All posts by meerimava

CONCEPT OF Customer Synchronized Resource Planning

The modern concept – CSRP (customer synchronized resource planning) – covers almost the entire product life cycle. This is very important from the point of view of cost management. To understand how much it costs the promotion, production and maintenance of the product, you need to consider all the elements of its functional life cycle. Often the cost of service, logistics and marketing are considered as overhead. From the standpoint of accounting it could and good, but not in terms of cost management and evaluation of the real costs.

The latest of productive resources management concepts – CSRP (resource planning, synchronized with the user) has been proposed by SYMIX.

The essence of the concept is that the planning and management of the company can and should take into account not only the basic manufacturing and material resources of the enterprise, but also all those who are generally regarded as “auxiliary” or “false.” This is the resources consumed during the marketing and the “current” work with the client, after-sales service, transhipment and service operations, as well as intrashop resources. This approach is crucial to improve the competitiveness of enterprises in industries where product life cycle is small and requires respond quickly to changing consumer desires.

Ability to interact multiple applications developed using different technologies – a key condition for the success of CSRP. It is now possible to build a unified application for production management based on individual modules made by different manufacturers. Production, management, sales, customer service, maintenance and other customer-oriented business functions can be performed in the relevant parts using specialized software. In this case the application will receive and provide business-critical information from the central business system based on the CSRP and used by other parts of the organization.

Advertisements

BUSH’S LEGS

“Bush legs” (Russian: ножки Буша) is a prevailing term in the post-Soviet states that denotes chicken leg quarters from the United States.

The expression first appeared in 1990 when Mikhail Gorbachev and George H. W. Bush signed a trade agreement about delivery of frozen chicken leg quarters to the USSR. In those times the USSR was experiencing food shortages and “Bush legs” enjoyed wide popularity.”

WIKIPEDIA

Imports of U.S. poultry to Russia and ex Soviet countries began in the early 1990s, under a trade agreement signed by the Soviet Union’s last leader, Mikhail Gorbachev, and then-U.S. President George Bush Sr.

The first shipments of chicken legs arrived as a bitter economic crisis gripped the country, emptying the shelves of Soviet supermarkets and forcing the government to introduce elements of food rationing. The specter of famine combined with political instability ultimately led to the collapse of the Soviet Union in 1991.

Used to ill-nourished and generally unappetizing domestic poultry, Russians and other EX-Soviet countries had never before seen such huge chicken drumsticks, and were quick to dub the new product “Bush legs.” Baked, braised or boiled, “Bush legs” have since become part of the everyday diet in poorer households.

Image

Chicken legs still remain a popular and cheap food in The Commonwealth of Independent States. A Russian joke says: “Bush family members come and go, but the legs are forever.”

As of 2009, Russia accounted for some 22% of all poultry exports from the United States, the world’s largest poultry producer and exporter. Almost four-fifths of all imported poultry on the CIS market came from the United States.

U.S. poultry shipments peaked in 2001, topping 1 billion metric tons, and began to decline as the Russian government began cutting import quotas. The figure stood at 800 million metric tons in 2008 and dropped to 750 million metric tons last year. The quota was further reduced to 600 million metric tons this year and was to reach 409 million metric tons in 2012. Furthermore, as soon as the great commodity deficit of the 1990s was over, Russian public began speculating over the possible dangers of the product, citing excessive levels of hormones, antibiotics, chlorine and other chemicals.

Howewer delivery of Bush’s legs is still continuing to Kyrgyz Republic.

Image

The reason for this are cheap price and availability of paultry the whole year, with high rates of meat prices remain high and unaffordable to the socially vulnerable. The price of beef is around 10-12 US dollars per kilogram. It is very expensive, so people prefer “Bush legs” (chicken legs), which is three times cheaper – 3-4 US dollars per kilogram even it is not healthy…

Image

Online shopping vs. Traditional shopping

   

Image

Nowadays more and more young people choose the on-line shopping instead of traditional shopping, nevertheless, traditional shopping is still of great importance in contemporary society. Both of them are indispensable to human’s life. Despite the same purpose of on-line shopping and traditional shopping, there are two obvious differences between them.

