AOKANG Innovating Logistics Operation Mode To Create Zero Distance Distribution

Founded in 1998, AOKANG group is a private enterprise from 30 thousand yuan to 600 million yuan, with annual sales volume of 1 billion 70 million yuan. AOKANG It is a key backbone enterprise in Zhejiang province. China's top 100 private enterprises have won the first batch of national inspection free products, and have won the title of China genuine leather shoes for three consecutive years. AOKANG has three major targets for different target markets. brand AOKANG, Kanglong and beautiful ladies. According to statistics, AOKANG's production capacity in the past 15 years is enough to make Zhejiang people and everyone have a pair of AOKANG shoes.

Facing the indisputable fact that China's leather shoes industry is looking for the land, AOKANG group has made great efforts to reform and perfect the company's logistics system, so that AOKANG has overcome the difficulties of many enterprises. logistics Bottleneck problems make enterprises in a good cycle of development.

Evolution of logistics mode

AOKANG has had several iterations on the road of logistics system construction. Before 1998, AOKANG basically followed the "fixed sale" mode of operation, what the headquarters production department produced, what marketers sold, what agents sold, this logistics mode played a more important role in the development of AOKANG. Because the headquarters "initiative" is relatively large, but in the process of running this mode, contradictions gradually revealed: due to the one-sided information of headquarters, the "I oriented" and "has the final say" have finally formed, resulting in the separation from market demand, especially the increase of inventory and the reduction of profits.

In 1999, AOKANG produced, Marketing Two, has the final say, the production department has the final say, but the marketing department has the final say, and the marketing department integrates information according to the market information, the needs of the branch, and the order of the agents, and finally forms the demand to order the production department, which is called the order system, also called the sales order. The implementation of this order system is essentially turning the production department into a OEM (processing manufacturer) of the marketing department, so that AOKANG's order system and customer centered logistics operation mode can be gradually formed. In the logistics mode of the overall thinking centered on the order system, AOKANG has also transformed several key words, which ensured the operation of the whole system.

　 Logistics operation without network

Many consumers may have such an experience. There are some advertisements on TV. When you are ready to buy, you can't find them everywhere. This is a typical performance of terminal imperfections, and it is also one of the reasons for "no flow" and "hard flow" of logistics.

In this era of "network based", we have a perfect and sound terminal. Who has strong terminal penetration ability, who can constantly adapt to the needs of consumers, thus occupying the opportunities in the market changes. Apart from marketing offices in Taiwan, Hongkong and Macao, AOKANG now has its own marketing organization in 31 provinces, municipalities, and autonomous regions of the country. It has its own marketing network, 106 marketing organizations, more than 2800 chain stores and more than 1000 stores in 31 provinces, municipalities and autonomous regions throughout the country, and has set up an overseas branch in Milan, Italy, and has set up an office in Madrid, Spain. Strong terminal network, AOKANG logistics "flow", "fast flow". Now AOKANG products can appear in front of consumers through monopoly stores and shopping malls and other terminals within three days, thus achieving the first step in marketing. {page_break}

　 The speed of logistics operation is king.

The competition in the modern market is more obvious than who can see it. Especially for leather shoes industry, many are seasonal products. For this type of product, it is faster than time, for speed, for some of the best sellers, if you can get ahead of your weekly shipment, you will occupy the market first month. And the ultimate goal of market management is also this. If your product is slower than your opponent, it will backlog. Therefore, the management of the market is, after all, inventory management.

The traditional inventory management is mainly realized by manual accounting and monthly inventory. This method can not be adapted to the small and medium-sized enterprises. However, when the enterprise develops to a certain stage, especially in the face of the high speed operation of the market, the seasonal differentiation of leather shoes is becoming more and more obvious. It can not accurately reflect the inventory structure and quantity in time and clearly, and it will appear a very passive situation in the operation of enterprises. Sometimes when your stock is on the cordon, you have to go through the national market after a month, and this time, it is already late when you want to make adjustments.

To this end, AOKANG has cooperated with one of China's largest software companies, UFIDA, to set up a national marketing distribution system, to provide computers for each branch office, and to link computers with headquarters, so that all outlets can be networked with headquarters, and finally achieve the goal of fast information sharing. In this way, the information communication, feedback and processing of headquarters and branch offices, public companies and terminal outlets are all done on the computer. Form a fast information response chain. Thus, the sales outlets of each sales branch are clear at a glance every day. Now, whether it is a computer of any public company or office in AOKANG, we can know the total number of products, sales, accumulative sales, the number and size of a certain type of products. Headquarters can quickly reverse the sale of some of the best sellers, and make a good time campaign. The South products and the North dispatching of the products will be completed quickly, so that the headquarters's decision-making activities and the national logistics will be grasped as a whole, so that the national logistics risk will be reduced and the overall economic benefits will be improved.

　　 Logistics operation information is supreme

Inside AOKANG, there is a consensus that corruption is the most terrible thing in money corruption, goods corruption and information corruption.

The importance of information can be seen in this class. For this reason, AOKANG set up a full-time information department to collect information from all over the country. At present, AOKANG headquarters has set up an information department composed of more than 20 people, who is responsible for collecting, analyzing and studying the market information of the whole country, providing the basis for the production, marketing and development of the company. At the same time, every public company and every specialty store is also responsible for selling information and responsible for information work and docking with headquarters. According to the division of work, information personnel collect product information of different seasons and types each day, and feedback them to the development department when they are dirty, so as to provide basis for development work; collect market terminal information all the year round, and provide basis for the company's market planning. The headquarters will use morning meetings to screen, analyze and split the information on the next day, and hand it over to the relevant departments, and feedback on the results of the day's information processing. The company also conveys information to relevant personnel through daily information collection, weekly information collection, monthly two marketing newsletters, E-MAIL and other carriers, so as to provide evidence for their work. What is particularly worth mentioning is that every day, the monopoly of every stores and stores in the country will feed the sales situation of the day to the headquarters through a single channel. For this reason, the headquarters can know the sales situation of the product in time and accurately everyday, so as to make a quick and accurate response to the market.

In this way, AOKANG makes an accurate response to the needs of the market through collecting and processing information effectively, so as to constantly adjust its logistics work, thereby reducing inventory and improving efficiency, and the market competitiveness is continuously enhanced, and the efficiency of enterprises increases year by year. Now AOKANG has achieved three zeros in enterprise operation: zero inventory of logistics management, zero operating capital of enterprises, and zero distance of logistics distribution. The market share of enterprises has been further improved. In 2002, according to the national business information center, the market share of AOKANG leather shoes ranked the second in the country.