Empirical Studies Of Amway’s Direct Mode Based On Supply Chain Management

In the process of global economic integration, increasingly fierce international competition has turned into the competition in supply chain. However, China, because of its weak international competitiveness, is often at a disadvantage. To survive in the market, an enterprise must have core competitiveness in supply chain management. Excellent supply chain management can reduce inventory, save storage costs, improve customer satisfaction and improve sales performance. With markets and business growing, direct selling industry will face numerous service network and thousands of direct sellers, which makes it of great importance to optimize supply chain management.What the dissertation covers is as follows:(1) to analyze the background of the direct mode and study the related theories of supply chain management.(2) to analyze and compare the direct mode of3major companies, Dell, Avon, and Lion.(3) to put forward countermeasures and suggestions based on detailed analysis of Amway’s present situation and existing problems in logistics management, information management, capital management, and green supply chain management.(4) to raise some countermeasures and suggestions for FMCG industries to improve the direct mode based on the study of Amway’s direct mode.The achievements of the research are as follows:(1) Focused on3major direct selling enterprises, Dell, Avon and Lion, in-depth analysis and detailed comparisons are made in logistics network planning, terminal delivery mode, logistics speed, inventory size, and information flow management. It is concluded that optimizing supply chain management is the key to enhancing the competitiveness of direct selling enterprises, offering great reference value in studying Amway’s supply chain management.(2) Amway’s direct mode is thoroughly studied. Based on the analysis of its present situations and existing problems, optimization scheme is put forward in the management of logistics, information flow, capital flow and supply chain.(3) Countermeasures and suggestions are given in the direct mode of FMCG industry, which helps greatly our domestic industries to grow more international and raise international competiveness.(4) Much work can be done on evaluation rules in selecting suppliers, as well as performance evaluation and incentive system in Amway’s supply chain management.