PPG Series on three: The War of supply chain management of PPG

PPG Series Talk about third: ppghttp://www.aliyun.com/zixun/aggregation/14310.html "the War of > Supply Chain Management

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PPG brand after "Soar", next can "continue to fly"? One of the key points is PPG's supply chain management.

In fact, if we do not consider the problem of supply chain management, PPG's "Light Company" business model and development is perfect. But PPG's supply chain management just "looks beautiful". On the surface, PPG draws on the core concept of modern business model, through the systematic and rigorous screening process, only select the best production suppliers to cooperate. PPG through the strict supplier management system, and strict quality control system, from the fabric selection is to start strict screening, while real-time monitoring supplier production processes, and to close to stringent quality testing standards, to ensure that PPG's product quality optimization; On the surface, PPG through it technology, the warehousing system, logistics, Procurement and production are interconnected to form a rapid response supply chain. This supply chain brings to PPG the most immediate benefits: 7 days inventory. This directly determines the operating capacity of enterprise funds, the traditional clothing industry up to 60-90 days of inventory period, PPG can turnover 10 times.

But in fact, ppg can't be perfect, not unexpectedly was "accidentally" knocked down, because the sales grew too fast to PPG's supply chain management challenges, direct detonation of PPG a series of problems, whether it is caused by the confusion of orders of customer complaints, or outsourcing factory fabric unqualified caused by quality problems , in fact, are directed at PPG's supply chain management.

Although PPG in order to improve product quality, in addition to their own quality inspectors, and the factory process, quality testing are outsourced to the world's leading third-party testing company SGS. But some in the apparel industry even questioned: ppg to do clothing may still be a layman. Because in fact there is no domestic apparel enterprises with SGS standards, the industry to use this standard of people as a layman. For example PPG spend heavily please SGS Quality management, but the result is deficient, then the so-called Swiss standard SGS what exactly? What is the actual content of SGS service?

And do not say that in the supply chain management, SGS as a third-party supervision and management is really effective? The bigger problem is that QC is just one link in the supply chain that makes up the entire rapid response of PPG. After all, supply chain management is essentially the management of information and relationships. Supply chain management is about the whole, from the development of the overall resource strategy, to the sales and operation planning, to the inventory management plan, to the sales forecast, to the distribution planning, the integral part, and the supply chain must cooperate with each other. So some people predict, because PPG summer sales are good, so the relevant authorities mistakenly estimated the autumn and winter growth, completely in accordance with the size of the sales of 700 million yuan to prepare hundreds of billions of inventory. But because the promotion of advertising on sales did not achieve the desired effect, PPG appeared product unsalable and inventory backlog, so that the cash flow seriously tight. The forecasts are also pointing to PPG's supply chain management, including the mention that PPG may have poor control over upstream vendors, which is the ruin of PPG's supply chain management, which also determines the future of PPG. Because up to the company's strategic level, the future of the shirt E-commerce market competition, to a large extent, the supply chain and supply chain competition.

But this is not PPG's fault. It can be recalled that Zara made China's apparel industry stunning. Their rapid response and rapid supply are surprisingly fast, starting with a new product concept and listing, which they can achieve within two weeks. The reason is that Zara's supply chain system, is a step-by-step systematic and perfect platform, in specific to the operation of accumulated a lot of experience, this is obviously not ppg just three years of history can be crossed.

But no matter how PPG and our Carris supply chain management, we must catch up, increase efforts to maximize the efficiency and quality of supply chain management, and continuously reduce the cost of supply chain, especially the focus on the rapid response of the supply chain closely related to the number of unsalable and product scrap rate, Consider the possibilities of the supply chain to cooperate with each other, make better planning and more efficient, manage the uncertainty, reduce, avoid and prevent, supply excess and supply the cost of insufficient. Then I do not believe that there is no bright future in the field of network shirts. Please continue to focus on the PPG series: How far can a network shirt go?