Workshop_Logistic_0418.docVIP免费

LogisticDepartmentINTERVIEWDATE:April18th,2000INTERVIEWERNAME:WeiZhu,SherryDing,JulianMa,AnneWang,JaneXuIntervieweeNameMr.ZhangLinchengPositionDirectorofLogisticDepartmentCompanyandAddressFAWTradingCompanyTelephone/Fax0431-7614303GeneralCommentsA.T.Kearney'sreportmainlydiscussedproblemsindealershipnetwork,andtherearelittlepagestalkingaboutlogisticissues.Theimportanceoflogisticcannotbeneglected,foritdirectlyaffectsthesalesperformanceofdealers.Logistic-includingordering,delivering,productionplanningandinventorycontrol,shouldbeconsideredasanindependentsystem.Problemsexistineveryelementofthesystem.E.g.,inaccuratemarketforecast,irrationalproductionplanning,mismanagementoflogisticfunctionsinFAWgroup,andlackofcontroloverout-of-regionsales,etc.Mr.ZhangrecommendsA.T.Kearneytoputmoreemphasisinlogisticproblemsinthenextstepworks.KeyIssuesMr.Zhangidentifiedsomekeyproblemsinlogisticsandsuggestswemakesomesuggestionofimprovementineachstepoftheprocess:1Currentmarketforecastisinaccurateandcausedinventory/workingcapitallossMethodfordemandforecastingisbottomup.DealersreporttoregionalFAWsalesoffice.Regionalofficescollectthedemandand11.Demandforecast2.Productionplanning3.Truckdelivering4.Inventorycontrol5.Controloversalesrealisationsetupregionalforecast.FAWSalesDepartmentcollectthedemandstobetotaldemand.Duetothelackofinformationsystem,dealer'sdemandisnotaccurate.Thedemandnumbersareoftendifferentfromorders.Besides,inordertokeepsufficientsourceoftrucksinbestsellingseasons,dealerstendtoreporthighmarketdemandandcausehighinventoryinFAWcentralwarehouse.Inordertocontrolthedealers'andbranchoffices'behaviour,FAWshouldadoptincentivesystemstoencourageaccuratemarketforecast.Mr.ZhangthinksthatFAWSalesDepartmentshouldlearntobalancethedemandsfromregionaloffices,insteadofsimplyaddingupthenumbersfromregionalofficesanddealers.2ProductionplanningshouldbearrangedaccordingtomarketdemandratherthantheproductionconvenienceTheProductionDepartmenttendstoarrangeproductionaccordingtothelevelofdifficultyinmanufacturing,whichalsocausestheconflictionbetweenmarketdemandandproductsupply.Mr.Zhang'ssuggestionTothetruckswithalowinventorylevel,longtransportationcircleandcleardemandforecast,productionshouldbearrangedatthebeginningofamonthTothetruckswithhighinventorylevel,uncleardemand,itcouldbebetteriftheyareproducedatthelaterpartofeachmonth—thiscouldleadtolowinventorycostandafurthermarketdemandforecastisallowed3RedundantproceduresandresponsibledepartmentsAccordingtoMr.Zhang,thereareconsiderableredundanciesintransportationswithdifferentdepartmentsinvolved,causingmuchadministrativeinterferencefromFAWgroup.Thereisanoutsourceddeliverycompanywhoisresponsiblefordeliveringthetruckstodealers.Thecompanysimplyreceivesrequirementfromthecompany,andfinddriverstodeliverthem.UnderFAWGroupthereisaTransportationDepartmentwhoisalsoresponsibleforcoordinatingthetransportation.Inthebeginningofthisyear,FAWplanstobuildanotherLogisticCentertocentralisealltheinbound/outboundlogisticstogether,fromWIP,Spareparts,tothedeliveryoftrucks.ThisproposalencounteredresistancefromdifferentFAWsalescompanies.Mr.Zhangthinkstheproposalimpractical,astheorganisationalstructureinsideFAWisnotinlinewithanintegratedlogisticpractise.2Redundantprocedurescausedhightransportationexpensesanddoubletax.LossofdoubletaxtoFAWTradingisaroun10-20millionRMBperyear.Mr.ZhangsuggestsA.T.KearneytoconductdetailanalysisandrecommendafeasiblemodelforFAWlogisticoperations.4Thereisnocontrolsystemovertheinventorylevelbothatregionalwarehouseanddealers'warehouses.Tothose“tangiblemarket”dealers,theyhesitatetotaketheirinventoryoutofthe“tangiblemarket”eveniftheyhadfinisheddeal.ThusthetrucksarestillunderthenameofFAWandtheycoulddelaysubmittingthetrucksalesrevenuetoregionalofficeRegionalofficesalsohesitateinreducingtheinventorynumberevenifthetruckshavebeensoldtodealers.ThustheRegionalofficecoulddelaysubmittingthetrucksalestoFAWTradingCompanyDuetothelackofsystemsupport,alltheinspection/controloverinventoryaremanualprocess.Windowdressingtheinventoryfigureoninventorystatementsisaverycommonpractiseinregionaloffices.Forexample,thetargetsaleforthisMarchis14,000trucks.Till20thofthemonth,only50%ofthetargetarefulfilled.However,whenFAWclaimedtohavefieldreviewineachregion,thesalesfigureincreasedsorapidlythat2-3000truckswerereportedtobesoldinoneday.5Out-of-regionsalesremainsasevereproblemtoFAW.Mr.Zhangpointedoutthatmostout-of-regionsalesarewiththeassistancefromtheregionaloffices.Usuallydealers,truckdeliveringcompaniesandregionalofficeworktogethertosellitinmoreprofitablemarketsandsharetheprofit.E.g.,thedealerinGuangxipurchasedthetrucksandhaditdeliveredtoGuangxi.Bythisdeal,thedealercanenjoyFAW'stransportationallowanceofseveralthousandRMB.However,thetrucksareactuallysoldinChangchuninlowerprice.Transportationcompaniessavedtheirtransportationcostanddealersgethighermargin.ThesalesarestillcountedintothesalesofGuangxi.3