- Jewelry Supply Chain Strategy
Group 2 : Xue Bai, Mia Zhong, Irene Lai
LXFM720 - SUPPLY CHAIN MANAGEMENT
TABLE OF CONTENT
SUPPLY CHAIN OVERALL ANALYSIS PRODUCT OVERVIEW MAKE OR BUY MACRO SUPPLIER ANALYSIS
BRAND OVERVIEW
MICRO SUPPLIER ANALYSIS
BRAND INTRODUCTION
TIME & ACTION
BRAND MISSION SWOT ANALYSIS
MARKET ANALYSIS TARGRT MARKET
TRIPLE CONSTRAINT CODE OF CONDUCT PRODUCT LINE COST ESTIMATES TECH PACK PURCHASE ORDER
CUSTOMER PERSONA
ORDER FREQUENCY
MARKET SIZE
PRODUCT PLANNING / FORECASTING
COMPETITOR ANALYSIS
INVENTORY MANAGNMENT
PERPETUAL MAP
TRANSPORTATION
COMPETITIVE LANDSCAPE MARKETING POSITIONING COMPETITIVE ADVANTAGES CHANNELS CSR
MAIMOUN QUALITY ASSURANCE QULITY CONTROL
PACKAGING & PACKING SHIPPING LABEL
WAREHOUSING & LOGISTICS REVERSE LOGISTICS
PERFORMANCE MANAGNMENT
CONCLUSION
LXFM720/SPRING2021
Brand Overview
Brand Introduction
NY based online retail store Located in: Syosset, New York. Category: Women's Clothing, accessories, home decor. Founded in: 2015 Founded by: Mina Alyeshmerni Online retailing only : Official Website, Instagram & Facebook
Company Mission Build a community -
Mina Alyeshmerni cultivates a
Maimoun of her own, comprised of designers and friends and turns into a family.
Friendly marketplace -
Mina aims at creating a
diverse environment for team and build the trust to reach key results.
Share the joy together
- Mina's mission working in
the fashion industry in everything from merchandising to costume design, providing a platform for the communities to share their joy in life.
A lifestyle store featuring thoughtful goods that blend into and build out the individual context around you.
SWOT Strengths Unique style - from various brands worldwide selected by Maimoun Wide partnerships with suppliers/retailers diverse categories compared to online clothing-focused brands
Weaknesses Unstable cooperation with retailer, designer, and supplier Hard to expand to global markets due to small scale of capacity and regional reputation
Opportunities diverse cultures popping up in the states gender fluid trend is popular with 20ish to 30-ish, our design is targeting at unisex and transgender oriented
Threats Online boutique stores are implementing the same strategies - diversification Similar buyer shops popping up and launch their own retail stores of both online and brick-and-mortar stores to share the market size The risk of high return rate of products under the pandemic
Market
Analysis SPRING2021/ LXFM720
Target Market Geographics
Demographics
Psychographics
Behavioral
Region : North America /
Age : 20-35
Unique elegance
Value design of the product
Central and South America /
Gender : unisex / transgender
Explorative
more than selling price
Europe
Marital status : Single
Exclusivity
Social media lover
Income : 10,000 - 30,000+
Fashion-conscious
Big fan of online shopping
Education : College +
pursue long-lasting
open to inclusive styles
Occupation : Art director,
accessories
freelancer, marketer,
Metal jewelry lover
fashionista, internet celebrity and influencer Ethnical background : Caucasian / Hispanic and Latino American / African American / Asian American / Persian American
Intuitive
Customer Persona
Name : Keila Holloway Ethnicity : White American Age : 25 Education : Bachelor degree Occupation : Graphic designer Location : Los Angeles
Name : Valentina Garcia Ethnicity : Hispanic American Age : 32 Education : Master degree Occupation : Writer Location : Salt lake city
Name : Estelle Shing Ethnicity : Asian American Age : 22 Education : Bachelor Degree Occupation : Photographer Location : New York
Market size
Domestic market share in the US
The Jewelry market size in the US
USD$ 6231 mn (2020) Online jewelry & watches market size in the US
USD $ 7.6 bn (2020) Annual revenue Tiffany & Co. - USD $ 4966 million (2020) Maimoun - USD $ 90,563 (market share 0.00145 %)
Caucasian accounts for the largest share of consumer group of Watches & Jewelry market.
Market size
Global Watches & Jewelry market Before COVID time The watches & jewelry segment accounted for 67% of the accessories global market revenue in 2019.
