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、生产方面：过去：订单周期相对较长，一般不会少于35 天，生产周期15天，但由于受前段运作（业务、技术、采购）的困扰太大，导致生产计划缺乏保证，“出货”问题给各级生产主管造成的压力过大，并且大家的工作方式很明显都已习惯“追踪式管理”为主；现在：由于前段运作的自主性（一般为3—7天），使生产的计划安排相对保证，但根据“订单”来组织生产的情况再也不会存在，《生产指令单》成为生产现场运作的唯一依据，而且，“款杂单碎”的现象比以前更明显，生产周期也要求相对缩短（3—7天），最重要的是品质要求和品质控制程序将比以前更严格，一双鞋子没做好就会影响到品牌的声誉，更会失去一个直接的、能为公司贡献利润的消费者，甚至是一个出色的渠道。

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、外贸的单越来越难做，订单杂、单量小、款式配色多，这使工厂生产效率越来越低；2、订单价格的利润空间已低到很多鞋厂承受不了的地步， MD底一般只有5元，TPR底一般只有3元，但这还只是预先估计的利润，如果算上材料浪费、品质不良赔款、货期延迟赔款，再加上水电费涨价、工资水平在提高和部分原材料涨价等各种因素，一单下来，赔款的可能性占了40%，照这样做下去，工厂哪来的本钱快速发展，而不能快速发展就被别人“甩”在了后面；3、整个工厂的运作基本上是围绕外贸中间客户在转，他们固有的利益诉求以及一些QC的人为因素、情绪化工作都使工厂的机会成本和管理风险居高不下，换句话说，工厂已被外贸客户所控制，最明显地是客户的回款周期太长，账款占用已成为普遍现象；4、今年欧盟新执行的“鞋子不含‘偶氮’”的标准，使晋江很多鞋厂

失去了欧洲的市场；5、当前，美国、日本等一些国家都强烈要求中国使“人民币升值”，而中国政府已明确表态，不会使“人民币升值”，为的是继续使中国的产品保持出口竞争力；但同时为了使其他国家心理平衡，政府正在考虑，打算将出口退税率降低4%，另外，由于财力的关系，国家对出口退税兑现的周期将会越来越长，这就使外贸公司的资金周转期越来越长，部分在晋江下单的外贸客户已出现了明显的付款困难；6、由于中国政府表示“人民币不升值”，因此，美国国会部分参议员已经提议，要对中国出口到美国的所有产品（包含通过美国转口到墨西哥的产品）加征27.5%的关税，如果国会批准这一动议，那么这对于晋江的鞋子来说就是“雪上加霜”，因为晋江有很多生产的鞋子（挂国外商标），既有出口到美国的也有通过美国转口到中东和非洲国家。

7、国内市场不是一块固定的“蛋糕”，随着晋江44家致力于品牌营销的鞋厂在中央5台的纷纷“亮相”（今年又有近一半“移师”湖南卫视），国内运动鞋、休闲鞋、运动休闲鞋、休闲运动鞋的市场越来越大，消费者需求旺盛，业内同行相互“借力借势”，80%从这个巨大的“聚宝盘”里多少不一地“挖”到了“一桶金”；8、代理国际品牌在国内市场的销售，晋江的鞋业界已有成功的先例：2002年“花花公子”的运作创造了业界的“奇迹”，2003年，“香港鳄鱼”、“法国鳄鱼（卡迪洛）”、“梦特娇”、“袋鼠”、“华伦天奴”（三种）、“烟斗老人”、“摩风”、“卡尔迷”等等一大串品牌相继跟进；由此，利用代理国际品牌快速建立自有的销售渠道，抢占“一条有利的跑道”，已成为业界众多有长远眼光的“大佬”们的明智选择！

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.