咨询管理战略组织项目麦肯锡工具评估 SHA-4301-200099-02-16-b.ppt

-41-C3.Establishing efficient&low-cost logistic systemSHA-4301-200099-02-16-b-x-42-MeansDescriptionDirect shipment to distributors in perpectureChallenge of rural selling require manufacture to deliver products actively to country level either by it own or through leveraging distributors forceSource:Roland Berger&Partners interviewTrainContainerTruckLeveraging distributor to deliver products to county wholesaler wholesaler through offering free truckTo acquire new customer which is not accessible by distributor local branch can delivery by its ownTruckManufactureDistributorWholesaler&retailerWholesaler&retailer dealer and retailerRetailer&bazaarCustomerPerpcetureCountyActive deliveryActive deliveryActive deliveryTownVillageNot economic to expand logistic system down to town levelBut sometimes,manufacturer can be directly deliver to bazaar,either by its own or through cooperation with distributorRaise of transportation cost and truck investment is necessary for rural penetrationSHA-4301-200099-02-16-b-x-43-Consolidation of separate logistic of different brands is also necessaryCurrent status of Henkels logisticProblemsScattered logistic resource can not support deep distributionMore warehouseMore transportationUndermining ability to negotiate with the third party logistic providerHard to gain distributors support for deep distributionConsolidating national logistic system to support one or two major brandsGulinTianjingTiantianWIPPSegullSHA-4301-200099-02-16-b-x-44-In order to keep competitive price and business profitability manufacture should reduce logistic cost to minimum level while keeping necessary logistic capacityExample:P&Gs cost structureAnalysisLogistic cost is very sensitive for detergent manufacturer for it account for over 10%of total costGenerally it is easier to cut logistic cost than manufacturing or material costTransportation and warehousing cost is the major costs in logistic and can be reduced through redesign physical network,process and imperilingBut cost reduction should not be achieved at the cost of impairing necessary logistic capacity for rural penetrationLogisticMaterialManufacturingTransportationOperation expenseHandling cost and insuranceWarehousingSHA-4301-200099-02-16-b-x-45-Requirement of rural selling drives company to develop an advanced logistic system to both boost sales and reduce costReducing inventory&warehousing costReducing transportation costShortening lead timeReducing operational cash flowReducing scrapping and brokerageBenefit of advanced logistic systemCost reductionSalesincreaseStrengthening deep distribution coverageAcquisition of new customers Retaining customers through increase of customer satisfactionMotivating customer to push productsSHA-4301-200099-02-16-b-x-46-Redesigning physical network,streamlining process and improving warehousing&transportation are keys to effective&low-cost logistic systemRedesigning physical networkStreamlining process Improving warehousing&transportationNo.of production site and locationNo.and location of Regional Distribution centerConsolidate of supply chainDirect deliveryJITEDSIntroducing advanced warehousing practiceOutsourcingFlexible transportation meansTruck empowerment SHA-4301-200099-02-16-b-x-47-Setting manufacturing sites in major strategic areas will contribute to deep distribution and lower transportation cost at the expense of increased manufacturing costLocation of manufacturing site of QiqiangAnalysisNeimengBenxiShanxiXianSichuanGuizhouAnhui*:Libai reach local production through OEM to reduce manufacturing cost and initial investment,but the quality of products and reliability of supply is problematicAcquiring manufacture sites in major strategic area*Local production&local distributionFast reaction to local demandShort lead timeShort-term transportation and low transportation costIncrease of manufacturing costApproachProsConsManufacturing&distribution detergent in one brandSuitabilitySHA-4301-200099-02-16-b-x-48-Reducing manufacturing site and establishing regional distribution center will reduce manufacturing cost,but its transportation cost will rise accordinglyRDC of P&GAnalysisBeijingChengduGuangzhouReducing manufacturing sites(P&G has slashed its manufacturing site from 7 to 3)Establishing RDCLower down manufacturing costKeep efficient logistic operationIncrease of transportation cost because of long-distance transportationApproachProsConsMulti-brand or multi-product logistic operation SuitabilityWuhanShanghaiSHA-4301-200099-02-16-b-x-49-Streamlining process requires adoption of advanced logistic practice and IT