Sunshine Fashion Case Study

Introduction

        Shenzhen based sunshine fashion was Shino - Japanese joint venture founded in 1993. It started out as an OEM export manufacturer of cashmere sweaters. It’s business activities include material sourcing, spinning, dyeing, design, distribution, marketing, and retailing. By 2010, it had three factories, located in Shenzhen, Shanghai, and Taiyuan of Shanxi province, 220 sales in department stores across the country and a workforce more than 1000 employees.

        Sunshine produce some 300,000 pieces a year for domestic sales, which enjoyed higher profit margin than its export business. Sunshine was positioned as high-end fashion brand in the domestic market with design being leading factor in determining the sales of its goods.

        Sunshine’s 220 retail counter in departmental stores across the country were managed by 14 branch offices that reported to three regional office. Sunshine also had franchised some retail points outside the major cities.

        The branch offices and retail points reported information about stock and sales to the head office manually until 1998 when sunshine implemented an RFID/ERP system. The system networked the branch offices and head office together, and this allowed the head office to receives updates on sales all the retail points every four hours. Sunshine’s ERP system also stored information about inventory at the branch offices and retail counters, but the information had to be input manually by staff.

Synopsis

        In order to manage its retail operation, Sunshine had implement the ERP system as support and monitoring for tracking goods and sales, but fraud and misbehaviour among employees still continued. Management of sunshine realise that it was impossible to control everything. What were challenge that sunshine face in trying to control fraudulent behaviour among its employees? What additional measures should the management undertake and how the remedial measures be implemented to achieve its target?