Semester

project

SPV1 VA11-A20 December 2020

AUTHORS:

V I O L E TA P I RTA C

CRISTINA FRUNZE

KAMIL KLIMEK

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How can JYSK form their future cross channel supply chain strategy
to comply with the growing online market in Denmark in 2021?

1.Introduction 2.Analysis and findings 3.Conclusions and

recommendations

2
Report
structure

3
 YEAR 2019 + YEAR 2020
Clarification
of concepts
– Data
handling

Collected data for Denmark YEAR 2020: Calculated data for analysis:
 covid-19 statistics  index number
 JYSK stores  distance from DCU to every postcode (km)
 population density

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2. Analysis
and
findings

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 2. Analysis and findings
Q1 Q2 Q3 Q4
The current supply What is the existing How does JYSK What is the
chain for JYSK in cross channel market logistics develop from development and
Denmark. strategy, and what are 2019 Q1-Q3 to 2020 distribution of orders in
the expectations for the Q1-Q3 on online sales regions by postcodes
future in terms of shift in Denmark
from shops to online?

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A simple view of Supply Chain of JYSK

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 2.2 What is the existing cross
channel market strategy, and what
are the expectations for the future in
terms of shift from shops to online?

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Opportunities emerging in 2021
More people connected to the internet
Higher amount of unique visitors
Higher comparison with other retailers&products
Higher traffic in physical shops

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Existing cross-channel strategy
Personalized promotions&prices

Google AdWords

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Possibilities in the improvement of
cross-channel marketing strategy
Birthday campaigns
Wider buyers’ profile
More everyday-used items in the stores
Food retail

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 Table 10: Online orders at JYSK shipped in Denmark years 2019-2020
Q1-Q3

Source: Own production

Source: Own production

2.3.How does JYSK logistics ◦ HOW? +18,5% or +29.965 online orders...

develop from 2019 Q1-Q3 to
2020 Q1-Q3 on online sales in ◦ WHY? Customer behavior influenced by…
Denmark
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 Table 12: Online orders at JYSK shipped in Denmark years 2019 -2020 Q1-Q3 by quarter and Graph 13: Online orders at JYSK shipped in Denmark years 2019 -2020 Q1-Q3 by quarter
index number

Yea r-Qua rter 2 0 1 9 - Q1 2 0 1 9 - Q2 2 0 1 9 - Q3 2 0 2 0 - Q1 2 0 2 0 - Q2 2 0 2 0 - Q3

Online orders
56281 53485 51788 45786 84551 61182
number
Index number 100 95 92 81 150 109
Source: Own production

The most growth +50% has Q2 Source: Own production

year 2020, taking as the base
quarter Q1 year 2019

Graph 14: Online orders at JYSK shipped in Denmark year 2020 Q1 -Q3 by month
Table 15: Online orders at JYSK shipped in Denmark years 2019 -2020 Q1-Q3 by month and
index numbers
Yea r/ Month Ja nua ry Februa ry Ma rch April Ma y June July August September
2019 21753 17334 17194 20022 17365 16098 18256 17538 15994
2020 10647 12366 22773 29733 29503 25315 21998 18009 21175
Index number,
100 80 79 92 80 74 84 81 74
2019
Index number,
100 116 214 279 277 238 207 169 199
2020

Source: Own production

The growth started in March, the

maximal growth represents April
2020 +179% comparing with base Source: Own production
month January 2020.

HOW? 15
Customer behavior influenced by:
• Holidays

Figure 17: List of Holidays in Denmark in 2020

Source:(Officeholidays, 2020)

WHY? 16
Unpredictable customer behavior influenced by: Table 19: Nr. of infected covid-19 in Denmark year 2020 and index number by months vs. Online
Orders at JYSK 2020 Q1-Q3 and index number by months
• Covid-19 dynamic's

Source: Own production

Graph 20: Infected covid-19 index number VS JYSK online orders index number, Denmark 2020
Q1-Q3

