Analysis and proposals of CORSAIR AS ’s problem 英语论文.doc

rizhao polytechnic niels brock copenhagen business college joint programmeap degree in logistics management5. semester exam december 2010 - january 2011 logistic managementstudents names: teacher name: school name： title of the report: analysis and proposals of corsair a/s s problemdate:december students signature:table of contentsintroduction to the case issue-4assignment1analysis logistics situation using product life cycle-4 analysis logistics situation using supply chain strategy -7 analysis logistics situation using supply chain strategy-9solutions to the problems-12 challenges-13select supplier-14six/sigma-14assignment2 evaluate corsairs strategic situation-15 greatest challenges-16 characterise michaels management style-16 how suitable is this style to the tasks and challenges-16assignment3 reason of discount rate to increase-17 developments on the international raw materials market-17 internal rate of return shows-17assignment4 legal difference-18 difference in the problems which could arise for a vendor in offering the buyer cash or credit advice a legal adviser given-18conclusion-18bibliography-18attachments -19introductionmy report include five parts, first part introduction and the rest of the four parts are four assignments, every assignment is a part and every part conclude problem definition, analysis and proposals.corsair a/sin 1990 per and flemming established corsair a/s. both resigned their jobs to focus entirely on the bicycle business. in 1992 they expanded into vacant industrial premises in the city of odense. there were now 5 employees in the company. and corsair was in december 1996 able to present two new frames in aluminium at the bicycle shows in milan and cologne .in early 2005, corsair invested in a “hiweld” welding robot to improve the scrap rate of 25% for aluminium frames. instead of producing to order, with the resulting long delivery time, corsair decided to shift to production to stock. totally, it was calculated that there should be at least 1000 bicycles - packaged and ready for shipment - on stock at all times.it cause some problems. in august 2008, flemmings nephew michael joined corsair in a newly established and apparently very powerful position as development manager.and he carried out some strategies to develop th company.assignment1analysis logistics situation using product life cycle1. product development stagethe fact is that the bicycling equipment available on the danish market was either too poor or too expensive. per nybroe and flemming decided to join forces to do something about the situation. they began experimenting with steel bicycle frames in pers garage and succeeded after some time in finding a frame geometry with good stability.the demand of the bicycling market is over the supply, it is a opportunity to introduce new type product to the market , they saw the opportunity and they also had success selling the bicycles on the danish market. so the prices quoted are the so-called guideline retail sales prices. during this stage the productes almost does not bring in any kinetic revenue to the manufacturer.2. introduction stageat this time, important developments were taking place in the bicycle industry, these threatened to pose great challenges for corsair. both processes would require large-scale investments, so per and flemming were forced to face the fact that their financial situation would not allow investments of this magnitude. so they found a investor and they owned 98% of corsair shares.in this case,any decision should through the investor. their autonomy decrease. 3. growth stagefirst:the company only has one supplier shimano, under the development of their product, it is time to choose more good suppliers, but if they use the new good supplier bjarne riis , they shoud change their product line , it is clear that it would require new and different tools to assemble the bicycles, so they did not made the change.single sourcing is easy to make good relationship with them, but the bad side is also clear, if their supplier can not supply them there will a big loss of not only profit but the fame of the company and their customers. single sourcing is also not good to cut down the price of the material. they can choose multiple sourcing or dual sourcing to ensure the supply stability single sourcingthe buying firm depends on a single company for all or nearly all of an item or servicemultiple sourcingthe buying firm shares its business across multiple suppliers dual sourcingusing two suppliers for th same purchased product or servicesecond:racing bike market segment is slightly comfortable, and corsair made three new assemble, it was a reasonable success for corsair. in the course of the next few years, corsair a/s had great sales success and became a very well-known name on the european bicycle scene. in its position as one of the best on the market, corsair had for a number of years been able to charge higher prices for their products than could the competition. but it had also been decided to keep steel frames in the assortment. sales for these frames had fallen. corsair choose pay more attention to core products- racing bike, it is a good strategy to establish their own competitiveness but the bycycling market need diffierent kind of assortments so they shoul also pay attention to the customers need and always change to reach their demand. 