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Sundan Reduces Inventory Costs, Strengthens

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Introduction

Sundan Reduces Inventory Costs, Strengthens Operations Management Shenzhen Sundan (Chain-Store) Stock Co. Ltd (Sundan) is a consumer electronics goods retailer with 17 stores in Shenzhen and other cities in China's Guandong province. The company offers a wide range of goods from China and overseas such as computers, digital cameras, and cell phones. With competition intensifying in the retail electronics goods sector, Sundan realized it had to revamp its enterprise resource planning (ERP) system and modernize management practices. In addition to strengthening competitiveness, this would help the company introduce more efficient processes, reduce costs, and improve customer service. In November 2005, Sundan installed a range of Oracle's JD Edwards Enterprise One applications as the basis of its new business management platform. The system provided the company with an enterprise-wide view of operations and delivered sales data from retail stores to managers' desktops. Sundan also gained tighter control over financial, inventory, and supplier management. (Southern China Business Express - 03/05) Profile: Sundan runs 12 stores actually and opens another 4 stores in 2004. All stores are located in Pearl River Delta, majority in Shenzhen. ...read more.

Middle

Other outlets followed with increasing speed. B2C was launched in Spring 2002 to support local business. Regional warehouses assure fast delivery to the customers. More Control over Business Operations One of Sundan's main goals was to establish best-practice business processes to improve productivity and gain tighter control over every aspect of its operations. The JD Edwards Enterprise One platform introduced more efficient ways of working to the company. Manual tasks were automated and new workflows built into the system to ensure staff followed set procedures. This minimized confusion and enabled managers to track the progress of specific orders or tasks. The integrated system also encouraged information sharing between departments. For example, easier access to data means accounting staff can compare supplier invoices against actual purchase orders. Retail stores can check if a particular product is available at the company's distribution centre. Regular communication with suppliers is also possible. Senior managers now have real-time access to accurate, up-to-date business information. Regular data analysis helped Sundan spot emerging market trends and enabled the company to respond faster to changes in consumer demand. ...read more.

Conclusion

And creating products and services is the very reason for any organisation's existence, whether that organisation be large or small, manufacturing or service, for profit or not for profit. There is evidence that organisations are spending increasing amounts of money on improving their operations. Operations management is the largest segment of the market. Effective operations management gives the potential to improve revenues and, at the same time, enables goods and services to be produced more efficiently. It is this combination of higher revenues and lower costs which is understandably important to any organisation. Shenzhen Sundan Stock Co. Ltd certainly understands its market and how it can serve the needs of its customers. Furthermore, its products must be regarded by its customers as representing outstanding value for money. At least as important, however, is the way it organises the delivery of its services within its stores. This is the responsibility of the company's operations management - the people who manage its store operations. Reference http://www.sundan.com/b2c/cn/eng/default.htm# www.softtech.com.hk www.rgu.ac.uk/intranet/emerald Bernard Burnes (1999), Managing Change, 2nd edition, UK: Pitman Publishing Pearce Jack & Robinson Richard (2000), Strategic Management, 7th edition Jenny Preece (1998). Human-Computer Interaction ?? ?? ?? ?? Operations management KE WU HRTM Higher Dip 1 ...read more.

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