438 134 944 Email: info@woodsland.com.vn The scale: Main factory: - Woodsland Factory: 1.5 ha - Tan Phu Ha Factory: 1ha - Phu Ha Factory: 2.5 ha - Thuan Hung Factory: 2.5 ha Power produc
Trang 1Developing operation strategy for outdoor furniture export to US market
Trang 2I GENERAL INTRODUCTION
1 Introduction
Company name: WOODSLAND JOINT STOCK COMPANY
Abbreviation name: WOODSLAND
Head office: Lot 11, Quang Minh Industrial Zone, Me Linh District, Hanoi
Tel: +84 435 840 122 - Fax: +84 438 134 944
Email: info@woodsland.com.vn
The scale: Main factory:
- Woodsland Factory: 1.5 ha
- Tan Phu Ha Factory: 1ha
- Phu Ha Factory: 2.5 ha
- Thuan Hung Factory: 2.5 ha
Power production of wood products: 50 containers per month
Kitchen cabinets production capacity: 1000 sets / month
Number of employees: 1,300 people
Woodsland Joint Stock Company officially started producing from November, 2003
Up to now Woodsland has achieved great strides in the field of timber export and became one of the largest timber companies in Vietnam The Woodsland products for furniture manufacturing has been present throughout most of the United States, Canada, Europe, Russia
2 Vision and Mission
Becoming the leading furniture manufacturers in Vietnam and Asia Pacific region by providing customers quality high value furniture products with the best service in Vietnam, supported flexibility financial solutions based on the core competencies, the ability to connect and build relationships with strategic partners, customers and suppliers worldwide
3 Core value
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Trang 3The core value is as a guide, a model for all our actions and is the foundation for building people's organizations and Woodsland These are: Creative innovation, focus
on core competencies, and globally flexible thinking
4 Organization chart
5 Business results in recent years
Trang 4II IDENTIFY TARGET MARKET AND COMPETING PRIORITIES
1 Analysis the U.S furniture market and identify the target market
The criteria for the market analysis are: income, age and geography
Income
People who have average and high income are subjects that towards the outdoor furniture market High-income customers tend to purchase items with more valuable and more frequently For income groups often have features such as:
(1) They are the young professional age,
(2) Recently purchased the first home in the city,
(3) Proper outdoor space,
(4) Like purchasing the high quality outdoor furniture with reasonable price
Age
The two largest age group is from 35-44 and from 45-54 Customers in the 35-44 age groups are usually young married couples and have just built the first house, looking for comfort like their parents' house
45-54 age groups focus on high-income individuals, who tend to buy outdoors furniture or furnished to their 2nd home In fact, from the years 2006-2010, sales has increased by the population boom of this group which is expected the consumption of luxury products
Geographic location is also decided customer tastes and buying habits.
The US is divided into 4 regions: The North, The West, and The South Northwest customers are considered the most promising in the consumption of outdoor furniture This group also has a higher income than others, and the severe weather in the Northwest is also necessary to create demand for using outdoor furniture The most common reason for promoting customer is buying outdoor furniture needs replacing broken and old appliances Furthermore, those in the Northwest tend to move more and they rarely move the outdoor furniture when moving house The customers in this area seem like small things, while those in the West prefer the exterior products which are large and bulky size Customers in the coastal states have tastes of heavy structural items because of the sea breeze influence
In the southern states, consumers prefer outdoor space as they enjoy the warm weather than
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Trang 5other areas, but they create the less potential for the consumption of outdoor furniture items than the other customers because their income is significantly lower
Thus the target customers are the elderly, married, middle and high income in western North and South America
2 Competing priorities selection
Woodsland competing priority is low-cost operations following advantages:
- The materials: Characteristics of outdoor furniture manufacturing requires a large amount
of material which is wood derived from forest trees, to ensure sufficient volume provided
