by tristaau yeung - chartered institute of procurement … s… · · 2015-07-21in retail jewelry...

CHALLENGES IN INDIRECT SOURCING IN RETAIL JEWELRY INDUSTRY

3 JULY 2015 PANDORA COMPANY PRESENTATION1

BY TRISTA AU YEUNG

DATE: 10‐JUL‐2015

CONTENT

3 JULY 2015 PANDORA COMPANY PRESENTATION2

• Challenges

• How we deal with Challenges

• Q & A

• PANDORA at a glance

• Procurement at PANDORA

PANDORA AT A GLANCE

3 JULY 2015 PANDORA COMPANY PRESENTATION 3

• Founded in 1982 by Per and Winnie Enevoldsen

• Present in more than 90 countries across six continents

• Our cornerstone product is the collectible charm bracelet, complemented by a range of other jewelry

• Positioned within the affordable luxury segment of fine jewelry

• Vertically integrated business model, from in‐house design and production to global marketing and direct distribution

PANDORA AT A GLANCE


The very first PANDORA concept store opened in Hamburg, Germany, in 2006

In 2015, we have over 1400 concept stores around the world

His dream has come true. Today, PANDORA has over 10,00 points of sale

PANDORA founder Per and Winnie had adream that they would one day be able totravel the world and see a PANDORAstore on every high street

PROCUREMENT AT PANDORA

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Indirect Procurement Covers :

• Fixtures and Furniture

• POS Materials

‐ Jewelry Boxes

‐ Shopping bags

‐ Standard Display

‐ VM Campaign Material

• Gift with Purchase (GWP)

PANDORA COMPANY PRESENTATION 3 JULY 2015


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FIXTURES & FURNITURE



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POSM – Packaging



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POSM – Standard Display



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POSM – VM Campaign Material



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Gift with Purchase (GWP)


CHALLENGES

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Lack of Labour in China (esp. Southern China)

• People tend to get a job in their home town

• Young generation does not want to work in the factories

• They want to work in service industry

• They want to have a more relaxing life (work‐life balance)


Rising labour cost in China

• Min. wage in China changes every year

• Appreciation of RMB

Insufficient Capacity

• Limitation of the land for further expansion

• Lack of workers

• Some of the process cannot be done by machinery e.g. folding of shopping bag

• Large order volume (Global scale)

CSR Issues

• Working hours & Benefits

• Health & Safety

HOW WE DEAL WITH THE CHALLENGES

14

Sourcing for new supplier

• To look at the suppliers whose located out of Guangdong area or even out of China

• For example: Southeast Asia


Vendor selection thru Tendering

• RFP / RFI / Pre‐visit / Cost Comparison

• Prototyping

• Re‐submission of pricing

• To select the best performing supplier and achieve cost saving

Vendor management

• QBR meeting – provide the supplier with performance feedback

• Two‐way evaluation form

• CSR training

Multiple Suppliers

• Never put all eggs in one basket

• Mitigate supply chain risk – contingency planning

• Improved capacity

• Better quality and services with competition

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Geographical Spread of Social Audits


GEOGRAPHICAL LOCATION OF SUPPLIERS IN CHINA

NEW SOURCE OF SUPPLIERS

3 JULY 2015 GROUP PROCUREMENT ‐ 2ND TENDER F&F16

Malaysia:1) Some fixture suppliers has set up their manufacturing facility in Malaysia.2) Comparable brands reference

Vietnam:1) They are growing in home

furniture business but don’thave any largemanufacturers for retailfixtures.

2) High inflation rate i.e. 8%3) High Economic and Political

risk

Indonesia:1) Capacity & delivery issue2) Turnover rate of worker is

high.

Thailand:Thailand is more famous in home and outdoor furniture, not retail fixtures.


THANK YOU

Q & A


by tristaau yeung - chartered institute of procurement … s… · · 2015-07-21in retail jewelry...

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