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comparison of LSCM Related OperationsProcess

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正文小四,小标题四号,大标题小三,段落开头空5个字母,Reference首字母音序排列 7 Comparison of LSCM Related Operations / Process 7.1 LSCM Related Operations / Process in JONO As for the JONO Restaurant, the analysis for the logistical supply chain of the operation is as follows. The first logistics or supply chain related process in operation of JONO Restaurant is designing and purchasing. As for designing, JONO Restaurant put the successful and trusting relationships with suppliers as an important strategy. Because it is a restaurant from Taiwan, their seasoning and oil are supplied by Taiwan’s provider, which ensure the unique taste and quality of the restaurant. Because the location of JONO Restaurant is Songjiang University Town, they design food and taste that youth prefer as their main target. As for purchasing, its process will be analyzed as follows. The first step is demand analysis including verifying requirements and statements. The kinds of material and quantities need to be determined before purchasing. The second step is to determine whether the materials are self-restraint or outsourcing. The third process is to determine the procurement types including straight rebuy, modified rebuy, and new rebuy (Madigan, 1999). The forth step is to select suppliers. Shopkeeper needs to analysis market, look for potential suppliers, evaluate suppliers and then determine the most appropriate supplier. The fifth step is distribution of the products. This process will supply necessary performance data at next process. The last step is performance evaluation to make sure whether suppliers satisfy demands of buyers. If not, it is necessary to find the reason of it and then optimize (Stefan,2005). Next, detailed purchasing information of JONO Restaurant will be listed as follows. Demands Need of Mode of Self-restraint/ Procurement suppliers date transportation Outsourcing types Meat 3days Frozen cars Outsourcing Straight Suppliers rebuy from Shandong &Henan province, Northeast of China Vegetables 1day Cars & Outsourcing Straight Songjiang & fruits wheel truck rebuy Old Town Market eggs 1day Cars Outsourcing Straight Songjiang rebuy Seasonings 1week Planes Outsourcing Cream 1week Cars Outsourcing &salad &coffee Drinks & Outsourcing sweets &Self-restraint To speak of, as the shopkeeper of JONO Restaurant says, vegetables, eggs, fruits are input every day from Songjiang Old Town in which is near the restaurant by car or wheel truck in order to ensure their freshness. The frozen products such as beef and mutton are supplied in three days by local providers in Shandong Province, Henan Province and the northeast of China. However, to avoid the breakdown of their frozen cars or natural disasters which delay the supply, JONO Restaurant owns its frozen cars. The cost consists of input cost, transaction cost, transportation cost and operation cost. Shopkeeper has negotiations among suppliers to determine the rational transaction cost and transportation cost of the raw material in JONO Restaurant. The operation cost is calculated monthly. The second logistics or supply chain related process in operation of JONO Restaurant is wholesale. Most of the raw materials such as vegetables, fruits and eggs are wholesaled from Songjiang Old Town because of the high demand for freshness. As shopkeeper says, meat will be wholesaled from Shandong Province, Henan Province and the northeast of China because of the high quality of meat. The restaurant has long-time cooperation with shops. And they have negotiated about the wholesales price. The third logistics or supply chain related process in operation of JONO Restaurant is customer relationship management. Customer relationship management can increase customer loyalty. As for JONO Restaurant, because of its location, which is Songjiang University Town, it positions college students as its main client base. The restaurant has periodical investment and communication of demand of students, taste preference and complaints or advice for foods and service of JONO Restaurant. As for the factor of logistics, transportation management and inventory can be highlighted during these processes. First, transportation management need right product, time, quality, cost and destination. Reasonable transportation management determines long-run successful operation of the organization. As for vegetables, fruits and eggs, the restaurant owns cars to transport materials from Songjiang Old Town. As for frozen products, the restaurant has long-time cooperation with shops in Shandong and Henan province and Northeast of China. As for unique seasonings, they are transported from Taiwan province once a week by air. Some detailed information can be found from the table above. Second, as for inventory, when meeting climatic issues such as plum rain season in Shanghai and frozen in northeast of China or other Straight rebuy or New rebuy Straight Shanghai rebuy or New rebuy Old Town Market Taiwan province accidental situations, meat and vegetables can not be supplied punctually. As a result, inventories during these stages are necessary. The restaurant owns 5 big figures near East China University of Political science and Law in Songjiang University Town to store the meat and vegetables.

Last but not least, the restaurant follows the strategies to select suppliers which are when price is the same, who owns higher quality, reputation, service who owns priority.

7.2 LSCM Related Operations / Process in M&G

The working process of supply chain of M&G Stationary shop can be divided into 3 parts. The first process is designing, purchasing and manufacturing. Designing is a very important step among them because of the customer-oriented market. So the pattern, style and function are all designed according to the customers’ preference which is the decisive factor of whether the products can be sold out. The most popular products like bling roller pens, pencils, notebooks, erasers, glues and so on. And it is not hard to find that not only more and more types of stationeries but also many decorations appear on the counter of M&G. This is one reflection of the mission of working for customers’ needs. Another is the fact that stationeries become more and more colorful which is to the taste of teenagers. M&G has specific manufacturers, the close cooperation guarantees the quality and efficiency of producing. While the quantity of production is due to the sales volume of last quarter in case of the increasing of stockpile.

The second process is wholesale and agency. M&G adopts a way of joining in to expand its market and establishing franchises. The franchisees only need to pay several ten thousand of RMB to take part in. Selecting a place is better to be close to the schools or residential areas. As is known from the interviewee, it’s very easy to take part in and the sales volume is very charming. It is due to the good quality and design of the products. They replenish their stock once a week according to the inventory. The controlling corporation will sent the ordered products for them at the cost of some freight. But it is beneficial to take part in M&G that the joiners can still sell other products wholesaled from other place at the same time. The advantages franchisees take to M&G can be concluded as follows: providing channels for the new products to get into the market, expanding the range of selling, products sales channel management, providing information of local market, making the brand more famous.

The factor of logistics should be highlighted during these two processes. The flow path is storage, allocating cargo and transportation. And the target of modern transportation is shortening the lead time, reducing stockpiles, increasing punctuality and veracity of transportation. Apart from transportation and storage, modern logistics also sets about to do some jobs like pack in, labeling and so on.(Li Feng,2003) Thirdly, information system takes more and more important part in modern logistic. Such as bar codes technique and radio frequency identification can lessen tasks and increase efficiency. Furthermore, goods tracking system can help participants on different steps of the supply chain know the storage and transportation information exactly(Li Feng,2003).

The last process of the supply chain is retailing. The price is determined by the controlling corporation. Retailers can sell some stock by the way of sales promotion by themselves. Because the retailer is the last part of the supply chain and the most direct part towards customers, M&G has some requirements towards the participants such as the attitudes to customers and decoration of stores. But they encourage their innovation and creativity on the whole. Lastly, detailed purchasing information of M&G will be listed as follows: Demands Need of Mode of Self-restraint/ Procurement suppliers date transportation Outsourcing types Stationarie1day Truck Outsourcing Straight M&G s and rebuy manufactufitness rer equipments Gifts and 1day Taxi Self-restraint Straight The City decorations rebuy God Temple 8. References

Li Feng Research Center, 2012, Supply Chain Management, 5th ed, Renmin University of China Press, Beijing.

Medigan K. 1999, ‘An Empirical Study about Supply Chain Management’, Journal of Supply Chain Management, 3(35), pp.16-24.

Stefan T. 2005,‘Demystifying Productivity And Performance’, International Journal of Productivity and Performance Management, 1(54), pp.34-36.

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