How Does The Shoe Factory With Brand Name Succeed In Achieving Business Pformation?

In a shoe factory in Jinjiang, Fujian, the operation of a shoe factory turned to an outline of the briefing. The background of the conference was based on a major business decision of a shoe factory. The past business direction was to undertake "foreign trade orders", and now the decision has shifted to "acting as an international brand for domestic sales".

Note: since I am engaged in very specific consultancy work instead of purely theoretical creation, the level of written language is limited. If the officials feel interesting, I will keep this style in the future.

Choose an internationally famous brand to represent its right to develop, produce and sell in China.

First, the overall change brought by this decision to the company's operation: 1, the profit space of the product has doubled at least; 2, the business departments have the autonomy of "killing and killing"; 3, the original factory operation process needs to be reorganized; 4, the quality of the product has become the key to the successful operation of the brand; 5, the fierce competition in the terminal market has greatly increased the company's operational risk.

The concrete manifestation of "overall change" is: 1, business past: passively "pfer" customer information and communicate with customers; mechanically order, order and documentary; now: promote brand, make sales plan, promote market sales, manage regional market and receivables.

2, development aspect: in the past, it is very passive in styles, lines, color matching and last type, basically based on the "professional opinions" of the intermediate customers, and can not feel the direct evaluation of the development of the shoes by the terminal market. Now: the styles, lines, colors and last shapes of the shoes are dominant, but the quality of a pair of shoes will soon be judged mercilessly by the terminal market.

3, procurement: in the past: according to the consumption volume of each order, there is basically no "whole" material inventory phenomenon, but the problem of "chromatic aberration" often becomes a "bottleneck" of the supply failure. Now, the problem of "chromatic aberration" has greatly reduced the purchase, but if the batch purchase plan is unreasonable, it will inevitably increase the unreasonable stock material and backlog the waste of funds.

4、生產方面：過去：訂單周期相對較長，一般不會少于35 天，生產周期15天，但由于受前段運作（業務、技術、采購）的困擾太大，導致生產計劃缺乏保證，“出貨”問題給各級生產主管造成的壓力過大，并且大家的工作方式很明顯都已習慣“追蹤式管理”為主；現在：由于前段運作的自主性（一般為3—7天），使生產的計劃安排相對保證，但根據“訂單”來組織生產的情況再也不會存在，《生產指令單》成為生產現場運作的唯一依據，而且，“款雜單碎”的現象比以前更明顯，生產周期也要求相對縮短（3—7天），最重要的是品質要求和品質控制程序將比以前更嚴格，一雙鞋子沒做好就會影響到品牌的聲譽，更會失去一個直接的、能為公司貢獻利潤的消費者，甚至是一個出色的渠道。

It is the implementation standard of quality control. Due to the inconsistency of certain standards and inconsistencies in standards, the quality and quality of quality control work are difficult to grasp. There are often different contradictions and quarrels with the scene. Quality control personnel are often in a "dilemma" and can not see their work achievements. Now, the quality control system is the brand standard of our company. This "standard" is jointly formulated by development (or technology pfer), production and quality control, and so on. We all know one thing, so that the trouble caused by the work basically does not exist. Besides, quality control and on-site work will soon be tested by consumers, and the eyes of the market are bright. 5, quality control: past: customer's "confirmation"

6, financial aspects: in the past, the key points of control were "supplier's arrears", "excessive consumption of order materials" and "staff's capital output". Now, increase the "dealer's account", "raw material warehouse", "finished warehouse" and "the cost of each shoe".

In short, the pformation of the company's management direction will inevitably bring new requirements to the operation of the factory management mode. This is a challenge, but it is also an opportunity to upgrade the factory management level.

If the management level of the company is not well prepared, the company's management decisions will be greatly reduced and the managerial cadres will inevitably be eliminated.

In this regard, all managers must reach a consensus.

Two, the necessity of "foreign trade" turning to "domestic sales". Why do we need to turn to "domestic sales" if we do well in foreign trade?

1、外貿的單越來越難做，訂單雜、單量小、款式配色多，這使工廠生產效率越來越低；2、訂單價格的利潤空間已低到很多鞋廠承受不了的地步， MD底一般只有5元，TPR底一般只有3元，但這還只是預先估計的利潤，如果算上材料浪費、品質不良賠款、貨期延遲賠款，再加上水電費漲價、工資水平在提高和部分原材料漲價等各種因素，一單下來，賠款的可能性占了40%，照這樣做下去，工廠哪來的本錢快速發展，而不能快速發展就被別人“甩”在了后面；3、整個工廠的運作基本上是圍繞外貿中間客戶在轉，他們固有的利益訴求以及一些QC的人為因素、情緒化工作都使工廠的機會成本和管理風險居高不下，換句話說，工廠已被外貿客戶所控制，最明顯地是客戶的回款周期太長，賬款占用已成為普遍現象；4、今年歐盟新執行的“鞋子不含‘偶氮’”的標準，使晉江很多鞋廠

