAvailabilityAbilitytoRespondtoUrgentOrdersOrderFrequencyMinimumOrderSize1.1Ordering1.ItemsNo.Satisfaction(Electrolux)Importance4.1421354.1421353.642135SatisfactionGenerally3.9421354.1421354.3421354.6421354.6421354.0421353.53.5421353.7421353.7421353.6421353.84213542135aRatefromElectroluxSalesManagersRatefromElectroluxcustomersA4.03.8Ordering-TableAOrderingServiceImportancean“AbilitytoRespondtoUrgentOrders”,and“ProductAvailability”rankedthemostimportantfactorsfromthesurveyThoughaboveaverage,thecustomersatisfactionratetowardsElectrolux’sabilitytorespondtourgentordersscoredrelativelythelowestamongallthefactors.Customersfrommostoftheregions,suchasCarrefourBeijing,GuangzhouDepartmentStorecomplainedthatthereisnodifferentiationinresponselevelsbetweenthenormalordersandurgentordersTheoverallcustomersatisfactoryratetowardsElectrolux’sorderingservicelevelisparticularlylowintheGuangdongregionMostoftheretailersshowedlackofunderstandingforminimumorderquantityandorderfrequencyastheyarepresentlyorderingbasedondemandandpaymentcredit,andregardminimumorderquantityaslessimportantinaffectingtheirbusinessrevenues.Severalcustomersindicated“1”asdesiredminimumordersizeOrderingServiceImportanceandCustomerSatisfactionOrdering-Comments“AbilitytoRespondtoUrgentOrderingService-BestOrderingService-BestOrderingService-CompetitorFeedbackfromSurveysOrdering-Competitor1.MinimumOrderSize

Best WorstElectrolux 4(2-EC) Haier 3 3(2-W)Siemens 3(2-W)Xinfei 2 Best-Overall,Electroluxdoeshavethemostanswersforbest,buttheresponseswerequitespreadoutgeographically.ElectroluxappearstobeslightlystrongerinEasternChina,whileSiemensappearstobeslightlystrongerinWesternChina.Worst-HaierclearlyhasthemostmentionsanditappearstobeweakestintheWest.Data-Dataisscatteredacrossanswers.Minimumordersizeis1,butitisverymuchdependentonwhothecustomeris.Similarlyfortheworse2.OrderFrequency

Best WorstHaier 2 2Electrolux 2Best&Worse-ScatteredresultsacrossseveralplayerswithnoclearindicationofbestplayersSlimleadsbyHaierandElectroluxbothrated2mentionsinthebestcategory.Interestingnote,isthatHaier’sresponsesinECratesitasthebestbyonedistributorwhileitistheworsebytheretailerData-Nospecifics3.AbilitytorespondtoUrgentOrders

Best WorstElectrolux 3 Haier 4 2(2-EC) Samsung 3 2Xinfei 2Rongsheng 2Best-Haierhasthemostmentionswith4(whicharespreadthroughoutChina).Electroluxnexthas3mentionsbutallfocusedonEC(2retailers,1distributor).Samsungalsoappearsmoderatelybetterwith3mentionsoverall,2beinginEC.Worse-MostoftheworsecasementionswerefairlydistributedwiththeexceptionofHaierwhichhad2mentionsinEC.4.ProductAvailability Best WorstElectrolux 2 Haier 3(2-SC) 7(4-EC,) Xinfei 2(2-EC)Siemens 4(2-CS)

Rongsheng 2Best-ModeratefeedbackwithbestforElectrolux,HaierandXinfei.HaierappearsslightlystrongerforproductavailabilityinSCwhileXinfeiisstrongerinEC.Worst-Haierappearstohavetheworseproblemswithproductavailability,particularlyinEC.Siemensalsoappearstohavesomeproblems(focusingonCS).Data-Onlyseveralpiecesofdatagivenforbest(rangesfrom70to100%)OrderingService-Competitor13.Whatisyoucurrentordertransmissionmode Fax Telephone Email Other__________Ordering-Question13OrderTransmissionModeSurveyResultCommentsManycustomershaveapreferenceforutilizing“interactive”(i.e.telephoneorfacetoface)orderingmodessothattheycangetaclearideaofproductavailabilityCurrently,norespondentsusee-mailtoplaceorders.PresumablythisisbecauseofthelowlevelofITinfrastructureinChinaandthatvendorshavenotdevelopedthistypeofservice.CustomersinGuangzhouregionaremoreopentoadoptingnewtechnologiesthanthoseintheNorthChinaandCentralareas.Customersandsalesstaffindicatedproblemswithcurrentorderprocessingrelatedtotheheavilymanualworkprocessinvolved,multiplehand-offs(betweenElectroluxlogisticsandsalesdepts)andproblemswithoutdatedinventoryinformationonproductavailabilityinLDC.13.Whatisyoucurrentorder14.WhatistheorderfulfillmentperformanceofElectrolux? Orderfulfillrate ___________ 88% Backorderrate ___________ 8% Orderunfulfilledrate ___________ 4%SurveyResultsCommentsTheaverageorderfillrateis88%,therateofbackorderis8%,andtheunfulfilledrateis4%.CSregionhasthehighestorderfulfillrateat92%,enhancedbyitscloseproximitytothemanufacturingbase.SincetheLDCsinNEregionusuallyhavelargeinventoryanduseLDCstoservealmostallthecustomers,theorderfulfillrateisalsoveryhigh.TheorderfulfillrateinGZregion(Guangdong,Fujian,Guangxi)ranksthelowestat73%,duetothelackofeffectiveandefficientcommunicationonbothlocalinventorylevelandinventorylevelinRDC.Orderfulfillmentperformanceisrelativelybetterinbigcities.AlmostalltheresponsesfromShanghaisaidthefulfillrateis100%.Keyaccounts,suchasCarrefourexperiencedhigherrateofbackordersduringtheweekendwhenElectroluxhasnopersontakecareoflogisticsservice,andtheyusuallykeeplowerinventorylevel(SalesManagersinbothGuangzhouandShenzhenwereconcernedaboutthelackofavailableandtimelyinventoryinformationintheRDC,sincetheycouldonlyreceivetheinformationonamonthlybasis).OrderFulfillmentOrdering-Question1414.WhatistheorderfulfillmElectroluxStockouts-FrequencyOrdering-Question1515.HowoftendoyouexperiencestockoutofElectroluxproducts?

