SUPPLY CHAIN STRATEGY
LXFM 720 | SUPPLY CHAIN MANAGEMENT | WINTER 2021 PROF. KIMBERLY RABANAL BY ZIYI WANG, WENYUAN SU, DERON HOLLAND
TABLE OF CONTENT COMPANY OVERVIEW
TIME AND ACTION
TRANSPORTATION
HISTORY OF THE COMPANY AND KEY FACTS
TRIPLE CONSTRAINT
QUALITY PLAN
COMPANY MISSION AND VALUES
CODE OF CONDUCT
MARKET SIZE
COST ESTIMATE
MARKETING POSITIONING
TECH PACK
WAREHOUSE & LOGISTICS
TARGET MARKET
ORDERING
REVERSE LOGISTICS
COMPETITIVE LANDSCAPE
PURCHASE ORDER
COMPETITIVE ADVANTAGE CHANNELS CSR
ORDER FREQUENCY
PRODUCTION PLANNING/FORECASTING INVENTORY MANAGEMENT TURN
SWOT
SYSTEMS USED
PRODUCT OVERVIEW
QUANTITY
MAKE OR BUY? MACRO AND MACRO SUPPLIER ANALYSIS
PACKAGING & PACKING
PERFORMANCE MANAGEMENT
COMPANY OVERVIEW
Develop a new line for Ana Luisa and introduce the products. Determine five decision areas within supply chain for this line: 1. Production 2. Inventory 3. Location 4. Transformation 5. Information
Ana Luisa is a jewelry brand founded in 2018 by two French entrepreneurs Adam Bohbot and David Benayoun, and headquartered in Brooklyn, New York. They believe that traditional brands do some things wrong, such as the opaque process and no reason to raise prices, so they hope to create a transparent brand. (analuisa.com,n.d). Ana Luisa uses recycled materials wherever possible, adopting transparent business processes and a small-batch design.
BEAUTIFULLY FAIR JEWELRY
COMPANY HISTORY
BRAND OVERVIEW BRAND PHILOSOPHY: Make a lasting statement "We believe in crafting sustainable jewelry accessible to all." (analuisa.com,n.d)
Ana Luisa is an online fast fashion jewelry brand. Provide affordable and authentic accessories alternatives. The company offers earrings, rings, necklaces, bracelets, and fine jewelry, enabling women to enjoy handcrafted, luxurious, and exclusive jewelry alternatives.
Revenue: $5M Employees: 59
DESIGN PHILOSOPHY
Consciously beautiful
"Our designers are obsessive purveyors of art, architecture, and antique stores—all things built to last."(analuisa.com,n.d)
KEY FACTS Ana Luisa directly to consumers, bypassing traditional agents, the price will be much lower than the traditional physical stores. (Bezrukova, 2019) Ana Luisa is a carbon-neutral brand, from purchasing to transportation to office life, the goal is zero carbon. The carbon dioxide produced in the process is balanced with the same amount of oxygen. Ana Luisa uses sustainable materials development and publishes in small batched every Friday.
MISSION Jewelry in, Carbon out Breathe easy- we're carbon neutral Meet Cool Effect Leaving no trace on this earth-just on you Jewelry with a future our golden rule: treat the earth the way you treat yourself
MARKETING SIZE
US jewelry market revenue was about $55,442M in 2020. (statista.com, n.d) Revenue of Ana Luisa: $5M Market size: 0.009%
MARKETING POSITIONING STATEMENT
HIGH-QUALITY HANDMADE JEWELRY IN DAILY LIFE IS AFFORDABLE.
BRAND POSITIONING MAP LUXURY
We compare Ana luisa with luxury jewelry and mass jewelry. Mainly divided into can be used on special occasions and can be worn every day. We can see that compared with some luxury brands, ana luisa is a brand that can be worn daily and is more popular.
