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Electrolux China “Network Strategy” Project;;Major Brands Market Share in 1999;;The overall objective of Electrolux China Network Strategy Project is to optimize the distribution network configuration in terms of:
- Meeting customer service requirements;
- Achieving minimum costs; and
- Controlling the entire outbound logistics process.;;In developing the optimum supply chain capability for Electrolux China we are utilizing a three-phased approach to developing and rolling-out the new distribution network - This project covers only Phase I;;;;The sample for the customer survey targeted a representation of Electrolux’s current operations in China, and its current and future market;The project team focused on obtaining as much customer data through direct interviews. A customer survey was faxed out to broaden geographic coverage;In total, 81 customer survey questionnaires were collected representing a broad cross section of Electrolux customers;- Customer Survey Breakdown - ;;;;;;;Ordering;Ordering Service Importance and Customer Satisfaction;“Ability to Respond to Urgent Orders”, and “Product Availability” ranked the most important factors from the survey
Though above average, the customer satisfaction rate towards Electrolux’s ability to respond to urgent orders scored relatively the lowest among all the factors. Customers from most of the regions, such as Carrefour Beijing, Guangzhou Department Store complained that there is no differentiation in response levels between the normal orders and urgent orders
The overall customer satisfactory rate towards Electrolux’s ordering service level is particularly low in the Guangdong region
Most of the retailers showed lack of understanding for minimum order quantity and order frequency as they are presently ordering based on demand and payment credit, and regard minimum order quantity as less important in affecting their business revenues. Several customers indicated “1” as desired minimum ord
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