Electrolux China “Network Strategy” Project Final Report Presentation Beijing, March 10, 1999 Project Introduction and Background Customer Survey - Survey Approach - Survey Results - Findings and Opportunities work - EOQ inventory modeling - work modeling mendations and next steps Appendices - Process flow - Cost analysis Contents Major Brands Market Share in 1999 Electrolux Objectives Reduce working capital Increase turnover (through greater product availability) Reduce operating costs Electrolux China mitted to achieve Best Practice Service and Cost, as basis for rapid business growth 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 Electrolux’s supply chain objectives... … are to improve current performance... … to deliver real bottom line benefits Electrolux China has identified supply chain improvements as one of its corporate priorities to improve customer satisfaction and cost performance. Satisfy requirements of target customers (better petition) Achieve full control of the entire logistics process Limited visibility and control, appropriate perforrmance criteria not in place Likely gaps in service satisfaction. Required Service Levels petitors’ position are not measured The overall objective of Electrolux work Strategy Project is to optimize the work configuration in terms of: - Meeting customer service requirements; - Achieving minimum costs; and - Controlling the entire outbound logistics process. 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. Reduced logistics