EVERYDAY WEAR
SPECIAL OCCASIONS
MASS
TARGET MARKET
Psychographics Information Work: • Bloggers or someone with a big social media presence • Artist, loves to create item • Works in retail or trendy boutiques • Entrepreneur Interests: • Movie dates, Brunch, Enjoying the beach • Reading fashion books to look up the latest trends • YouTube Leisure Activities: • Studying or reviewing material for work or school • Spa days, getting nails done, Starbucks run • Reading, exercise, yoga
Demographic Information Gender: Female Age: 23-35 Millennials and GenZ Annual Income: $30,000-$50,000 Geography: City Education: Undergrad, Bachelors or Masters
Beliefs: • Likes the finer things in life • Minimalistic but cute • Dress to impress lifestyle Shopping Habits: • Minimalistic • Prefer shopping at Boutiques • Loves nudes, olives, and grey. A lot of earth tone colors
COMPETITIVE LANDSCAPE Ana Luisa Vs Competition The brands that are competitive to Ana Luisa, are brands that specialized in making beautifully crafted costume jewelry. The brands that are in competition with Ana Luisa produces earrings, necklaces, rings, and bracelets. Expected number of customers: Age:23-35 Number of Women 30,000 Social Mredia: 432k followers City landscape: 85% of customers BRANDS: Mejuri: Founded in 2013, Based in Toronto. Products offered are leather goods, earrings, necklaces, rings, and bracelets. Price point $60-$595 GLDN: Founded in 2013, Based in LA. Products offered are earrings, necklaces, rings, and bracelets. Price point $25-$88 Wolf Circus: Founded in 2020, in Vancouver by Fiona Morrison. Products offered are earrings, necklaces, rings, and bracelets. Price point $80-$175
COMPETITIVE ADVANTAGE Sustainability • Ensuring customers all their products are sustainable
Promotions • They know that a large number of their audience are young adults, they have deals to make the customer feel like they are saving more.
Worldwide shipping • Ana Luisa makes sure that no matter where you are in the world, you will be able to shop her brand.
Advantages of Our Competition: • Stronger social media coverage and able to reach more customers. • Product line is more diverse • Unisex jewelry • More diverse presentation when it comes to models • More established, most of her competitors have been in the industry longer
CHANNELS Online Presence:
Website: https://www.analuisa.com Instagram: analuisany Pinterest: analuisa
CSR/Corporate Social Responsibility Currently Model Pursuing a carbon-neutral supply chain. Ana Luisa partnered with Carbon Footprint Ltd, a certified company that helps companies reduce environmental impact. Together, they have achieved carbon-neutral by creating a thorough Life Cycle Assessment Report and using cradle-to grace approach in Q1 and Q2 in 2020.
Collaborating with Cool Effect and contributing to the Tri-City Forest Project. Ana Luisa partnered with Cool Effect, a nonprofit organization, to contribute to the Tri-City Forest Project, which aims at preserving forests in Massachusetts thereby creating local jobs, preventing floods, and generating carbon-canceling oxygen.
Next step Using 100% recycled shipping materials. Creating more thorough, documented carbon footprint data and calculations for customers. Searching for better solutions to manage the carbon footprint. Incorporating water and waste into upcoming calculations of environmental impact. Fostering diversity, equity, and inclusion among employees.
SWOT ANALYSIS
STRENGTH Trendy design with lasting materials Fair price Earth-conscious craftsmanship High reviews Strong social media presence Good at using influencers
WEAKNESS
Lack of creative and unique design Weak brand story A startup company that doesn’t have a solid customer base Online stores only
Clear brand image
OPPORTUNITY Create collections' behind-story Collaborate with influencers or designers to create “it item” Have the potential to be the top sustainable jewelry brand Expansion to the global market
THREAT
Similar designs with competitors Online stores only will lead to a limited customer base
WILL YOU MAKE OR BUY? WHY? Will make: We want to make a jewelry tray. The materials are brass, enamel, 14k gold plating, and sustainable packaging. Will make: Plating. Need to conform to the product concept, our products use in-house plating instead of outsourcing to factories with harsh working conditions. Will buy: Brass, enamel, packaging materials. The supplier is determined according to the supplier's price, quality, transportation convenience, and flexibility. Look for environmentally friendly packaging materials.
PRODUCT OVERVIEW JEWELRY TRAY PRICE: $37 DETAILS Plating: 14K Gold Materials: 14k Gold on Brass, Enamel Measurements: 255mm x 118mm x 100mm Weight: Light 450g 365-day warranty
MACRO AND MICRO SUPPLIER ANALYSIS
PESTS ANALYSIS: CHINA Political A stable political environment, but lack of political freedom. China is a member of WTO, APEC, BRICS, BCIM, and G20. The trade war between China and the United States. China's e-commerce legal framework is at an early stage, and China has insufficient experience in drafting related intellectual property rights and taxation. (pestleanalysis.com, n.d)
Social China has a population of over 1.3 billion and abundant labor resources. The government has raised the minimum wage. The minimum wage in Guangdong Province has increased by an average of 13%.