The development of online

orders at JYSK repeats the
covid-19 wave trend, based
on index number

Source: Own production

WHY? 17
 Covid-19 influenced online orders when considering services product structure (see Figure 21).
Visualization of
product service
Development of product services at JYSK in Denmark years 2019-2020 Q1-Q3 in structure
online orders, volume (l), and delivery company
Figure 21: Structure of product services at JYSK in Denmark years 2019-2020 Q1 -Q3

Source: Own production

Source: Own production

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Graph 24: Home delivery service for online orders by months per years 2019 -2020 at JYSK in Graph 25: Normal private package service for online orders by months per years 2019 -2020 at
Denmark JYSK in Denmark

Source: Own production Source: Own production

Graph 26: Delivery to pick-up point service for online orders by months per years 2019 -2020 at
JYSK in Denmark Graph 27: Normal business package service for online orders by months per years 2019 -2020 at
JYSK in Denmark

Source: Own production

Source: Own production Trend in each
product group is
19
different
 B2B online orders were delivered by

B2B by 6% VS B2C by 19%.

Figure 30: Delivery destination for online orders covered by Danske Fragtmæ nd 2029 -2020 Q1-
Q3 in Denmark
Table 28: Online orders for B2B by delivery company
Læ sø Samsø
Delivery Compa ny, yea r/ Consumer B2 B B2 C Tota l
Da nske Fra gtmæ nd (DK 529 529
2019 232 232
2020 297 297
GLS Denma rk A/ S (DK) 11156 137631 148787
2019 5746 55928 61674
2020 5410 81703 87113
PostNord (DK) 50 50
2019 50 50
Source: Adapted from Wikipedia (Wikipedia, 2020)
RTC Tra nsport (DK) 203707 203707
2019 99598 99598
2020 104109 104109
Online orders, Tota l 11156 341917 353073
Source: Own production

B2B = 4% delivers only parcels (big volume around 1000m3

VS
and weight around 100 kg.) to Læsø and Samsø (see
B2C 96%
in total online orders delivered in 2020. Figure 30).

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 The 18th week was the busiest
Table 31: Number of weekly online orders at JYSK 2020 Q1-Q3 per different transport companies for DCU in 2020
Nr.of Online orders shipped in Denma rk per week/ Yea rs 2019 2020 Tota l
Tota l Nr., inclusiv: 161554 191519 353073
1 .RTC Tra nsport (DK) 99598 104109 203707
2 .GLS Denma rk A/ S (DK) 61674 87113 148787
3 .Da nske Fra gtmæ nd (DK) 232 297 529
4 .Post Nord (DK) 50 - 50
Nr. of Online Orders and Time for the shipment orders to be completed ready for shipment Nr. of Online Orders and Time for the shipment orders to be completed ready for shipment
Ma x Nr. in a week 7392 9535 14744 in DC Uldum year 2019, week2 in DC Uldum year 2020, week18
Hours/
Week` s number 2 18 18 Week Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total
Hours/
Week Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total
Avera ge Nr.per week 4039 4788 8827 5 1 1 2 4 1 1
6 2 2 4 5 2 2
1 . RTC Tra nsport (DK): 7 8 3 18 14 13 6 62 6 2 5 4 4 2 17
8 73 47 68 55 57 18 318 7 26 72 45 16 40 4 1 204
Avera ge 2490 2603 5093 9 107 93 134 133 112 32 3 614 8 55 202 177 79 93 60 2 668
Ma x 4359 3805 7755 10 115 137 142 162 143 25 5 729 9
10
63
92
257
320
210
213
134
160
129
157
105
131
5 903
11 1084
11 112 123 171 202 167 31 3 809
Week` s number 2 25 2 12 105 133 144 163 126 37 6 714 11 87 330 247 161 179 119 13 1136
13 496 420 153 193 148 28 3 1441 12 75 306 256 170 176 171 12 1166
2 . GLS Denma rk A/ S (DK): 14 138 188 182 149 159 12 5 833 13 77 292 230 139 176 115 23 1052
14 46 279 225 132 158 84 19 943
Avera ge 1542 2178 3720 15 73 169 131 138 138 12 5 666
15 60 195 195 149 127 44 6 776
16 58 111 125 126 104 8 7 539
16 58 169 174 115 109 38 13 676
Ma x 3027 5941 7834 17 49 74 93 75 68 6 5 370
17 32 133 99 78 89 46 13 490
18 23 38 34 44 23 4 2 168
Week` s number 2 18 18 19 25 18 17 15 8 83
18 15 61 46 31 42 14 4 213
19 7 38 24 29 17 3 4 122
3 . Da nske Fra gtmæ nd (DK): 20 8 9 7 3 1 28 20 5 19 32 4 3 5 2 70
21 1 3 2 2 8 21 1 3 2 6
Avera ge 6 7 13 22 1 1 2 22 1 1 1 1 1 5
23 1 1 2 23 1 1
Ma x 17 22 35 Total Orders 1384 1566 1425 1482 1271 219 45 7392 Total Orders 700 2681 2183 1403 1500 940 128 9535
Week` s number 29 25 25
4 . Post Nord (DK):
Avera ge 1 - 1
Ma x 48 - 48
Week` s number 1 - 1
Source: Own production