investmentAdvanced logistic practiceConsolidation of supply chainDirect deliveryJIT SupplyEDSApproachEffectStreamline process through inter-link detached level of supply chain from order processing to deliveryInventory reduction Short lead timeFinished products are delivered directly from production line to RDC through truckReduction of warehousing costFast cash flowShort lead timeProduction and supply to orderReduction of inventory&warehousing cost Short lead timeInvestment in IT development to link customer to manufacturingFast data exchange to keep monitoring stock level in distributorIn-time deliveryReduction of inventory costAvoiding sales lossStrengthening customer relationshipSHA-4301-200099-02-16-b-x-50-Traditional Warehousing Directional WarehousingWarehouse facilities not integrated to supply chainTendency to increase size and new location as neededPartial or non-palletized movement of inventorySingle level pallet highLoading and unloading mainly manualChoice of location biased to obvious factorsSlow moving or obsolete inventoryMixture of LIFO and FIFOGoods that sit a lot,stock piling highTend to build buffer or just-in-case stockCo-packer not normally considered,like to ownWarehouse Integrated into supply chainRationalizing via reconsolidating and/or closurePalletized movement of goods Multi-level pallet highUsing forklift for loading and unloadingBeing optimized via multi-considerationsSeparately placed to be attended toFIFO practice and direct delivery from factoriesGoods that move a lot,warehouse relatively emptyTend to build just-in-time stockCo-packer considered to be logistics alliance as wellAdoption of advanced warehousing practice will reduce inventory&warehousing costSHA-4301-200099-02-16-b-x-51-Reduction of warehousing cost can also achieved through outsourcing warehousing to the third partOne example in detergent companyPercentage of warehousing cost in total valuecomments“It takes Unilevel several years to come to the consensus that it is more cost effective and efficient to use third-party logistics.”-Mr.Wu Weimin,Logistics management,Unilever“In our plan to build the second factory in Shanghai,we never think about to include a own warehouse.”-Mr.David Yang,Shanghai Logistics manager,RepSico Snack“I dont see any advantages for companies like UB to construct and run a warehouse by it own.”-Mr.Edward Wu,East China Logistics Manager,United BiscuitzOwn warehousingOutsourceWarehousingSHA-4301-200099-02-16-b-x-52-SC Johnson seeks to optimizes its logistics through outsourcingBackupShanghaiGuangzhou/ShenzhenBeijing/TianjinOwn warehouse of the Chinese partnerOwn trucks inherited from the Chinese partnerShanghai Warehouse5km from production siteClose to a railway stationRaid-basic space:1,500 sqm;summer:3,000 sqmPick-pack/commissioning:SC Johnson peopleComputer connectedDistribution4 regional warehousesDifferent distribution between Aerosol and Mat/other productsJiangsu,Zhejiang,Guangzhou:truck(SLDT,TNT)Other area:train(3 weeks)Minimum order volume:300400 cartonsCostsWarehousing+Freight+Commissioning+Long-distance transportation:Max 3%NowBeforeWuhanKunmingAerosol concentrationAerosol distributionMat distributionDistribution in China(Raid)Aerosol:23 mio bottlesMat:6070 mio RMBSource:Roland Berger-InterviewSHA-4301-200099-02-16-b-x-53-Company can choose flexible means for national transportation through trading off advantage and disadvantage of each oneContainerAdvantageFast deliveryDoor to doorGood customer serviceTrainDisadvantageSuitabilityTruckLow cost per ton per kilometerLow breakage&scrappilyLow cost per ton per kilometerAccess to nationwideHigh cost per ton per kilometerNo economic for long distance transportationLong lead time Route restriction(sea,waterway)Long lead timeHigh breakage&scrapping because of more loading&unloadingShort distance transportation within 500 kilometer radiusClient delivery to focus Rural penetrationLong distance transportation to wholesaler/distributors along waterwayLong distance transportationCustomers in inner landSHA-4301-200099-02-16-b-x-54-Comparison of different transportation meansCost of different transportation meansTransportation Shanghai to GuangzhouBackup250km1000km1500km2000kmTrainContainerTruckCost Index*:set train cost as the basic for comparisonFreight deliveryTruckContainerTrainPriceCapacity(ton)Unit costLead-time13331244266610206013362444 days710 days23 daysSHA-4301-200099-02-16-b-x-55-While penetrating rural market more trucks should be powered to distributors or local staff to strengthen deep distribution forceApproachBenefitOffering free trucks to distributors to raise their delivery capacityRequiring