Image

To begin with, the traditional shopping means we need to go to the streets or markets if we need something. We can decide whether to buy or not by our true feelings. All the goods in the stores are visible to customers. Unlike traditional shopping, online shopping depends on the Internet. You can find many shopping websites such as Taobao and Amazon and buy what you need without going out. We can only get the information by the pictures or descriptions while price in on-line shopping is much lower than traditional shopping.

The second difference is the comments. When you buy something like cosmetics and medicines, you can’t know the efficacy of them even you buy them in the supermarket. The salesgirl may introduce different kings of goods and the varieties of advantages of them, but sometimes you just find it difficult to believe their words. In contrast, the on-line shopping can show you the comments left by the buyers. From the comments, you can learn the disadvantages of the goods.

Third difference which is mostly drive people to buy online is time and simplicity: You don’t have to commute, find parking, deal with big crowds or wait in long lines. In addition, you won’t waste any gas. The gas factor might feel particularly appealing right now due to skyrocketing fuel prices.

Every coin has two sides. Online shoppers spend time typing their information and spend money to have their purchases shipped to their home in a timely fashion. However, they will eventually run into shipping issues during their Internet-shopping career, including: weather delays, technical mishaps, address confusion and lost packages. Consider the deadline you need your product by before ordering it online. Also consider how reputable the company you’re ordering from is, and how often they have these mishaps occur with their shipping services.

According to the differences between traditional shopping and on-line shopping, both of them have their own strengths and weaknesses. We should make better use of the strengths and try to avoid the weakness when we are shopping in our daily life.

Image

 

 

ONLINE RETAILING LOGISTICS

Image

 

The internet retail revolution has brought enormous benefits to the global express and logistics sectors.

Nowadays the online shopping market now accounts for almost a fifth of all purchases in some developed markets, and is growing at anything between 15-20% a year in Europe and the US and around 75% a year in China. Fortunately for the logistics industry, the online shopping model means that consumers’ trips to the shops are being substituted by delivery direct to the home.

However at the same time, the market is enduring growing pains of many different types. Take China for example. The express and logistics industry has just not been able to keep pace with the growth in demand. Quality has become a critical issue, with delivery deadlines across the holiday season being missed. This undoubtedly will slow the take up by Chinese consumers.

The economic shift towards consumption rather than export driven production seems to have caught the Chinese logistics industry by surprise. The domestic sector is primarily serviced by local players without the systems or maturity to cope with the growth. In addition to this, the high level of fragmentation has made the market hyper-competitive, a factor, along with an uncertain regulatory regime, which led DHL to withdraw from the domestic market last year. Turning the massive growth prospects into tangible profits has proved to be elusive.

It is not just the logistics service providers which have faced problems in China. There has been speculation in the press that Foxconn’s online shopping website is on the verge of shutting down. With 30% of customers located in rural areas, the company has been losing money on each delivery.

In the US a different challenge to the industry has arisen, one which will have a fundamental impact on online retailers’ distribution strategies.  In the past, many distribution centres’ locations were driven by factors such as access to transport infrastructure, ports, airports as well as proximity to consumer markets. Now there is another factor to take into account: state taxation policies. It seems that although one part of local government may be trying to attract giant logistics sheds to their vicinity (not least because of the employment opportunities they bring), state tax collection agencies have a very different focus.

Image

For example, tax collectors in Arizona have just handed internet retailer Amazon a $53m bill for uncollected sales taxes. Amazon has stated that it intends to fight the case vigorously. The argument revolves around where a transaction can be considered to have taken place and whether this can be considered to be at the site of order fulfilment. In the case of Arizona, Amazon has four distribution centres, positioned to take advantage of the good links with the West Coast ports. Amazon clearly does not believe it should be taxed wherever it has distribution centres, instead lobbying for a nationwide tax regime for online retailers to be established. In fact, this is not only a US issue, with governments right across the world trying to work out how to capture missed sales tax revenue.

Europe was not immune to the problem of fulfilling customers’ expectations either. One survey shows that last year, in the UK, a quarter of online shoppers received their goods “later than expected”; while 13% said they received nothing at all.

