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Amway: efficient supply chain management


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									Amway: efficient supply chain management
Bit Net Source: CIO era of: Amway - Xu Shaoming
   ?Logistics is a modern enterprise, especially in production and sales enterprises an
important part of the operation, high efficiency, low-cost logistics and distribution
companies to implement an effective marketing strategy with an important means.
   ?What is the effective supply chain management? For Amway's logistics
department, it is precisely the cost of the accurate use of the product delivered with
the precise time accurate location (Delivery the right product to the right place at the
right time with the right cost). It is not the same as the current service company, which
sought to pursue the proposed concept, because these companies tend to improve
services, costs also increased, and eventually will still be out of the market. Therefore,
in the logistics system, not the blind pursuit of cost, but the pursuit of the
"most accurate" costs.
Logistics is a modern enterprise, especially in production and sales enterprises an
important part of the operation, high efficiency, low-cost logistics and distribution
companies to implement an effective marketing strategy with an important means. It
is like a battlefield logistics supply lines, a modern business success, excellent
logistics and transportation system can not be separated. In manufacturing, logistics
does not directly generate profits, but a good logistics and transportation system can
make all aspects of supply chain simplification, rationalization, thereby reducing
customer orders to receive the goods from the next time to allow the value chain play
maximum benefit. This not only improved customer service levels, improve customer
satisfaction, but also reduces the product's marketing costs, improved
corporate profitability.
Efficient logistics sector in China daily chemical products industry faces a major
challenge is to sell vast distribution outlets scattered all over the world varying levels
of logistics facilities, and changes in the market and relatively fast, efficient
management of logistics into every enterprises are facing difficulties. Amway
Corporation was established in Guangzhou, 40,000 square meters of logistics,
warehouse space 16,000 square meters, equivalent to the size of five football pitches,
green area of 16,000 square meters, 40%, which is the same as the logistics center in a
garden, with 12 287 three-dimensional shelf spaces, of which there are 1666 full year
remained at a constant temperature of 22 to 24 degrees Celsius storage shelf for
storage of health food and beauty cosmetics, storage simultaneously for eight 40-foot
container trucks loading and unloading berths. In line with a national marketing
strategy, as at the end of June 2008, Amway in Guangzhou, Chengdu, Chongqing,
Wuhan, Kunming, Changsha, Nanchang, Guiyang, Liuzhou, Shanghai, Jinan,
Zhengzhou, Beijing, Harbin, Shenyang, Xi'an, Urumqi, Hangzhou, Taiyuan
and other 19 cities in 22 foreign stores, the implementation of the shops nearby
picking and replenishment. Differences in the national inventory in 2007 was 0.00007
percent, the total transport mileage of a 10 million km, significantly ahead of the
national logistics industry average.
Currently, Amway has four main products in the domestic production line can
produce more than 140 kinds of products, along with other Sales Aids, with a total up
to 389 product items. With so many products to achieve the accurate storage and
access, without an advanced multi-function logistics center will not work. Operational
logistics center, will be able to guarantee the maximum efficiency of the inventory
replenishment of Amway Corporation, transportation and distribution, store
operations and other functions of the high-speed operation. Meanwhile, Amway shops
nationwide operation command center - National Store Operations Division are also
located in the logistics center. In this way, Amway has become the storage and
transportation logistics center with shops in the operations command center. Amway
China Logistics Center Project, in 2001, the U.S. headquarters of Amway period of 12
approved, in April 2002 laid the foundation to put into use by the end of December,
the entire construction process took only a short period of 8 months time.
Amway distribution center in accordance with the type of product, the library is
divided into dry storage warehouse zone, constant temperature warehouse storage
areas and dangerous areas such as several types of different products stored separately.
Dry storage warehouse district home care and personal care products, as well as
printing and audio-visual products; temperature storage areas and special health food
store cosmetics; dangerous goods stored compressed gas reservoir specialized goods
and alcoholic components. According to market needs, Amway's
distribution center in Guangzhou to be kept close to 12,000 pallets of goods.
