UNIQLO Greater China, spanning Mainland China, Hong Kong, and Taiwan, achieved record results in FY2019 with revenue of ¥502.5 billion (+14.3% year on year), operating profit of ¥89.0 billion (+20.8%) and an operating profit margin that improved to 17.7% (+1.0 point). This article summarizes the results of this study and its implications for a company's outbound logistics operations and strategies. Overall, all three inventory management metrics indicate that the companies in Cluster 4 focus more on minimizing inventory investment than do companies in the other three clusters. We explored how different companies and different industries approach and manage the outbound logistics process. The disadvantage is that Now that its global sales consists 45% of its total sales, Uniqlo needs to articulate how to compete with other giant retailers such as Amazon in terms of delivery to customers. Numerous statistical tests employing methods such as cluster analysis and analysis of variance led to the conclusion that the 247 companies in this study could be classified into four distinct and statistically significant clusters. For example, we evaluated whether companies can be grouped or classified based upon different, unique outbound logistics strategies. As shown in Table 3, the mean adjusted operating margins of the four clusters range from a high of 5.6% for Cluster 3 (the Planners and Efficient Distribution Spenders) to a low of 3.4% for Cluster 4 (the Inventory Investment Minimizers), a difference of 65%. UNIQLO International expanded to 1,379 stores, including 807 in Greater China (Mainland China, Hong Kong, and Taiwan), 188 in South Korea, 231 in Southeast … Planners and Efficient Distribution Spenders. Therefore, we selected on-time performance as the key service indicator to include in our analysis. These details will include the business’ objectives, the available and existing resources and supplies, the budget and the timeline. Among the major recommendations: The study points to Southern California’s role as a global logistics and supply-chain hub and notes the continued expansion of e-commerce fulfillment centers in Los Angeles County and the Inland Empire. 10/7: CA Beverly Center, Del Amo, Glendale Galleria, Los Cerritos, Santa Anita Stores reopen to customers. Cluster 3: Planners and Efficient Distribution Spenders. As noted, our results also shows that the mean profitability of each of the four clusters is not statistically different. Although UNIQLO uses forecasting systems to predict trends, the forecasting can sometimes fail. To make the operating margins comparable across the sample, we subtracted the median operating margin for the appropriate industry and year (obtained from Compustat) from the company's actual operating margin to obtain an adjusted operating margin.
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