There is no doubt that the online shopping phenomenon has given the express and logistics industry a welcome shot in the arm. However, in many respects the sector is still maturing, with development issues on both the supply and demand side. These challenges may slow momentum temporarily, but even in developed markets, prospects for future growth are still exceedingly strong.

 

WHERE TO BUY ZARA CLOTHES?! ONLY IN SPAIN!

Image

 

 

Inditex, the group behind Zara, Zara Home, Bershka, Massimo Dutti, Oysho, Stradivarius, Pull & Bear and Uterqüe, is one of the world’s largest fashion retailer and a leading edge in the fast fashion industry with more than 6.000 stores in 86 countries. The founder, Amancio Ortega, is listed as the fourth richest man in the world according to the Bloomberg Billionaires list with an estimated fortune of $54,7 billion!

The group has more than 120.000 employees worldwide and Zara is the biggest and oldest brand of the group with 1.751 stores around the world (1.122 in Europe – 332 only in Spain – 65 stores in the UK, 45 in the US and 6 in Australia). Founded in 1975 in A Coruña, the brand makes more than 840 million garments a year (source: November, 2012). Opened its first store outside of Spain in December 1988 in Oporto, Portugal. The Inditex group leaves its rivals way behind in terms of stores around the globe. According to The New York Times in November, 2012, the Arcadia group (which owns TopShop, TopMan, Miss Selfridge, Evans, BHS, Burton Menswear, Dorothy Perkins, Outfit and Wallis) has about 3.000 stores worldwide; the Swedish H&M has 2.500 and Mango, also based in Spain, has 2.400 – while Inditex has 6.009 stores in total.

Zara’s success is the stock clothing in a limited quantity, they do not replace collections. If the stock is sold completely, there is no second chance to buy. That makes the consumers buy the garment right at the moment they see it, afraid they are not going to find it in another opportunity, not even waiting to go on sale. “With Zara, you know that if you don’t buy it, right then and there, within 11 days the entire stock will change. You buy it now or never. And because the prices are so low, you buy it now”, says Masoud Golsorkhi, the editor of the English magazine Tank (NYTimes, Nov 2012). Merchandise moves extremely quickly even by fast fashion standards – all stores worldwide receives deliveries of new clothes twice a week!

What many people do not know is that prices are different depending on the location of the store. Prices are usually cheaper in Europe, especially in Spain and more expensive in South America and Asia, for example. That allows Zara to make a bit more money from countries that are not so affected by the economic crisis. Besides, Zara factories are based in Spain and nearby locations as Portugal, Turkey and Morrocco, so new designs can get into store faster and costing less. The trendiest items are produced close to the headquarter therefore the production will not take more than 3 weeks to go straight to the shops. The rest of the collection is made in China, Bangladesh, Brazil and many other countries.

In certain countries, a garment can cost more than 100% as the same product found in Spain. The strategy makes Zara to maintain a high value in other countries, besides supporting people to buy in Spain. But is Zara way cheaper in Spain? Where are the best places to buy Zara products? I decided to separate some products from the new Spring collection to compare the price through Zara around the globe (only those countries with an online store – Brazil and Australia are not included on the list!). Check the list below – all the prices are in American dollars for the simplicity.

Image

Image

Image

Image

Image

Based on the products shown in this post, you can see that the prices of some products from Zara Spain are up to 110% cheaper than the same product in Zara Russia, for example. Check the full list below with the average percentage of the price comparison between products in Spain and worldwide.

 Image

This quick research shows us that Zara products in the UK are at least 31,43% more expensive than in Spain or even 97,49% more expensive in Japan. According to the analysis, the countries with lower rates in comparison to Spain products are the United KingdomE.U. countriesUnited Statesand Mexico. The countries with the highest margins are ColombiaRussia and Japan.

So if you are a fashion addicted or you just like ZARA’s design I highly recommend to stock ZARA here!

Sixt “Spirit of Mobility”

Sixt is a Worldwide car rental company headquartered in Pullach, Germany. It has around 4,000 service stations in over 105 countries. Sixt was founded in 1912 by Martin Sixt in Munich, and continues to expand internationally. Sixt is the 5th biggest car rental company in the World and is the largest BMW car rental company in the world. 