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 Table 35 : Shipment of online orde rs a t JYSK 2020 provide d by Da nske Fra gtmæ nd in wee k 25
Table 32: Shipment of online orders at JYSK 2019 -2020 Q1-Q3 provided by Danske Fragtmæ nd

Source: Own production

Source: Own production

Diagram 33: Shipment of online orders at JYSK 2019Q1 -Q3 provided by Danske Fragtmæ nd Diagram 34: Shipment of online orders at JYSK 2020 Q1 -Q3 provided by Danske Fragtmæ nd
Nr. of Online Orders and Time for the shipment orders to be completed ready for shipment in DC Uldum year
Nr. of Online Orders and Time for the shipment orders to be completed ready for shipment in
2020, week 25
DC Uldum year 2019, week 29
Hours/ Week
Hours/
Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total
Week Day
5
Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total
1 1 Even in other 4
6 2 5
1 1
7
6 5 2 2 2 11
7
8
17
39
20
76
25
74
22
59
16
38
1
9
101
295
weeks, DCU is 7
8
9
20
40
27
30
120
158
26
121
146
16
73
120
21
90
113
10
85
110 2
123
529
676
9
10
64
61
88
89
97
108
86
100
66
74
12
19
1 414
451 busy every 10
11
28
32
185
176
149
174
100
121
148
132
101
83
5
9
716
727
11 60 125 112 108 55 15 1 476
minute, still
12 23 179 132 86 113 110 8 651
12 49 106 123 115 65 14 2 474 13 28 150 132 104 98 83 5 600
13 56 80 108 93 66 11 3 417 14 34 159 173 120 143 62 6 697
14
15
16
28
27
25
73
64
32
116
82
48
91
56
52
68
38
34
6
5
3
1
382
273
194
need to be 15
16
21
31
153
154
139
116
103
90
113
110
53
33
3
5
585
539

more efficient
17 12 98 87 65 78 26 3 369
17 22 31 36 32 30 3 3 157 18 6 46 46 26 33 9 3 169
18 3 16 19 16 7 1 1 63 19 4 32 22 14 9 7 6 94
19 7 18 6 16 6 2 3 58 20 2 12 8 7 3 4 2 38
20 11 3 4 6 4 2 30 21 2 1 2 4 2 1 12
21 1 1 3 2 7 22 1 1 2
22 2 2 23 1 1 2
Total Orders 469 828 961 859 571 103 15 3806 Total Orders 313 1658 1473 1050 1208 777 58 6537

Source: Own production Source: Own production

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 Table 36: 6 groups based on distance calculation
Dista nce from DC in
Group
Uldume to receiving Goup` s na me
number
posta l code (km)
1 <5 0 gr.1 <5 0 km

2.4. What is the 2

3
<1 0 0
<2 0 0
5 1 km< gr.2 <1 0 0 km
1 0 1 km< gr3 <2 0 0 km

development and 4
5
<3 0 0
<4 0 0
2 0 1 km< gr.4 <3 0 0 km
3 0 1 km< gr.5 <4 0 0 km
distribution of orders in 6 <5 0 0 4 0 1 km< gr.6 <5 0 0 km

regions by postcodes
Source: Own production
Figure 38: Structure of online orders distribution by distance groups years 2019 -2020 Q1-Q3

