LookinglassEMP 524

4th Presentation03/03/2015

DepartmentsCEO: Nando Lituma

Finance: Jiachen MaoSale & marketing: Paul Wang & Frank Wang

Procurement: Aaron YanOperations: Bella Yang

Sustainability: Anson WuLogistic: Kyle Geng

IT: Eins Zhao

Outline• FINANCE – identify reporting requirements for financial analysis and reporting

• Sales & Marketing – identify and prioritize customer order methods

• Procurement – identify and prioritize supplier order methods

• Operations – identify and prioritize warehouse automation initiatives

• Logistics – identify carrier integration technology

FINANCELookinglass Preliminary

Budget • FOUNDATION:

• PROCUREMENT

• 1.EYEWEAR FRAME

• (1)NORMAL: $30-50

• (2)HIGH QUALITY: &50-80

• 2.EYEGLASS: $40-60

• LOGISTICS

• RENT: $6000/M

• FREIGHT FORWARDERS:

• (1)UPS : $15-25

• (2)USPS :$25-30

Preliminary Budget• Sustainability:• (1)Travel expenses budget: $40-60/d• (2)Business entertainment: Maximum $300

• CENTER SECTION:

• SALES&MARKETING

• (1) TRAVEL EXPENSES BUDGET: $60-80/D

• OPERATIONS

• SALARY: $ 3500-4000/M

• FIXED ASSET: $2000-3000

Preliminary Budget

• IT:• Software(Microshoft Dynamics CRM): $650/Y

Sales & MarketingSales Forecast • Through cooperating with the wholesaler such as Walmart, Costco

and Davis Vision, we use relevant data to forecast the unit sales per month of our new product.

• On the basis of Warby Parker report, we estimate the average unit sales will be 2, 000 pairs of eyeglasses for each month in the first year.

Customer Relationship

• We focus on the wholesaler to distribute our eyeglasses, so we select four retailers including both domestic (U.S.A) and international firms. • They are Davis Vision, Costco, Coastal.com and FramesDirect.com.

• Among these four companies, Davis Vision & Costco are domestic companies, Coastal and FramesDirect are international companies.

Introduction• Davis Vision integrated a comprehensive eye care model that offers global

frame design with top fashion brands and state-of-the-art fabrication labs producing custom orders to over 45,000 points of access. Over 19 million members enjoy the low out-of-pocket costs and freedom of choice that only Davis Vision can deliver.

• Costco is a membership warehouse club, dedicated to bringing our members the best possible prices on quality brand-name merchandise. With hundreds of locations worldwide, Costco provides a wide selection of merchandise, plus the convenience of specialty departments and exclusive member services, all designed to make your shopping experience a pleasurable one.

Coastal.com• Coastal.com is one of the largest online retailers of eyeglasses， sunglasses ,and

contact lenses founded in 2000. In 2013, the company sold more than $218 million of merchandise. They currently sell eyeglasses and sunglasses from over 100 brands,and sold more than one million pairs of eyeglasses in 2012 making them the largest online seller of eyeglasses in the world, brands including Calvin Klein, Michael Kors, Nike Vision, Gucci, Hugo Boss. Coastal offers a massive selection of in-stock designer frames, and regularly runs promotions where your first pair of glasses or contacts from the company are completely free, or at least significantly discounted. Their prices are affordable—they're not the cheapest in the roundup, but they're also not the most expensive, and their prices are somewhat similar to what you'll find at many brick and mortar glasses stores, without the hassle that comes with shopping at one.

FramesDirect.com• FramesDirect.com is an international online eyewear retailer. The company sells eyewear

products such as eyeglasses, sunglasses, and contact lenses through its website. FramesDirect.com sells designer and brand name eyewear products with over 110,000 models displayed on its website. Founded in 1996, FramesDirect.com was one of the earliest online optical retail stores

• FramesDirect.com sells over 400 brand name frames such as Ray Ban or Oakley, which consumers can search for and purchase on their own at anytime on the company's website. Consumers can purchase frames, prescription eyeglasses, prescription or plain sunglasses, and contact lens refills.After choosing the desired frames, the consumer goes through a three-step process to order lens including choosing the lens type, lens thickness, and optional enhancement features. FramesDirect.com has a customer service team staffed by opticians that are available on the phone or over online chat

Ordering Patterns:

Customers order eyeglasses from the online retailers, confirm the shipment and payment, our factories will ship products.

