Building supply chain management which can handle direct selling to retailers

  • China
  • Warehouse
  • Furniture and Home Appliances

Overseas home appliance manufacturer

Background

Overseas home appliance manufacturer, Company A, was growing in the Japanese market. As its business expanded, it needed to transition from doing business through a trading company (sales channels and distribution), as it had since first expanding into Japan, to a business schema in which it made direct transactions with retailers. However, there were many issues with building a SCM which could handle direct transactions with Japanese retailers.


Proposals

Our network and years of experience were useful for inventory management, building systems, global SCM, and solving various other issues. As a SCM and logistics consultant, we not only provided optimal solutions in Japan and overseas, we also used our accumulated know-how from doing business with retailers to provide a linked logistics platform for manufacture, delivery, and sales, as well as for joint delivery.

Proposal Example 1

We consolidated shipping of products within China, and implemented direct shipping to retailers’ domestic distribution centers. This streamlined import-export procedures and transport, and reduced the time required for transport.

Proposal Example 2

Proposal Example 3

After arrival at domestic warehouses, products for the Japanese market need to undergo processing for use in Japan (replacement of parts with Japanese ones, e.g., panels; joining materials such as promotional items). These processes would be done after importing them at the domestic delivery center, thereby reducing lead time.

Proposal Example 4

Holding meetings several times a week, we would check the distribution process in detail. By developing a simple bill of materials, we would prevent distribution processing materials from going out of stock. By making recommendations for the ordering of materials and outsourcing that ordering, the workload could be reduced.

Outcome