Li Ning and Nike PK Logistics Exclusive Tips

The international logistics brand Nike's distribution time in China is 7 days, and Li Ning's logistics distribution time is only 4 and a half days. The outstanding performance of Li Ning's logistics is evident. Li Ning has a superior “cheat code” in its logistics strategy, which is to play a combination punch in logistics and transportation services, warehousing and distribution, and logistics information.

Find the most suitable logistics provider and manage it scientifically

When choosing a logistics company, many domestic companies always believe in large logistics companies. Li Ning Company does not seek out the largest logistics company and only looks for the most suitable one.

The logistics service providers selected by Li Ning Company are all medium-sized logistics companies or transportation companies. The company believes that large logistics companies may have larger customers. If they rank second in the industry, then surely there will be larger customers in the front row, and large customers must be more highly valued than themselves. With this kind of thinking, Li Ning changed its mindset and began to select some mid-size logistics transportation companies as partners. In this way, Li Ning's goods began to receive much attention and logistics companies devoted their efforts to service. At the same time, Li Ning Company added one item to the logistics carrier contract: No matter what happens, Li Ning's goods will be issued first.

After determining the carrier, Li Ning also attached great importance to the dynamic management of the carrier, and conducted performance appraisal, the last elimination and tracking control.

Li Ning's carriers and logistics agencies must accept strict performance assessment. The company has a total of five assessment indicators, namely, timely delivery rate, timely punctuality rate, cargo loss rate, service attitude and perfect return rate. For the dedicated line carriers, Li Ning's logistics department will personally monitor the completion of each indicator, while the agency will conduct an overall assessment.

All logistics carriers must link their information management system with the management system of Li Ning's logistics department and provide timely feedback on transportation monitoring information through the system. They must report daily, including the number of the shipment, delivery time, delivery time, in transit time, reports of different locations in long-distance transportation, and reasons for accident analysis. At the same time, Li Ning's Logistics Department has a transportation tracking agency that is specifically responsible for telephone tracking of distributors and specialty stores, and integrates the information it receives with the data returned by the carriers into a single file to form a one month program for the carrier. With reference to these programming, Li Ning will give each month a score to the carrier, and once every quarter, it will publish the data report to the carrier and request it to correct for the deadline.

Relying on this strict dynamic management system, the service level of the carrier has been continuously improved. Currently, the carriers that cooperate with Li Ning Company not only have the short-listed bidders, but also have been eliminated and then raised their own level and have been recognized again by Li Ning. Li Ning's cargo transportation has also been widely praised in the industry, and has won the trust of the majority of dealers: as long as the goods arrive, the goods will be delivered safely and on time.

Integrate unified distribution of storage and transportation

Li Ning has two first-tier distribution centers nationwide: one located in Beijing Wulidian, with a total area of ​​25,000 square meters, responsible for product distribution north of the Yangtze River; the other is in Sanshui, Guangdong, with an area of ​​12,000 square meters, responsible for the Yangtze River South region product distribution. There are 13 branches across the country, and the warehouses under their respective jurisdictions are second- and third-tier distribution centers. As a result, Li Ning's storage area totals 50,000 square meters.

In order to focus on the advantages of the network and promote sales, Li Ning Company integrated the logistics and transportation departments of 13 branches across the country, set up a logistics center to conduct unified management, and promoted the practice of warehousing according to sales locations. According to the place of sale, the product is sent directly to the distribution center of the corresponding sales area after it leaves the factory, and then it is distributed through the sorting and distribution, and it is no longer necessary to go to the distribution center through the warehouse in the production area.

After one year of trial implementation, this new practice has reached three goals: First, products made in Guangdong are part of Beijing and part of Sanshui, with short distribution distance and high speed. The second is that due to the reduction of transportation links, not only the cost is reduced, but after receiving orders, the goods can reach all the stores within 36 hours, and the local sales response is very timely. Third, the cost of vehicle transportation is lower than the cost of scattered transportation. The capacity consumed by placing goods at the sales location is actually equivalent to the vehicle capacity of wholesale vehicles. Since most of the mileage is long-distance trunk transportation, the cost of the entire vehicle is much lower than the cost of small-batch delivery to stores.

Rely on science and technology to improve the storage level

Like other manufacturers, Li Ning once faced the reality that the reduction of inventory can reduce costs to a great extent. However, reducing inventory must be carried out under the premise of ensuring safety stock, that is, the distribution center must have a certain amount of storage. the amount. Because the door-to-door distribution cannot be fully realized at this stage, the dealer and the store cannot be required to assume the responsibilities for storage. In addition, the city’s regulation of transportation also makes it impossible for large vehicles to be delivered directly to stores in a specific period of time.

Therefore, Li Ning decided to reduce the inventory time within a controllable range with the goal of not having a raw material warehouse and a finished product library. After a period of trials, after rethinking the various indicators of the entire logistics process, Li Ning found that its picking time was inferior to that of third-party logistics companies. The main reason is that due to the high frequency of launch of new products in the domestic market by Li Ning, there are now 20,000 different styles, color codes of shoes, caps, casual wear, suits and so on. In the picking of goods, it is necessary to first distinguish the product categories, and then according to different styles, color code shelves. In addition, the distribution center does both wholesale and retail sales, and the selection of goods must be continuously deconstructed, all of which make it difficult to sort the goods.

As a result, Li Ning invested in remodeling its warehouses, and paid great attention to detail during the renovation process. For example, in order to select the right shelf, the relevant personnel examined almost all the types of shelves. They first performed a property analysis on the goods, and then invited five shelf manufacturers to formulate different plans based on the attributes of the goods. Before and after a month of revision, the decision was made. Now entering Li Ning's warehouse, people will be surprised to find that different shelves are arranged in the warehouse according to different delivery requirements and product attributes in order to become a unique landscape.

In order to speed up the operation of goods, Li Ning continued to launch a new information system to achieve three goals: to speed up the distribution and distribution of logistics and reduce costs; to improve the accuracy of sorting, from the receipt of orders to the time of shipment of goods to a large extent Compression; further save storage area, increase storage capacity. After a series of upgrades, various joints of Li Ning's storage and sorting system were opened. The new information system enabled Li Ning's logistics to be more smooth and information transfer more efficient and efficient.