Customer Priorities

Steps

1. Sell both online and offline.2. Be prompt and business savvy.3. Meet customer expectations.4. Treat unsatisfied customers with careful attention.5. Encourage referrals.6. Give discounts and/or free shipping.7. Pay attention to detail.

ProcurementGlasses Frame

Shanghai Forcaza Glasses Co., Ltd.Telephone:86-21-65795560Fax:86-21-65795576Address:RM 1908-1911,Piaoying Century Building,No.578 Tianbao RD,Hongkou AreaCountry/Region:China (Mainland)Province/State: Shanghai

PRAKAASH EYEWEAR PRIVATE LIMITED

Glasses lenses Danyang Kang Er Ming Optical Co., Ltd.

Jiangsu Aogang Optical Glasses Co., Ltd.

Glasses soft caseWuxi Earthangels Textiles Co., Ltd.

Guangzhou Grandbag Leather Products Co., Ltd

Glasses cloths AGOMAX GROUP LIMITED

Shenzhen Wise Union Industry Co., Ltd.

Glasses Box Wenzhou Huayou Glasses Packing Co., Ltd

LOK TIN LIMITED

LENSOMETER

This lens prescription is verified from the lab. The optical center of the lend is dotted. This is how we line up the cylinder in correct axis and line up the optical center with PD given. This allows for the best optics.

Lens Edger

• Grinding: the trace is loaded into the edger and the lens is placed inside, the machine grinds the lens into the correct shape.

OPERATIONSPLANT STAFFING

1 CEO1 CFO1 PROCUREMENT STAFF1 LOGISTIC STAFF1 IS RESPONSIBLE FOR SUSTAINABILITY 1 IT STAFF2 SALES & MARKETING STAFFS12 MANUFACTURING STAFFS(INCLUDES 1 OPERATION MANAGER)

OPERATIONSFLOW LINE PRODUCTION(DIVIDE MANUFACTURING STAFFS INTO THREE GROUPS)GROUP 1: 5 WORKERS

GROUP 2: 3 WORKERS

GROUP 3: 4 WORKERS

OperationsProduction Plan

1. Estimating the number of products to be producedWe will finish 100 orders per day (100 glasses)

2. Planning of raw materials and components

3. Identifying specific operations for production

Flow Line production system (Divide manufacturing staffs into SIX groups)

Operations4. Identifying the machines and equipment and the way to use them

3D quality detector (test the quality of products)The lens cutter machine Barcode machine

5. Planning the number and level of skilled workers needed

group 1: 3 workers Get orders from sales Take the frames and the lens from the warehouse

shelves Use 3D quality detector to test whether the products

damagegroup 2: 4 workers

Cut the lens & label with a bar code barcode group 3: 3 workers

Assembly glasses & label with a bar code barcodegroup 4: 2 workers

Put glasses into glasses cases & label with a bar code barcodegroup 5: 2 workers

Put glasses cases into packing boxes & label with a bar code barcodegroup 6: 3 workers

Test quality of glasses again & put packing boxes on the final product storage shelves & Contact with the salesman

OperationsThe flow chart

Sales

Procurement

Manufacturing Sales Logistics Customers

OperationsThe schematics of space for the company

OperationsThe schematics of space for the company

3D quality detector

Test quality of glasses

Put glasses cases into packing boxes

Put glasses into glasses cases

Assembly glasses

The lens cutter machines

Raw material storage shelves

The final product storage shelves

PlantLocation:1039 W Jericho Turnpike Smithtown, NY 11787

For sale price: $1,349,000

Building size: 7,600 square feet

Parking: 9 surface space are available

Werner Enterprises, Inc:

1. Ships to the USA, Canada, Mexico, Asia, Europe and South America

2. Has regional offices throughout North America, in China and in

Australia

Freight forwarder

05/01/2023

SAIA LTL Freight

1. An American less than truckload (LTL) trucking company

2. Transportation of relatively small freight. To handle small

packages and freight that can be broken down into units

Freight forwarder

05/01/2023

FEDex Freight

1. Less than truckload (LTL) and other freight services.

2. The second largest LTL carrier in the United States

Freight forwarder

05/01/2023

Fedex with NetSuiteTracking Numbers Manage the shipping of products and packages

NetSuite 1. Automatically ties tracking numbers to sales order2. Integrated FedEx shipping functionality3. Allowing your entire organization to manage product fulfillment from one application.

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ThanksCEO: Nando Lituma

Finance: Jiachen MaoSale & marketing: Paul Wang & Frank Wang

Procurement: Aaron YanOperations: Bella Yang

Sustainability: Anson WuLogistic: Kyle Geng

IT: Eins Zhao