◦ STEP 1: grouping online orders

using distance calculation from
DC in Uldum (postal code nr. 7171
(sending postal code)) to every
receiving postal code. Source: Own production

Table 37: Distribution and development of online orders by distance groups per years Q1-Q3

◦ STEP 2: analyze how online

orders developed in each distance
group

Source: Own production

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 Decrease and
Table 40: Development of online orders by Product service in group nr.4 (201 -300 km from DC the maximal
Uldum) per years Q1 -Q3 increase
Gra ph 41: Development of online orders by Product service Normal Private Package in group nr.4
(201-300 km from DC Uldum) per months YEAR 2019-2020 Q1-Q3

Source: Own production

Source: Own production

Covid-19
impact

Graph 42: Development of Normal business package in the distance group 4 (201 -300 km from
DC Uldum) years 2019 -2020 Q1-Q3

Source: Own production

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About 20% of online orders in each distance group were delivered to cities with more than 40.000 population and
80% were delivered to cities with less than 40.000 population 25
 3. Conclusions
and
recommendations

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 3.1. Conclusions 3.2. Recommendations
Online orders increase by 18,5%, according to research and analysis. It was due to
unexpectable customer behavior because of corona -19.
Covid-19 influenced online orders when considering services product structure:
smaller orders in home delivery, less orders (-6%) but bigger in business package,
more orders and bigger in private normal package and delivery to pick-up point.
B2B online orders decreased by 6% VS B2C - increased by 19%. B2B is 4% in total
online orders.
The busiest week for DCU in 2020 was week 18, when first wave of covid-19 was
going down.
Online orders volume and weight influence logistics. Shipments of small packages
(Normal private pack, Delivery to pick-up, and Normal business package) were
provided by GLS Denmark A/S (DK), while shipments exceeding size or weight
limitation for small packages (Home delivery) – by RTC Transport. Danske
Fragtmænd delivered only parcels (big volume around 1000m3 and weight around
100 kg.) to Læsø and Samsø.
Distribution of orders in regions by postcodes shows that there was a quite
homogeneous increase over all Denmark, except urban areas (more than 1000
orders).
About 20% of online orders in each distance group were delivered to cities with
more than 40.000 population and 80% were delivered to cities with less than 40.000
population.
In this uncertain COVID-19 environment, JYSK with a realigned cross channel supply chain strategy could
take full advantage of this situation to meet increasing online consumers demand in Denmark.
A realigned cross channel supply chain strategy means decisions to increase DCU capacity for online orders
in 2021 on Denmark’s market, as well as DCU’s efficiency, that represent a short run perspective for JYSK .
In short run – only variable factors and reorganization/adaptation of the fixed factors should be considered for
profit maximization for B2C niche, where the biggest increase was registered, and is related to as follows:
1.Implement or if exists – to adjust to actual needs for online orders in Denmark efficiency systems
(as an example -Kaizen),
2. reorganization/adaptation of warehouse surfaces for Normal private package, Delivery to pick-up
point, and Home delivery (small package)
3. increase/adapt existing inventory capacity for Normal private package, Delivery to pick-up point,
and Home delivery (small package)
4. adjust/innovate IT system for JYSK E-COM Department for specified capacity
5. increase worker-hours by hiring new temporary/unqualified workers, or by transferring workers
from another department to the E-COM Department, especially for the obligatory supporting activity
of picking the item out of the box, put into a new box, mark with a label, and after to send it out.
6. growing DCU capacity by growing working hours: adding evening, and night shifts, as well as
weekend shifts, taking into consideration heat DCU diagram
7. increasing delivery capacity by ensuring two transport companies for the same type of product
service (Normal private package, Delivery to pick-up point, and Home delivery (small package))
8. ensuring with adequate transportations in terms of volume and weight for online orders (small
package)
9. ensuring the required volume of products for online orders based on partnership relations
10. if customer has an intention to by in JYSK store or in online JYSK shop, to make it possible by
steering the customer in JYSK store by a service assistant (installation in JYSK store of a ring service
assistant button), or also in online (to make a booking at settled time for help assistant).
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