F2F Class Notes 22nd September (Celeste)

foreigner boss = foreign boss

occupation – what do you do for work

Sophia is Chinese, Eddie is Scottish.
Eddie’s family comes from Scotland.

exposure / expose
eg. Sophia needs to expose herself to more English to practice.
eg. She needs to get more exposure.

Original

Original:

Today I want to write something about the study of our supply chain status if we decided to change the supply model with JD from distributors to our own distribution center.
First of all, Lead Time will be a big problem. As we have known that our regional Distribution Centers(DC) don’t have capacity to handle the cosmetic products (storage, picking and packing, transportation), we have to ship them through our Central DC (CDC). It will take about 7-8 days from Suzhou to the furthest DC of customer. This is purely the time for transportation. But another problem is also very important and will big impact the lead time. We need to do some tailor-made bundle pack according to customer’s request after we receive the order. From one hand, we need 1-2 days for worker to re-pack the products, and from another hand, after the bundle packs are finished, we need to apply for pack quality inspection. Maybe it will take 5 days. So the total lead time (order processing + pick & pack + pack quality inspection + transportation) will be very long at 15 days. I am not sure if customer can accept the lead time.
Secondly, per information from our sales that JD can only accept one Lot number per order. If they order a big amount once a time, actually we can’t make sure we have enough goods within the same Lot Number. Although JD can accept partially delivery and another next time, but it is obvious that the cost will be very high if we spit one order into several deliveries.
Other issues are also impact our supply chain efficiency and workload. For example, we couldn’t get a accurate promotion plan one month before activities. And even we get a draft version, it will be changed a lot until the promotion event finally happen.

Edited

Today I want to write about a study that our company is conducting in order to assess the feasibility of replacing the current supply model, which relies on a distributor, with our own distribution center.

Lead Time is likely to be a significant hurdle. As our regional Distribution Centers (DC) do not have the capacity to handle cosmetic products (storage, picking and packing, transportation), they have to be shipped through / via our Central DC (CDC). Products would take about 7-8 days from Suzhou to the farthest customer‘s DC.

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Continued

This is purely the time for transportation. But another problem is also very important and will greatly impact the lead time. We need to do some tailor-made bundle packs according to the customer’s request after we receive the order. On one hand, we need 1-2 days for workers to re-pack the products, and on the other, after the bundle packs are finished, we need to apply for pack quality inspection. Maybe it will take 5 days. So the total lead time (order processing + pick & pack + pack quality inspection + transportation) will be very long maybe/potentially/almost 15 days. I am not sure if the customer will accept the lead time.

Secondly, per information from our sales, JD can only accept one Lot number per order. If they order a big amount individually/one at a time, we can’t make sure we have enough goods within the same Lot Number. Although JD can accept partial delivery and the rest at another time, it is obvious that the cost will be very high if we split one order into several deliveries.

Other issues also impact our supply chain efficiency and workload. For example, we can’t get an accurate promotion plan one month before the activities. Even if we get a draft version, it will change a lot until the promotion event finally happens.