in the peak period, fine quality wood and to ensure meeting the requirements for production Woodsland will select placement in the plant to reduce transportation costs of raw materials and maintain stability of supply
- Workers: Manufacturing outdoor furniture requires high-skilled workers with certain large numbers The proportion of workers occupied high production costs, so we will select the location of the plant in the province that has abundant labor force to reduce labor costs, recruitment costs and maintaining production stability
- In the value chain to create outdoor furniture products, Woodsland will analyze and processe outside the given simple tasks to cut costs and increase the flexibility capacity
- In manufacturing, Woodsland check regularly to improve manufacturing processes, limit waste and rational use of materials, energy, tools to optimize production
- Combining with the competing priorities of maintaining stable quality, timely delivery, and high yield will take Woodsland up to the leading position in the production of outdoor furniture exporter in Vietnam and the region
1 The process of export furniture manufacturing in Woodsland factory is simulated in the following block diagram:
Trang 6Input material
Receiving
Inspection
Returning vendors
Pre-processing
- Cut-off
- Drying
- Classification
QC
Handling inappropriate product
Intermediate Warehouse
Handling inappropriate product
Fine woodworking
- Spore
- Cut to shape
- Cut back, graft
- Milling
- Drilling holes
QC
Handling inappropriate product
Packaging
- Assembling more
clusters
- Packaging and labeling
Final Inspection
Finishing
- Sanding
- Preliminary assembly
- Coatings, wiping oil
QC
Loading Dispatch Handling
inappropriate product
Trang 7Power option
Planning is defined as a capacity building project The export outdoor furniture production line is calculated on the basis of output power over a period of one year after production to stabilize
In the furniture industry, statistical power is often measured by the number of cubic meters of products
With 4 factories, Woodsland estimated maximum capacity of approximately 10,000-12,000 m3 of product per year
Capacity for outdoor furniture production line plans 50 x 15m3 container per month x
12 months = 9,000 m3 of product per year
Power lines for kitchen cabinets, domestic goods = 1000-2000 m3 of products per year
IV CHOOSING LOCATION AND SUPPLY CHAIN BUILDING
1 Choosing location
Place is related to location, activity is done in parts of the supply chain The choice here
is the quick response and efficiency The decision will be focused on activities in a number of areas to achieve efficiency and economies of scale The decision will reduce the focus on activities in the area near our customers and suppliers to work more timely response The decision on the location is seen as a strategic decision that impact to the financial in a long-term planning When deciding on the location, managers need to consider a range of factors such as department costs, labor and skills needed in manufacturing, infrastructure conditions, tax and closer to suppliers or consumers
To make an informed decision requires carefully research a variety of complex issues Specifying the priority order of the above issues, keeping an open attitude to other options, conducting research and making available are one of the most important decisions to start business activities
Building supply chain has its own market needs and challenges in operations, but in general there are similar problems in some cases Any company in the supply chain needs to individually decide their course of action and the five following areas:
Trang 81 Furniture
manufacturing
-Which product?
-When and how many?
- Production scheduling and this schedule must be consistent with production capacity of the plant
- Balancing work process
- Quality control
- Equipment Maintenance
2 Inventory - Which Inventory will be stored at
each stage in the supply chain
- How many inventory levels for raw materials, semi-finished and finished products
- Determining inventory levels and the best re-order point
Against uncertainty of the supply chain
3 Location - The place can facilitate the
production and storage of goods
- The most cost effective in the production and storage of goods place
- The use of the existing favorable conditions or create new favorable conditions
When the decision is made that
we have defined a logical direction to take the goods to consumers through distribution systems
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Trang 94 Transport - What way inventories are
transported?
- When using the best transport?
