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SUPPLY CHAIN MANAGEMENT

DARINKA BERNUY
MARCO CELEDONIO
LUIS FLORES
DIEGO PESANTES
PRIGHIA SILVA

CONTENT

Introduction

Corporate Strategy.

Competitive Strategy.

Structure of the Supply Chain.

Supply Chain Strategy.

Forecasting.

Aggregate Planning.

Potential Problems and Risks

Introduction of the
company
Tigre is a peruvian company that have

60 years of the experience in the


market.
Is a leader brand that sells shoes casual
and sports for people of socioeconomic
levels B and C
TIGER has been evolving and
incorporating new product lines to
reach the classic we know today:
Slippers Ballerinas for women, slippers,
boots, sandals as well as the new line of
urban shoes, in order to meet the
expectations of the fashionable young
audiences.

MISSIO
Be successful as the most dynamic, flexible and
N
market responsive organization, with footwear as
it's core business

VISION

Grow as a dynamic, innovative and market driven


domestic manufacturer and distributor, with
footwear as our core business, while maintaining a
commitment to the country, culture and
environment in which we operate

Competitive
Strategy
Segmentation: Tigre is one of
the chains of footwear with
greater national scope in our
country. This company focuses
in social economic level B and
C.
The advantage competitive is

having low cost in your


products.
Tigre not only sells shoes if not

also clothing and accessory


with its own brand.

Structure of the Supply


Chain

Structure of the Supply


Chain
Suppliers
Some of the suppliers are
locals, from Trujillo and Lima
(Villa Mara del Triunfo, Villa el
Salvador, San Juan de
Miraflores, Lurigancho).
Other suppliers are from
China, Indonesia, India and
Bolivia, etc. (Own
manufacturing facilities and
outsourced.)
Of all imports of pairs of
shoes in Peru, 10% is done by
Tigre

APC-PIVES
Asociacin de
Productores de
Calzado y Afines
del Parque
Industrial

Warehouse
Finished Goods
One facility in
Surco, Lima

Distribution
Own distributers

Retailer
Tigre have
different stores
around Peru,
especially in
provinces like to
Cusco, Abancay
and others.
Tigre sells in
communities of
Peru.

Consumer

SUPPLY
CHAIN
STRATE
GIES

LOGISTICAL DRIVERS
50 facilities in
Lima
70 facilities in
provinces of the
country

Facilities

Decentralize
d
The company is
decentralized to
sell their
products in
each part of the
country.

They have only 1


warehouse located
in Chorrillos which
receive the imports
from Europe and
Asia
The company is
centralized to store
them

Efficiency

CROSS-FUNCTIONAL DRIVERS:
INFORMATION
Stores
BATA operates stores in many cities of the world

Success
The Company have an specialized group to analyze key locations to
open new stores from the Company.

Responsiveness
Street stores: they are cheap to maintain
Consider: location, people flows and nearby business

CROSS-FUNCTIONAL
DRIVERS: PRICING
own plants

Import

Efficiency

10 years ago Bata


created their own
industrial plants in Asia
and Europe to
manufacture any kind of
footwear.

They import all their


products from their own
plant because labor is
cheaper, the use of
modern machines and so
on

Product of high quality to


low price

FORECASTING METHODS
20% of Tigre shoes are in retailers stores, such as Ripley, Saga

Falabella, Oeschle, Paris.


25% of Tigre stores are strategic located in the center of the

cities.
Footwear market dont have a precise number but it must be two

pairs per person. Around 60 million pairs annually consumed.


There are two campaigns, between december and march, both

represent 40% of annual turnover.


Tigre wants to develop their wholesales. They represent 10%

and theyre planning to duplicate it in the next three years.


Tigre will have to increase their market share in principal

provinces from 10% to 15%.


60% of sales correspond to local production, especially casual

sneakers.

AGGREGATE
PLANNING
Tigre produce their own shoes but they also import.
Of all imports of pairs of shoes in Peru, 10% is done by

Tigre.
Tigre does not use an Aggregate Planning for their

workforce.

But, about the changing inventory levels, Tigre uses level

strategy:

Knows the customer demands and the months with peak

demand (February, March, August and December). But that will


depend of the kind of product.
Makes their orders to the suppliers with several months of
anticipation.
Keeps the inventory ready for the peak demand.
Tigre has promoters that sell products by catalog.

POTENTIAL
PROBLEMS
AND RISKS

POTENTIAL PROBLEMS AND


RISKS
The informality in
High dependence
the economic sector
and the commercial
sector.

The industry is high


competitive not only
for the national
sector, also for
many imports that
have the sector.
Fashion changes
constantly, so they
need to quickly sell
their products to not
keep inventory.

this sector affects


the market and
producing unfair
competition.
Piracy: Polvos
Azules.

MAJOR PROBLEMS AND


RISKS

Problem
1
Problem
2

Fashion changes constantly, so they


need to quickly sell their products to
not keep inventory.

The informality in this sector affects


the market and producing unfair
competition.
Piracy: Polvos Azules.

PROBLEM 1 : PROCESS
Manufacturer
outsourced

Change of
fashion

Wide inventory

Overstoc
k

The finished
goods are
outsourced by
national
suppliers.

They change
shoes models
constantly
because of the
trends and
fashion.

Build up
inventory with
old fashion of
shoes.

Sell it with low


prices.

PROBLEM 1: SOLUTION
Use systems to have an accurate
forecast demand.
Design the models of shoes
according with the local fashion and
trends.
Send the units unsold to another
stores in other cities with other
season (Provinces).

Economic impact
More sales,
increase the
supply chain
profits.
More
Reduce the
responsive,
cost by goods
clients more
unsold
happy.

PROBLEM 2: PIRACY

The informality in
the shoes sector is
increasing day by
day, so its
producing a price
war ( lowest
prices)

In Peru exists
many Piracy and
sometimes
people prefers
this because
they think the
shoes have a low
cost and same
quality.

Tigres company
lose customers

PROBLEM 2: SOLUTION
Joint
Ventur
e
A joint venture is a
strategic alliance
where two companies
join to form best
marketing tactics to
benefit mutually.

In order to Tigre
maintain its potential
customers, they should
establish Strategic
alliances such as joint
venture with local
retailers, so consumers
can access in a faster
and easier way to the
products.