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Competitive
Exporting
Through
SupplyChainManagement
Presentedby:MichelleBeckVicePresidentApril2,1999CompetitiveExporting
Through1“EfficientSupplyChainManagementcuts2%-8%offcostofdoingbusiness”
Source:magazine
October1997“EfficientSupplyChainManage2TheOpportunitiesareExcellentUScontinuestorenew“MFN”statusforChinaGrowingnumberofexportlicensesbeinggrantedEasierforyoutotraveltovisitcustomers,andforthemtovisityou
TheOpportunitiesareExcellen3Competition’sNeverbeenGreaterStrongpressurefrom:CompetitorsinTaiwanCompetitorsoutsideTaiwan
Competition’sNeverbeenGreat4It’sGettingEvenTougher!PriceQualityStandardsDeliveryleadtimesReliabilityIt’sGettingEvenTougher!Pric5“You’refastoryou’reforgotten”DoloresMarcial,VP-Procurement,AdaptecInc(computerproductsimporter)“You’refastoryou’reforgott6TheConsumerisKing
AndtheKingismoredemandingMorevarietyBetterqualityLowerpricesMorewarrantiesandguarantees
TheConsumerisKing
AndtheK7ConsumerdrivesthesupplychainRetailers’demandsonimportersaretheresultofconsumerdemandsonretailersImporters’demandsonexportersaretheresultofretailers’demandsonimportersExporters’demandsonmanufacturersaretheresultofImportersdemandsonExportersFACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERConsumerdrivesthesupplycha8WhatistheSupplyChain?RETAILSTOREGoodsInformationFACTORYBUYER’SHEADOFFICEWAREHOUSESUPPLIERSHIPPERWhatistheSupplyChain?RETAI9SupplyChainManagement
isnotnew...BuyerslikeWal-MarthavebeeninvestinginsupplychainmanagementwithdomesticsuppliersfordecadesButitrequiredaverylargeinvestmentinmoney,peopleandtime.SupplyChainManagement
isno10SupplyChainManagement
isnowavailabletoeveryone...Nowwehave:CheapbutpowerfulcomputersCheap&easytousesoftwareTheInternetSupplyChainManagement
isnow11SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPINGBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebSites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’12SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPING&REORDERSBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebSites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’13240(outof250)countrieshaveInternetaccess100,000,000peopleusetheinternet3,000,000companieshave“.com”domainnamesSource:VintonCerf/InternetSocietyWebSites&CD-ROMs240(outof250)countrieshav14AsiansupplierstodaygetInternetandCD-ROMsalesleadsfrommorethan140countriesSource:AsianSourcesdataWebSites&CD-ROMsAsiansupplierstodaygetInte15SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPING&REORDERSBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebsites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’16GlobalBuyersusee-mailandon-lineformstogetinformationfromsuppliersAsiansuppliersgetover100,000inquiriespermonthusinge-mailandstructureddataSource:AsianSourcesdataE-mailandstructuredmessagesGlobalBuyersusee-mailando17SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPING&REORDERSBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebsites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’18LizClaiborneconnectswith28supplierselectronicallyfromtheirHKbuyingofficeOrdermanagementsoftwareandEDIcommunicationshavereducedcostsandaverageleadtimesdownfrom7-10daysto2-3daysEDIandelectronicorderprocessingLizClaiborneconnectswith2819ElectroniccommercetoolsforsupplychainmanagementFACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPINGBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebsites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERElectroniccommercetoolsfor20Polo’ssuppliersuseEDI,barcodeandscanningtechnologiestosendimmediate,100%accurateAdvanceShipNotices(ASNs)toPoloBarcodesandScanningTechnologiesPolo’ssuppliersuseEDI,barc21SupplyChainManagementToolsCutthecostofcommunicatingReduceerrorsShortenleadtimesAllowyoutobemoreresponseCutsthecostofinventoryMakeyoucompetitive!SupplyChainManagementToolsC22Retailers&ImporterstotallyrelyonthesetoolsWorkonlywithelectronicallyenabledsuppliersSourceusingElectronicBuyerCatalogsNegotiateelectronicallyPlaceordersandshipelectronicallyRe-orderelectronicallyRetailers&Importerstotally23SomeoftheCompanieswithPrivateBuyerCatalogshostedbyAsianSourcesPrivateSomeoftheCompanieswithPri24SomeoftheCompanieswithPrivateBuyerCatalogshostedbyAsianSourcesSomeoftheCompanieswithPri25SupplyChainManagementischangingthewaybusinessisdone.
