PowerPoint Presentation

Tannery

Product development (R&D)

Design

Leather Manufacturing

Hide Procurement

Shoe Manufacturing

Distribution

RetailValue Chain of ECCOIssues For ECCOSourcing, Production and DistributionModernisation of PlantsClimatic or Manmade DisruptionsCapacity AugmentationExternal SourcingDue to labour intensive nature of Industry most of the production units are in Asia , However there is a trade off in lead times and much stock needs to be kept in warehouses . This increases working Capital.ECCO has two main distribution centres, one is US and other in Denmark. The majority of the sales are through Denmark , but only 6-9% of sales are in Denmark and products have to be shipped to local distribution centres some as far away as Japan.ECCOs manufacturing facilities dont match retail markets it serves . So they have a very long supply chain, which may face issues if there is sudden change in demand.Delays in material flow in the integrated supply chain is another rmajor issue for ECCO. For eg while crossing borders inspection of materials take a lot of time.