them to penetrate wholesaling market in county more activelyStrengthening and leveragingDistributors power to penetrate rural marketEndowing distributors with trucksEquipping local branch with trucks to raise its delivery capacityActively exploiting new areas and developing now customers through direct deliveryPeriodical van selling&coverage execution to strengthen deep distributionMaximizing distribution coverage in ruralRaising customer satisfaction and develop customer loyaltyEmpowering local staff with trucksInvestment in truck is a necessary cost to drive rural salesSHA-4301-200099-02-16-b-x-56-D.What Roland Berger can do for HenkelSHA-4301-200099-02-16-b-x-57-Roland Berger can provide following consulting service to HenkelOptional consulting serviceChina detergent market analysisChoice of strategy entry point and expansion routeDevelop rural&city sales modelLogistic system developmentExpansion strategyRural sales model designLogistic system designIndustry Benchmarking ContentAchieving fast,growth through well designed expansion strategyTargetRural sales&distribution analysisRural selling formatDistributor incentive Package designMarketing planContentFast penetrating rural marketTargetPhysical network designReengineering of processWarehousing&transportation improvementContentEstablish efficient&low-cost logistic systemTargetPerformance benchmarkingMarketing&sales benchmarkingManagement benchmarkingStrategy benchmarking Logistic benchmarkingProduction benchmarkingContentFind weakness and improve performance TargetSHA-4301-200099-02-16-b-x-58-E.Selected referenceSHA-4301-200099-02-16-b-x-59-Roland Berger&Partners just finished a project for Nirma,a major detergent supplier in Indian,to develop its market entry strategy in China Partner determinationOperation strategy formationMarket strategy formationDefinition of selective criteriaEvaluation of potential partnersSupport in negotiation with possible partnersDevelopment of organization structure Measure to exert effective control over partnerRaw material supplycost analysisLogisticBusiness plan Definition of target consumerDefinition of entry product and priceDefinition of target rural regionIntroduction of distribution model and sales structure-Sales dep.size&structure-Way to control distribution channel with minimum cost-Way to stimulate and leverage distributor Support activity:Advertisement&PromotionMarket entry strategy ChinaNirmaSHA-4301-200099-02-16-b-x-60-Within this project,we carried out an comprehensive investigation&analysis on Chinese detergent and soap industryCompetitionCompetition intensityOperation and performance of main MNC playersOperation and performance of main SOE playersPartner Analysis of potential partnersIn-depth discussion with partners possibleCompetitionCompetition intensityOperation and performance of main MNC playersOperation and performance of main SOE playersDistributionStructure and characteristic of Distribution channel in ChinaDifferent distribution model adopted by main players in China(P&G,Unilever,Whitecat,Qiqiang)Market Total market and rural description Description on different segmentDescription on different region marketDescription on different product typeConsumer Consumer behaviorPrice affordability Market entry strategyNirmaSHA-4301-200099-02-16-b-x-61-Aside from full market understanding Roland Berger also carried out an in-depth research into China leading detergent manufacturersP&GBensickerWhitecatQiqiangLibaiUnileverOrganization&managementOperation marketing&salesStrategyMarketing&sales operationSales&distribution consolidation StrategyMarketing entry model of DosiaStrategyMarketing&sales operationProblemsStrategyKey success factors of QiqiangRural penetration modelPotential problemsMarket penetration modelKey success factorsStrategySHA-4301-200099-02-16-b-x-62-Cooperation bewteen Henkel and Roland BergerEffect of Staff from LibaiCompany SituationSpecific Knowledge of Cross-functional ExpertPrompt Project ImplementationFacilitate Data Collection“Multiplier”EffectComplementary Mixed TeamHenkelEffect of ConsultantImpart MethodologyDirectionSpecific Knowledge of Industry(detergent,cosmetic、daily comsumer goods,etc)and function(Strategy、marketing management、organization structure)Objective and adiaphorous valuationBenchmarkSHA-4301-200099-02-16-b-x-63-rb addressesARGENTINARoland Berger y Asociados S.A.International Management ConsultantsTte.Gral.J.D.Peron 346-Piso 51038 Buenos AiresPhone+54-11-43 42 14 98Fax+54-11-43 45 57 58AUSTRIARoland Berger&Partner Ges.m.b.HInternational Management ConsultantsFreyung 3/2/10A-1010 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