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• Reduced logistics costs - Improved end to end supply chain visibility - Lower cost-to-serve in transportation and distribution
• Improved asset productivity - Fewer stock locations through rationalization to achieve higher network productivity
Contents
Project Introduction and Background
Customer Survey - Survey Approach - Survey Results - Findings and Opportunities
Logistics Network - EOQ inventory modeling - Logistics network modeling
• high inventory carrying cost
• in-store stock-outs
• too many warehouses: • limited inventory and service control:
SOP systems and procedures for inventory control are not systematically in place/applied limited know-how and support • unclear responsibilities and performance criteria
requirements of its current and
Meiling 8%
Others 13%
Xinfei 12%
Electrolux 4%
Rongsheng 12%
Haier 37%
Electrolux China has identified supply chain improvements as one of its corporate priorities to improve customer satisfaction and cost
Electrolux China has committed to achieve Best Practice Service and Cost, as basis for rapid business growth
PROJECTห้องสมุดไป่ตู้OBJECTIVE:
The overall objective of Electrolux China Network Strategy Project is to optimize the distribution network configuration in terms of:
Recommendations and next steps
Appendices - Process flow - Cost analysis
Major Brands Market Share in 1999
National 2%
SH-Sharp 3%
Samsung 3%
Siemens 3%
Changling 3%
Likely gaps in service satisfaction. Required Service Levels and competitors’ position are not measured
Limited visibility and control, appropriate perforrmance criteria not in place
(through greater product availability)
Reduce operating costs
Satisfy requirements of target customers (better than competition)
Achieve full control of the entire logistics process
performance.
Electrolux Objectives
Electrolux’s supply chain objectives...
… are to improve current performance...
… to deliver real bottom line benefits
Reduce working capital Increase turnover
• Reduced working capital - Lower LDC stocks through more flow-throughs, smaller more frequent orders, centralized slow movers, better use of supplier stocks etc.
- Meeting customer service requirements;
- Achieving minimum costs; and
- Controlling the entire outbound logistics process.
EXPECTED RESULTS
• Increased Revenue - Improved product availability and promising capabilities - Scalability to meet future business requirements. - Improved responsiveness to market conditions. - Optimized fill rate capability. - More flexible, responsive delivery options - More value-added services.
• Improved asset productivity - Fewer stock locations through rationalization to achieve higher network productivity
Contents
Project Introduction and Background
Customer Survey - Survey Approach - Survey Results - Findings and Opportunities
Logistics Network - EOQ inventory modeling - Logistics network modeling
• high inventory carrying cost
• in-store stock-outs
• too many warehouses: • limited inventory and service control:
SOP systems and procedures for inventory control are not systematically in place/applied limited know-how and support • unclear responsibilities and performance criteria
requirements of its current and
Meiling 8%
Others 13%
Xinfei 12%
Electrolux 4%
Rongsheng 12%
Haier 37%
Electrolux China has identified supply chain improvements as one of its corporate priorities to improve customer satisfaction and cost
Electrolux China has committed to achieve Best Practice Service and Cost, as basis for rapid business growth
PROJECTห้องสมุดไป่ตู้OBJECTIVE:
The overall objective of Electrolux China Network Strategy Project is to optimize the distribution network configuration in terms of:
Recommendations and next steps
Appendices - Process flow - Cost analysis
Major Brands Market Share in 1999
National 2%
SH-Sharp 3%
Samsung 3%
Siemens 3%
Changling 3%
Likely gaps in service satisfaction. Required Service Levels and competitors’ position are not measured
Limited visibility and control, appropriate perforrmance criteria not in place
(through greater product availability)
Reduce operating costs
Satisfy requirements of target customers (better than competition)
Achieve full control of the entire logistics process
performance.
Electrolux Objectives
Electrolux’s supply chain objectives...
… are to improve current performance...
… to deliver real bottom line benefits
Reduce working capital Increase turnover
• Reduced working capital - Lower LDC stocks through more flow-throughs, smaller more frequent orders, centralized slow movers, better use of supplier stocks etc.
- Meeting customer service requirements;
- Achieving minimum costs; and
- Controlling the entire outbound logistics process.
EXPECTED RESULTS
• Increased Revenue - Improved product availability and promising capabilities - Scalability to meet future business requirements. - Improved responsiveness to market conditions. - Optimized fill rate capability. - More flexible, responsive delivery options - More value-added services.