Technology China has 829 million Internet users. The credit card penetration rate in China is extremely low, only 1%. (pestleanalysis.com, n.d) China is the first country with the largest 5G network.
Economic China is the second-largest economy in the world. Cheap labor has created many outsourcing factories in China. The outbreak of Covid 19 brought direct challenges and economic shocks to China.
Sustainability China's economic development has seriously affected the natural environment. The Chinese government is taking measures to protect environmental issues.
PESTS ANALYSIS: INDIA Political The political environment is largely affected by factors such as government policies and the interests of politicians. The business environment in India is affected by political factors. The federal government levies various taxes. The government encourages free operation.
Social A massive consumer group. Cheap labor. A multi-racial, multi-lingual, and multi-religious country.
Technology India is one of the most advanced countries in the world. India's adoption of 3G and 4G technologies has facilitated some technological projects in India. India also has one of the most powerful IT departments in the world.
Economic Economic stability. Reducing industrial licenses and opening up foreign investment has made India's economy continuously improved. The company's tax rate is the lowest in the world.
Sustainability The air quality in India is affected by industrialization. Establish an environmental pressure group.
PESTS ANALYSIS: MEXICO Political Mexico has the problem of political corruption. Mexico's government affects the profits of small businesses. United States–Mexico–Canada Agreement
Social Mexico is a country where Spanish is basically spoken, and most people live in cities. The country is trying to improve the level of education. A large gap between rich and poor.
Technology Mexico is the border of the United States, and the transportation of products is relatively convenient. Mexico is regulating the booming financial market.
Economic Mexico is one of the fifth largest economies globally and the second-largest economy in Latin America. Mexico mainly exports petroleum, chemicals, and auto parts.
Sustainability Mexico’s environment is too much affected by industry, and Mexico is working hard to tackle environmental problems.
SUPPLIER ANALYSIS: INDIA Panache Industries Business type: Stainless steel and high nickel alloy tubes, sheets, plates, coils, etc. Founded: 2009 Annual Revenue: US$130,000-US$240,000 Brass Price: 4.95$/Kilogram(s)
Advantage: India is the world's largest supplier of brass. Fair price and high quality. Advocate sustainable development. It can be purchased in large quantities. The company has ISO 9001: 2015 certification.
Company Contact: Shop no. 8, Ground Floor 13, Jaisiddhivinayak CHS., Ardeshir Dadi Cross Street, C. P. Tank, Mumbai - 400 004 TEL: +91-22-67437974 FAX: +91-22-23851191 Email: https://www.panacheind.com/
SUPPLIER & MANUFACTORY ANALYSIS: CHINA Linyi Feifan Imp. & Exp. Co., Ltd. Business type: Enamel products. Founded: 2015 Annual Output Value: US$5 Million - US$10 Million Enamel Tray Price: US $ 2.5-2.7 Advantage: The company can provide enamel materials and make jewelry trays, which can greatly reduce transportation costs. The company provides the OEM/ODM service, which can produce according to our design. The technology is mature. Linyi City is the hometown of enamel products. Linyi City is very close to Qingdao Port, which is convenient for export. The company has an experienced trading team.
Company Contact: No. 1105 Iec Building, Lanshan District, Linyi City, Linyi, Shandong, China 276000 TEL: +86-539-7825586 Email:feifan@msn.com http://feifan.hanbang-technology.com/
PACKAGING SUPPLIER: CHINA
Shanghai Forests Packaging Group Co., Ltd. Business type: Paper boxes, color boxes, cardboard, shipping cartons, paper bags, paper tubes, stickers. Location: Minhang District, Shanghai, China Founded: 2006 Annual Output Value: Above US$100 Million Package: US $ 0.675-0.99 / Piece
Advantage: Have imported equipment to ensure product quality. The company adheres to the concept of environmental protection. Have an export license. Close to Shanghai Port.
