Foreign Electric Tool Business Location Decisions And Their Implementation, And Distribution Center In China

Along with the booming of China economy, more and more international companies pay more attention to the biggest consumer market and low cost production base.And also, along with the globalization of the market and production, the competition between companies is more and more vehement. With the production cost is more closely and the production is more similarly, the companies pay more attention on the logistics cost and the customer service level to increase their competition ability. Due to the logistics cost and service level all relative with the logistics network designing, so, each international company should face this issue when they enter into the China market.B Company been used as a example in the article, first ,thought analyzing the sales channel and customers location, to get the feasibility analysis about the bound warehousing. And found the cargo tax ratio is important for the bound warehouse selection. And a model been set up and summarized the relationship between the tax ration and the inventory level. Finally, the article gives the proposal for the B company base on the B Company's actual condition.And at the same time, thought doing the analysis about the customer service level request (especially for the order delivery time) and base on the consumer distributing, two models been set up, one is the multi-DC model and another is the single DC model. Then calculated the total logistics cost for these 2 models (include the capital cost), then got the conclusion that the single more can save the total logistics cost then multi-DC model.After got the DC model for the B Company, the article gave more suggestion about the supply chain operation process, organization chart, DC location sourcing & selection, warehouse internal designing and also set up the key performance index(KPI) for the whole supply chain operation and management.Through the calculation and analysis, the article give a model about the steps, methods and key points about the logistics network designing when international companies enter the China market.