(frequencyandthenumberofunits)SurveyResultCommentsRespondentsindicatedthatmoststockoutsoccurduringpromotionalperiodsandnewproductlaunch.Outof16responseswhoregisteredstockout,3aredistributors,9areretailers,and4aremultipleretailformatsGenerallyspeaking,customersexperiencedstockoutrangingfromoncetomorethan10times,respectively.Andtheunitsforeachstockoutrangedfrom1to200eachtime.

ThestockouthappensmoreofteninGZregionswhosebusinessisstillininfancy,alsothesmallcitieswithoutLDCsTianLiFei,adistributorinShenzhen,experiencedstockoutpriortotheChineseNewYear,2000periodwiththeproductshortageestimatedaround200units.Numberoftimesrespondentsexperienced

stockoutofElectroluxproductsOnce3Two6Three2Three1Five1Ten2Fifteen1Note:limitedresponse16companiesregisteredstockoutsElectroluxStockouts-FrequenElectroluxStockouts-ValueLossOrdering-Question1616.Whatistheestimatedvaluelossforstockout?(in%oftotalvolumesold)

0.1-4% 4.1-6% 6.1-8% 8.1-10% >10%Response: 60% 17% 8% 4% 10% SurveyResultCommentsAhighproportionofcustomerswhoindicatedsaleslossduetostockoutsasover10%werefromtheGZregion,especiallyforthecustomersinGuangdongandFujianwhichexperiencedseverestock-outsduringthelastyear.AsconfirmedbybothcustomersandElectroluxsalesmanagers,someofthereasonsforstock-outsarehighdemand,lowinventoryandlackoftimelyinformationoninventoryandproductavailability.ElectroluxStockouts-ValueL-OrderingPerformance-“AbilitytoRespondtoUrgentOrders”,and“ProductAvailability”wereidentifiedasthemostimportantfactorsfromthesurvey,whichElectroluxperformedrelativelyweakcomparetootheritemsinorderingservicesTheorderfulfillmentperformancevariedsignificantlyacrossthedifferentregions.MarketsinwhichElectroluxhavehadalongerhistoryofoperation,wereincloseproximitytothemanufacturingbase,orweremorematuremarkets,(i.e.Shanghai)reportedbettercustomersatisfactionTheoverallcustomersatisfactionforElectrolux’sorderingservicelevelishigherthanthecustomer’sgeneralexperiencewithinthemarketplace,withtheexceptionofGZregionStock-outsoccursmoreoftenduringpromotionalperiodandnewproductlaunch.CustomersinGZregionexperiencedmorestock-outsandhighervalueloss(>10%)duetothegrowingdemandscausedbyheavymarketingcampaign,lowinventory,andlackoftransparencyforinventoryandproductavailabilityinformationSomekeyaccountswhoseinventoryleveliskeptlow,suchasCarrefour,experiencedbackordersduringweekendswhileElectroluxhasnologisticscontactsTheorderprocessingworkflowisstillverymanualandpaper-basedwithquitelowefficiency.Andcustomerstendstoprefer“interactive”orderingmodestogetbetterideaofproductavailability.Summary:Ordering-OrderingPerformance-“AbiliDelivery-TableBDeliveryDelivery-TableBDeliveryDelivery-TableBDeliveryServiceImportanceandCustomerSatisfactionDeliveryLeadTime:UrgentOrdersDeliveryLeadTime:StandardOrdersOrderFulfillmentFrequencyofDelivery2.1Delivery2.ItemsNo.4.3421354.2421354.2421354.0421354.0421354.0421354.6421353.8421353.7421353.7421353.5421353.442135SatisfactionGenerallySatisfaction(Electrolux)Importance4.3421354.2421353.742134.9aRatefromElectroluxSalesManagersRatefromElectroluxcustomersADelivery-TableBDeliverySerDelivery-TableBDeliveryService(continued)SatisfactionGenerallySatisfaction(Electrolux)ImportanceShippingFlexibilityAccuracyofDeliveryPackagingQuality

(Productprotection)Punctuality2.5ItemsNo.4.2421354.2421354.2421354.2421354.5421354.6421353.942133.842133.842134.7421354.142134.442135aRatefromElectroluxSalesManagersRatefromElectroluxcustomersA4.14.7Delivery-TableBDeliverySerOrderFulfillmentInmostregions,customersaremoresatisfiedwithElectrolux’sorderfulfillmentthantheotherbrandsingeneral.ButinbothNCandGZ,thesatisfactionlevelisbelowtheoveralllevel.Customers’desiredorderfulfillrateis96%onaverage,whichishigherthanElectrolux’scurrent88%orderfulfillrate.DeliveryLeadTimeCustomers’desiredleadtimeis2-4days.ThesurveyindicatedthatElectroluxhasnostandardorderleadtime.Itvariesfromthesamedayto15days.IntheextremecaseofGuangzhouDepartmentStore,theintervieweesaidtheleadtimerangesfrom3-15days.Forurgentorders,thesatisfactionwithElectroluxisbelowtheotherbrandsinGZ,NCandNEregions.Thecustomerdesiredleadtimeis1.5daysin