At 67%, the watches & jewelry was the largest segment of the accessories market with US$344 billion. Within US$344 billion, the jewelry accounted for 79% in 2019.
Jewelry generate the highest revenue in the watches & jewelry segment.
Sources :
Market size
Global Watches & Jewelry market After COVID time : 2020 -2025 Watches and Jewelry industry forecasting
COVID-19 impact : the 2020 forecast for the watches & jewelry segment is 15.9% lower now
Sources :
Market size
The UK & The US market share 2019 -2025 Watches and Jewelry industry forecasting Watches & Jewelry sales in Europe will increase at a CAGR of 1.2% from 2012 to 2025 The UK has the highest revenue in watches & jewelry market in Europe with 6.5% share in 2019 and is estimated 7.3 % in 2025.
Watches & Jewelry sales in the Americas will increase at a CAGR of 1.3% from 2012 to 2025. The US has the highest revenue in watches & jewelry market in Americas with 71.3% share in 2019 and is estimated 74.5 % in 2025.
Sources :
Competitors Analysis
Missoma is a company that designs 18K gold vermeil jewelry, using bold colors, gemstones and special hand faceted cuts. It offers necklaces, earrings, pendants, rings, bracelets, etc. Found in 2010 by Marisa Hordernand based in the UK. Their HQ is in London and have e-commerce platform. On a mission to inspire confidence, spark creativity, and fuel collaboration Annual revenue is about £8 M (2021) Price range : $33 - $606 The style is closed to Maimoun of elegant and long-lasting, but provide more collections than Maimoun
RG shop is a jewelry retailer offering eco-friendly and handmade goods only with 14k and 18k Gold, 14k Gold filled and .925 Sterling Silver metal. Found in 2014 by Rachel Karcich in Los Angeles, USA. On a mission of building a community from like-minded individuals and create a beautiful product line of high-quality jewelry at fair prices. Launch the career with a commitment of sustainability (CSR)- Take responsibility for the company's footprint, and aim at providing timeless pieces, like powering interior light by solar energy, recycling metal scraps for future manufacturing. Price range : $18 - $740
JAXXON is a jewelry retailer founded in 2018 based in Los Angeles offering chains, bracelets, and rings made in .925 sterling silver, 14 K yellow gold and white gold sourced from Italy. Their design is in style of neutral and unisex that suit for both men and women, but for men collection is dominant. Insist in the most enduring and premium quality materials straight from Italy, from solid 14k Gold to 925 Sterling Silver at a price point within reach. Annual revenue is $1 M (2021) Price range : $59 - $549
Founded and Designed by Faris Du Graf in Seattle, Washington in 2012, FARIS is a jewelry manufacturing company that provides collections of earrings, ear cuffs, necklaces, bracelets, and rings. Each collection builds on a vocabulary of bold, sculptural statements that aim to elevate the everyday and the rare occasion. They design and manufacture in Seattle-based studio. Annual revenue is $60,066 (2021) Price range : $59 - $720
Perpetual Map Exclusive
High Price
Low Price
Mass Market
Competitive Landscape
US online watches & jewelry market
Average revenue USD $10,184m (2021) Expected CAGR 2.76% (2021-2025) Per person revenues USD $30.59 (2021) Online consumer growth 56% (2021)
Sources :
Affordable Luxury
Indivisuality
Ethical & Endurable
Marketing Positioning
Competitive Advantage Exclusivity Creates unique style
New emerging Artists For exmaple, Kim Shui
Collective Store Variety of styles, many choices
Global Design Collection Collaborating with artists all over the world
Channels Website The official website is the main sales channel and contains the brand's introduction, culture and image display.
Instagram Publish the latest information about the brand and provide direct purchase links. Interact with consumers.
Distributors Cooperate with other distributors such as Garmentory, COOLS.
CSR Ethical sourcing We insist on the use of ethical materials for design. Earth-conscious craftmanship with guaranteed quality made in Italy. 100% recycled gold and silver
Cooperation We work directly with our centralized inhouse manufacturer in Italy rather than scattered manufacturers to : Cut out middle men Cut down on carbon footprint Provide the fairly prices to our end consumers Carefully-selected pieces without unnecessary waste during the production. Ensure that every supplier we work with doesn't use child labor, complying with our code of conduct.
Recycle, Remake & Resale We will recycle previous products by recollecting metal scraps or inventory, and remaking them into future products because we don't want our metals go to landfills and cause metal pollution. Tied with our product returning policy.