The company is owned 57% by the Sixt family and it is named after the founder’s last name Martin Sixt.The remainder of the shares is traded stock. Several family members manage the company: Erich Sixt (CEO), Regine Sixt (Marketing), Alexander Sixt (Corporate Development), Konstantin Sixt (Online). So it is very effective in case of controlling the whole company.

Sixt provides rent and leasining of fleet for their clients. To assure highest quality in every phase of the leasing process, Sixt has implemented international harmonized and customer oriented workflows. Defined service standards and service level agreements enable cross country mobility solutions that client can rely on.

Sixt Leasing has designed its logistics and related services in such a way so as to make them as flexible and cost-effective as possible. You can opt for delivery at the dealer, at your company site or directly to your home. An important advantage is the station network of Sixt rent a car, as you can always find a station close to you. The logistic intelligence of Sixt Leasing offers advantages, especially for large service fleets and complex requirements such as labeling of vehicles or special fittings. Sixt´s solutions are always geared to individual requirements. They not only book your vehicle at reasonable prices, monitor the delivery time and register your vehicle, but also keep your staff mobile right from the start with a temporary car from the Sixt fleet.

Link to website: http://www.sixt.com/

 

PEGASUS CARGO

Hi to everyone!

After Diana’s post I also want to note one avia company  🙂

Maybe you have heard about this company it is very famous turkish airlines and recently it became very famous low cost in Central Asia and Russia. It flyes 97 destinations and also flyes to the biggest and famous cities of Europe as Madrid, Berlin, Paris, Brussels, Bologna, Brazil and etc. Pegasus is Turkey’s most established private airline has been flying for 20 years and uses cutting-edge technology and they have Pegasus Cargo logistics. So they are as other “smart” (low cost) companies ship parcels. 

About the company:

Pegasus Airlines (Turkish: Pegasus Hava Taşımacılığı A.Ş.) is a low-cost airline headquartered in the Kurtköy area of Pendik,Istanbul, Turkey formed 15th April of 1990. Formerly a charter airline in partnership with Aer Lingus, Pegasus is now completely controlled by Esas Holding. In January 2005, ESAS Holdings purchased Pegasus Airlines and placed Ali Sabanci as the chairman. Two months later, he changed the airline from a Charter airline, to a Low-Cost airline. In 2007, Pegasus carried more passengers in Turkey than any other private airline. In 2008, it carried a total of 4.4 million passengers. In 2013 the passenger traffic grew even further to 16.8 million passengers carried. In 2012, Pegasus Airlines, the second largest airline in Turkey. Pegasus becomes a new Airbus customer and the first Turkish airline to order the A320neo. This is the largest single commercial aircraft order ever placed by an airline in Turkey, and was announced on December 18, 2012.

Image

 

“Easy way to send”

Company’s slogan

Even if they started to fly to my country KYRGYZSTAN recently, Pegasus Airlines was bought 49% of our Kyrgyz air company Air Manas in June 2012. 22 March 2013 the air company had operated its first flight under the brand name Pegasus Asia. Pegasus not only has facilitated the distance between Central Asia and some post Soviet countries and made it really cheap comparing to other air transporting companies  but also has given us possibility to send and get  parcels very fast and for convenient price. 

P.S. Normally we (Central Asia) use only DHL and Fedex Ltd.for international shipping and it is expensive enough. My next post will be about this. 😉

 

P.S. #2 Have you known that Avia companies have their own yearly award named “Cargo Airline of the Year”?!

Each year, customers vote for their favourite carriers based on their efficiency and friendly ease of use. Awards are also given each year to the best ground handling company, the best GSA, the top charter broker –  and to a mystery global personality who receives recognition for a lifetime’s endeavour. The event culminates in a glittering London ball as award winners travel to London from around the world to collect their prizes.

http://www.aircargonews.net/cargoairlineoftheyear/home.html

 

 

Links to web pages of Pegasus Airlines and Pegasus Cargo:

http://www.flypgs.com/

http://www.pegasuscargo.com/