1
Click to add notes
Driver 1: Increasing Velocity
Velocity
Examples: Dell, Cannondale Bicycles, UPS, Zara, Cisco
Driver 2: Improving Visibility
Visibility
Examples: FedEx, Dell, 3Com, Cisco, WalMart
Driver 3: Controlling Variability
Variability
Examples: Cemex, Cisco, Amazon.com, eBay, Ford, 7-
Eleven Japan
Zara – (CPG) Apparel giant in Spain. Sales growth of 20% in
consecutive years since 1990. Profit Margin of 10% is the highest
among it’s competitors. Makes extensive use of sales and
demographcs data to create new products on a rolling basis, price
aggressivley, and obsolete in response to market signals. This
demand management sophistication enables them to introduce new
products each week, amounting to 12,000 new products introduced
each year. They als have a very efficient and flexible design and
mfg supply chain so that design to deliver cycle can be as short as
20 days.
7-Eleven Japan – Legendary convenience store in Japan
Per Danis – the 4
th
V is VOLUME
You want volume in certain places – where do you want the majority
of your goods stored in the network.