Design
Raw materials Manufacturing
Recycle
Quality Testing
Education We want to convey the story of the products with long-lasting value that the materials and sources of the items are eco-friendly. We are not only promote the products but educate our costumers with ecoconsciousness.
Return
Shipping
Sale Packaging
Supply Chain
Overall Analysis SPRING2021/ LXFM720
MAKE or BUY? We BUY the elements of accessories and raw materials considering our small capacity at this stage.
BUY : Raw materials & Components Freshwater Pearl 18k Gold .925 Sterling Silver Chain ( 18k gold / .925 sterling silver semi-product ) Jewelry Findings : Ear hook / Mounting / Eyepin
We outsource the raw materials and manufacturing process to an Italian manufacturer who sells their metal materials, semi-finished, finished products and also makes the products. Casting and molding a majority of our gold and silver pieces in our Italian manufacturer's studio. Product : Components include freshwater pearls, ear hook, chain, eyepin and so on. Raw materials : .925 silver, 18k gold Sourcing from suppliers in three different countries based on their pricing and product quality. We BUY pearls, beads and findings from the UK; metal materials from Italy and packaging materials from China. Build the trust with those suppliers who can provide fair and flexible services within the contract term.
MACRO SUPPLIER ANALYSIS
ITALY
THE UK
CHINA
PESTS ANALYSIS
POLITICAL EU member, bound by EU treaties and laws Member of OECD, WTO, OSCE, and G7 Political instability & disagreement over policies US citizens are not permitted entry except for students, businesspersons, EU residents, and relatives of Italian citizens Movement between regions is prohibited except for work, health or necessity until April 30, 2021. Imports taxes - Textile - 6.6% Clothing 11.5% Leather & footwear 4.2% Italy government operates one free trade zone: The free port.
ITALY
ECONOMIC GDP loss of 18% in 2020 Manufacturing represents 16.6% of Italy’s GDP GDP growth projections for Italy is 3% in 2021 Inflation rate of .8% 10.3 % unemployment rate with expected 11.6% in 2022 The country has suffered from deindustrialisation Average labor cost $30 usd/hr
SOCIAL Italian is the official language of Italy, and 93% of the population are native Italian speakers Italy has the risk of natural disasters, like earthquakes and climate change. Large portion of manufacturing companies are family-owned Family oriented and value social activities
TECHNOLOGICAL The use of the Internet is fast rising in Italy with 3 million new internet since quarantine One of the top four countries in Europe in digital revolution Companies investing heavily in scientific and technological research Italy textile production industry is one of the most advanced in the world
SUSTAINABLE
The government, ensuring an environmentally sustainable economic development Land, Sea and the Ministry of Foreign Affairs was also working on sustainable
PESTS ANALYSIS
POLITICAL
Constitutional monarchy that runs under the influence of a parliamentary system Relatively ‘fair’ country, with the public having a large influence on the inner-workings Proactive government Politically stable Split into national and local administrations Negative factors
SOCIAL Well-structured Health Care System Education systems are recognized worldwide High income with per capita among the world’s top 20 countries Law changes affecting social factors
1. Some well-hidden corruption 2. Leave the EU (Brexit)
ECONOMIC
THE UK
GDP of $1.96 trillion pounds in 2021 (COVID impact) The fifth-largest economy in the world Diverse market provides an equal opportunity for all the businesses to grow and flourish Many individual investors and companies have invested their resources and capital in various fields like real estate, science, technology, food, clothing, grocery, entertainment, and sports The UK economy contracted 22% in the first half of 2020 (COVID impact) Economists project GDP growth in the range of 5.8% to 7% in 2021 The UK market is the largest in Europe and the fifth-largest in the world for U.S. goods exports The United Kingdom is the largest market in the world for U.S. service exports.
