罗兰·贝格国际管理咨询(上海)有限公司：Logistic optimization to support rural penetration.ppt

SHA-4301-200099-02-16-a-x Logistic optimization to support rural penetration– Issue paper –Peiking, June, 2000 Content Page A. Logistics optimization is critical for rural market penetration 3 B. Adjusting logistic system to satisfy present rural sales distribution network and its development ?? C. Reducing logistic cost to gain competitive advantage ?? D. What Roland Berger can do for Henkel ?? E. Selected reference ?? A. Logistics optimization is critical for rural market penetration While rural detergent market still has great potential to exploit Also, opportunity in rural is bigger than that in city In order to boost rural sales, company need a powerful logistic system to deepen rural distribution Fierce competition leads to price reduction and thus reduces the product profitability In order to keep competitive price in rural and business profitability, company should also reduce logistic cost to minimum level Logistic optimization is critical for rural penetration through sales increase and cost reduction B. Adjusting logistic system to satisfy present rural sales distribution network and its development Rural distribution channel has four-tiers, each with its different characteristics Consolidation of distributors will reduce number of direct shipment Wholesaling market in county level is becoming the major scenario where companies and distributors competed, so company should put their distribution focus down on county level Immigration of residents from village to town and county requires company to actively raise the distribution coverage of retailers in county and town Distributor’s logistics capability should be raise to gain deep distribution in county town level retailers Van selling has been adopted as a practice by some of leading detergent companies such as PG, Nanfeng, LiBai, Lonkey C. Reducing logistic cost to gain competitive advantage Cost reduction can be achieved through redesigning physical network, streamlining p