Company Contact: No. 1699 Shangsu Road, Qingcun Town, Fengxian, Shanghai, China 200231 TEL: +86-576-89979896 Mobile: +86-13738650213 Email: sales@forestpacking.com www.forestpackagingsh.com
Panache Industries
transport
Purchase
Package
Finished goods
Shanghai Forests Packaging Group Co., Ltd.
rt po ns tra
enamel Linyi Feifan Imp. & Exp. Co., Ltd.
m an uf ac tu re
Manufactured brass
Ana Luisa rt po ns tra
se a h c r Pu
packaging
Plating
Final product
TIME & ACTION From design approval to product launch, including product promotion, we estimate that it will take about a year.
TRIPLE CONSTRAINT Scope Ensure product quality. All the carbon dioxide generated during the manufacturing and order transportation of our products must be balanced under the same amount of oxygen.
Scope
Time Ensure that the product is completed and delivered within the "Time and Action" calendar.
Quality Cost Ensure that the product is delivered within budget.
Cost
Time
EXTERNAL FACTORS MAY AFFECT TRIPLE CONSTRAINTS COMPETITION
SUPPLIER
If competitors launch similar products, we need to increase costs to promote our products, whether on social media or by inviting more influencers to promote products.
If the supplier cannot deliver on time, we need to extend the time to launch the product. Or seek other suppliers.
CODE OF CONDUCT Collaborate with High Ethical Standard Vendors Ana Luisa always seeks high ethical standard vendors whose factories operate in compliance with environmental laws and that work to minimize their impact on the environment and global resources.
Safe and Healthy Working Environment The vendors of Ana Luisa must offer a safe and healthy workplace to their employees. Besides, vendors cannot require a workweek that exceeds local laws, employees shall have a regular working schedule based on local laws.
Gender and Racial Equality
Ana Luisa is committed to the pursuit of gender and racial equality, which is implanted within the supply chain.
Traceability
Quality
Child Labor
To take responsibility to customers and society, Ana Luisa requires vendors to continuously track and monitor all levels of their supply chain as well as provide transparency information.
To achieve the goal of high standard quality, Ana Luisa requires vendors must have a documented quality system and improvement plan, which comply with their quality requirements.
To protect the health, safety, and morals of children, Ana Luisa is committed to preventing the use of child labor. Nowhere shall be employed under the age for completion of compulsory education.
Price Strategy After comparing the prices of three popular jewelry trays online that has similar sizes and materials with our products, we decided our price would be around $30 - $40.
Nile Vanity Tray
Oyster Shell Jewelry Dish
Brass Inlay Marble Tray
Size: 9.5"L x 4.5"W x 0.75"T.
Size: 5.5" L & 3" W
Size: 9"w x 4.5"d x 1"h
Materials Brass
Materials - Trimmed in Gold -Oyster Shell jewelry Dish
Materials: - Marble - Hand-cut and hand-inlaid brass design
$40 $ 30.00
$40
https://www.neimanmarcus.com/p/kassatex-nile-vanity-tray-prod201410001?ecid=NMCS__GooglePLA&utm_source=google_shopping&gclid=EAIaIQobChMInf3ZhYia7wIVg52GCh3zVQOCEAQYByABEgImIPD_BwE&gclsrc=aw.ds https://trulyblessedjewels.com/products/oyster-shell-jewelry-dish?variant=37585964597430&currency=USD&utm_medium=product_sync&utm_source=google&utm_content=sag_organic&utm_campaign=sag_organic&utm_campaign=gs-2019-12-15&utm_source=google&utm_medium=smart_campaign&gclid=EAIaIQobChMIxoK-8oma7wIVFEqGCh1WDws7EAQYDSABEgKZJvD_BwE https://www.westelm.com/products/brass-inlay-marble-tray-d4865/?catalogId=71&sku=1496483&cm_ven=PLA&cm_cat=Google&cm_pla=Storage%20%3E%20Jewelry%20Boxes%20%2B%20Stands&region_id=772240&cm_ite=1496483&gclid=EAIaIQobChMIxoK-8oma7wIVFEqGCh1WDws7EAQYECABEgIaifD_BwE
COST SHEET (per unit) Option 1: 80% Markup - Retail Price: $37
Option 2: 75% Markup - Retail Price: $28
X / x+9.183 = 0.8 X = o.8*x + 9.183*0,8 0.2x = 7.3464 X=36.732
X / x+9.183 = 0.75 X = o.75*x + 9.183*0.75 0.25x = 6.88725 X=27.549
Section VI: Products of the Chemical or Allied Industries Chapter 32
$18.871 75 $28
$27.817 80 $37
TECH PACK JEWELRY TRAY
25.5 cm
11.8 cm
1 cm
12 .3 cm
20 cm
54 mm 26 cm
150 mm 2 cm
1.5 cm
150 mm
108 mm
35 cm
ORDERING
Purchase Order Form: Additional materials will be gold, enamel, and brass
PRODUCTION FORECASTING/PLANNING • With our Tray Holder, we will initially order 300 units • Until we put in another order, we first want to how successful our first product release will be. Then we will order accordantly • We will also use Time-Series Forecasting. This will give us enough time to measure the data and see how high the demand is.