TECHNOLOGICAL Has the world’s leading research and development institutes The world’s leading developed countries Global communication technological advances British tech institutes are succeeding over Indian, Japanese, Korean and American institutes The leader of digitalization in fashion week, 2015 Burberry Intellectual property rights and copyright infringements
SUSTAINABLE The level of pollution created by the products and services Recycling considerations and awareness in apparel and fashion industries Environmental issues like bad weather Attitudes to the environment from the government, media to consumers
PESTS ANALYSIS
POLITICAL
Communism government Opening Shanghai Pilot Free Trade Zone (SHFTZ) to create a welcoming trade environment One of WTO members One of APEC members The government focused on the development of e-commerce Growing national protectionism Trade war impact 1. Penalty Duty : The US consumers and companies should afford higher tariff 2. Trade deficit in the US market
CHINA
ECONOMIC The second largest economy right behind the US, with a $16.38 trillion GDP and a growth rate at 8.5% Extremely low labor cost Risks 1. High inflation rate 2. High property prices
Trade war causes the US-China business investment frozen Top nation of manufacturing output The People’s Bank of China has increased interest rates The central bank is urging banks to lend less and impose limits on home purchases
PESTS ANALYSIS
SOCIAL
Population growth and age distribution fluctuate Cancellation of family planning policy, and encourage of the birth of a second child The literacy rate in China is over 90% 420 million Internet users
TECHNOLOGICAL CHINA
No 1. largest e-commerce market over $1 trillion No 1. largest 5G Communication Taobao is the largest local e-commerce website The B2C development does not have a safe and stable online payment system Blockchain
SUSTAINABLE
One of the most polluted countries Improved social insurance cover rates over 10.2 % Revised Environmental Protection Tax Law and water Pollution Prevention and Control Law Slow change towards green consciousness
MICRO SUPPLIER ANALYSIS
Ellebi Catene SRL
Business info Location : Via Adolfo Ficai, 24, Monte San Savino, Tuscany, 52048, Italy Business type : A jewelry manufacturer and wholesaler Employees : 46 Revenue :USD $9 Million Provide : precious metal like 925 silver and 18 karat gold Tel. / Fax : +39 0575 849696 email: info@ellebicatene.it
Competitive Advantage Offer the outsourcing services : from raw materials to semiproducts to finished goods. Made in Italy. expert in sterling silver production and fine jewelry. professional staff advanced technologies well-known reputation with exporters, importers, wholesalers, and manufacturers worldwide. fair price abided by global live gold price market.
Product/service we need raw material : .925 sterling silver mainly, 14k and 18k gold manufacturing service
I-Beads.com
Business info Location : 50A Maltings Place, 169 Tower Bridge Road, London, SE1 3LJ, GB Company : A family-owned online beading retailer and wholesaler with six websites targeting different markets in Europe. Employees : 46 Revenue : USD $9 Million Provide : a variety of beads, semi-gemstones, settings, pearls, and jewelry findings Tel. : +44 207 367 62 17 email : info@i-beads.com
Competitive Advantage Staff fluent in a number of European languages Flexible delivery times and options to all destinations based on tailored needs. well-structured return policy Number one online bead retailer in Europe over the ten years. strongly committed to customer satisfaction by improving customer services UI : user friendly with high quality graphics and detailed product descriptions
Product/service we need .925 sterling silver ear hook .925 sterling silver eyepin Freshwater pearl
Dongguan Xinyang Packing Products Co. Ltd
Business info Location : Room 202 and 301 1st Building, NO2 Qifeng Road,Nankeng,Qishi town, Dongguan, Guangdong, China (523000) Company : A packaging manufacturer providing the printing and packaging products since 2010. Employees : 149 Annual revenue : USD $5 - 6 Million Provide : Wooden Boxes, Cardboard Boxes, Plastic Boxes, Jewelry Display, Paper Bags Tel. : 17728907029 Fax : 86 0769 82218498
Competitive Advantage Flexible delivery times and options to all destinations based on tailored needs. well-structured return policy strongly committed to customer satisfaction Transparent information on products and bidding price
Product/service we need Ribbon Jewelry box Velvet bag Label
Time and Action
From design to product launch, we estimate the duration will be around 4 months , and the product will be one of the item of S/S 21 Collection.
Triple Constraint COST
SCOPE
TIME
In the development of our new products, we choose to consider cost as the primary issue, because our designs are jewelry and the cost of raw materials and the production process is our primary concern.
The second is the control of the design, because whether the jewelry category received the customer's welcome is very much dependent on the design.
Time is not a very big influence on jewelry products, but of course the summer will have a certain impact on the sales volume of jewelry.
Code of Conduct Maimoun expects all of its employees and vendors to comply with the law and act ethically in all matters. To help ensure our suppliers uphold our standards, our Supplier Code of Conduct communicates our expectations related to human rights, fair and safe labor practices, environmental protection, and ethical business conduct.
