Supply chain

SHANGHAI BANGDE VOCATIONAL COLLEGE-TasTAFE InstituteSino Australian Logistic Management1nd Semester, 2015-2016Course Name: TLIL5055A Manage a supply chainReport for: New balanceStudent Name: Cecilia Teacher: TracyStudent number: 201325101 Date: 2015/11/29SummaryTable of ContentSummary (2)Introduction (4)Company Information (5)Company’s Main Goals (5)Company’s Business Model and Reason (6)Product Sector (6)Main Products (6)Main Service (6)Product classification (6)Company supply chain management network model (7)Supply chain strategy (8)Implementation of supply chain management strategies (13)Technology and software (13)Policies, procedures and business processes (13)Support (14)Manage a supply chain (15)Product of supply chain (15)Product description and sales (15)Picture or evidence (16)Map the chain for one product (17)Communication and information exchange (18)Relationship with supplier/agent/distributor (18)Sales, payments, other terms, risk management strategies (19)Identification of opportunities and future improvement (20)Evaluation of supply chain (22)Effectives of supply chain (23)Feedback, business data, report (23)Improvement (24)Model .......................................................................................................... 错误！未定义书签。

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Conclusion .. (25)Reference (26)IntroductionThe purpose of this project is to understand the New Balance’s supply chain; Therefore, we chose the flagship store located in Shanghai Huaihai road.We will study the supply chain from many angles, so we have made the corresponding investigation.Company name: New BalanceCompany InformationJ. Riley William, founded New balance,in 1906 in the United States, has become a large number of successful entrepreneurs and political leaders love to use the brand, in the United States and many countries known as the president's jogging shoes, jogging shoes king".The concept store New Balance is located in Shanghai Huaihai Road opened in 2013 October, store address: No. 988 Huaihai Zhong Road, Shanghai.New Balance brand in China to open second new concept experience store, New Balance will be here to show a full year of brand evolution history, the most comprehensive product features and latest and most professional shoe models.Company’s Main GoalsCommitted to provide top quality shoes for Chinese consumers, the new concept of experience shop will be in the form of bring customer different previous shoe shopping experience. Bring unprecedented new surprises for the brand enthusiasts.At the same time, it is also hoped that the popular global running culture into china.Show the charm of its own company.Become the largest and most famous flagship store in Shanghai.Company’s Business Model and ReasonHorizontal integration. Because New Balance’s core product is shoes, the aim is to sell shoes in numerous market through subsidiary companies.Product SectorMTO (Make to order)Main ProductsShoes, ClothesMain ServiceAfter-sale service,Pre-sale serviceProduct classificationFMCG (Fast moving consumer goods)Company supply chain management network modelCore and Extended Supply ChainsManufacturingOD (Original design)OE (Original equipment)CM (Contract manufacturing)4 ComponentsTransport: See as “service” + ModesSystem:Order management systems, Warehouse management systems, Transport management systems, Logistics modeling and simulation, Inventory optimization tools Location: The nodes of the network. Manufacturer, Company headquarter, Flagship store Relationships: Customer/SupplierLogistics Service Providers and their serviceSupply chain strategy1. Customer ServiceLevel of serviceNew Balance has a more advanced and comprehensive service policy. In addition to some of basic industries in general policy, there are the following:1) Reservation service before new product sales.2) Product personal customization service.3) Shoes consultant service.4) Professional foot type measurement service.Product segmentMen's Shoes, Women's Shoes, Men's clothing, Women's clothing,Accessories.InvestigationThrough a questionnaire survey to understand the customer whether aware of company's service information.2. Transport & DistributionTransport mode: RoadwayDelivery patterns: CIF:Cost + Freight + InsuranceStorage location: Headquarters and flagship store has its own warehouseTime: Goods arrival at 9:00 – 9:30 in the morning, before opening a shop3. Inventory LocationFlagship store has its own warehouseAddress: No. 988 HuaihaiZhong Road, Shanghai4. Inventory ManagementBecause my store is in Shanghai, and Chungjye Shoes Company manufactures all the products in shanghai, so is the regional modal.5. Cost/AssetDue to the influence of high operating costs, in order to realize the profit maximization, choose the mode of operation of the small profits and quick turnover, thus find balance between the profit and cost.6. Business &Channel1) Social networks2) Electronic commerce3) Magazine publicity7. Outsourcing strategyWill transport, financial, legal and technology outsourcing to other companies or organizations.Because new balance did not have own system about the transport of goods, so they havethe need for SF logistics outsourcing.Financial: Need for store the money to the bank.Legal:Need for professional legal counsel and law firm.Technology: Need professional personnel to carry out technical support.Level of outsourcingNew Balance and its outsourcing projects both companies and organizations have long-term and stable cooperation.8. Strategy Chain for “retailers”1) Suppliers strict criteriaa) Delivery of goods should be of good quality and right quantity.b) Orders should be processed in a timely manner.c) Suppliers should have good customer service system.d) The supplier shall have a good reputation in the peer enterprises.2) Deliver goodsa) Quantity correctb) On time deliveryc) All goods quality is guaranteed3) Stock rotationDepending on how much of the inventory is required to purchase goods.4) Balance Outsourcing levelRisks: The quality of the goods is a problem. Not to arrive on time.Lost goods.Product life cycle: Growth period.Customers are familiar with the product, a large number of new customers began to buy, the market gradually expanded. Product mass production, the rapid increase in sales of enterprises.5) Implement latest logistics technologyOrder management systems,Warehouse management systems, Transport management systems, Logistics modeling and simulation, Inventory optimization tools.Implementation of supply chain management strategies Technology and softwareTechnology or software used to support the implementation1) Network product number registration software, it can help the store statistics thenumber of products and quality and feedback to suppliers.2) Communicate with suppliers through social software in time.Policies, procedures and business processesSafety/OHS Policy:1)All employees in the store should be familiar with and understand the security policy. 