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1、AndersenConsultingElectrciux Chinas “Network Strategv” ProiectFinal Report PresentationBeijing, March 10, 2009团 Electrolux俩 薪 训 所 Contents Project Introduction and Background晶 Customer Survey- Survey Approach- Survey Results- Findings and Dpportunities昌 Logistics NetworkQinventory mcdelingogistics n
2、etwork modeling 时 Recommendations and next steps昌 Appendices-Process flow- Cost analysis印 Electrolux 并 Andersen全 着 交 附 训训 ConsuitngElectrolux China has identified supply chain improvementsET在 1 s to improve customersatisfaction and cost performance. Electrolux ObjectivesElectolues supply chaim are t
3、o improve current to deljverrealobjectives performance.- .bottom line benefitshigh inventory carming cost1 instore stockrouts o many warahousasTitsdirvenny and sanice :ontrcSOF syalams and procedurtsfceinvoriarycontrol are not systematically in placelappiiedfmied know-how and support，unalsar respons
4、ibilities and performanca criterk LUkely gapsin service satisfactionRequired Servica Levels andcompetitors Position are not measured Limited visibiity and control appropriateperformance crterla notin place 团 Electrolux 了俩 病 交 ， 随 1 ConsufingPROJECT OBJECTIVE:The overall objective of ElectroluxChina
5、Network Strategy Project is tooptimize the distribution networkconfiguration in terms of:- Meeting customer ssmicerequirements;- Achieving minimum costs; and- Controlling the entire outboundlogistics process.印 Electrolux.合 病 殉，聘 EXPECTED RESULTS“Increased Revenue-Improved product availability and pr
6、omisingcapabilities- Scalabilty to meet future business requirements-Improved responsiveness to market conditions，-Optimized 侧 rate capability，- More flexible, responsive delivery options- More value-added services，“Reduced logistics costsImproved engto snd supply chain visibilityLower cosito-serve
7、in transportation anddistribution“Improved asset productivity- Fewer stock locations through rationalization toachieve higher network productivity“Reduced working capital-Lower LDC stocks through more flow-throughs，smaller more frequent orders, centralized slowmovers，better use of supplier stocks et
8、c，了sa村 生生前刘和这IT 生帮证下 ieLE和和和LT生生直Project Objective and ScopeThe scope of the Network Strategy Proajectis to answer the following questial What are the customer service requirements which impact channel design, logistic process andrastructure?， Whatis the current performance (performance measure and
9、customer satisfaction) of Electrolux in meetingthese requirements and whatis the GAP versus the competitors as well as against the Best Practice”achievable in China?”Should Electrolux provide inventory carrying and transportation services to our cllents (with appropriateprice increase)? What other a
10、dditional logistic services can provide competitive advantage to Electroluxinthe market place?， Should Electrolux change the struclure ofits distrbution channels in China (e.g. sales to retallers, vs todistributors?)Can Electrolux gain by plent direct shipping?How many distribution centers (DCs) sho
11、uld Electrolux have? How many RDCs and LDCs?Where should the DCs be located?Which typesllocation of customers and which branch should be served by each DC? Which customersshould be served directly?Should all DCs carry all products or should they be specialized by product ine?Should Electrolux contra
12、ct for warehousing services or operate its own DCs?Whatimpact do different transportation modes have on Electrolux logistics network requirements?What iinventory control procedures (high level) should Electrolux establish in order to satisfy customers，minimize costand maintain control?， What are the
13、 systems and human competencies requirements to achieve these objectives?印 Electrolux 队 Anderen证 本 训 风 pas Consulting In developing the optimum supply chain capability for Electrolux China we are utilizing athree-phased approach to developing and rolling-out the new distribution network - Thisprojec
14、t covers only Phase 1 Overall Approach towards Network OptimizationPhasel Distribution NetworkStrategy Development 理 Validation ofcurrentfuture 2uslomerneedsClearly dernedscenarics二 Validated networkbaseline Scenario analysis里 Recommendeddistribution networkStrategy于 Benefitand risk analysisand fina
15、ncial implicationsPreliminary businesscase and transition plan印 Electrolux合 病 殉，聘 Phase1l Distrbution NetworkProcess Design Key OutcomesOperating model detalledcpsign”Quickitsr assignandimplementaticnDetailed ImplementationplanPilots of key designcomponentsRefined business case andperformance tracki
16、ngmodelPaga7Phase川 ImplementationRollout Implemented changemanagement stuctureInfrastruciuredevelopmen，Operating model rol-outPerformance monitoringand continuousimprovementScope ofthis project了CiProject Approach CusToMER SuRvEYTask2 NETWORK OPTIMIZATION 1中Review 1Task1 Current Task5 Task6 Task7 Tas
17、k8Operations 1下 1 Prasent Resultsmni Recommen-Detailed 1 本Project 拉 和Planning | Action Plans Taskfa ConductVisioningSessions |团百ectrolux se是 全全 La saProject Workplan Key Activities by Week (assuming to weeks) 1|2|s: |4|s|selyr7| alslmDTTTRTTETTa Conduct aioning Sessions2 Ravew current Opemtons2 Unda
18、rstand cunent newark setup2 Rasew cument nehyork agetca slagy2 Review coment cuatomer seice saiggyUndersland Servee Requemenss (custpmer ntervewa and anahysia)3 Create customer segmeniaton famewortsSb Intawiew Cuslomersin Locaton 13c teyew Cuatomers mnLocalion 23 mtaiew Customers nocaton 33e Imeview
19、 Customers in Locaton43 Intawviow Customarsintocatnn 5ah Anahze cuslomer requromerird avery Electrel xGhP了 Analze Costio Sen edS ao ALac rene和3 Develop Recommenaeo New servoe orerngam， Assess Logalcs Warehouse Ne Sralegy Implicationaniate Dala ColectonCohect Curent Warehouse NeFaclIy Operatng CoslsT
20、ransparaton Coslseenthy Aharmatves5 Peromm demand aggregaton analygisSelecton ofS -best optong6 Asaass Ahamatves了ConductRevew Sessions |日Present Praiminary Reculs& Recommendaiona Daba 人 ConquiingContents 时 Project Introduction and BackgroundCustomer Survey- Survey Approach本- Findings and Opportuniti
21、es 昌 Logistics NetworkEGG inventory modelingogistics network modaling 晶 Recommendations and next steps里 Appendices- Process flow- Cost analysis团 Electrolux 了俩 病 交 ， 疝 Pags ip ConsufingThe sample for the customer survey targeted a representation of Electroluxs人 - Customer Sampling Methodology -“Where
22、 were the highest demand areas?,Where are the customers located whichhas signifjicant contribution io Electrolux* Where are the key account customers? ee* Whatare the current customer types?， Whatis the current sales regions?Where wcuia be the polantalhiahgrDwth araas Jor refigsrslors? |网|， What Wil be ine emerging channej Jor |White goods? What are the service reguirements fomthe emerging channelplayers?人pattern, with regarad fo the LDCs”distribution and the customers which arebeing served?。Whatis the currentiogistic semvice本 团 Electrolux 了俩 病 交 ， 随 Paos11 Consufing
