Xtep Supply Chain Collaboration Research

Entering into the21stcentury, the income and living standard of Chinesepeople have been improved continuously. The enlarging middle class people takemore and more concerns about their health. The government encourages people totake more physical exercises. Nearly400million Chinese are taking various kinds ofsports every year, and the number is still increasing. All these factors contribute to thefast development of Chinese domestic sportswear companies and brands. However,due that most Chinese sports wear enterprises make to distributors’ orders instead ofprecise forecast of consumer needs, the production volume often varies largely withfinal sales volume, and this result is often irreparable. High stock of some SKUsexists alongside with high out of stock of other SKUs. In the past, to occupy morelocal markets at a higher speed than their competitors was so important to theenterprises that they opened large amout of retail stores through distributors in a veryshort time. The measures they took to build their brand name and to stimulate saleswere also similar. On one hand, they spent large money in national-wide TVadvertisements, celebrity endorsements and events sponsorship, which was describedas “air bombing” in jargon. On the other hand, they set high KPIs and high profitreturns for their distributors, who were named “ground forces” in jargon. Thingschange. What are happening in recent years are that average store profit is dropping,stores are being closed, the sales volume and profit of these enterprises are bothdecreasing. These enterprises are more and more concerned about increasing themanagement level inside themselves. Therefore the study on “Brand-DrivenQuick-Responsed Supply Chain and Best Operations” is significant.Secondly it details the methodologies and approaches to organize supplychain processes; use "Quicksand" model,"Drinking" model and "Buffet" modelwhich are extracted from nature to analyze the essentials of supply chain managementand provide guidance to practice. Meanwhile, several sets of "auto-generated andmanually-adjustable dynamic graphical" forecasting and intelligent distribution methods and models and a set of practical methods to improve coordination,responsiveness and adaptability are firstly proposed to form a set of decisionsupporting tools which are simple, easy to use and at low cost. Finally these methodsand tools are applied in two representative enterprises and brands and are verified tobe effective and can be shared by all Chinese enterprises.To sum up, this paper analyses the above problems both theoretically andpractically, and provides a set of innovative solutions. This study can significantlyhelp to increase brand value, economic benefits and competitiveness of enterprises.