- Cost of shipping comparison: Transported by air or by truck is faster and more reliable, but the cost is expensive Shipping or by train has lower costs but longer and unreliability transit times
- Reserving inventory at a higher level to compensate for the unreliability of transport
5 Information - Collecting and sharing
information
- Catch-accurate timely information creates the ability to combine and make better decisions
Good information will make
effectiveness of what to produce, how much, where to put the inventory and what the best transportation is
All decisions will determine the capacity and efficiency of the supply chain The effectiveness
of the supply chain creates operational efficiency and competitiveness of the company
Woodsland supply chain included suppliers of raw materials which are wood, sawn timber, kiln drying service providers, satellite manufacturers offer semi-finished products, suppliers of materials other combinations such as steel, aluminum, glass, fabric cushion, plywood, packaging suppliers, chemicals, plastic with metal accessories, labels, transport services, customs services
Production related to the supply chain capacity and storage products The means of production are factories and warehouses The basic problem of the manager when making production decision is: how to resolved balance between responsiveness and efficiency If factories and
Trang 10warehouses are built with high excess capacity, the flexibility and quick response to large volumes demand of products However, the factory was built by one of the two following methods to match production
- Focusing on a factory production and manufacturing a product, we can perform many different operations in manufacturing production from the different parts to the assembly of the parts
- Focusing on functionality Just focus on a number of activities such as producing a set of performance parts or assembly This approach can be applied to produce a variety of different products Tendency to approach a product often leads to the development of specialized products for a cost equivalent to the force Approach toward generating functions creates the professional development of the special function rather than developing a given product The company should decide to approaching method and what combination of these two methods to give the ability and knowledge to meet customer needs Similarly, for the warehouses are also built many different approaches There are three main approaches used in the warehouse
- Stock Keeping Unit: In this traditional method, all products of the same type are stored together It is effective and easy to implement storage products
- Batch storing: Under this method, all products which were related to the needs of a particular customer or a job are stored together This allows the selection and effective packaging but requires more storage space than SKU traditional storage methods
- Cross-docking: This method is designed to increase the efficiency of the supply chain Under this method, the product is not classified as parts inventory Instead of parts that are used to store a product from the suppliers trucks unloading bulk to many different products The major shipment is divided into smaller lots The smaller shipment with more different products are combined according to daily needs and loaded onto trucks sent to the end customer
Inventories include raw materials, semi-finished products, and finished products by the manufacturer, distributor and retailer of storage spread throughout the supply chain The managers have to decide where to store to balance between responsiveness and efficiency
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Trang 11There are three basic decisions to make and store inventory:
- Inventory cycle: This is needed to determine the stage of demand between the products purchasing period Many companies aim to produce or purchase the large to achieve economies of scale However, large shipments also increase storage costs
- Safety inventory is stored against uncertainty If demand forecast is made entirely accurate, inventory is only periodically necessary levels Each of the forecast errors should have to compensate for this uncertainty It is higher or lower level by storing goods when demand spikes than expected
- Seasonal inventory is built on the basis of forecasts Inventory will increase demand and this demand usually occurs a few times a year
1 Project board
To implement a business plans, the company will establish a project board to make this project The proposed project model as follows:
Functions and duties: The project team is responsible for implementing business projects
“export outdoor furniture products to the U.S market” Among them:
+ Project manager
Project Manager
Analysis and
market
investigation
group
Customer relations and market
development group
Management and
production coordination group
Project support group
Trang 12 Project Manager is responsible for coordinating and managing the entire process of project operation
Supervising, managing staff and taking measures to accelerate the process of project implementation
Decision of competent leaders to report
+ Market research group
Planning, conducting market surveys U.S market about outdoor furniture products
Providing the market analysis report, assessing market potential and development orientation
Monitoring and analysis of project activities and providing alternatives to market changes
+ Customer relation and market development group
Planning market analysis report of market analysis team
Searching for potential customer
Implementing customer relationships, seeking sales opportunities, contracting with partners and customer care
Coordinating with delivery team and implementing other provisions in the contract + Production management team
Receiving contract from the customer development team
Coordinating with production department to plan and implement production contract
Coordinating with business development team to check the quality of products which will be delivered to customers
Report to project manager
+ Support team
Monitoring the progress of the contract, synthesizing report
Reporting directly to the Board of Directors and warning of possible problems
Support other groups on documents, forms, plans, costs and other office work
2 Human resource
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