【正文】 Achieving minimum costs。169。 Andersen Consulting 1999Electrolux China “Network Strategy” ProjectFinal Report PresentationBeijing, March 10, 1999Page 1n Project Introduction and Backgroundn Customer Survey Survey Approach Survey Results Findings and Opportunitiesn Logistics Network EOQ inventory modeling Logistics work modelingn Remendations and next stepsn Appendices Process flow Cost analysisContentsPage 2Major Brands Market Share in 1999Page 3Electrolux ObjectivesReduce working capitalIncrease turnover (through greater product availability)Reduce operating costsElectrolux China has mitted to achieve Best Practice Service and Cost, as basis for rapid business growth?high inventory carrying cost? instore stockouts? too many warehouses: ? limited inventory and service control: SOP systems and procedures for inventory control are not systematically in place/applied limited knowhow and support? unclear responsibilities and performance criteriaElectrolux’s supply chain objectives...… are to improve current performance...… to deliver real bottom line benefitsElectrolux 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 than petition)Achieve full control of the entire logistics processLimited visibility and control, appropriate perforrmance criteria not in placeLikely gaps in service satisfaction. Required Service Levels and petitors’ position are not measuredPage 4The overall objective of Electrolux China Network Strategy Project is to optimize the distribution work configuration in terms of: Meeting customer service requirements。 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 valueadded services.?Reduced logistics costs Improved end to end supply chain visibility Lower costtoserve in transportation and distribution?Improved asset productivity Fewer stock locations through rationalization to achieve higher work productivity?Reduced working capital Lower LDC stocks through more flowthroughs, smaller more frequent orders, centralized slow movers, better use of supplier stocks etc.EXPECTED RESULTSPROJECT OBJECTIVE:Page 5The overall objective of Electrolux Network Strategy Project is to determine the least cost distribution work configuration to satisfy the specific service level requirements of its current and future target customers Project Objective and ScopeThe scope of the Network Strategy Project is to answer the following questions:? What are the customer service requirements which impact channel design, logistic process and infrastructure? ? What is the current performance (performance measure and customer satisfaction) of Electrolux in meeting these requirements and what is the GAP versus the petitors as well as against the “Best Practice” achievable in China?? Should Electrolux provide inventory carrying and transportation services to our clients (with appropriate price increase)? What other additional logistic services can provide petitive advantage to Electrolux in the market place?? Should Electrolux change the structure of its distribution channels in China (. sales to retailers, vs to distributors?)? Can Electrolux gain by plant direct shipping?? How many distribution centers (DCs) should Electrolux have? How many RDCs and LDCs? ? Where should the DCs be located? ? Which types/location of customers and which branch should be served by each DC? Which customers should be served directly?? Should all DCs carry all products or should they be specialized by product line?? Should Electrolux contract for warehousing services or operate its own DCs?? What impact do different transportation modes have on Electrolux logistics work requirements?? What inventory control procedures (high level) should Electrolux establish in order to satisfy customers, minimize cost and maintain control?? What are the systems and human petencies requirements to achieve these objectives?Page 6In developing the optimum supply chain capability for Electrolux China we are utilizing a threephased approach to developing and rollingout the new distribution work This project covers only Phase IOverall Approach towards Network OptimizationPage 7BuildLogisticsModelTask 5AssessAlternativesTask 6Conduct ReviewSessionsTask 7Present Results,Remendations ImplementationAction PlansTask 8ConductVisioningSessionsTask 1 a.InitiateDataCollectionReviewCurrentOperationsTask 2UnderstandService Requirements Task 3InitiateDetailedProjectPlanningTask 1Task 4FullScale Implementation RolloutPhase I Phase II Phase IIIDistribution NetworkProcess DesignDistribution NetworkStrategy DevelopmentCUSTOMER SURVEY NETWORK OPTIMIZATIONProject ApproachPage 81 Initiate Detailed Project Planning Conduct Visioning Sessions2 Review Current Operations2a. Understand current work setup2b. Review current work logistics strategy2c. Review current customer service strategy3 Understand Service Requirements (customer interviews and analysis)3a. Create customer segmentation frameworks5 Identify Alternatives5a. Perform demand aggregation analysis6 Assess Alternatives7 Conduct Review Sessions8 Present Preliminary Results RemendationsKey Activities by Week (assuming 10 weeks) 1 2 3 4 5 6 7 8 9 103h. Analyze customer req