Marketing channels and logistics

Topics: Supply chain, Supply chain management, Alloy wheel Pages: 14 (3726 words) Published: December 11, 2013
 Marketing channels and logistics

1. Executive Summary
This report is aimed at exploring the market channel and logistics in the case of SuperAlloy, the world-class provider of forged aluminum alloy wheel rims. Through the analysis of financial performance, the fluctuations of average selling days and inventory turnover are necessary to addressed. After the discussion, this report mentions three key, including the dilemma of collaboration in supply chain, breakthrough of market channels, deploying the system of logistics in China region. From the perspective of management, SuperAlloy should adapt external integration, restructure the supply chain collaboration, complete the breakthrough of market channels, highlight some KPIs, such as inventory turnover, average selling days, and the average time to generate first trial order for new customer or new design, and deploy the logistics of China regions. 2. The Discussion for Task 1

2.1 The market opportunity for the forged aluminum alloy wheel rims With the designs of energy-saving technology growing mature in automobile market, the forged aluminum alloy wheel rims have become the important component in future lightweight vehicle. The components of high-strength forged aluminum alloy could be used to reduce vehicle weight and enhance the engine efficiency. Therefore, the forged aluminum alloy wheel rims have played the key part in automotive supply chain (http://www.superalloy.tw/). The case company in this report is SuperAlloy, which has moved into the forged aluminum alloy wheel rims since 1997. The first three key suppliers of forged aluminum alloy wheel rims are America’s ACOA, Germany’s Otto Fuch, and Taiwan’s SuperAlloy. In China, the first provider for forged aluminum alloy wheel rims is CiTic Dicastal Wheel ( http://store.gvm.com.tw/article_content_12953.html). The market opportunity for forged aluminum alloy wheel rims results from technological bar inherent in the high-strength forged aluminum alloy wheel rims ( http://www.superalloy.tw/). First, it stems from high specifications in automobile system regarding safety. Thereby, the providers of forged aluminum alloy wheel rims are often required to meet the criteria by way of innovation of manufacturing process or material technology. Second, the process of aforementioned innovation result in longer lead times before mass production. Accordingly, higher margins for the forged aluminum alloy wheel rims often cost the higher-than-normal expense of high-quality services from R&D team and sales team. On the other hands, the management for market channel and logistics plays the critical position in the technology-intensive industry. 2.2 The financial performances of SuperAlloy

As the appendix describes, SuperAlloy is the Taiwan’s biggest closed-mold forge company and ranked as the third position in the global forged aluminum alloy wheel rims industry. Based on the published financial data on the website of http://newmopsov.twse.com.tw/, this report reviews the financial performances of SuperAlloy from 2006 to 2011, trying to identifying the issues behind market channel and logistics. Table 1 The financial performances of SuperAlloy

Year
2006
2007
2008
2009
2010
2011
Sale (NTD 000s)
2,223,755
3,579,541
3,270,906
2,723,396
2,569,711
2,723,396
Margin(%)
30.39
20.98
2.72
20.95
22.44
17.2
Operating margin(%)
17.13
10.83
-6.81
6.83
11.39
5.42
Debt ratio(%)
59.36
60.35
63.72
24.23
46.51
46.8
Inventory turnovers
1.31
1.89
2.05
2.66
2.98
2.14
Average selling days (Days)
278.62
193.12
178.04
137.21
122.48
170.56
Asset turnovers
0.37
0.48
0.46
0.39
0.43
0.49
Cash flow ratio(%)
NA
NA
NA
63.06
60.42
12.01
ROA(%)
4.8
1.44
-6.17
2.4
3.45
2.74
ROE(%)
9.45
0.64
-19.58
3.8
5.95
4.13
Source: http://newmopsov.twse.com.tw
“NA” means the data can’t be accessed.
As shown in table 1, the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Logistics Essay
  • Marketing Channel Essay
  • Marketing Channels Essay
  • Marketing and Logistics Essay
  • Essay about Logistic
  • Essay about Airasia's Logistic and Channel Management
  • Distribution Channels and Logistics Essay
  • Marketing Channels Essay

Become a StudyMode Member

Sign Up - It's Free