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1、ElectroluxChina NetworkStrategy Project FinalReportPresentationBeijing March10 1999 ProjectIntroductionandBackgroundCustomerSurvey SurveyApproach SurveyResults FindingsandOpportunitiesLogisticsNetwork EOQinventorymodeling LogisticsnetworkmodelingRecommendationsandnextstepsAppendices Processflow Cost
2、analysis Contents MajorBrandsMarketSharein1999 ElectroluxObjectives Reduceworkingcapital Increaseturnover throughgreaterproductavailability Reduceoperatingcosts ElectroluxChinahascommittedtoachieveBestPracticeServiceandCost asbasisforrapidbusinessgrowth highinventorycarryingcost in storestock outs t
3、oomanywarehouses limitedinventoryandservicecontrol SOPsystemsandproceduresforinventorycontrolarenotsystematicallyinplace appliedlimitedknow howandsupportunclearresponsibilitiesandperformancecriteria Electrolux ssupplychainobjectives aretoimprovecurrentperformance todeliverrealbottomlinebenefits Elec
4、troluxChinahasidentifiedsupplychainimprovementsasoneofitscorporateprioritiestoimprovecustomersatisfactionandcostperformance Satisfyrequirementsoftargetcustomers betterthancompetition Achievefullcontroloftheentirelogisticsprocess Limitedvisibilityandcontrol appropriateperforrmancecriterianotinplace L
5、ikelygapsinservicesatisfaction RequiredServiceLevelsandcompetitors positionarenotmeasured TheoverallobjectiveofElectroluxChinaNetworkStrategyProjectistooptimizethedistributionnetworkconfigurationintermsof Meetingcustomerservicerequirements Achievingminimumcosts and Controllingtheentireoutboundlogist
6、icsprocess IncreasedRevenue Improvedproductavailabilityandpromisingcapabilities Scalabilitytomeetfuturebusinessrequirements Improvedresponsivenesstomarketconditions Optimizedfillratecapability Moreflexible responsivedeliveryoptions Morevalue addedservices Reducedlogisticscosts Improvedendtoendsupply
7、chainvisibility Lowercost to serveintransportationanddistributionImprovedassetproductivity FewerstocklocationsthroughrationalizationtoachievehighernetworkproductivityReducedworkingcapital LowerLDCstocksthroughmoreflow throughs smallermorefrequentorders centralizedslowmovers betteruseofsupplierstocks
8、etc EXPECTEDRESULTS PROJECTOBJECTIVE TheoverallobjectiveofElectroluxNetworkStrategyProjectistodeterminetheleastcostdistributionnetworkconfigurationtosatisfythespecificservicelevelrequirementsofitscurrentandfuturetargetcustomers ProjectObjectiveandScopeThescopeoftheNetworkStrategyProjectistoanswerthe
9、followingquestions Whatarethecustomerservicerequirementswhichimpactchanneldesign logisticprocessandinfrastructure Whatisthecurrentperformance performancemeasureandcustomersatisfaction ofElectroluxinmeetingtheserequirementsandwhatistheGAPversusthecompetitorsaswellasagainstthe BestPractice achievablei
10、nChina ShouldElectroluxprovideinventorycarryingandtransportationservicestoourclients withappropriatepriceincrease WhatotheradditionallogisticservicescanprovidecompetitiveadvantagetoElectroluxinthemarketplace ShouldElectroluxchangethestructureofitsdistributionchannelsinChina e g salestoretailers vsto
11、distributors CanElectroluxgainbyplantdirectshipping Howmanydistributioncenters DCs shouldElectroluxhave HowmanyRDCsandLDCs WhereshouldtheDCsbelocated Whichtypes locationofcustomersandwhichbranchshouldbeservedbyeachDC Whichcustomersshouldbeserveddirectly ShouldallDCscarryallproductsorshouldtheybespec
12、ializedbyproductline ShouldElectroluxcontractforwarehousingservicesoroperateitsownDCs WhatimpactdodifferenttransportationmodeshaveonElectroluxlogisticsnetworkrequirements Whatinventorycontrolprocedures highlevel shouldElectroluxestablishinordertosatisfycustomers minimizecostandmaintaincontrol Whatar
13、ethesystemsandhumancompetenciesrequirementstoachievetheseobjectives IndevelopingtheoptimumsupplychaincapabilityforElectroluxChinaweareutilizingathree phasedapproachtodevelopingandrolling outthenewdistributionnetwork ThisprojectcoversonlyPhaseI OverallApproachtowardsNetworkOptimization BuildLogistics
14、Model Task5 AssessAlternatives Task6 ConductReviewSessions Task7 PresentResults Recommen dations Implemen tationActionPlans Task8 ConductVisioningSessions Task1a InitiateDataCollection ReviewCurrentOperations Task2 Under standServiceRequire ments Task3 InitiateDetailedProjectPlanning Task1 Task4 Ful
15、l ScaleImplementationRollout PhaseI PhaseII PhaseIII DistributionNetworkProcessDesign DistributionNetworkStrategyDevelopment CUSTOMERSURVEY NETWORKOPTIMIZATION ProjectApproach 1 InitiateDetailedProjectPlanning 1 aConductVisioningSessions 2 ReviewCurrentOperations 2a Understandcurrentnetworksetup 2b
16、Reviewcurrentnetworklogisticsstrategy 2c Reviewcurrentcustomerservicestrategy 3 UnderstandServiceRequirements customerinterviewsandanalysis 3a Createcustomersegmentationframeworks 5 IdentifyAlternatives 5a Performdemandaggregationanalysis 6 AssessAlternatives 7 ConductReviewSessions 8 PresentPreliminaryResults Recommendations KeyActivitiesbyWeek assuming10weeks 1 2 3 4 5 6 7 8 9 10 3h AnalyzecustomerrequirementsandassessElectroluxGAP 3k AnalyzeCosttoServeandStrategicAttractiveness 3l DevelopReco