REQUIREMENTS FOR ALL SUPPLIERS Business Integrity The highest standards of integrity must be upheld in all business interactions. Fair and Equal Treatment Suppliers shall not use corporal punishment, threats of violence, or other forms of mental or physical coercion. There will be no discrimination in any part of the employment relationship. Child Labor Suppliers shall not employ any persons under the age of 15, the legal minimum age for employment in the country. Environment Suppliers shall meet or exceed all environmental laws and regulations.
.925 Silver sourced and made in Italy Inspiration comes from the ocean nature and shellfish's fancy-free growing lifestyle Irregular shapes of silver pieces and pearl imply "Freedom" S/S 2021 Collection
Production Overview
Product Depth
Product Breath
Crystal Accessories
Production Planning
JEWELRY SALES FORECAST
Jewelry compound annual growth rate (CAGR) 8.1% $108,000 net sales revenue for Maimoun (sell out)
Production Forecasting
925Silver Pearl Earrings
PRODUCT DETAILS As shown in the picture on the left, this is our product design manuscript and product effect preview. This is a pair of earrings with an irregular left and right shape. It consists of an earring hook and a metal body part and one earring with an irregular shaped pearl accessory. The current production is mainly in 925 silver, and from the long-term production plan, the 14k gold version will be added later.
Cost Estimates The price of 925 sterling silver is about 82.12 USD per 100 grams. The earrings will be made from raw materials by hand, and the earrings will include a pearl per pair, two earring hooks and two connection components. According to Salary.com, the average silver jewelry artisan's salary is $41,701. This will be the basis for calculating the labor portion of the cost. Let's say that the production cost of our pair of earrings is $28.4 and the total cost of the unit with the packaging box and bag $29.3 COGS per pair : $ 57 MARKUP : 47% MARKUP PRICE : $51 SALE PRICE per pair : $ 108
108
Tech Pack Product Spec Sheet
Tech Pack Label/Packaging Sheet
7c m
10cm 3cm
2cm
15cm
7cm 12cm
4cm
Product Life cycle
Introduction to the Growth Maimoun already has a base of customers, on the promotion of social networks and advertising to achieve sales growth. maturity to decline But the product sales grow to a certain stage, reaching maturity. the sales of the product will shrink. At this point, we will launch a new product line to regain consumer interest. As our brand continues to grow, our products will continue to innovate, not staying with the basics of sales, but going more into new designs.
Order frequency Flexible ordering strategy : every 3 months per order for now. Since Maimoun is a very new brand and the first time to make its jewelry products, so we need some time to experiment so that we can determine our ordering frequency. For now, we will start with our quantity order strategy of 1000 units every three months, this will ensure that we don't have too much inventory and that we can predict future sales more accurately by looking at the first few months' sales. After that, we will switch to order 1500 - 2000 units every six months to save the shipping costs.
Purchase Order This is a sample PO for Freshwater Pearl Also need other POs for : Earhook Eyepin Earrings( final product ) Packaging & Label
Syosset, NY, USA general@@maimounstore.com Website : maimounstore.com
Inventory management Jewelry Stores: Average industry financial ratios for U.S. listed companies
Inventory turnover formula = Cost of Goods Sold/ Inventory Our goal is to control our inventory turnover in 150 - 200 days Our Inventory turnover zone = 365 / 200 ~ 365 / 150 = 1.83~2.43 times per year We will control our inventory levels based on actual sales and the obtained inventory turnover ratio.
Inventory System Zoho Inventory is cloud-based inventory management software.
Zoho Inventory
Features : Centralized Inventory Database Inventory Level Dashboards Stock History Reporting Low Stock Notifications Bundles, Kits, & Variantse Commerce Integrations Accounting Integrations Data Exporting / Importing
STANTARD EDITION : $79 /month 1500 orders / month 1500 Aftership tracking / month 2 Warehouses 3 Users Composite items
Transportation Components
Route & Mode
Packaging & label
Components&Manufacturer Warehouse&wholesales
After analyzing our suppliers and controlling our costs, we select raw material suppliers in the UK and Italy and transport them to the Italian manufacturer for production, guaranteeing our image of high quality jewelry made in Italy. The jewelry is then shipped back to our warehouse in the United States for sale. The packaging and tags are sourced from chinese suppliers due to lower prices.
transportation According to the chart, we can see : UPS express performs strongly in overnight shipping and expedited shipping of 2-3 day deliveries. DHL has the broadest global footprint of the five companies And also the company with the most shipping options and flexibility to combine them. FEDEX has a strong ground transportation capability. Royal Mail, on the other hand, is too geographically diverse, with its main market within the UK. SF Express is the most effective, but air freight is expensive. Based on the comparison of these five courier companies, we choose DHL because of its business in the world are very mature, and the company has cross-border sea freight service, the price is affordable, will be our best choice.
transportation
Cost & Time The mailing cost for the package is $358 and will take 12 days from the Chinese supplier directly to the warehouse in New York.