Item: Jewelry Tray • Forecasting: 300 Jewelry trays • Enamel will be manufactured and produced in China • Brass will be manufactured and produced in India • Sourcing start date will be July 20, 2021
Production will start August 7, 2021 • Since were only focusing on one item, all production will start at the same time • Constraints: 1. Raw materials shortage 2. Limited demand 3. Shipping/Customs 4. Miscommunication from suppliers
INVENTORY MANAGEMENT
• Type of inventory – Cycle • Fashion items • Product life cycle- 1 year • Orders placed at the beginning of each month • distribute directly to cut down on warehouse costs • typical inventory for our industry- 1.0-1.3 • Systems used- Economic Order Quantity (EOQ) • Internal inventory management system- UpKeep, inventory control software to streamline work orders, reduce stock-outs, supply chain, facility, and asset management
STOCK TURNOVER Inventory Turn Industry turnover average- 1.0-1.3 Our turnover average- 1.0
Transportation: Mode: waterways Reasons for choosing sea transportation. 1. We compared the quotations of DHL and Shipa Freight. DHL was much higher, so we decided to use Shipa Freight. Shipa Freight is one of the world’s largest freight forwarders. (shipafreight.com, n.d) 2. We are still a small company and need to guarantee transportation costs. 3. We need to transport brass, enamel, and package. Due to the size and weight, it does not comply with many air transportation regulations.
$2047.67
$5219.68
Transportation: Manufactured Brass — Manufacturer Route 1 Mode: Ocean LCL ( Less Than Container Load) Total Gross Weight: 45KG (150g/each, total 300 units) Cost: $648.12 Timing: 30 days
Linyi, China
Mumbai, India
https://app.shipafreight.com/
Transportation: Semi-finished products— Warehouse Route 2 Mode: Ocean LCL ( Less Than Container Load) Total Gross Weight: 135KG (450g/each, total 300 pcs) Cost: $1,002.02 Timing: 30 days New York, US
Linyi, China
https://app.shipafreight.com/
Transportation: Product packaging— Warehouse Route 3 Mode: Ocean LCL ( Less Than Container Load) Total Gross Weight: 15KG (50g/each, total 300 pcs) Cost: $912.77 Timing: 30 days New York, US
Shanghai, China
https://app.shipafreight.com/
Quality Assurance Ensure the qualification of the supplier: Brass suppliers must comply with ISO 9001:2015 certification. Inspection before production: The machines or process equipment used to produce Tray needs to be thoroughly inspected. Damaged or defective machines need to be repaired or replaced before production to ensure that no defective products will be produced. Manufactured materials inspection: A thorough inspection of Brass and Enamel to check for any mold, cracks, blemishes, and other abnormalities. The supplier’s work environment is checked. Plating materials must be 14k gold. Gold plating uses brass as the base metal. Our gold plating will be thicker than ordinary jewelry.
Quality Assurance
Quality Control Perform specific inspections once a month. We will conduct sampling inspections of the products. Consumer feedback: We will pay attention to consumer feedback from websites and social platforms and provide email feedback. We will be enthusiastic about helping consumers and providing perfect after-sales service. We will open product reviews and ratings under the information of each product in our online store. Customers can share product experiences, photos, and suggestions. We will open email comments, and customers can send us emails at any time. We will summarize the reviews of the online store and customers' opinions in the emails every 2 weeks to improve the products.