4. maturity stagethe total market for high-end racing cycles was still increasing by 10% yearly, but many bicycle manufacturers had by now shifted to aluminium, and competition was keen. in addition, many of the competitors had a broader product assortment, which gave them greater bargaining power with bicycle sales outlets. now corsair was burdened by a scrap rate of 25% for aluminium frames. it was not possible to increase prices for these bicycles, as the same quality could now be offered by an increasing number of competitors. it is a threaten for corsair that their competitors give low price and same quality products. it is time to improve their technology to gain market shares. what the corsair do is that invested in a “hiweld” welding robot and it realy made a great success.5. decline stage now the bicycling market show interest in carbon fiber. aluminium prices can vary considerably, depending on the metal combination and processing of the tubes.demand of this product decrease.analysis logistics situation using supply chain strategy supply chain strategy long lead times short lead times supply characteristics lean plan and optimize de-couple through postponementkanban continuous replenishmentagile quick responsepredictable unpredictable demand characteristicsseasonal rate the generic supply chain strategies is dividing into two dimensions: demand characteristics and supply characteristics.demand characteristicswe learn in the case typically, roughly 50% of sales take place in the months of may, june, july and august. for some products, forecasts can not be made until well into spring .so they have a very unpredictable demand.supply characteristicswith the long delivery time, it gives them long lead time from their suppliers.keep inventory has advantages:1) goods available2) cost reduction 3) protection against errorsbut corsairs inventory is too large, instead of producing to order, with the resulting long delivery time, corsair decided to shift to production to stock, including construction of a warehouse for the finished bicycles. totally, it was calculated that there should be at least 1000 bicycles - packaged and ready for shipment - on stock at all times. corsair s market position show that they should be in the“hybrid” type . “hybrid” type seek to create a hybrid solution, these hybrid solution require the supply chain to be”de-coupled” through holding strategic inventory in some generic or unfinished form, with final configuration being completed rapidly once real demand is known. this is the classic “postponement” strategy. an alternative form of postponement where the final physical configuration cannot be delayed is to postpone the actual distribution of the product by holding it in fewer locations and using express transportation to move it to the final market or point of use once actual demand is known.analysis logistics situation using supply chain strategyvalue chain primary activitiesinbound logisticspurchase prognosis: they only have one supplier, there will be risks of supply, they should choose more good supplier, the product market demand always change so it is better to not purchase too many material.goods storing: the company store too many finished goods in their store with the resulting long delivery time. but the bicycling market need diffierent kinds of products , so they discound their goods which out of date. there is no doubt that they lost their profits. operationproductions processes: they invest welding robot and these machines save a lot of time but shift the machine cost too many time and corsair had no plans to begin weekend shifts. it is not possible for corsair to make use of overtime work on an hourly basis. in other words, corsair can either run production 8 or 16 hours per day.outbound logisticsstock size：their stock size is too large, especially the finished goods stocks. but the bicycling market need diffierent kinds of products , so they discound their goods which out of date. there is no doubt that they lost their profits. sales and marketingdemand of the customer is always change, so they should pay more attention to customization. customization occurs when a customers unique requirements directly affect the timing and nature of operations and supply chain activities. they can change their assemble system from ato to mto and eto.servicehandling of claims and returns: the company did not pay more attention to this, and actually this part is also important. if this part is done well, it will be benefit to their customer loyalty and their companys fame and they can win more customers.value chain support activitiesfirm infrastructurevision: to offer the markets most modern and attractive racing bicycles to a relatively broad range of consumersstrategies :to work with a differentiation strategy, i.e. to manufacture and market products of high quality at an appropriately high price. mission:by the end of 2012 to be among the 10 largest bicycle manufacturers on the european marketobjectives:to achieve a profit amounting to minimum 10% of sales each year until 2012to focus on the customer, to design products to meet customer needs and to offer the best service on the marketto be known and respected as an environmentally conscious manufacturer human resource managementemployees qualification: they should hire more