The shipping of the parts took 5 days from the UK supplier to the Italian manufacturer at a cost of $195.
transportation
Cost & Time The diagram shows how the product is delivered when completed by the Italian manufacturer. We choose dhl's door to door service to ship directly from the Italian manufacturer's facility to our warehouse in New York, where they will be inspected for quality and sold. After comparing sea and air freight, we chose the air freight method with a time of 11 days and a price of 514 USD. We can ship 30kg of goods, about 1000 pieces of earrings.
The total transportation cost is $1,067.09
Quality Assurance General Product Criteria All silver must be sterling at 0.925 All gold metal must be 18K yellow gold at 75% gold and 25% alloy (Brass/Rhodium) No risk of allergy Wearing comfortability : Weight under 5 g All imported products should follow the rule of Federal Trade Commissions (FTC)
Earrings Product Criteria Silver Pendants must not contain sharp edges and scratching longer than 1mm. Pearls must not be flawed : variation of the scratching allowance is less than 1mm. Weight : The nature of .925 silver is famous for its lightness, and we want each single product weight between the range of 1 g - 3 g. Size and thickness should follow tech pack guidance.
Quality Testing Safety Test
Metal testing should follow SGS standard in Italy Hypoallergenic testing
QA samples Must be identical to final product with the same proper metal and pendants Final Samples must be submitted
Functionality Test
Water resistance testing Acid testing Scratch testing Corrosion resistance testing
with packaging, warranty cards, and care guidance. Missing deadline and/or submitting poor quality product will result in cancellation of ordering
Quality Assurance Flow
Quality Control Earrings Inspection Inspection done in house with studio QA team in Italy Metal testing (Gold / Silver) : a. Water resistance b. Hypoallergic analysis c. Corrosion testing Size and measurement
Post-production
Voice from customers
Performance test : meet
Collect feedback via :
brand's and customers'
Online customer service : Live
expectation
chat / comments from contact
Correction of any design and
us page / phone call
material issues
Social media : Facebook /
Comfortability : Easy to wear
Instagram fans page or posts
and no pain
comments
Finalized the production
AQL inspection Scratching or sharp edge length on metal surfaces
Total weight of a single finished product
Packaging Our packaging consists of three parts : Ribbon Jewelry Box The velvet bag The product label
Packaging
Primary
All are manufactured by our chinese supplier. The form on the right shows our packaging schematic, as well as the product care and instructions that will be placed inside the box.
Secondary
Packing We choose DHL international air freight door to door service for international part of raw material transportation and product transportation. The size of the shipping box provided by the express company is 50cm*40cm*40cm.
For the domestic mailing part, we choose Fedex. the express box is provided by the courier company and the size is 20cm*20cm*10cm.
Shipping Label Since DHL does not conduct business within the United States, we choose FedEx for mailing customer orders within the United States, because FedEx has a strong ground transportation capability. The picture on the right shows a virtual customer order mailing label. As for our packing, we will all use the packing boxes provided to us by FedEx.
Warehousing & Logistics - short term LOCATION 4301 Queens St., Long Island City, NY
SIZE The entire 2-story Building with 3,710 sf in total Floor plan : Ground floor : Basement for loading goods, Inventory storage First floor : Work area, Distribution Center Second floor : Office, Inspection room, photoshoot studio
warehouse location
Basement Floor Plan
Maximal Capacity : 12 people
COST For lease: $16.00 SQ/YR Rental price : $ 4946 /Mo ; $59360 / YR
First floor -floor plan
Second floor - floor plan
Warehousing & Logistics - short term Centralized warehouse & Distribution Center Since Maimoun is a small size business entity and it is at the initial stage to launch the namesake product line, we will start from centralized warehousing system for production process. Considering the leasing cost and convenience, we select the place in Long Island City NY as our warehouse and distribution center, which is about 30-40 mins driving away from the brand office. We will move a part of the office there.