2)The equipment in the store needs to be checked and maintained regularly. Business Operation Policy:1)All employees in the store should be familiar with and understand the policy. 2) The manager will be able to fully understand the policy. 3)The manager can lead the staff to work effectively index.Customer Service Policy:1) All employees in the store should be familiar with and understand the policy. 2) Investigation of customer satisfaction.List 2 examples for business process/procedures relevant to supply chain management: 1)Calculation of production cost. 2)Search for suitable suppliers and factories.SupportInternal customersDesign department: Design the products that need to be made.Purchasing department: Communication with supplier on product prices and quantity. Finance department: Calculate relevant financial expensesTechnical department:The supply chain in the technical guidance and supportExternal customersCustomerCustomer satisfaction surveywas conducted every month.A questionnaire survey was conducted every six months.After-sales servicesMeet the product quality problems,can be returned within 7 days.Risk management strategiesManage a supply chainProduct of supply chainProduct description and salesProduct A: Shoes ML999MMUDescription: 22cm – 30cm Gray Both genderSales: RMB999.00 Footwear sales volume firstProduct B: ClothesAMT53517Description: Male models Hooded long-sleeved sweater leisure sports shirt Sales: RMB369.00 Apparel sales volume firstPicture or evidenceMap the chain for one productProduct A: ShoesSupplier TPL Manufacturer TPL Company headquarterCustomer Flagship store TPL Packaging Leather RubberSource supplierManufacturerSHANGGAO CHUNGJYE SHOES CO., LTDAddress:No. 1Sunshine Road,Gold Industrial Park,Shanggao County, Jiangxi ProvinceCommunication and information exchangeSupplierCommunicate with suppliers through email or some other social networking software every month.CustomerDeliver product information to customers through posters and magazinessemiannually.Relationship with supplier/agent/distributor1. Work together1) The supplier needs to maintain good and regular communication with headquarters.2) According to their own needs and the requirements of the supplier and modify thematter.3) According to the product price, sales and other aspects, discuss the cost price of theproduct.2. Level of relationshipPeer-to-peer. Because Chungjye Shoes Company has a lot of partners, while New Balance is one of them; they are a long-term and stable cooperation.3. Actions to build and faster relationshipSign contracts, and maintain long-term and stable cooperation, while the supplier can give preferential policies in time, and the company can increase production demand.Sales, payments, other terms, risk management strategies1. The payment and other terms negotiated between the store and itssupplier/agent/distributorPayment after receipt and confirmation.Traditional cash on delivery-- Transfer of modernization online2. The shop/store make the sales and payments to the supplier/agent/distributor According to the contract, pay after delivery.Identification of opportunities and future improvement Technology of automatic identification and data collection (AIDC)Automatic identification and data acquisition technology, the core content is to quickly and accurately the huge data on the site to effectively log into the database of the computer system, so as to speed up the logistics, passenger flow, capital flow rate, improve the economic efficiency of businesses and customer service level. Automatic identification and data acquisition technology applications, so that the Enterprise Resource System (ERP), Supply Chain System (SCM), Supplier System (SRM), Storage System (WMS), Transportation Systems (TMS) really play its resource tracking, planning, deployment of a powerful role.Bar code technologyOn the basis of the existing production management computer networking, the use of bar code technology, the first order number, part type, the number of products to form a bar code, in product parts and assembly of the production line to print and paste bar code, can easily access to product orders in a production line of the production process and the required materials and parts.Online orderThrough the online ordering platform, direct ordering and tracking order-processing status, through the visual order processing process, the realization of the purchase and sale of business cooperation, improve the order processing efficiency and data accuracy. Submitted online orders, according to the price policy, credit policy, inventory to confirm the order of theorder, as well as the subsequent delivery and settlement.InventoryConfirm receipt through online, automatically increase the store inventory, reduce the duplication of information input; improve the timeliness and accuracy of the dealer data; through regular maintenance of the library information to help enterprises to grasp the accurate channel inventory informationEvaluation of supply chainEffectives of supply chainFeedback, business data, reportData and ReportThe daily turnover of the store is uploaded to the company's internal business management system.FeedbackThe customer satisfaction survey was set up in the store, and the customer satisfaction questionnaire was conducted in each quarter.The rating and reason of the supply chainRating:4Reason:Because balance new is a company with perfect supply chain, it has a fixed supplier and stable source of tourists and long-term cooperation of logistics outsource companies, but in the technical aspects, balance new still has some room for improvement.ImprovementHardwareRegularly check and update the equipment, and the training of the equipment.SoftwareRegularly check and update the company's internal system and statistics to ensure that every employee will be used.Find a variety of ways of communication to ensure that the links between the parts of the supply chain is not interruptedConclusionReference。