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    YOUNGOR'S "Vitrification" Change That Makes Market Data Pparent

    2010/8/25 18:13:00 98

    YOUNGOR Men'S Backlog Plagued

    "The future competition will be the whole.

    Supply chain

    The competition "YOUNGOR Group Chairman Li Rucheng is the clothing industry early praise and implementation of the" supply chain competition "concept, he said: in the public regard the entire Chinese garment industry as a backward productivity representative today, YOUNGOR Clothing Co., Ltd. is through a series of supply chain reform, in the general supply exceeds demand situation difficult to get rid of the problem of backlog of goods.


    During the 9 years, the stock turnover days were reduced to 1/10. YOUNGOR's inventory management experience is actually a "vitrification" change that makes market data more pparent.


    Master real data


    YOUNGOR is actually carrying out supply chain reform under the circumstances.

    Before and after 2001, the clothing market has changed from a seller's market to a buyer's market, resulting in a thin profit.

    At the same time, the clothing industry is also facing a series of challenges: the original mode of production scheduling according to order can not meet the market demand in time, resulting in overcapacity of garment factories, inventory backlog and other issues. Besides, inventory pressure and logistics cost pressure are prominent, and enterprises generally lack the insight and quick response ability to market demand.


      

    Youngor

    The same problem is also encountered.

    In 2001, YOUNGOR had a large backlog of funds for only one shirt.

    Chen Zhigao, deputy general manager of YOUNGOR, told China business reporter that in 2001, before YOUNGOR realized that supply chain management had to be done, various new problems had emerged.

    One of the most outstanding is not only the backlog of inventory but also the number of days of inventory turnover reaching 360 days, which is equivalent to a turnover of only one year.


    Everyone knows: timely replacement of distribution strategy according to the needs of the market is an effective way to solve the backlog of inventory, but how can we timely reflect the information of sales channels to production and distribution links? Chen Zhigao said that YOUNGOR started with the real data of mastering sales terminals.


    It is not that YOUNGOR did not grasp all the business points before.

    Sale

    Data, but data from different regions, are scattered throughout the country and do not focus on headquarters management. In the case of the authenticity of these data, it is very difficult for YOUNGOR group to analyze these data, let alone take these data to guide production and distribution.


    Chen Zhigao regrets the difficulty of YOUNGOR's unified data management.

    It is easy to think of the resistance that is the incompatibility of sales networks. Everyone knows that information opaque means more loopholes.

    So at the very beginning, YOUNGOR chose the pilot implementation. The IT department first built a data warehouse system for regional services in Anhui, Henan and other regions. At the same time, it also ensured that the sales situation from the front line could be understood by the head office in time.


    On the premise of mastering the front-line data, YOUNGOR immediately launched the DRP (distribution demand planning) system, which manages the distribution network of enterprises, enabling suppliers and distributors to submit orders in real time, inquire about product supply and inventory status, and obtain market, sales information and customer support.


    Quick adjustment of production


    Data statistics is not the final method to solve the backlog of stock. It is only a foundation. To achieve zero inventory, we must make every link of production design and smart move.


    There is a "343" principle in the clothing industry, that is, after receiving orders from garment factories, the 30% of the total volume of the first batch will be put into the market.

    The first 30% of the goods were used to test water in the market.

    In those goods, which styles are popular and which are not popular, manufacturers will revise orders according to the feedback from the market. Orders are generally the expected quantity of production. The second batch of 40% cargo is basically the main force of market sales according to market demand, and the latter 30% mainly satisfies the replenishment demand.


    This industry standard leads to whether the sales information can be quickly fed back to the manufacturers and become the key to win the market for garment manufacturers.

    Gu Yuejun, the information director of YOUNGOR group, said that the benefits brought by the data warehouse system to YOUNGOR were very obvious: from 2001 to 2009, the national retail business of the enterprise increased by 20% per year, and the number of inventory turnover days decreased by 36 days per year.


    Smart supply chain


    YOUNGOR hopes not only to achieve zero inventory, but also to enable the entire operation link to move. Like intelligent robots, not only all links can adjust strategies according to the needs of the market, but also the decision-making process of the whole group can become more scientific.

    In September 2009, YOUNGOR and IBM, which had been building the supply chain for 8 years, tried to make YOUNGOR's supply chain more intelligent.


    It is understood that IBM has designed a "drinking mode" for YOUNGOR's downstream supply chain. That is, when a beer is served, the waiter can see how much wine you have left through a pparent glass. If you want to pour it on you, there will be very little left to drink, just like YOUNGOR can sell the western style clothes through the Internet, and decide how much it will be for the supply.

    The "drinking mode" should extend to the entire supply chain. In the future, YOUNGOR's information system must get through every aspect of the suit production, from fabric, production, distribution to sales, and YOUNGOR's boss can see the production and sale of every suit in his office, the sales situation of every store and the distribution of every suit.


    With the help of IBM's business intelligence software Cognos, YOUNGOR can timely extract important data from the supply chain system and carry out multi-dimensional analysis on demand, assist the leadership in formulating company strategy and production procurement plan, respond to ever-changing clothing market demand at any time, and synchronously issue delivery orders of goods through unified system platform, and timely adjust strategies.

    Gu Yuejun, chief technology officer of YOUNGOR group, said: Cognos is very open and can be well compatible with all kinds of databases and data warehouses, which saves manpower and time cost for the deployment of the system.

    In fact, the data analysis of sales channels did bring great profits to YOUNGOR. YOUNGOR had more than 2000 stores before it was integrated into more than 1500 now, but its sales volume has increased 3 times.

    This will not only save resources, but also help the inventory of goods.

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