5Steps
OnhowyoucanrespondSupplyChainManagementischa26STEP1:ThebasicsGetacomputerRecommended:PentiumII350mhz,64MBRAM,4GBHD,56K(v.90)modemGetinternetaccessRecommended:HinetorGCNetGetane-mailaddress&e-mailboxFree:yourcompany@Howcanyourespond?STEP1:ThebasicsGetacomput27Step1:ThebasicsE-mailboxYourPCE-mailaccountInternetForecastreturn:US$500+permonthinIDDcommunicationsalone*US$1,000US$0.00US$20permonth*Basedon50%savingoffaverageUS$1,000IDDbill(phone&fax)Howcanyourespond?Step1:ThebasicsE-mailboxYou28Step2:ElectronicCatalogPutyourproductcatalogontheinternetRegularlyupdatethecatalogwithnewinformationandnewproductsRespondtoinquirieswithin24hourselectronicallyviae-mailHowcanyourespond?Step2:ElectronicCatalogPut29Step2:ElectronicCatalogE-mailboxInternetElectronicCatalogExistingCustomersForecastreturn:Cost-effectivemarketing,reducedprintcatalog&mailingcosts,reducedcommunicationcostsforthebuyerHowcanyourespond?Step2:ElectronicCatalogE-ma30STEP3:PromoteyourElectronicCatalogPutyourwebsiteaddressonallyourstationaryandnamecardsRegisterwiththesearchenginesregularlyAdvertiseyourwebsiteintrademagazines,attradeshowsandattraderelatedwebsites.E-mailnewproductstoqualifiedbuyersHowcanyourespond?STEP3:PromoteyourElectron31STEP3:PromoteyourelectroniccatalogE-mailboxInternetElectronicCatalogNewCustomersHowcanyourespond?STEP3:Promoteyourelectroni32STEP4:
ElectronicOrderProcessingINVOICEPURCHASEORDERPACKINGLISTQUOTATIONADVANCESHIPNOTICESUPPLIERREQUESTFORQUOTATIONBUYERLETTEROFCREDITHowcanyourespond?Reducecommunicationcostsbyupto95%Reducedata-entrycostsbyupto50%STEP4:ElectronicOrderProce33Howcanyourespond?Step5:Scan&PackOrdersGuaranteecorrectpackingmixAvoidpenaltiesforshortpacking100%accurateCartonLabels100%accuratePackinglistsAdvanceShippingNoticessentautomaticallyHowcanyourespond?Step5:Sc345Steps:ThebenefitsReducedcommunicationscostsOne-timedataentry,reduceerrorsAuto-generatetradedocumentsReduceturnaround/leadtimesBettercontroloveryourbusinessBetterservicetoyourcustomersHowcanyourespond?5Steps:ThebenefitsReduced35WhatyouneedtorememberaboutSupplyChainManagementOpportunitiesaregreatbutcompetitionisglobalTheconsumercontrolstheSupplyChainCheapcomputers&theinternetchangeeverythingElectroniccommercetoolsareavailabletoeveryoneSupplyChainManagementmeanscompetitivenessBeginwiththebasicsandexpandasyoulearnWhatyouneedtorememberabou36Whenshouldyourespond?“Throughthecombinationofcomputernetworktechnologyandinternationaltrade,wecanpromoteChina’sexportsintheglobalmarketplace…Thisimpliesmoretradeopportunities,fewerprocedures,andlowercost”
ShiGuangSheng,MinisterMinistryofForeignTrade&EconomicCooperationWhenshouldyourespond?“Thro37Whenshouldyourespond?Whenitisimportantforyou:ToreduceyourcostsToprovidebetterserviceToincreaseyourcompetitiveadvantageToincreaseyourprofitabilityWhenshouldyourespond?Wheni38Whenshouldyourespond?BeforeyourBuyers!BeforeyourCompetitors!Beforeitistoolate.Whenshouldyourespond?Before39“You’refastoryou’reforgotten”DoloresMarcial,VP-Procurement,AdaptecIncWhenshouldyourespond?“You’refastoryou’reforgott40Competitive