MANAGEMENT We will move our procurement team there for executing and monitoring periodical QA process, packaging process, categorizing goods and inventory management. The office of the procurement section will be set in the second floor. Marketing team, financial section and manager office will remain in the HQ in Syosset.
Warehousing & Logistics - long term recommendation Current status In the short term, we sell products online to North America, Central America, East Asia, Europe based in our office and the centralized warehouse in New York.
Italy
Outsourcing raw material suppliers & In house manufacturing
New York
Brand office & Warehouse Distribution Center
The UK
raw material supplier China
packaging wholesaler & supplier End customers
Future Rough plan
Asian customers
EU customers
Warehouse Distribution Center
New York
Brand office & Warehouse Distribution Center
In the long run, we will set up the second warehouse in Italy and several DC all over Europe to expand European market.
Italy
The UK
raw material supplier
Outsourcing raw material suppliers & In house manufacturing Second Warehouse
China
Domestic customers
Central & South America customers
packaging wholesaler & supplier
Reverse Logistics Expected return rate Online purchases return rate: 20% to 30%
Maimoun return rate Maimoun Jewelry Online purchases return rate: 15% to 20% 15% of 1000 earrings = 150 earrings 20% of 1000 earrings = 200 earrings 150 earrings - 200 earrings Fiancial impact on repair: Repair expenses: $9 per pair of earrings 150 X 9 = $1350
250 X 9 = $1800
Maimoun will lose $1350 to $1800 if 150 to 200 pair of earrings all got sent back for return and repair on an annual basis.
Return Policy Strong Quality Assurance & Quality Control Real Picture of Jewelry in Detail and Fitting photo High-quality visuals of product on our website Final check with all orders
Returns & Exchanges If customers are not satisfied with their purchase and would like to return the product, items must be shipped/postmarked within 14 days of receipt for exchange or a full refund. Returns are $8 for all U.S. domestic orders, this charge will be deducted from your refund total. International orders may be returned using any method of your choice, at your expense. Using a trackable and insured service is recommended. Exchanges/Refunds are processed within 7 days after Maimoun receives the merchandise. Customers will receive a confirmation by email when their exchanges/refunds are processed. E-mail general@maimounstore.com to begin the return process stating the order number in the subject line.
Recycling Activities Returned Merchandise: Items must be returned in their original condition with tags intact. Maimoun reserve the right to refuse any returned item that does not meet our return policies. Returned items will go through a quality check before selling to the market again. All items are thoroughly inspected prior to shipment, should the customer receive a product that is damaged or defective please contact Maimoun within 5 days of receiving the order. Damaged products will be re-manufactured or repaired before resell. (One of our CSR implementaiton)
Performance Management Key Performance Indicators Customer Satisfaction: Customer Satisfaction will be judged using Facebook recommendations and Instagram engagements. Financial Health: Financial health of the brand will be calculated using Return on Investment per year. Next quarter goal: 25% ROI Slow moving stock: Every item will be tracked for inventory control and monitored weekly to determine the speed of sale. Goal varies based on art limited and basic items. Overhead expenses: Overhead expenses will be calculated by adding all the unforeseen expenses that come up every quarter. Next Quarter Goal: Reduction by 28%
Performance Management Key Performance Indicators Employee Satisfaction: Employee satisfaction will be calculated using employee retention percentage per year. Goal is to reach 93% employee retention Customer Retention: Customer retention will be calculated by looking at the application of the promo code of 10OFFSECONDPURCHASE on the website sales Inventory Turnover: Number of times inventory is sold or restocked in a year. Goal: 4 per year.
Returned goods: Returned goods will be calculated by counting the dollar value of returned goods, adding any restocking expenses, and subtracting the dollar value of the merchandise from the revenue, if it is damaged and not fit for resale. The goal is to reach 8-15% returned goods. Order Tracking Accuracy: The manufacturing team will be tracking order delivery. Goal: 100% accuracy
Balanced Scorecard Financial Health
Order Tracking Accuracy 25
40
Inventory Turnover 40
20
30
30
15 20
20
10 10
10
0
5
Spring
Summer
Fall
Winter
0
Order 1
Order 2
Order 3
Order 4
0
August
November
February
May
Balanced Scorecard 93% Customer Satisfaction
62% Customer Retention 20% Decrease in overhead expenses
90% Employee Satisfaction
17% Returned goods
6% Slow moving stock
Conclusion Suppliers are chosen based on the quality of raw materials and semiproducts from China, Italy, and the UK. Our code of conduct values Business Integrity, fair treatment, child labor issues, and environmental friendly processes. Main product lines are gold and silver jewelry. We aim at providing affordable luxury for our target consumers. Buy the materials and outsource to manufacturer for producing products due to our current entity size. The type of supplier we choose is similar to CMT service since we provide design diagram but outsource the rest of the production process to our Italian supplier. Buy the elements and raw materials within 1 month and outsource the production to our Italian supplier over around 3 months because time is not our top constraint in the process. Inventory turnover within 150~200 days and flexible ordering frequency to ensure that we don't have too much on-hand inventory and predict the trend more precisely based on our target market. Even though quality can mean in different ways to different people, we choose the well-recognized and common used measurements for QA and quality control to guarantee the quality and convince our end-consumers. DHL is our top carrier choice for transportation because of its mature development and affordable cost. Maimoun tries to improve the online purchase return rate within 15%.
