Rapid response is a new business mode, which reflects the business management idea of technical support: Supply chain In order to achieve the common goal, all links should cooperate closely. In general, the common objectives of the supply chain include: (1) Improve the level of customer service, that is, respond to consumer needs with the right goods at the right time and place;
(2) Reduce the total cost of the supply chain and increase the sales and profitability of retailers and manufacturers.
The premise of rapid response business success is that retailers and manufacturers have good relations. This new trade means that both parties must establish a trade partnership, improve the ability to supply goods to customers, and reduce the stock And total cost. For example, retailers can establish strategic partnerships with manufacturers and adopt mutually beneficial business strategies. Senior management of all parties should communicate and contact with each other to make this relationship permeate the entire organization from top to bottom. At the same time, multiple departments are required to participate in all stages of planning and implementation. Rapid response is of great significance to both manufacturers and retailers. For manufacturers, rapid response improves their customer service, which fundamentally comes from good cooperation with retailers. First, long-term good customer service will increase the market share of manufacturers. Secondly, rapid response can also reduce circulation costs. Because the Customer needs The forecast and production planning of can be integrated together to shorten stock The turnover time reduces the inventory that needs to be processed and counted, thus reducing the circulation cost. Again, Administrative expenses It can be reduced from three aspects: because there is no need to enter orders manually, it is improved Purchase Order Accuracy; Reduce additional invoices; Before the goods are sent out, the warehouse scans the transportation label and sends the advance transportation notice to the retailer. Finally, a better production plan can be formulated. Because the sales can be predicted and accurate sales information can be obtained, manufacturers can accurately arrange production plans. For retailers, the significance of rapid response is mainly reflected in the significant improvement of customer service level and profitability. Fast response enables retailers to track the sales and inventory of various commodities by using barcode and POS scanning, so that they can accurately track the inventory and order only when the inventory is really reduced. They can also reduce ordering cycle , implement the automatic replenishment system (also known as the vendor replenishment system), use the inventory model to determine when to purchase, and ultimately increase sales. Commodity purchase cost is the expense incurred when an enterprise completes the purchase function, including order preparation, order creation, order sending, and order tracking. Rapid response greatly simplifies these business processes, thereby reducing Purchase cost 。 After the transportation label is used on the manufacturing side, the retailer can scan the label, which reduces the cost of manually checking the arrival of goods. In a word, although the purchase cost per unit commodity will increase a lot after adopting the quick response method Small batch purchase Goods and customer service level will be improved, retailers will be more able to adapt to the changes in the market, and other costs will also be reduced, such as inventory costs and clearance and price cutting costs. Finally, the profit is increased. Fast response was originally obtained by large retailers market share The tool for global competition has now become the standard strategic behavior of all commodity manufacturers and middlemen. It means increasing sales at a lower cost, better classifying goods and providing customers with quality services. Implementing rapid response requires six steps. Each step is based on the previous step, with higher returns than the previous step, but also requires higher investment. The six steps are:
1. Barcode and EDI
Retailers must first install bar codes, POS scanning, EDI and other technical equipment to speed up POS collection, obtain more accurate sales data and facilitate information communication. POS scanning is used for data input and data collection. It refers to reading the barcode optically during collection inspection, and then converting the barcode to the corresponding commodity code.
Barcode is used for product identification, which is crucial to customer service and effective operation at POS. Scanning bar codes can quickly and accurately check prices and record transactions.
EDI is the exchange of commercial documents between computers. The company converts its business documents into industry standard format and transmits them to a value added network (VAN). The trading partners receive these documents from the VAN and then transfer them from the standard format to a format recognized by their own system. Documents that EDI can transmit include orders, invoices, order confirmation, sales and inventory data, and advance transportation notices.
2. Fixed cycle replenishment
Replenishment requirements for quick response supplier Transport reordered goods faster and more frequently to ensure that stores are not out of stock, thus increasing sales. Retailers can quickly respond to goods and ensure that these goods can meet Customer needs To speed up the turnover of goods and provide consumers with more varieties to choose from. Automatic replenishment refers to the automation of basic commodity sales forecast. Automatic replenishment uses software based on past and current sales data and their possible changes to make regular forecast, and at the same time, consider the current inventory situation and other factors to determine the order quantity. The annual sales mode of basic commodities is generally not affected by popular trends. Their sales volume can be predicted, so the reorder quantity can be determined without checking the commodities. Automatic replenishment is carried out by retailers and wholesalers in warehouses or stores.
3. Advanced replenishment alliance
This is to ensure the smooth replenishment business. Retailers and consumer goods manufacturers jointly check the sales data, formulate plans and forecasts on future demand, and reduce the inventory while ensuring the availability of goods and reducing the shortage stock Horizontal. The manufacturer can also further manage the inventory and replenishment of retailers to speed up inventory turnover. 4. Retail space management
This means that the variety of goods and replenishment business of each store are regulated according to its demand model. Generally speaking, manufacturers can also participate in or even make decisions about the variety, quantity, store display and training, or incentive salespersons.
5. Joint product development
The focus of this step is no longer general commodities and seasonal commodities, but clothing and other commodities with a short life cycle. Manufacturers and retailers jointly develop new products, and their relationship is closer than the business relationship of purchase and sales. This can shorten the time from the concept of new products to the launch of new products, and new products can often be tested in stores.
6. Rapid response integration
By redesigning the business process, the work of the first five steps is integrated with the company's overall business to support the company's overall strategy. The implementation of the first four steps of rapid response can enable retailers and consumer goods manufacturers to redesign product replenishment, purchase and sales business processes. The first five steps have improved the distribution center, which can adapt to a large number of small volume transportation and make the distribution business more smooth.
Similarly, due to Inventory Most consumer goods manufacturers also began to emphasize stock To improve the management of procurement and manufacturing business, so that they can make the right response. The last step requires retailers and consumer goods manufacturers to redesign their entire organizations, performance evaluation systems operation flow And information systems, the design center is around consumers rather than traditional corporate functions. Sometimes the last step can be completed first, or at least the overall architecture can be designed first, so that the improvement of replenishment and the development of new products will be as consistent as possible. When determining the company's core business and its development direction, it should have a strategic vision.
