Think outside the Box. Presented by: Jonas Franceschina Sourcing Agent IntercoopHG

Transcription

1 Think outside the Box Presented by: Jonas Franceschina Sourcing Agent IntercoopHG

2 Landi Switzerland Landi Switzerland is a Part of the FENACO Group 300 Stores all over Switzerland 3 rd biggest Retail Chain in Switzerland Average Growth Rate over past 5 years 12% Turn Over Billion 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

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4 Vietnam vs. China 2005

5 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

6 Logistic/ Cross Docking

7 Cross Docking based on Self Selling Display s Conventional Container Load, Palette or Carton Boxes (Container Load without Palette 1 Additional Step) Unload Container 1 Unload Container/Consolidation 1 Ware House In Step 2 Ware House Out Step 3 Loading Truck Step 2 Consolidation Step 4 Loading Truck Step 5

8 Delivery to Retail Store Step 3 Delivery to Retail Store Step 6 Unloading Step 7 Unloading and Placement in Shelfs Step 4 Piece by Piece hand picked store placement of Product Step 8 Sale of Goods Step 5 Sale of Goods Step 9

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%

10 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

11 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

12 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

13 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!!!!

14 Logistic/ Direct Containers

15 Cross Docking based on Self Selling Display s Conventional Container Load, Palette or Carton Boxes (Container Load without Palette 1 Additional Step) Unload Container 1 Unload Container/Consolidation 1 Ware House In Step 2 Ware House Out Step 3 Loading Truck Step 2 Consolidation Step 4 Loading Truck Step 5

16 Delivery to Retail Store Step 1 Delivery to Retail Store Step 1 Unload and placement to Store Step 2 Sale of Goods Step 3

17 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%

18 Direct Containers Solution in Numbers Steps Conventional Cross Docking Direct Containers Sea Freight $4, $4, $4, Demurrage $1, $1, $1, Import declaration $75.00 $75.00 $75.00 Container trucking $ $ $ Container unloading $ $ Ware house in $ Ware house space (average 7 days) $ Ware house out $ Consolidation $ Distribution to store $ $ Unloading $ $ $ Store in $ $ $ Store Sales $ $ $ Total Cost $7, $7, $6, Cost advantage in % 9.61% 17.89%

19 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

20 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

21 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!

22 Thank you! Q&A