失去了歐洲的市場；5、當前，美國、日本等一些國家都強烈要求中國使“人民幣升值”，而中國政府已明確表態，不會使“人民幣升值”，為的是繼續使中國的產品保持出口競爭力；但同時為了使其他國家心理平衡，政府正在考慮，打算將出口退稅率降低4%，另外，由于財力的關系，國家對出口退稅兌現的周期將會越來越長，這就使外貿公司的資金周轉期越來越長，部分在晉江下單的外貿客戶已出現了明顯的付款困難；6、由于中國政府表示“人民幣不升值”，因此，美國國會部分參議員已經提議，要對中國出口到美國的所有產品（包含通過美國轉口到墨西哥的產品）加征27.5%的關稅，如果國會批準這一動議，那么這對于晉江的鞋子來說就是“雪上加霜”，因為晉江有很多生產的鞋子（掛國外商標），既有出口到美國的也有通過美國轉口到中東和非洲國家。

7、國內市場不是一塊固定的“蛋糕”，隨著晉江44家致力于品牌營銷的鞋廠在中央5臺的紛紛“亮相”（今年又有近一半“移師”湖南衛視），國內運動鞋、休閑鞋、運動休閑鞋、休閑運動鞋的市場越來越大，消費者需求旺盛，業內同行相互“借力借勢”，80%從這個巨大的“聚寶盤”里多少不一地“挖”到了“一桶金”；8、代理國際品牌在國內市場的銷售，晉江的鞋業界已有成功的先例：2002年“花花公子”的運作創造了業界的“奇跡”，2003年，“香港鱷魚”、“法國鱷魚（卡迪洛）”、“夢特嬌”、“袋鼠”、“華倫天奴”（三種）、“煙斗老人”、“摩風”、“卡爾迷”等等一大串品牌相繼跟進；由此，利用代理國際品牌快速建立自有的銷售渠道，搶占“一條有利的跑道”，已成為業界眾多有長遠眼光的“大佬”們的明智選擇！

Therefore, the pressure of the international market and the temptation of the domestic market make the "Heroes" of the shoe industry in Jinjiang have to reconsider their living space and the way out for their development. Therefore, choosing an international brand to open the domestic market is also a "success story".

Three, after the business turn, some key points of the internal operation of the factory 1, about the management of the business: the existing business departments are pformed into marketing departments, to hire professionals who are familiar with the market operation of the domestic footwear industry (Marketing Director or marketing manager), to rationally distribute the markets in all regions of the country, and to cooperate with the distributors, and to manage them properly (mainly through the adjustment of sales policies).

In daily work, the order of each shoe is the key to the key, which will directly cause factory inventory and dealer inventory.

In addition, brand promotion, market maintenance, control delivery and account recovery are also main tasks.

2, the design of products: the design of product style is directly related to the sales volume of the whole year, and its importance is obvious. Only when we truly understand the psychological needs of consumers and the market trend of competitors, will we be able to raise the winning rate of the "new model" developed.

3, the management of materials: in the way of domestic sales, the volume of material procurement will be greatly increased than before. The control of import and export of materials should be stricter than before. In finance, we should give full play to the role of internal control, and establish effective solutions to all aspects, such as accounting, ordering, purchasing, acceptance, warehousing, receiving, filling, restocking, inventory, processing of leftover materials, accounts, inventory and so on, and resolutely put an end to material management loopholes.

4, the management of production plan: the period of general domestic sales is about 15 days from the order to the shipment, so this requires the production plan to be fast and reasonable.

Although the earlier stage of operation can save 2/3 time than the "foreign trade mode", the timeliness of domestic sales is too strong, and the difference is different throughout the country. Therefore, if the production arrangements are inappropriate, the delivery is not timely, and the market sales time is missed, dealers will also become a backlog product if they want your goods.

5, about the quality management: the international brand has the very high popularity, besides its dissemination effect, the most important is the consumer thinks that "its product quality is good, reliable!"

Therefore, the control of product quality is the key to whether the brand can win the hearts of consumers.

QC personnel are responsible for making detailed and feasible standards from the raw material (including the big end) blanking parts, high frequency (printing, electric embroidery, hot cutting) parts, the help surface (preferably the large flow shop), the finished products and so on, and the special personnel adopt reasonable methods to carry out the implementation. In addition, it is necessary to establish the final inspection procedures for the products before delivery.

6, on the management of finished goods warehouse: when doing "foreign trade order", the finished product is "the whole single into the whole single out", basically there is no management problem of batch inventory products, and "domestic marketing" is completely different, because "domestic marketing" is "inventory type sales", from the product to delivery will have interval, and always in this way in the cycle.

Therefore, the daily inventory management has become the "focus of material control". It is best to have "outflow to a pair of shoes or a stack of Renminbi".

In addition, there are still some customers return and pre shipment "change code" and so on, all of which objectively require the factory management to attach great importance to the management of the finished products and solve them practically.