The "Whip Effect" Of Supply Chain Makes Shoes Enterprises Run Thin Ice.

"Smart companies often design supply chains based on market characteristics, such as CISCO, which entrust the demand for large ordinary network products to the manufacturers of low cost countries. For brands of medium price products, the core components of suppliers in low-cost countries are assembled according to the needs of the major market players in Europe and the United States. For those with low output and targeted customers, they choose manufacturers close to the main market." Recently, in an interview with reporters, XTEP Xiao Lihua, director of supply chain management center of China Ltd.

He said, "every one." Supply chain It is composed of many stakeholders. Because of some conflicts of interest and information asymmetry, there are internal risks in the supply chain. Internal risks include forecasting, transportation, warehousing, procurement, financial risks, etc. external risks are mainly caused by some environmental changes, such as the stagnation of production and marketing caused by economic depression. For Quanzhou's shoes and clothing enterprises, the most prone to risk is the prediction of market demand. This leads to high inventories. Another major risk is the risk of purchasing production links. For example, shoes and clothing enterprises usually take months from the order to the delivery, and the enterprises must bear additional costs when the raw materials go up.

The price of the downstream dealer has been confirmed a few months ago, while the price provided by the upstream material supplier is one price per day, cotton yarn. chemical fiber Rubber and other raw materials continue to rise, let many shoes and clothing enterprises unprepared, to the enterprise supporting processing enterprises suddenly stopped production, affected the delivery date, enterprise annual production plan will be forced to adjust. The "whip effect" of the supply chain has led shoe companies to move forward on thin ice.