Jinjiang Shoe Enterprises Test Water Zero Inventory

　　 The concept of "zero inventory" and "zero inventory" is a special concept for commercial enterprises. The meaning of zero inventory is a concept that the storage quantity of some or some kinds of goods in the form of warehouse storage is very low. Literally, "zero inventory" seems to mean no inventory, but in fact, the "zero inventory" implemented in the field of shoes does not mean that there is no inventory, but to reduce the inventory to the minimum. It mainly means that franchisees are not allowed to bear any inventory risk, and a small number of inventory companies recover them uniformly, and then sell them in the form of discount stores.

For example, businesses can try to sell a certain product of a shoe enterprise, order a small amount of goods for the first time, and then contact the company according to the actual situation after feedback of the market effect. This way can effectively avoid the situation of poor sales of goods caused by insufficient judgment on the region and market.

　　     Jinjiang enterprises take the lead in zero stock

In September 2009, wantaisheng's "U.S.POLO Assn." business campaign held in Jinjiang in the spring and summer of 2010, officially launched the new model of zero inventory franchise, which became one of the most eye-catching highlights during the peak period of Jinjiang enterprise ordering meeting. Prior to this, Jinjiang Sports Brands norch and Baoda have also launched a "zero inventory" franchise model.

As one of the pioneers of the "zero inventory" franchise mode, norch adopts the "zero inventory, direct marketing management" franchise mode, that is, the mobile ordering mode. It adopts direct marketing management for all franchise stores, and 100% recovery of the original price of off season goods. "Zero inventory" franchise in the implementation of a year later, "the market effect is still very good, since the implementation, we have land and land in the country has dozens of franchise stores, and in the near future will also have a number of franchise stores." In terms of the "zero" brand expansion of the company, the director of novotech has achieved immediate results.

As a new entrant of the "zero inventory" franchise model, wantaisheng's franchise mode is mainly "regional protection" based on the brand influence and price competitiveness advantages, which is to ensure that the products of dealers have a higher profit margin compared with ordinary brands, and carry out value preservation and exchange of products of some regional distributors.

   The meaning of zero inventory

The proposal of zero inventory can solve part of the waste phenomenon in inventory management. Enterprises can reduce the cost of inventory management, reduce the funds occupied by inventory, and avoid a series of problems of warehouse inventory, such as warehouse construction, management costs, inventory maintenance, storage, loading and unloading, handling and other expenses, occupation of working capital of inventory and aging and damage of inventory Loss and deterioration. Inventory management is the logistics part of the four major flows of enterprise management system. Inventory management carries out account management for the entry, storage and delivery of materials, that is to manage the relationship between the supply and demand of materials. It should not only achieve the balance between supply and demand, but also reduce the inventory of materials as far as possible, because it will occupy (overstock) the valuable working capital of the enterprise. Enterprises through the realization of zero inventory management, optimize accounts receivable and accounts payable, accelerate capital turnover. Zero inventory strategy shortens the supply time of raw and auxiliary materials, and reduces the occurrence of major accidents. Therefore, zero inventory management can shorten the production cycle of products and avoid the risk of price reduction and unsalable due to market changes and product upgrading.

　　   Small and medium-sized enterprises should not blindly stock shoes

Although the financial crisis hit, making the inventory pressure of many enterprises increasingly intensified, but the ideal joining mode of "zero inventory" is not all enterprises can try. However, in today's inventory situation is so severe, "zero inventory" franchise mode is an effective way to reduce inventory pressure for agents. However, it is not wise for enterprises to blindly shoulder the inventory burden on themselves only to attract agents when the conditions and timing are not very mature.

For emerging brands or immature small and medium-sized brands, their market has not been fully opened, and their sales network has not yet been fully opened. In terms of handling inventory, we can set up discount stores in some targeted areas to eliminate inventory, and it is not suitable to adopt the "zero inventory" approach. As for some big brands such as Anta, Li Ning and Tebu, due to their relatively mature enterprises, if they want to rely on the "zero inventory" franchise mode to concentrate the goods that the agents can not sell back to the headquarters, it will only further increase their own inventory pressure.

Zero inventory is the ideal state of inventory management in today's era, and the embodiment of comprehensive management strength. The realization of zero inventory needs to be linked in procurement, production, logistics, sales and other business activities. In the process of realizing zero inventory, there are still some obstacles. The risk of zero inventory to enterprises can not be ignored, and its feasibility is worth studying from both positive and negative aspects. Moreover, any management means and technology need cost and cost. As a wise enterprise, input must be less than output, because the enterprise must always have profit to survive. Therefore, enterprises in the implementation of zero inventory management, should actively consider and improve, can not blindly practice.