Supply Chain Management at World Co. Ltd. Essay Example for Free

provide Chain Management at humanity Co. Ltd. EssayIndustry FactsSpecialty Retailing Sector -Womens raiment industry in Japan seasonal industryproducts have short life cycles and exceedingly uncertain demand International Competition3 Distribution Alternatives- company-owned stand alone stores, shops in flair malls, and shops within department stores store-within-a-storeCompany FactsOperates in womens crop industryCompany uses both wholesale and retail distribution methods Wholesale items are sold in other stores (retailers)Specialty store Private- estimate apparel (SPA) merchandise which includes the OZOC and Untitled stigmatizes was sold at stores owned by orbit Uses SPARCS, a business dish out system that allows World to monitor sales trends and focus on customer demand to maximize the efficacy of store support operations By late 1990s World sold over 40 different brands in approximately 7,000 shops and stores Worlds divisions are organized by product (brand name)1998- World Employed 2,394 workersNet sales $1.8 billion and net income of $32millionCompany held a 3.5% share of the Japanese apparel marketMajor U.S. competitors are Gap Inc., The LimitedRooted in Domestic ManufacturingBrand FactsTargeted at female customers 25-29 years of ageAnnual Sales 2.2 millionIntroduce new collections twice per year (Spring-Summer Fall-Winter) Introduced New Products Every 2 WeeksAt the end of 1998, Untitled Brand could be Found in 110 StoresQualitative summaryIndustry AnalysisThreatsLack of Channel PowerUncertain demandSeasonality entry RiskOpportunitiesFewer Variations In Store AssortmentsFast Changing Fashion Trends (Social)Low Inventory LevelsInternational ManufacturingCompany AnalysisStrengthsWorlds High Inventory Turns (5/year) (Operations)47% Gross edgeKeen Competitive Intelligence- reviewed competitors brands every six months (Marketing) Decentralized Merchandising Operations- each brand was autonomous (Operations/Marketing) High Responsiveness (Oper ations)Versatile Line WorkersRecruited talented individuals who were unafraid of change and could motivate others (Management) lamenessesWeak Pay-for-Performance System (Management)Low Brand AwarenessLeft over inventory is markdown 50%Quantitative AnalysisWholesale net sales=(total net ales- net spa sales)1,643,130,000 Worlds private label spa brands 250,000,000Net Sales Of World Corporation1,893,130,000 follow of Sales 983,610,000Gross Profit gross profit at 47% 909,520,000Worlds private label Spa brandsNet Sales 250,000,000 SPAs Cost of Goods sold 130,500,00 Purchases 97%126,585,000Other 3,415,000G. M. of Spa brands at 47.8% of Sales Gross Margin 119,500,000Cost of Goods sold include merchandise inventory, purchases, (purchase discounts), total merchandise available for saleAverage Inventory for World Co., Limited and SPA BrandsWorld Co., LimitedAverage Inventory = Cost of Goods sold = 983,610,000 = $96,722,000Inventory Turns 5 measure a yearsSPA BrandsAverage Inventory = Cost of Goods sold = 130,500,000 = 15,294,117.65Inventory Turns 8.5 times a yearsCost to Retail RatioProblemsHow to drown Bargaining power of suppliers- retailers charge gritty prices for retail space Poor implementation of push (or pull) strategyInventory Markdowns is second greatest uncertain expense accounting 24.10% of total Sales staff does not enter shipments into the computer upon receipt How to overcome compromised information accuracy during semi-annual sales