Rapid response/Quick Response-QR:
What is a Rapid response/ Quick Response?
Quick Response/Rapid response is logistics enterprises face many varieties, small quantities of a buyer's market, not the reserve of the "product", but to prepare a variety of "elements" in the user request can be taken as quickly as "elements", in time "assembly" to provide the required services or products.
QR is the U.S. textile and garment industry to develop a supply chain management.
QR requires retailers and suppliers to work together, through the sharing of POS information to predict the future replenishment of goods demand, and continue to monitor trends in order to explore opportunities for new products, consumer demand in order to respond more quickly.
QR's focus: is to respond quickly to consumer demand
The concept of rapid response systems:
Rapid response system (QR) is through retailers and manufacturers to establish a good partnership, the use of EDI and other information technology for point of sale and other business information and order additional exchange, with more frequency, a small number of distribution methods trickle goods. In order to achieve sales growth, customer service optimization, and inventory levels, merchandise stock, commodity risk and minimizing the reduction goal of a logistics management system model.
The source of rapid response systems:
From the late 1970s, the U.S. textile and apparel imports increased dramatically, to the early 1980s, imports accounted for roughly the total textile and garment industry, 40% of the amount of sales letters. In response, the U.S. textile and garment enterprises, the Government and Congress to take measures to prevent a large number of textile imports; the other hand, investment in equipment to improve productivity. But even so, the market share of cheap textile imports are still rising, and locally produced textiles market share is in continuous decline. To this end, some of the major dealers set up a "committee with the domestics proud." On the one hand through the media-made textiles advantages, joint sales promotion activities; other hand, the commission engaged in the retail consulting firm Kurt salmon competitiveness survey. Kurt salmon in full after a large number of investigations that, while all of the textile industry supply chain efficiency is not high. To this end, Kurt salmon recommends retail and textile and garment manufacturers to share information resources and establish a rapid response system (quick response) to achieve sales growth.
The role of rapid response system
Quick response is related to a vendor in time to meet customer service needs. Information technology to improve in the last possible time to complete as soon as the logistics operations and the ability to deliver the required inventory. This would reduce the traditional needs of customers expected on excessive reserve stock of the situation. Rapid response capacity to jobs and forecast focus from inventory reserves based on the expected transfer to the shipment to shipment from way up in responding to customer needs. However, as yet do not know the owner needs and take on the role before moving inventory did not actually happen, so the operation must be carefully arranged, not any defects.
It should be noted that although the application of QR's original intention was to fight against imported goods, but did not actually such a result. On the contrary, with the globalization of competition and the globalization of business industry workers, QR systems management business expanded rapidly in all countries. International air transport is provided to ensure the rapid supply. Now, QR method as a tool retailers achieve competitive advantage. Both retailers and suppliers as strategic alliances, competition from the way the competition among enterprises and business strategy into a strategic alliance between the Union and the competition.
QR implementation of the three phases
1, for all commodities unit bar code, the use of EDI document transmission purchase order documents and invoices;
2, increasing internal business processing, the use of EDI transmission more documents, such as shipping notices, notification of receipt, etc.;
3, in close cooperation with trading partners, using more advanced strategies, such as joint replenishment systems to respond quickly to customer needs reflection.
QR specific strategies
Goods ready to be added to our service (Floor Ready Merchandise)
Automated material handling (Automatic Material Handling) and so on.
The conditions for successful implementation of QR
Black Burn in the U.S. textile and garment industry based on the research that QR's five conditions for success are:
1 to change the traditional mode of operation, business sense and organizational structure
(1) companies can not be limited solely rely on the strength of the enterprise to improve the operational efficiency of the traditional business sense, to establish the parties through the supply chain partnership, to use all resources to improve the operational efficiency of the modern business sense.
(2) retailers in vertical QR system play a leading role in vertical QR retail outlets is the starting point of the system.
(3) in vertical QR within the system, the POS data and other sales information and cost information exchange between public and to improve the operational efficiency of each company.
(4) clear vertical QR system, the division of labor between the various business scope and form of collaboration, eliminate duplication of work, to establish an effective framework for division of labor.
(5) the transaction must change the traditional pattern of operations, through the use of information technology services and automated paperless operations.
(2) the development and application of modern information processing technology
3 with the supply chain parties to establish strategic partnership
4 to change the traditional confidentiality of business information on business practices
The sales information, inventory information, production information, cost information exchange and sharing with partners, and on this basis, requiring the parties together to identify problems, analyze and solve problems.
5 suppliers must shorten the production cycle, reduce the inventory of goods
Specifically, suppliers should strive to:
Shorten the production cycle of goods;
Multiple varieties of small batch production and a small number of multi-frequency distribution, reducing the retailer's inventory levels, improve customer service levels;
The actual needs of the commodity used to happen JIT produce in a way to reduce the supplier's own inventory levels.
Comparison of ECR and QR
(A) QR and ECR differencesECR mainly in the food industry as an object, its main goal is to reduce supply chain costs and improve efficiency.
QR primarily focused on general goods and textile industry, whose main objective is to respond quickly to customer needs and rapid replenishment.
This is because the grocery industry and the textile and garment industry operating characteristics of the product are different: the majority of grocery products industry is a business of some functional products, each relatively long life of the product (excluding fresh food), therefore, order quantity over much (or too little) relatively unscathed.
Textile and garment industry mostly product management and innovative products, each product's life is relatively short, therefore, order quantity too much (or too little) relatively large losses.
(L) a different focus.
QR focus on shorter delivery lead time, quick response to customer demand; ECR focused on the supply chain to reduce and eliminate waste, improve the effectiveness of supply chain operation.
(2) management of difference.
QR main use of information technology for rapid replacement, joint product development by reducing time to market; ECR in addition to the introduction of new products quickly and efficiently, but also effective commodity management, and promote effective roll
(3) applies to different industries
QR for high unit value, seasonal, substitutability is poor, the low frequency of purchase of the industry; ECR for the low unit value products, high inventory turns, gross margin less substitutability is strong, buy high frequency
The industry.
(4) the different focus of reform
QR focus of reform is the rate of replenishment and order, the purpose is to maximize the elimination of out of stock, and only when the demand for goods to purchase. ECR reform focus on efficiency and cost(B) the common featuresPerformance beyond the boundaries between enterprises, the pursuit of logistics efficiency through cooperation. Embodied in the following three aspects:
1 business information between trading partners, sharing
(2) further into the retail goods suppliers to provide high-quality logistics services
3 inter-firm orders, shipments via EDI to all business conducted in order to achieve data transmission or delivery of paperless data
3 with the supply chain parties to establish strategic partnership
4 to change the traditional confidentiality of business information on business practices
The sales information, inventory information, production information, cost information exchange and sharing with partners, and on this basis, requiring the parties together to identify problems, analyze and solve problems.
5 suppliers must shorten the production cycle, reduce the inventory of goods
Specifically, suppliers should strive to:
Shorten the production cycle of goods;
Multiple varieties of small batch production and a small number of multi-frequency distribution, reducing the retailer's inventory levels, improve customer service levels;
The actual needs of the commodity used to happen JIT produce in a way to reduce the supplier's own inventory levels.