LABEL & PACKING
Route 1: India - China (Manufactured Brass) SHIPA FREIGHT AND FEES PAID
MANUFACTURED BRASS
SHIPA FREIGHT
99.2 LBS
SHIPA FREIGHT FIRST-CLASS PKG Panache Industries Shop NO. 8B, JAI Siddhivinayak CHS, Ardeshir Dadi St., X Street, Mumbai, Maharashtra 400004 India
+91 22 6743 7974
03/24/2021
1Z 071 5X1 01 9063 7869
Linyi Feifan Imp. & Exp.Co., Ltd. No. 1105 lec Building, Lanshan District, Linyi City, Linyi, Shandong 276000 China
Panache Industries Shop NO. 8B, JAI Siddhivinayak CHS, Ardeshir Dadi St., X Street, Mumbai, Maharashtra 400004 India
ORDER_#06080727
86-18653905978
Linyi Feifan Imp. & Exp.Co., Ltd. No. 1105 lec Building, Lanshan District, Linyi City, Linyi, Shandong 276000 China
$412.5 $648.12 $1,060.62
SHIPA FREIGHT TRACKING # 1Z 071 5X1 01 9063 7869
THANKS FOR YOUR ORDER!
Shipping Label
Packing Slip
Box Needed: 1 Box Size: 6 x 6 x 4" Box Specification: 200 LB. TEST High quality corrugated boxes
Route 2: China - U.S. (Semi-Finished Products) SHIPA FREIGHT AND FEES PAID
MANUFACTURED ENAMEL TRAY 297.6 LBS
SHIPA FREIGHT
SHIPA FREIGHT FIRST-CLASS PKG Linyi Feifan Imp. & Exp.Co., Ltd. No. 1105 lec Building, Lanshan District, Linyi City, Linyi, Shandong 276000 China
86-18653905978
04/24/2021
1Z 071 5X1 01 2356 7864
New Brunswick Plating Inc. 1010 Jersey Ave, New Brunswick, NJ 08901 U.S.
Linyi Feifan Imp. & Exp.Co., Ltd. No. 1105 lec Building, Lanshan District, Linyi City, Linyi, Shandong 276000 China
ORDER_#03562578
(732) 545-6522
New Brunswick Plating Inc. 1010 Jersey Ave, New Brunswick, NJ 08901 U.S.
$384 $1,002.02 $1,386.02
SHIPA FREIGHT TRACKING # 1Z 071 5X1 01 2356 7864
THANKS FOR YOUR ORDER!
Shipping Label
Packing Slip
Box Needed: 2 Box Size: 6 x 6 x 4" Box Specification: 200 LB. TEST High quality corrugated boxes
Product Name
Jewelry tray
Size
Item No.
O5786
Color
Made in China
10"L x 4.6"W x 0.4"T White & Blue
Product labelling
PACKAGING
Outer Box
Product Label Thank You Card Compostable Fillers
Hangtag Secondary Box
Desiccant
HOW TO PACK put a bag of desiccant into the box
put thank you card, product label, hangtag, and the product into the outer box wrap the jewelry tray with bubble sheet fill the rest space with compostable fillers
put it into the box
waiting for the last mile delivery
WAREHOUSING Do we need a warehouse? Ana Luisa is a jewelry brand that mainly sells jewelry online, so we don't have heavy inventory so far. For long-term considerations, to place the increasing jewelry complementary products, we decided to rent a warehouse.
Centralized vs De-centralized We choose the centralized model. Firstly, due to the small size of Ana Luisa, the primary decisions are made by our team at the New York headquarter. Secondly, quality is one of our most important factors in the supply chain, and we want to have the power to control the quality before our products are sent to our customers. So we decided that the new warehouse need to be close enough to our headquarter. Considering the high rents in New York, we finally decided to look for self storage spaces in New York to meet our requirements.
WHERE?
https://www.manhattanministorage.com/locations/chelsea-storage
TRANSPORTATION
COSTS Storage Plan: Medium Storage Space 5'w x 7'd x 8'h (Approx. 280 cubic feet) (Air Conditioned) 50% Off For 2 Months | $95.00 1st 2 Months, $190.00 After | No Commitment
Price: $2,090/yr
MANAGEMENT We need one employee to manage the warehouse: Monitor finished products coming from our in-house plating factory. Secondary check the quality of finished products. Pack & Ship products to customers. Receive and analyze returned products, and report the problems of returned products to the headquarter.
LOGISTICS FLOW
In-house gold plating factory
Receive & Quality Check
Gold Plating
Pack
Ship to Warehouse
India
WAREHOUSE
China
Last Mile Ship
China
Return
Secondary Quality Check Pack & Ship Receive & Analyze Returned Products Report to the headquarter
Order Placed
REVERSE LOGISTICS Return Policy: • Returns and Exchanges • Sustainable (Re-use of packaging) • Lightly damaged items to be sold to secondary market • Items must be returned or exchanged within 14 days • If items are delivered damaged, customers will receive new merchandise. Damaged items will be recycled.
