Shun Sang
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Shun Sang (H.K) Company Ltd – A Case Study
Summarize the broad characteristics of the strategy model of Shun Sang (H.K) co ltd?
Key Success Factor
Strong IT enabled logistic planning with a streamed lined and efficient work force.
Summary of the strategy model
Continuous improvement
Outsourced delivery operations
Efficient and quick order processing
Customer centric
Strong IT infrastructure
Efficient man management(Award: Good People Management Award 2001)
Belief in training of employees
Employee satisfaction(Stock Options)
24 hour delivery service
Critically examine each of the above characteristics-offer your comments with reason.
Continuous Improvement
Help Sung Sang to stay competitive in the market by reducing costs and increasing efficiency of logistic management.
Outsourced delivery operations
Hiring specialists in the delivery operations can ensure that there is accuracy of goods movement.
Drawbacks include increase in costs and threat of backward integration by the transportation agency.
Efficient and quick order processing
With the implementation of IT enabled services there is a considerable reduction in the order processing time.
This leads to the more efficient time usage by employees and increases the number of order processes by staff.
Customer Centric
Being customer (drugs stores, chain stores, cosmetic shops, super markets) centric Sung Sang are able to retain the customers as well as attract new customers. They followed a policy that the customer is always right.
Strong IT infrastructure
Enhanced the inventory record accuracy and made the warehouse operation more efficient. They are better able to plan inventory and subsequently decrease the average turnover period of fast moving consumer goods. They also achieved savings in invoice processing time.
The drawbacks include that if a new IT system has to be set up,it has to be compatible with the existing system. Employees may have problems understanding the system thus increasing training requirement and costs.
Efficient man management
Maintaining a lean efficient work force helps in cost reduction. Considering that Sung Sang is servicing 1900 orders and 50,000 cartons of goods are sold each month to 400 drug stores and numerous departmental stores.
Belief in training of employees
With 10% of the budget going on training of employees this has two fold benefits.Firstly the employees are able to perform their tasks better thus increasing efficiency and there can be a reduction in the attrition rate.
Employee satisfaction
Although the Company is not listed on the stock exchange the employees get stock options. This creates a sense of ownership amongst the employees.
24 hour delivery service
With the successful launching of the 24hour delivery service reducing its customer stock replenishment time by 50% and increasing the product supply.
Recommend your strategies for further growth of Shun Sang
They should target more larger superstores and other large establishments
The setting up of large supermarkets and malls have given rise to a new breed of customer, a customer who like to have everything in one place, with Wal-Mart and other stores coming up, there is bound to be heavy