"Zero Inventory" Franchise Mode 2010 Fire Up

"Zero inventory" is a special concept of inventory. Industrial Enterprise And commercial enterprises is an important concept. The meaning of zero inventory is a concept of low storage of some or some kinds of goods in the form of warehouse storage.

Literally, "zero inventory" seems to mean no inventory, but in fact, the shoe industry has implemented " Zero inventory "Does not mean that there is no inventory, but to minimize inventory, mainly means that the franchisee will not assume any inventory risk, a small number of stock goods companies unified recovery, and then sell in a discount store. For example, a merchant can try to sell a product of a shoe company, first order a small quantity of goods, and then make an order with the company according to the actual situation after the feedback of market effect. This way can effectively avoid the occurrence of poor sales of goods due to inadequate judgments of the region and the market.

Jinjiang shoe enterprises test water zero inventory

In September of 2009, the "U.S.POLOASSN." business movement of Wan Tai Sheng held a new spring and summer conference in Jinjiang. The new zero inventory mode was officially launched. It became one of the most attractive highlights during the peak period of Jinjiang's ordering business. Prior to this, Jinjiang sports brand Nash and Bao Da have also launched "zero inventory". Join in The pattern.

As one of the pioneers of "zero inventory" franchisee, Nash, the "zero inventory, direct management" franchise mode, that is, the mobile ordering method, runs directly to all franchisees, and the 100% original price of the off-season goods is recovered. After a year's implementation of "zero inventory", the market effect is very good. Since its implementation, we have owned dozens of franchises across the country, and there are also many franchises in the near future. Tang Qi Zhang, director of the regional brand center, takes Nash as an example to talk about the effect of "zero inventory" in the terminal expansion.

As a new entrants in the "zero inventory" franchise mode, Wan Tai Sheng, whose franchise mode is mainly based on the brand influence and competitive advantage of price, is to ensure that the distributors' goods have higher profit margins compared with the ordinary brands, and that the products of some regional distributors can be hedged and exchanged.

The significance of zero inventory

The zero inventory can solve some of the waste in inventory management. Enterprises can reduce inventory management cost by reducing zero inventory management, reduce inventory occupancy funds, and avoid a series of problems such as warehouse construction, management cost, inventory maintenance, storage, loading and unloading, handling and so on.

Inventory management is the logistics part of the four main streams of enterprise management system. Inventory management is the management of ledger account for material entry, storage and output, that is to manage the relationship between supply and demand of materials. It not only balances the supply and demand, but also reduces the inventory of materials as much as possible, because it will occupy (backlog) the valuable liquidity of enterprises. By realizing zero inventory management, enterprises can optimize accounts receivable and payable accounts and speed up capital turnover. The zero inventory strategy shortens the supply time of raw and auxiliary materials and reduces the occurrence of major accidents. Therefore, zero inventory management can shorten the production cycle and avoid the risk of price reduction and unsalable sales arising from market changes and upgrading.

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Small and medium sized shoe enterprises should not blindly implement zero inventory.

Although the financial crisis has caused many enterprises to increase their inventory pressure, the idea of "zero inventory" is not ideal for all enterprises. But in today's inventory situation is so severe, the "zero inventory" franchise mode is an effective way to reduce inventory pressure for agents. However, for enterprises, when conditions and timing are not very mature, it is unwise to simply carry the burden of inventory on their own in order to attract agents.

For emerging brands or immature brands, their market has not yet been fully opened, and the sales network has not yet been fully developed. In dealing with inventory, it is possible to store inventories by setting up discount stores in some targeted areas, rather than adopting "zero inventory" mode.

And for some big brands such as Anta, Lining and XTEP, because the enterprises are relatively mature, they want to rely on the "zero inventory" mode of joining, and the goods that are not sold by agents can be concentrated back to headquarters, which will only further increase their own inventory pressure.

Zero inventory is the ideal state of inventory management in today's era, and it is the embodiment of comprehensive management strength. The realization of zero inventory needs to be closely linked in the operation activities such as procurement, production, logistics and sales. In the process of realizing zero inventory, there are still some obstacles. The risks brought by zero inventory to enterprises can not be ignored. Its feasibility is worth studying from two aspects. Moreover, any management means and technology need cost and cost. As a wise enterprise, investment must be less than output, because enterprises always have to make profits before they can survive. Therefore, when implementing zero inventory management, enterprises should actively think and improve and not blindly practice.