Recycled Products: We will recycle our products to cut down on costs We will work with Sims Municipal Recycling company. They offer curbside recycling.
Step 1 Go to My Account (top right of our site) to access your order and select the items you want to return. Items must be in their original packaging and condition.
Step 2 Print your prepaid return shipping label and attach it to your original Ana Luisa box or any cardboard box shipping box.
Step 3 Drop your box off at any authorized UPS shipping center.
Returned Merchandise
Items must be examined and expected to make sure its in their original form. If items are lightly damaged, they will be sold to discount stores. If items are not in the condition to be re-sold, they will be recycled.
Financial Impact
• Return rate for jewelry/accessories products are typically range from 6% to 10% in Brick and Mortar stores. • With our items, it's straight to the point. We will showcase videos and pictures on proper use to cut down our return rate. • Our expected return rate is predicted to be low. We are aiming for 6% • E-commerce the return rate is 11%
FINANCIAL IMPACT Inventory: 300 units Return rate: 6% We expect out of each batch of shipments, that 18 orders will be returned. 300/6%=18 Estimated cost of returned items: $666
PERFORMANCE MANAGEMENT CUSTOMER SERVICE Making sure the average time it takes to respond to customers is below 5 minutes.. Customer reviews above 95% Customer Training: 2 week training
FINANCIAL Cost of manufacturing products Total return on investment generated from your marketing efforts: 30%
MARKETING Bounce rate above 90%: percentage of website visitors who abandoned our site within just a few seconds Email open rates 85%: percentage of emails opened vs. total emails
web traffic 90%: amount of traffic our website attracts
PRODUCT DEVELOPMENT Product Inovation
Bringing on new design team members to keep fresh ideas Finding new suppliers in new locations to be prepared for unexpected events
RETURNED GOODS Keeping return rate below 6% Measuring Brand loyalty with NPS survey
Customer Service Customer satisfaction 90% Brand Loyalty 85%
Internal
BALANCED SCORECARD
Marketing customer reach 60%
Increasing Inventory 50% Increasing Quality Control 30%
Five Year Growth Plan Company Expansion Double income by 30% Expand product line by 50%
Product Development Product Extention Sustainable line %70
Product Quality Finer Materials that are sustainable Better packaging that is cost effective
Sourcing and Manufacturing New suppliers across multiple different countries to become more diverse Utilization Management (double processing power)
Inventory Purchase a warehouse thats 700sqft + Try new inventory networks Spiceworks 4.9 rating
Distribution Open up store locations New York, LA, and Miami
CSR Strengthen CSR methods by increasing customer engagement and localizing our efforts More sustainable practices (Zero waste)
KEY TAKE-AWAYS PLAN Jewelry Tray Product avg price: $37 Combination of inventory systems Sustainable growth in triple bottom lines
DELIVER
SOURCE
Warehouse: New York
Online sustainable jewelry brand
Procurement: China & Vietnam
Inbound transportations: Truck & Sea
Modern, Sustainable, Approachable
Prioritization: Scope, cost, time
Outbound logistics: Land/Sea
Revenue $5M
Reverse logistics: 6% return rate
U.S. based
MAKE Quality assurance & control Manufacturing: China & India Order frequency: per month
REFERENCE Bezrukova, A. (2020, March 11). Ana Luisa Jewelry Review 2019: Minimalist Everyday Go-To. Retrieved January 17, 2021, from https://myminori.com/ana-luisa-jewelry-review-2019-minimalist-everyday-go-to/ Carbon-neutral Jewelry. (n.d.). Retrieved January 17, 2021, from https://www.analuisa.com/ Jewelry - United States: Statista Market Forecast. (n.d.). Retrieved January 16, 2021, from https://www.statista.com/outlook/13010200/109/jewelry/united-states#market-revenue Carbon-neutral Jewelry. Ana Luisa. https://www.analuisa.com/. Ana Luisa Carbon Footprint Methodology. https://cdn.shopify.com/s/files/1/2579/7674/t/109/assets/ana-luisa-carbon-footprintmethodology.pdf?v=2702336735753524789
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