Fast and efficient supply chain in the garment industry has created the magic zara, this issue we have invited to the two garment supply chain expert Dr. Deng Weimin and Ge stars, discuss ZARA and a domestic enterprise under a different single mode, each pros and cons of different purposes and reasons behind, and the impact on enterprise development, etc.
Dr. Deng
ZARA pursuit of quick response supply chain, orders 2 times a week, received orders to be completed within 10-14 days cycle. China currently has 60% of a company (estimated value) make up a single volume, they have not completed a single cycle, agent branch orders at any time. This fixed ratio in accordance with the rhythms of single time is not better? ZARA this pursuit of supply chain for the speed of business, why not immediately orders, wait until Monday until Friday orders. For example, there is a demand Tuesday, timely orders, it can save 3 days, why not do orders in time?
GE Star
There are several aspects to consider, the key is the pace of business operations and cost factors.
1. ZARA the speed of the supply chain, this is a relative concept. Therefore, each year sales of 200 million garments, each of the 25 products quarter of ZARA, the common rhythm is particularly important. As if set up with the words, business management will be more complex management requirements of enterprises operating on the higher, then the corresponding cost would be higher and thus a higher probability of errors; I think, ZARA sought With the goal should be to set up with, then, ZARA may have 365 products quarter / year, or 182 products quarter / years.
2. ZARA is a very low profile enterprises, which also seems to infer that this style of business operations, wanted stability. This stability is the rhythm. For rhythm, ZARA is spared no expense to the.
3. Another reason is: ZARA's global deployment of the system, the replenishment time fixed benefit products in the stores around between the deployment, reduce inventory;
4. ZARA Although the investment in fixed assets and generous, but the operating cost of control is very strict, fixed order, beneficial to consolidate orders, batch cut and batch assigned to the factory outside the agreement. Underground conveyor belt 200 km cost is high. Of course, the cost of finished products have to pay attention to bulk logistics optimization.
5. There is with the marketing strategy: an artificial shortage. Periodic replenishment, allowing the consumer firmly in mind that the week which can store two days to buy new ZARA.
Dr. Deng
My analysis and speculation is this: any company can discount the following one, the surface faster than ZARA, in fact, may not. The company's daily orders, does not mean that fast response. Their orders are:
Today set A: 1000 Shuang; tomorrow set B: 200 Shuang; acquired set C: 300 Shuang;
Each set A, may not be a "beat period" of sales, may be in the next 20 days of sales; the set of A, this season may not be re-set A. This is the risk.
ZARA's orders in accordance with the beat: a certain amount of not more than one beat, such as orders for weeks about a certain rhythm of the expected sales
Monday A50 provides dual, B20 double, Fri double set A60, B0 double, C30 double, next Monday set A50 dual; B20 double, C20 double;
This order means the risk is small.
Rapid response reflected in a small order, high frequency order; rather than the number of orders of the time. Of course, the GE satellite that is conducive to the beat with such favorable allocation, which is very important.
Under the enterprise of this unimodal There is another more serious problem: for example: Under the single-A1000 pair today, Shengchan line production of A, the A's Xiaoliang Tai Bufen yes Wei Lai, Duan Qi in only 50 pairs, but use production line to produce 1,000 pairs, taking up the production line resources; made the market much-needed production of B have the resources to production, to end the impression that the supply, capacity constraints, may lead to end the first order, in advance bulk orders (supply chain demand variability, and it risk). ZARA beat several small batches according to orders, production lines produce only the current needed (3 days), the terminal will not cause capacity nervous. High-frequency single means as splitting their production volume, the logistics of course have to cut, certainly not consolidate orders, combined transport. You are here understood backwards, the pursuit of economic quantities only loss of the supply chain, rather than economic.
This enterprise approach this next one, "human" cause shortages of other people feel is not enough capacity, so either in advance of production, or expand capacity. Decline in demand when the inventory backlog may occur, or a lot of idle capacity, a huge corporate losses, serious only to die. This is a vivid portrayal of many Chinese enterprises.
GE Star
Dr Tang, there are several information you Confirm: This enterprise is not now with the added problem with the set, their manager seems to have been to a document, is to require branch offices in the next two orders a week, seems to be Monday and Thursday, the specific time you can ask the manager.
Dr. Deng
And planning in the Department of exchange, saw their orders and to send a single data, a certain style, and ordering all office orders an average of four goods, make up a single office is 2.5 per shipment.
Of course, there is a lot, or half-piece of the replenishment. This enterprise is now able to achieve daily orders. Next week, they mentioned one problem: This requires all aspects of the operation of the terminal as well as changes in thinking, but not operational.
GE Star
Same order, purpose and reason behind is different:
1. For this enterprise, the more orders means selling goods replenishment orders, called up one of its objectives are: shops, offices, branch offices, marketing companies to deploy the Ministry done to prevent shortages prediction of the order. This is a very dangerous, very easily lead to the formation of inventory forecasting the results of amplification: store manager experience and expertise is needed to predict a number, the order number to the office, the Office of the statistical data according to each store , coupled with forecasts reported to the branch office to do the same statistics, do predict, to the deployment of the headquarters of the Department of Marketing, do a statistical forecast. After a series of statistics, forecasts, statistics, forecasts that formed after the deployment of his men to the production company and purchasing the company's replenishment orders.
Attention, these are projections of the replenishment orders is to prevent shortages caused by the various interests of the body under examination orders, inventory is the root cause of evil. Because, according to statistics, 50% of predicted time, the forecast accuracy will increase by 50%. This is why the reasons for the forecast period should be shortened.
2. As for ZARA, the orders are new orders, not selling goods replenishment orders. The aim is to satisfy customer demand is for the consumer, not the stores. Its information system to support orders issued and star-shaped aggregate model, rather than a summary of pyramid model, coupled with the short time prediction, the accuracy of pressure on small stocks.
Dr. Deng
You mentioned that the problem is fundamental, the Office is aggregated, not the dealer or end direct orders. The reality of an enterprise from the operation of the domestic point of view, the merger is necessary.
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