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    2010 Shoe Industry Supply Chain Terminal Weapon (1)

    2010/6/11 10:53:00 30

    Footwear Industry

    Famous economist

    Lang Xianping

    It has been pointed out that the logistics supply chain has promoted the world, which is the general trend of twenty-first Century.

    Today's competition is no longer dominated by the manufacturing industry. Supply chain competition has become the core content of modern enterprise competition. The real competition is not the competition between enterprises and enterprises, but the competition between supply chain and supply chain.

    The comprehensive analysis shows that in a whole supply chain system of a commodity, the cost of non production has exceeded 80%.

    Among them, the logistics cost of goods accounted for more than 40%, and time cost accounted for more than 90% of the entire supply chain.

    No doubt, China is already a big manufacturing country, but a small supply chain.

    China's export oriented enterprises are mostly manufacturing enterprises.


    With the upgrading of market competition, the cost reduction of most export oriented enterprises has almost reached the limit, and the increase in sales is also difficult to break through. The optimization and refinement of the logistics supply chain has become a new way for enterprises.

    More importantly, the optimization and refinement of logistics supply chain is not only a topic related to efficiency and cost. For those companies who want to speed up their market reaction and better meet customer needs, choosing the right supply chain means choosing a new opportunity to take off.

    For many enterprises, this is a matter of life and death.


    As the RMB dollar exchange rate continues to rise, China's export oriented enterprises need to see clearly that the problem is that although the global manufacturing center has shifted to China, "made in China" has moved to the world, under the background of the global supply chain, China's export oriented enterprises are facing the situation of no progress or retreat. Whether they can occupy the world market in the long run and establish a comprehensive, perfect, effective and fast modern logistics system is the top priority.


    Supply chain Informatization: a good solution to problems


    How to establish a comprehensive, perfect, effective and fast modern logistics system? Shen Guokang, chairman and chief executive of BOC, the largest supplier of logistics supply chain management software, believes that the informationization of logistics supply chain is the most effective way to establish a modern logistics system.

    Using information technology throughout the logistics supply chain system is just like establishing a smooth highway between enterprises and suppliers, distributors and customers. It can reduce the time between each step and compress the time to zero.

    Especially for export-oriented enterprises, the effective integration of all nodes in the industrial chain is of great significance for information sharing and risk sharing.

    Supply chain management will actively create value for enterprises and enhance their core competitiveness.

    According to the survey, effective supply chain management can improve product quality, reduce production cost, shorten delivery time and reduce inventory, and then integrate their own resources, optimize enterprise configuration and improve enterprise profits.


    With the intensification of market competition, in order to enhance their competitiveness, modern enterprises have been gradually expanding their industries, business scale, and strengthening their services, and have gradually shifted from saving external expenses to optimizing internal structure and controlling internal costs.

    The key to establishing the competitive advantage of enterprises should turn from the "first profit source" of saving raw materials and the "second profit source" of improving labor productivity, and turn to the "third profit source" of efficient supply chain system.


      

    Shoe enterprises

    Supply chain status quo


    At present, the theory of supply chain has been popularized in the footwear industry, but the consultation and implementation costs of supply chain projects are often huge, which deterred many small and medium-sized enterprises, and large enterprises also hesitated because of the wide involvement of supply chain projects and the risk of subversion and reconstruction of business processes.


    It can be said that the supply chain problems of large footwear enterprises are still manifested in three aspects: Strategy (strategy), Integration (integration), and Coodination (coordination): the lack of supply chain strategy, the traditional strip management, the traditional cost management, the local optimal performance management, the fragmentation of the national total warehouse and the split warehouse, and the mutual complaint between R & D, procurement, production and sales in shoe enterprises, which do not interact with the old age. Information fragmentation and incoordination make the bullwhip effect constantly appear, resulting in product shortage or backlog.


    From the point of view of scholars' research on supply chain, foreign retail chains such as WAL-MART started to apply the modern supply chain theory from the planning and distribution center of enterprises to the modern supply chain technology in view of the inventory turnover rate. In view of the modern supply chain technology such as crossdocking, VMI and CPFR, they all have higher investment and operation requirements for chain enterprises and their supply chain cooperation enterprises. A large number of shoe enterprises in China do not have such conditions. So how to improve the enterprise supply chain with low cost or even zero cost? In addition to the research and development, procurement, production and sales links of the revolutionary subversive integrated enterprise supply chain, I think we can start with the starting point of demand -- the order improvement of stores.


    In the promotion of shoe terminal retail pformation, at present

    footwear industry

    It is still a weak point for chain stores to order (replenishment) to headquarters (branch offices). Their thinking methods and methods can be further explored and improved, because the level of store ordering directly determines the level of sales and inventory of chain stores, whether it has competitive advantages, and directly affects customer satisfaction and performance level.

    If the stores do not order properly, the result is that the inventory is unsalable or out of stock. The result of slow-moving sales often turns into price reduction, loss of profits, frequent price cuts will also overdraw and hurt the store brand; and the result of the out of stock is the decline in the service level of the stores, the decrease of customer loyalty to the stores, and the opportunity for competitors to rob customers.

    Ordering is not just a simple data analysis. It is closely related to product season, store display, sales promotion and so on. Therefore, scientific system store order management is the core module of terminal retail management.


    The "hypothesis verification" method for the supply chain of footwear industry


    This paper introduces a hypothetical verification method for scientific ordering of stores, which does not require large investments by enterprises but can achieve actual results. This method has been well applied in 7-Eleven, a famous retail chain in Japan.

    In fact, from a non professional general consumer perspective, it will be considered that the commodity category and price of Japanese 7-Eleven will not be much better than that of other convenience stores, but the profit margin of Japanese 7-Eleven is 2 times that of Japan's convenience store industry, which is second third of that of Rosen and the whole family.

    Why can 7-Eleven achieve far more than its competitors? "Hypothesis verification" is a secret weapon.


    The philosophical basis of "hypothesis verification" is that Suzuki Minwen, the founder of 7-Eleven, put forward that consumption in today's era has completely entered the field of psychology, because the market has shifted from seller's market to buyer's market. It is far from enough to consider commodity sales from the perspective of economics. The judgement of commodity value is determined by the heart of consumers.

    He said: "if we can not continue to make assumptions based on human psychology, and verify according to the correct information, we can not judge the next step."


    In 7-Eleven stores in Japan, shop assistants can get through when ordering.

    GOT

    The system (a handheld flat end computer) can query all kinds of reference information, such as inventory sales information of various single products, meteorological conditions and weather forecasts within 20 km of each store, various activities around the store, and TV announcement of new products.

    Although the computer can provide daily sales data for the last week and the latest week in order to give orders to the shop assistants, 7-Eleven requests that its own clerks, when ordering, cannot be mechanical and only consider the past sales trend. Instead, they should think flexibly about all kinds of factors that will affect the consumers' purchase and consider the consumers' psychology.

    For example, the same 20 degree weather, 30 degrees of humidity and 70 degrees of humidity are very different for consumers, and the corresponding demand for food products is also different. Therefore, changes in climate, temperature, humidity and other factors have a great impact on the sales of convenience stores in communities. Store employees should pay close attention to these factors and be able to think clearly about their impact on customer demand.

    A shop once learned from the weather forecast that it would be snowing tomorrow, because Kanagawa county had very little snow all year round, so the store manager immediately thought that the consumer's snow boots were rarely set up, and immediately procured a group of boots to put them in front of the store on the second day, which really sold well.

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