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Shun Sang

Shun Sang (H.K) Company Ltd – A Case Study

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Summarize the broad characteristics of the strategy model of Shun Sang (H.K) co ltd?

Key Success Factor
• Strong IT enabled logistic planning with a streamed lined and efficient work force.

Summary of the strategy model

• Continuous improvement
• Outsourced delivery operations
• Efficient and quick order processing
• Customer centric
• Strong IT infrastructure
• Efficient man management(Award: Good People Management Award 2001)
• Belief in training of employees
• Employee satisfaction(Stock Options)
• 24 hour delivery service

Critically examine each of the above characteristics-offer your comments with reason.

Continuous Improvement
Help Sung Sang to stay competitive in the market by reducing costs and increasing efficiency of logistic management.

Outsourced delivery operations
Hiring specialists in the delivery operations can ensure that there is accuracy of goods movement.
Drawbacks include increase in costs and threat of backward integration by the transportation agency.

Efficient and quick order processing
With the implementation of IT enabled services there is a considerable reduction in the order processing time.
This leads to the more efficient time usage by employees and increases the number of order processes by staff.

Customer Centric
Being customer (drugs stores, chain stores, cosmetic shops, super markets) centric Sung Sang are able to retain the customers as well as attract new customers. They followed a policy that the customer is always right.

Strong IT infrastructure
Enhanced the inventory record accuracy and made the warehouse operation more efficient. They are better able to plan inventory and subsequently decrease the average turnover period of fast moving consumer goods. They also achieved savings in invoice processing time.
The drawbacks include that if a new IT system has to be set up,it has to be compatible with the existing system....