employees who have experiences on operation to reduce product time. motivation can use to encourage them to create more profit and built kind working environment.technology development they should pay more attention to technology because it is the source of design and development, if they can always handle the top technology.procurementsupplier search: there are many suppliers from china and italy wants to cooperate with corsair supplier selection: they can choose suppliers depend on price, quantity, sizes, delivery time, other terms and conditions:, delivery terms,terms of paymen. solutions to the problems 1) multiple sourcing: the buying firm shares its business across multiple suppliers dual sourcing: using two suppliers for the same purchased product or servicechoose more suppliers which are not need them to change their product line. and make good relationship with them, and it is good to have long-term cooperation with them.2) pay more attention to customers need and bicycle market 3) improve technology of production to cut down cost price and meet customers requirements and become more competitive, and gain more market shares.4) variety of product to meet diffierent kinds of markets. pay attention to core products and care about market need together.5) holding strategic inventory in some generic or unfinished form, with final configuration being completed rapidly once real demand is known. 6) an alternative form of postponement where the final physical configuration cannot be delayed is to postpone the actual distribution of the product by holding it in fewer locations and using express transportation to move it to the final market or point of use once actual demand is known.7) ato mto etoatoassemble- to-orderthe products are assembled according to customers requirements, but customizations only occur at the end of the product process.mtomade to-orderthe product are manufactured according to customers order, using standard parts and the assemble parts according to customers order.eto-engineer-to-orderdesign and product all operate according to customers requirements.8) pay more attention to technology because it is the source of design and development, if they can always handle the top technology. add r&d departmnet.9）outsource because:external supplier has better capability external supplier has great or more appropriatefreeing resources for other purposereduction in operating costs reducing and spreading riskfocus more tightly on core business economises of scale10)synchronize activities through shared informationsynchronization implies that al parties in the supply chain are “marching to the same drumbeat”. in other words, through shared information and process alignment there is in effect one set of numbers and a single schedule for the entire supply chain.11) work smarter, not harderdetailed examination of the processes that together constitute a supply chain inevitably highlights the facts that a large proportion of the end-to-end time is “non-value-adding”12) partner with suppliers to reduce in-bound lead times conventionally, firms have maintained an arms-length relationship with suppliers. suppliers have often been chosen on the basis of price rather than their responsiveness.13) postpone the final assembly/distribution of productspostponement refers to the process by which the commitment of a product to it final form or location is delayed for as long as possible.14) utilize appropriate performance metrics. it is a truism that performance measurement shapes behaviour. this is particularly the case in business organizations where formal measurement systems drive the business.challenges1)more competitors with same quality and low price.they can choose outsourcing, it give high strategic flexibility, low investment risk and it also improved cash flow and access to state-of-the-art products and service in other words, in souring required high investment, required strategic flexibility, loss of access to superior products and services offered by potential suppliers2)improve their technology to become more competitive and gain more market shares.3) transportation mean can protect enviroment. so for the long run it is a big opportunity for corsair to spread their business.with respect to sales, industry experts generally believe that the bicycle industry will not be influenced by the world-wide economic crisis to the same extent as other industries. combined with the growing focus on co2 emission and climatic changes, the bicycle is expected to become an even more preferred means of transportation on most markets throughout the world.select supplier:1. in my view, i will choose the italy supplier, because the size is almost no diffierent, the delivery time of karbona parts inc is too long , and the delivery time of supra, italy is shortest andthroughthe calculate result their totle price is low and especially there is almost no risks to corsair to choose it compared with other three suppliers. and the increasing wage level in china, however, is forcing a growing part of production to other countries such as taiwan and thailand. bicycles produced in china (though not frames and parts) are in addition burdened in european countries by an extra eu-imposed customs duty.choose italy supplier also follow corsairs marketing policy “designed and manufactured in denmark”.2. six/sigma= (66.51 + 66.47+ 66.52 + 66.48+