Exporting
Through
SupplyChainManagement
Presentedby:MichelleBeckVicePresidentApril2,1999CompetitiveExporting
Through41“EfficientSupplyChainManagementcuts2%-8%offcostofdoingbusiness”
Source:magazine
October1997“EfficientSupplyChainManage42TheOpportunitiesareExcellentUScontinuestorenew“MFN”statusforChinaGrowingnumberofexportlicensesbeinggrantedEasierforyoutotraveltovisitcustomers,andforthemtovisityou
TheOpportunitiesareExcellen43Competition’sNeverbeenGreaterStrongpressurefrom:CompetitorsinTaiwanCompetitorsoutsideTaiwan
Competition’sNeverbeenGreat44It’sGettingEvenTougher!PriceQualityStandardsDeliveryleadtimesReliabilityIt’sGettingEvenTougher!Pric45“You’refastoryou’reforgotten”DoloresMarcial,VP-Procurement,AdaptecInc(computerproductsimporter)“You’refastoryou’reforgott46TheConsumerisKing
AndtheKingismoredemandingMorevarietyBetterqualityLowerpricesMorewarrantiesandguarantees
TheConsumerisKing
AndtheK47ConsumerdrivesthesupplychainRetailers’demandsonimportersaretheresultofconsumerdemandsonretailersImporters’demandsonexportersaretheresultofretailers’demandsonimportersExporters’demandsonmanufacturersaretheresultofImportersdemandsonExportersFACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERConsumerdrivesthesupplycha48WhatistheSupplyChain?RETAILSTOREGoodsInformationFACTORYBUYER’SHEADOFFICEWAREHOUSESUPPLIERSHIPPERWhatistheSupplyChain?RETAI49SupplyChainManagement
isnotnew...BuyerslikeWal-MarthavebeeninvestinginsupplychainmanagementwithdomesticsuppliersfordecadesButitrequiredaverylargeinvestmentinmoney,peopleandtime.SupplyChainManagement
isno50SupplyChainManagement
isnowavailabletoeveryone...Nowwehave:CheapbutpowerfulcomputersCheap&easytousesoftwareTheInternetSupplyChainManagement
isnow51SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPINGBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebSites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’52SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPING&REORDERSBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebSites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’53240(outof250)countrieshaveInternetaccess100,000,000peopleusetheinternet3,000,000companieshave“.com”domainnamesSource:VintonCerf/InternetSocietyWebSites&CD-ROMs240(outof250)countrieshav54AsiansupplierstodaygetInternetandCD-ROMsalesleadsfrommorethan140countriesSource:AsianSourcesdataWebSites&CD-ROMsAsiansupplierstodaygetInte55SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPING&REORDERSBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebsites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’56GlobalBuyersusee-mailandon-lineformstogetinformationfromsuppliersAsiansuppliersgetover100,000inquiriespermonthusinge-mailandstructureddataSource:AsianSourcesdataE-mailandstructuredmessagesGlobalBuyersusee-mailando57SupplyChainManagementToday’sTools...FACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPING&REORDERSBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebsites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERSupplyChainManagementToday’58LizClaiborneconnectswith28supplierselectronicallyfromtheirHKbuyingofficeOrdermanagementsoftwareandEDIcommunicationshavereducedcostsandaverageleadtimesdownfrom7-10daysto2-3daysEDIandelectronicorderprocessingLizClaiborneconnectswith2859ElectroniccommercetoolsforsupplychainmanagementFACTORY/OEMSUPPLIER/EXPORTERBUYER/IMPORTERRETAILERCONSUMERSHIPPINGBarcodesandscan&packtechnologyBenefits:fast,lowcost,efficient,noerrorsWebsites&CD-ROMsBenefits:fast,lowcost,efficient,digitalSOURCINGE-mail&structuredmessagesBenefits:fast,lowcost,efficientPRE-ORDEREDIandelectronicorderprocessingBenefits:fast,lowcost,efficient,noerrorsORDERElectroniccommercetoolsfor60Polo’ssuppliersuseEDI,barcodeandscanningtechnologiestosendimmediate,100%accurateAdvanceShipNotices(ASNs)toPoloBarcodesandScanningTechnologiesPolo’ssuppliersuseEDI,barc61SupplyChainManagementToolsCutthecostofcommunicatingReduceerrorsShortenleadtimesAllowyoutobemoreresponseCutsthecostofinventoryMakeyoucompetitive!SupplyChainManagementToolsC62Retailers&ImporterstotallyrelyonthesetoolsWorkonlywithelectronicallyenabledsuppliersSourceusingElectronicBuyerCatalogsNegotiateelectronicallyPlaceordersandshipelectronicallyRe-orderelectronicallyRetailers&Importerstotally63SomeoftheCompanieswithPrivateBuyerCatalogshostedbyAsianSourcesPrivateSomeoftheCompanieswithPri64SomeoftheCompanieswithPrivateBuyerCatalogshostedbyAsianSourcesSomeoftheCompanieswithPri65SupplyChainManagementischangingthewaybusinessisdone.
5Steps
OnhowyoucanrespondSupplyChainManagementischa66STEP1:ThebasicsGetacomputerRecommended:PentiumII350mhz,64MBRAM,4GBHD,56K(v.90)modemGetinternetaccessRecommended:HinetorGCNetGetane-mailaddress&e-mailboxFree:yourcompany@Howcanyourespond?STEP1:ThebasicsGetacomput67Step1:ThebasicsE-mailboxYourPCE-mailaccountInternetForecastreturn:US$500+permonthinIDDcommunicationsalone*US$1,000US$0.00US$20permonth*Basedon50%savingoffaverageUS$1,000IDDbill(phone&fax)Howcanyourespond?Step1:ThebasicsE-mailboxYou68Step2:ElectronicCatalogPutyourproductcatalogontheinternetRegularlyupdatethecatalogwithnewinformationandnewproductsRespondtoinquirieswithin24hourselectronicallyviae-mailHowcanyourespond?Step2:ElectronicCatalogPut69Step2:ElectronicCatalogE-mailboxInternetElectronicCatalogExistingCustomersForecastreturn:Cost-effectivemarketing,reducedprintcatalog&mailingcosts,reducedcommunicationcostsforthebuyerHowcanyourespond?Step2:ElectronicCatalogE-ma70STEP3:PromoteyourElectronicCatalogPutyourwebsiteaddressonallyourstationaryandnamecardsRegisterwiththesearchenginesregularlyAdvertiseyourwebsiteintrademagazines,attradeshowsandattraderelatedwebsites.E-mailnewproductstoqualifiedbuyersHowcanyourespond?STEP3:PromoteyourElectron71STEP3:PromoteyourelectroniccatalogE-mailboxInternetElectronicCatalogNewCustomersHowcanyourespond?STEP3:Promoteyourelectroni72STEP4:
ElectronicOrde
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