Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Think outside the Box
Presented by:
Jonas Franceschina
Sourcing Agent IntercoopHG
Landi Switzerland• Landi Switzerland is a Part of the FENACO Group
• 300 Stores all over Switzerland
• 3rd biggest Retail Chain in Switzerland
• Average Growth Rate over past 5 years 12%
• Turn Over 2010 1Billion SFR 1.15Billion USD
• Product Groups: Pottery, Garden Furniture, Tools, Pet Food, Beverages (Soft Drinks, Juice, Wine, Beer), Textile, Bags, Agricultural Products, Household Products, Electronics
• Buying Slogan Quality, Price, Assortment
Vietnam vs. China 2005
How to Become Competitive in Vietnam vs China FOB Prieces?
• Price Efficient Operation
• Only Staff for Core Tasks (Sourcing/Buying)
• Basic Admin Outsourcing to Supplier
• Create Added Value to the Product
• Improve Supply Chain Efficiency to Products
• Use Labor Cost Advantage of Vietnam to Reduce Cost for Oversea Clients
Logistic/ Cross Docking
Loading Truck Step 5
Unload Container 1
Consolidation Step 4
Ware House Out Step 3
Ware House In Step 2Unload Container/Consolidation 1
Loading Truck Step 2
Cross Docking based on Self
Selling Display’s
Conventional Container Load,
Palette or Carton Boxes
(Container Load without Palette 1
Additional Step)
Delivery to Retail Store Step 6Delivery to Retail Store Step 3
Unloading and
Placement in
Shelfs
Step 4
Sale of Goods
Step 5
Piece by Piece
hand picked store
placement of
Product Step 8
Unloading Step 7
Sale of Goods
Step 9
Cross Docking in Numbers
Conventional Product Handling
9 Product Rotations
5 to 10 Days of Storage
Total added logistic and handling cost
per single Product:
30%
Cross Docking
5 Product Rotations
No Warehouse Space Required
Total added logistic and handling cost
per single Product:
20.39%
Cross Docking Cost Advantage 9.61%
9.61% Cost Advantage
Customer
Trader/Sourcing
Agent
• Landi reduces the retail prices
• Trader/Agent can add 1-2% more Margin
Consequence
• Landi increases in sales
• Trader/Agent: Order volumes increase
Outlook
• Landi new market positioning
• Trader/Agent: Bigger Volumes= Lower FOB prices= Profit increase
Reliability Bonus for Vietnam?
Flexible in terms of order volumes
Flexible in product development
ETD plus minus 1 Week
Communication in English possible with most of
Companies
For Europe, GSM Form import tax advantages
Good cooperation between buyer and Supplier
Vietnam Sourcing= Direct Development Aid?
• Small Vietnam Companies Good Products
• Most Cases, Sub Contractors of well known Export Companies (Therefore aware of the Quality Standards)
• However Lack of Export Procedure
• Time Intensive for the first Few orders, also Acting as Consulting to Support the Supplier
• Long lasting Cooperation, Price Advantage
• You always will have the best Possible Support
• Even in Times of low Capacities They will make Capacities available for you
Direct Supplier to Retail Store
Poly Rattan Furniture 2010:
22 Furniture sets in one 20 foot
Container
1 Set 3 Boxes
The biggest 20 Landi shops
able to sell 22 Sets
Decision:
Full Container direct from
arrival port Switzerland to the
Shop
No Transit over Landi
Logistic Hub!!!!
Logistic/ Direct Containers
Loading Truck Step 5
Unload Container 1
Consolidation Step 4
Ware House Out Step 3
Ware House In Step 2Unload Container/Consolidation 1
Loading Truck Step 2
Cross Docking based on Self
Selling Display’s
Conventional Container Load,
Palette or Carton Boxes
(Container Load without Palette 1
Additional Step)
Delivery to Retail Store Step 1Delivery to Retail Store Step 1
Unload and
placement to Store
Step 2
Sale of Goods Step 3
Direct Containers in Numbers
Conventional Supply Chain
9 Product Rotations
5 to 10 Days of Storagee Space
Total added logistic and handling cost
per Product:
30%
Direct Container
3 Product Rotations (Only Store Handling)
No Warehouse Space Required
No Distribution Cost
Total added logistic and handling cost per
single Product:
12.11%
Direct Container Cost Advantage 17.89%
Direct Containers Solution in NumbersSteps Conventional Cross Docking Direct Containers
Sea Freight $4,000.00 $4,000.00 $4,000.00
Demurrage $1,000.00 $1,000.00 $1,000.00
Import declaration $75.00 $75.00 $75.00
Container trucking $500.00 $500.00 $700.00
Container unloading $150.00 $150.00
Ware house in $135.00
Ware house space (average 7 days) $350.00
Ware house out $135.00
Consolidation $135.00
Distribution to store $700.00 $700.00
Unloading $270.00 $270.00 $270.00
Store in $270.00 $270.00 $270.00
Store Sales $135.00 $135.00 $135.00
Total Cost $7,855.00 $7,100.00 $6,450.00
Cost advantage in % 9.61% 17.89%
Maximize Container Volume
• Did you know that in some cases just changes of product dimension, below 1% can result in 20% more container volume?
• Optimized utilization of Container Capacity helps to Reduce Cost for you and your Clients
Product Success Story
• Fire Basket
• Development of flat packed version
• Full version 456pcs in one 20 foot Container
• Flat packed version 2’700pcs in one 20 foot Container
Personal Opinions/Impressions• Selection of Freight Forwarder
• Smaller Companies more flexible
• Direct Phone Number to the Top Management
• 24/7 Available for you
• Better to be Number 1 of a Smaller Company then just a number in a Bigger Company
• Closer Cooperation, Smaller Company can Adjust easier to your Requirements
• Closer and more Efficient Cooperation
• Mutual Agreement of processes, rather having to Adjust to the Service Providers Structure!
Thank you!
Q&A