References https://maimounstore.com/ http://www.passerbuys.com/profiles/mina-alyeshmerni https://www.pinterest.com/ https://www.ibisworld.com/industry-statistics/market-size/online-jewelry-watch-sales-united-states/ https://thefullest.com/2017/12/26/maimoun-internets-best-kept-fashion-secret/ https://chi.glamorshine.com/11-new-pearl-earrings-maimoun-thatll-convince-you-this-outdated-jewelry-trend-is-back https://cools.com/maimoun-mina-alyeshmerni https://rgtheshop.com/ https://jaxxon.com/ https://www.zoominfo.com/c/jaxxon-llc/467589104 https://www.missoma.com/ https://craft.co/missoma https://www.analuisa.com/ https://www.farisfaris.com/careers/ https://www.farisfaris.com/ https://www.dnb.com/business-directory/company-profiles.faris_llc.d4d28407f625877af47087282b36f8a0.html https://www.productmkr.com/europe-jewelry-manufacturers/ https://www.zh.tiffany.com/engagement/diamond-provenance/ https://www.cartier.com/en-us/maison/commitments/cartier-and-corporate-social-responsibility/resources-ofexcellence/supply-chain-1389.html https://www.rivoir.com/en/home/ https://www.dominojewellery.com/ https://www.halifejewelry.com/ https://www.g2.com/products/zoho-inventory/features
References
https://www.rivoir.com/have-your-jewellery-made-in-germany/ https://statisticstimes.com/economy/gdp-indicators-2021.phphttps://0-www-statistacom.library.scad.edu/statistics/1070632/gross-domestic-product-gdp-china-us/ https://taxsummaries.pwc.com/peoples-republic-of-china/individual/other-taxes https://www.fairline.it/en/wholesale-jewelry-distributors/#top https://www.salary.com/research/salary/alternate/silver-jewelry-artisan-salary https://www.925e.com/ https://www.thebeadtraders.com/collections/baroque-freshwater-pearls/products/cream-large-hole-baroquefreshwater-pearls-15-inch-39-pieces https://www.599fashions.com/seller/%E8%8B%B1%E7%9A%87%E7%99%BD%E9%93%B6%E9%9B%86%E5%9B%A2/ https://www.thebeadtraders.com/collections/baroque-freshwater-pearls/products/cream-large-hole-baroquefreshwater-pearls-15-inch-39-pieces http://www.livepriceofgold.com/silver-price/italy.html http://www.ellebicatene.it/en http://www.ellebicatene.it/en#azienda https://kn.manufacturer.globalsources.com/si/6008850156574/CompanyProfile.htm https://kn.manufacturer.globalsources.com/si/6008850156574/QC.htm https://detail.1688.com/offer/607774336586.html?spm=a2615.7691456.autotrace-offerGeneral.40.3fc04e3c0AUsK7 https://detail.1688.com/offer/43552948780.html?spm=a2615.7691456.autotrace-offerGeneral.4.27475c53yPjQY2 https://www.takesend.com/news/6551.html https://www.mbaskool.com/brandguide/transport-and-logistics/13742-royal-mail.html https://www.sgsgroup.it/en/oil-gas/upstream/project-life-cycle-services/services-during-manufacturing-ofequipment/services-related-to-materials/metal-testing https://factrealestate.com/ https://www.loopnet.com/ https://www.zillow.com/ https://www.loopnet.com/Listing/4301-Queens-St-Long-Island-City-NY/14872847/ https://www.easyship.com/en-gb/duties-and-taxes-calculator/italy? value=550&currency=USD&category=accessory_no_battery