By the time being when the researcher concludes the research paper, Hisense GmbH is at the final stage preparing to launch the AC business sector with selected distributors; while the actual business cooperation agreements are under heat negotiation. Even though, previous research data and consultative proposal with regarding to the implementation of CPFR model, have been delightfully accepted by the managerial team, and have been allocated into the partnership campaign program.
Alfred Kaut group, as the top favorable partner of greatest market potential, has assigned a 5 person team, board executive member included, to start the regular communication with Hisense GmbH. The content covers all collaborative factors that have been pointed in the previous chapters, i.e. collaborative product management, collaborative demand/supply planning, and collaborative logistics operation based on visual tools, jointly manageable European logistics center. The rest of the candidates are also casting huge interests in continuous business talk in short future. Only by carry-out the academic oriented research, the German AC market has already perceived certain understanding of the new brand Hisense in professional channel. Thanks to the high profiled product technology and quality reference, the initial comments from the end market are sufficiently positive, which turns into the internal confidence of the Hisense local team to further pursue for success.
From internal perspective, the research brought back trustful information regarding S&OP characteristics of German AC industry, which provides great significance to strategic decision making for the next 3-5 years.
Since the AC market is engineering channel dominant, it is more than difficult to acquire first hand market information respect to consumer behaviors and mindset of industrial influencers. By taking the face to face interaction, Hisense AC team got the opportunity to approach the main players on the market, and collect the real-time requests from brands distributors to suppliers. The data are rather reliable because Hisense GmbH is fresh new to the market looking for partners, therefore, interviewed companies do not take Hisense as competitors as they do to the other Chinese brands who already have local distribution network set up. The research team, hence, saved the time for filtering data and arguing for the credibility of the interview results.
To have a brief review of this research paper, the researcher counts on the multiple interviews during business development meetings to discover answers towards sub questions. Questionnaires address on getting a crystal clear picture of German AC market and channel, so that researcher could customize
proper collaborative programs for Hisense GmbH. In fact, besides empirical features of AC products and market players, most interviewees further elaborated their desirables that could be realized by collaborative program with Hisense GmbH. Consequently, the research could be able to sort out solutions towards the pre-described problems in chapter 1; fortunately, the solution is predicted to work out effectively under the current circumstances, known from the latest feedback from potential partners.
This research contains its limitations from academic perspective, due to the reason that the case company has not accomplished the project, and that interviewees might have their opinions varied with time passing by. At another hand, the internal organization might face various policies and structural changes during the actual process of program launch; therefore, different resources accessibility might alter the collaboration process in the future. To remand this inadequacy, researcher would suggest more studies to be carried out based on complete projects of collaborative programs.
Last but not least, this research topic has instructive significance for companies striving for globalization and localization, because S&OP efficiency improvement is always the keen issue for executive managers to speculate. Hisense GmbH’s trial of CPFR approach would definitely inspire international practitioners in participating oversea operation proactively, exploring unique path of brand building, and leveraging overall efficiency of the entire supply chain. This should not be a topic only among Chinese producers, but valuable for every enterprise on its way expanding distribution network.
Glossary
CPFR
Collaborative Planning, Forecasting and
Replenishment (CPFR) is a concept that aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.
VMI
Vendor Managed Inventory In VMI the Vendor (supplier) has responsibility for maintaining retail or RDC stock levels in the most cost effective manner appropriate to the agreed service standards. See also Co-Managed Inventory and CRP.
ERP
Enterprise resource planning (ERP) is an integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources.
PRS
Project Registration System is defined by the case company and applied widely in the AC distribution channel, which is as
software program with open access for multiple users. The purpose is to register the AC orders with time priority and reserve the articles in central warehouse.
VRF A particular central air conditioning system invented by Japanese producer DAIKIN, with variable refrigerant flow technology.
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