Your SlideShare is downloading. ×
Ecco Supply Chain Analysis
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Ecco Supply Chain Analysis

8,536
views

Published on

Published in: Business

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
8,536
On Slideshare
0
From Embeds
0
Number of Embeds
25
Actions
Shares
0
Downloads
194
Comments
0
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Derek MitchellEcco Supply Chain & Operations Analysis Policy & Strategy Atlanta Module-Summer 2012
  • 2. ECCO Vertical Integration Cow to Shoe• Ecco value chain is actually rawhide to shoe• Purchases raw hides and transforms into leather used in shoe production• Owns tanneries in Netherlands, Indonesia and Thailand• Processes 3,500 raw hides a day equalling 1 million cows per year
  • 3. ECCO Value Chain What is the future of ECCOs leather manufacturing? Full Bench Laboratory Prototype Ramp-up Production Scale marking Product Leather ShoeDevelopment Design Distributing Manufacturing Production (R&D) Post Raw Tannery Tannery Finishing Operations Operations Operations hides Discontinue-"blow it up" Sell it
  • 4. ECCO Value Chain What is the future of ECCOs leather manufacturing? Full Bench Laboratory Prototype Ramp-up Production Scale marking ProductRaw Material Shoe Development Design DistributingProcurement Production (R&D) But lets stop to reconsider.........
  • 5. ECCO Value Chain What is the future of ECCOs leather manufacturing? Full Bench Laboratory Prototype Ramp-up Production Scale marking ProductRaw Material Shoe Development Design DistributingProcurement Production (R&D) Leather manufacturing Value Add Global top five leather producer Leather centre developing leading technology Supplies automotive and furniture industry
  • 6. Quality Materials LeatherResources Strategy Manufacturing Quality Products
  • 7. VRIO Analysis Leather Manufacturing
  • 8. VRIO AnalysisValuableR are Leather ManufacturingImitableOrganization
  • 9. VRIO Analysis Reframe Leather ManufacturingResources
  • 10. Bolster Brand Recognition M PQ QA RU UT OA Leather AE DL Manufacturing L R UI I I CT TA TY Y L S S Increase Perceived Consumer Value
  • 11. ECCO Value Chain What is the future of ECCOs leather manufacturing? Full Bench Laboratory Prototype Ramp-up Production Scale marking ProductRaw Material Shoe Development Design DistributingProcurement Production (R&D) Leather manufacturing Value Add Global top five leather producer Leather centre developing leading technology Supplies automotive and furniture industry
  • 12. ECCO Value Chain What is the future of ECCOs leather manufacturing? Full Bench Laboratory Prototype Ramp-up Production Scale marking ProductRaw Material Shoe Development Design Distributing LeatherProcurement (R&D) Production Leather manufacturing Value Add Leather Manufacturing Restructuring Plan Remove "blow up" leather manufacturing from value chain Global top five leather producer Restructure operations as an ECCO subsidiary Leather centre developing leading technology Supply ECCO and competitors in shoe industry Supplies automotive and furniture industry
  • 13. Industry/Competitor Value Chain Sporting Rubber, Shoe Goods, Fabric and Manufacturing Marketing Department Other Raw and assembly and Shoe Materials Stores Customers Online, Product Catalog and Development Other Retail Customers Company Branded In-house Specialty Outsourced Store Customer Feedback
  • 14. Industry/Competitor Value Chain Sporting Shoe Goods, Manufacturing Marketing Department Leather and assembly and Shoe Stores Customers Rubber, Online, Product Fabric and Catalog and Development Other Raw Other Retail Materials Customers Company Branded In-house Specialty Outsourced Store Customer Feedback
  • 15. LeatherIntroducing...............Co- Branding
  • 16. Co- Branding
  • 17. Co- Branding
  • 18. Co- Branding
  • 19. Supply Chain &Operations Breakdown
  • 20. ECCO Divisions• Product Development (R&D)• Design• Leather Manufacturing• Shoe Manufacturing• Distribution
  • 21. Product Development Locations • Bredero • Tonder • Indonesia • Portugal Value Add• Development of products, prototypes, laboratory production technology, processes, materials• Laser technology development in Portugal facility
  • 22. Design Locations • Bredero • Indonesia Value Add• Design in manufacturing facility to foster practical, high- quality product design
  • 23. Leather Manufacturing Locations • Netherlands • Indonesia • Thailand Raw Hide Suppliers • Germany • Finland • France
  • 24. Leather Manufacturing Value Add• Amongst five largest leather producers worldwide• Leather research centre with 15 specialist developing new technology and tanning techniques• Developing less polluting tanning methods• Processed 3,500 raw hides per day equaling 1 million cows per year• Sells excess to automotive and furniture industries Potential Subsidiary Value (see IBIS report)• Buying industries: footwear industry, automotive, furniture, Luggage manufacturing, Gym & exercise equipment, Athletic & sporting goods• U.S. Leather industry value: $1.2 billion• Key Success Factors: Economies of scale, Effective quality control, guaranteed key input supply (raw hides) Disadvantage• Leather quality does not add to perceived customer value
  • 25. Shoe Manufacturing Locations • Slovakia • China • Thailand • Indonesia • Portugal Value Add• Established production systems, streamlining processes and specific volume materials• Perform small tasks making quality and production methods hard to imitate Disadvantage• Procurement of raw materials to Indonesia facility takes 13 weeks from order to delivery
  • 26. Distribution Locations • United States • Tonder • DenmarkTransportation Methods• Harbor of Aarhus• Denmark vans and freight planes for emergency shipments
  • 27. Distribution Value Add• Tonder warehouse capacity: 2 millions pairs• Bar code system can facility shipment of 60,000 pairs per day to 25 countries Disadvantage• Distribution system may not be able to handle replenishment orders with short lead times
  • 28. Finland Denmark France Slovakia United States Portugal China Japan Germany Thailand Indonesia Main Markets (U.S., Germany, Japan)ECCO Supply Chain Rawhides Distribution Leather Manufacturing Shoe Manufacturing
  • 29. Thank You Contact info. Derek Mitchell dlmitchell3001@gmail.comwww.linkedin.com/in/dereklmitchell