Release the goods to follow "first in first out" principle, but also
requires a clear understanding of each card at any time the specific circumstances of
board, to resolve the above problems, Amway shelf cards for all bits of the
three-dimensional positioning. Handling personnel in the field as long as the
coordinates of each storage card number is passed to the computer board input,
managers can be an overview of computer-storage conditions for all goods, to the
effect of mechanical inventory, greatly improves the efficiency and product inventory
accuracy. Amway logistics center also spent imported advanced logistics equipment,
such as various types of battery forklift, baler, top shelf, and can lift the import
collection / shipping and transport vehicles, multiple platform / department. Powerful
information systems of all goods into three-dimensional shelf, the shelf location,
Jincang date, stock number, quantity, batch number and other details will be entered
inventory management core system (AS400), the management system through the
computer file, you can overview the situation of all goods within the warehouse.
When the need for replenishment, and shipping, that is to follow "first in
first out" principle, according to the order of production date of shipping
and shipping arrangements, to ensure the freshness of the goods export market.
Amway products in the distribution of each part of the requirements of market
demand, and established norms and standards, such as the products stacked way, bear
the greatest weight, storage temperature requirements, and compressed gases and
other dangerous goods transport norms. Strive for perfection every step to safeguard
the integrity of the entire logistics system, efficiency and safety.
In addition, Amway has invested more than 9000 million yuan building an
information management system, in which one of the main part of the development by
the IBM for logistics, inventory management of the AS400 system. Goods from the
situation of the whole logistics center storage, control, and even the entire enterprise
supply chain optimization management, AS400 system is the center of
Amway's scientific management, through the AS400 system files, each of
the stacked goods are fixed requirements specification, operator of the unloading each
pallet weight of the average stack to achieve gains a complete: from the shelf
arrangement, the product was added to the storage of goods, related items of
information, AS400 systems are built more files, to achieve goods inventory and
management of mechanization. Grasp the areas of sales and inventory status store,
according to the actual situation of each store replenishment time arrangements. When
the inventory shortfalls, managers can immediately arrange production, book supply
plan to ensure timely supply of goods. Through the information system, based around
the company and direct on-line, more storage date for each production, sales,
inventory status, effective date, location, sales value and cost data. The data line
through the data directly on-line with the distribution center, headquarters and
warehouse to be able to keep abreast of regional, local shop sales and inventory status,
according to the actual situation of the shops in time arrangements for replenishment.
Insufficient inventory in the warehouse, the company's inventory and
production systems will also produce real-time arrangements, and scheduled
replenishment plan, to avoid stock-out situation.
October 2004, Amway started to use RFID system, some functions of the computer
information system for mobile operation. RFID terminals and computer systems for
data transmission through wireless channels to achieve real-time information
collection. Warehouse and inventory change before the work in a relatively passive
state. Improve the accuracy of pickup so that the whole process becomes smooth
smooth. In order to better share the data, IT department to develop a transport order
system, decentralization of the system through a number of related data to the external
warehouse. The total storage shipped each day survival group plan simply put the
appropriate interface and external storage on the system at any time to check their
orders into the transport interface, the total positions by delivery plan, you can arrange
the appropriate vehicles picking under the jurisdiction of the shop to. After receipt of
goods outside the warehouse, after confirmation of receipt, the total warehouse can
receive the feedback. Arrangement suits the position of the vehicle's open
interface to the 3PL, 3PL companies opening up every day to check their own
transportation system interface in order and printing, as required with the appropriate
vehicles, arrived at the appointed time warehouse management verification of
delivery instructions, you can correct stocking, loading, departure. Grid, the storage
group to confirm the link that is the end of the work.
   Do not want to spend a part-time on-line Amway for health, happiness, wealth and
with your future QQ 113307028 UC 50989792

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