Yonghui Supermarket: Creating Fresh Supply Chain

Regardless of the positioning, no matter how the future technology is updated, reducing the total cost of the whole value chain and expanding the end consumer value should be the eternal pursuit of the retail industry. Returning to the essence of retailing needs to focus on customers and commodities. In the case of similar ends, the core is the creation of supply chain. Next, taking Yonghui supermarket fresh supply chain as an example, this paper expounds the problems that supermarkets need to break through urgently in building supply chain.

At the beginning of the year, major companies issued performance reports, Yonghui supermarket net profit increased by 18.05% year-on-year, business income increased by 20.38% year-on-year, showing a bright performance.

In the economic growth, it is higher than others, and in the economic downturn, it is less than others. It has been the pursuit of many enterprises. It seems that many enterprises can not imagine that they are soaring.

In addition to Bravo, YH, Weidian, ShangVegetable Yonghui, cooperation with Baidu and e-commerce, Yonghui's vertical supply chain building is impressive.

Why are few enterprises like Yonghui and Darunfa? The ecosystems of enterprises are very different, and the driving systems are also very different. Today, we need more pertinence to find new premiums and value increments.

In fact, although there are many practical channels for supermarkets, many managers often use a kind of management thinking to deal with different problems. They are all problems of origin, direct mining, talent and mechanism, but the connotation of fresh, food and non-food is worth further study.

I. Fresh Supply Chain

Fresh supply chain has raw and cooked, most of the business points are still living in this category, Yonghui is actually in this stage, Darunfa is considered to be better in China.

Many supermarkets will base their future on community freshness, but in fact it is difficult to find a profit point because they have not solved the problem of high-margin cooked goods. When the freshness of a store accounts for more than 50%, the overall gross profit of the store will be low, and Yonghui just because it has done the scale of the raw goods and not solved the familiar questions. In the morning and in the evening, Yonghui will step down from the altar, but at present we see great progress in the quality of Yonghui.

1. Fresh species

The core is to keep the commodity fresh, to achieve scale procurement within the shelf life of the commodity, the essence of the core is efficiency. This involves two issues:

First, the existing conditions of enterprises. You don't have a cold chain system, nor do you have enough outlets. It's efficiency and efficiency to pull a car out of the market and sell it quickly. You have a cold chain and distribution terminal. Ten cars from Shandong vegetable base may be more valuable.  From this point of view, different scales and efficiency are different. From the point of view of individual products, after sharing the purchase cost, the price still has enough margin space and establishes the complete price advantage, so the purchase can be implemented.

Second, operational capability. The freshness of a commodity is a day, you can display it in the store in two hours, the freshness and value must be amazing, a commodity freshness is a month, you can get to the store in two or three days, that must be very competitive; secondly, the freshness retention ability, need measures, cold chain to the store, the high temperature of the store will die, freshness will also lose more. Quick! Businesses suffer from constipation because of inadequate operational capacity.

The core of large order or source purchase is to create a better quality and price reputation than competitors. The key is gross profit. How much is enough to support large order. Enterprises can use single item for inversion.

On the basis of these two problems, the core of supply chain needs to be pushed forward around the classification of commodity value preservation and time limitation.

First, fresh goods with ultra-short shelf life are more suitable for near-field procurement, and standardized management instruments are put into the source. For example, green leafy vegetables, live water, local market and even source retail direct delivery efficiency may be higher. On the basis of quality management, self-picked stores can open their doors. Because it's far away, freshness is damaged, and goods can't stand tossing and turning.

On the other hand, fresh commodities are generally in a low-end, extensive management mode at the source, and growers are more responsive to market considerations. Therefore, such commodities are more suitable for the source of standard management devices, and can also provide an interface for future cold chain integration.

Secondly, goods with medium shelf life, such as stone fruit, are suitable for large orders. The core of this kind of commodity is to manage the sorting and grading of the source.

Many supermarkets depend on finding agents at the source. Actually, agents integrate local resources. The level of performance of commodities and markets varies. Some are companies, some are partnerships, some are even village books and other individuals. This is not to blame, but the core of the enterprise to crack pseudo support and pseudo source.

Fresh pseudo-source, one is that no valuable production area has been found, the other is that many production areas find an agent or contractor to do hand-dump procurement, regardless of process, grade, packaging, quality, when the cost of goods is too high or defective, efficiency, or need in-depth source detail management. To this end:

(a) Advanced source market research and planning, not before purchase; can be combined with the key growth stage of the product research;

B) Determine the quality standard and beautify the packaging level;

C) Developing multi-source research and cooperation;

(d) Behavior management during direct procurement and reasonable cost control;

E) Strict acceptance criteria for grades;

F) Source acquisition management through the system.

China's market is very large, and no supermarket can fully digest the market output, but the competition for good supply still exists. When all enterprises begin to pick directly from the source, in fact, the comparison is the word-of-mouth value between supermarkets. Therefore, some supermarkets compare with Yonghui, feeling that the sample size and price are hard to compare.

Reflecting, in fact, our comprehensive value chain does not fully magnify the same value as Yonghui. You are doing things at the source, but there is no quality at the source. The enterprise model is easy to learn, but the quality is difficult.

Third, relatively long shelf life items. Such as dry groceries, rice and grain, can be upgraded, redesigned and brand building. Golden Dragon Fish, Fulinmen, Hengda, Xiangman Garden, Beidahuang and so on are all packaged by enterprises. Sorting and brand influence are different. A slightly powerful enterprise can create a premium brand if it has the intention, combines with the local origin and cooperates with the local agricultural technology government. Of course, the source is still very important, because it will affect the mentality of customers, Northeast Black Land and Jiangnan Waterfront brand is easier to increase brand premium.

Fourth, technology to achieve extended shelf life. For example, the core of enterprise supply chain is technology and cold chain system.

Trends show that seafood will only become scarcer and scarcer. The smaller the production area, the lower the production capacity of the varieties, combined with the consumption trend judgment, enterprises need to establish their own cold chain storage capacity. As far as frozen seafood is concerned, you have a large stockpile during the season, which is obviously an advantage for sales. But this kind of investment will be larger, and enterprises can take the road of marketization.

After this classification, we can clearly judge that some goods are unreliable, so many stores import fresh is very poor, because in essence, the security work around the supply chain is very poor, not poor display or employees do not work hard.

Fresh supply chain has the possibility of stimulating sales doubling. For example, you suddenly go to the source to purchase a batch of goods with super quality and freshness, not excluding the sales of several times tens of times up, but to always catch such a good thing, the enterprise needs flexible single product operation ability.

In order to realize fresh stimulation and magnify value, and change procurement organization, deep cultivation is still the core; on the other hand, the ability to sell also needs further stimulation. Yonghui and farmers promote the partnership system, provide equity incentives for purchasing, and carry out the partnership system with employees (flexible determination of the scope of partnership, monthly communication of objectives and responsibilities after the implementation of excess sharing), from the perspective of value chain, is the whole link. Many of our enterprises still have a lot of room.

Learning Yonghui, more from their own organizational staffing, staff incentives, acquisition and sale chain efficiency design and accumulation, pricing, decentralization of people's goods, grasp value products, provide higher quality, can achieve structural balance in business. Fresh, high quality performance-price ratio is the key, customers do not care about the price completely.

2. Technical control is the key to fresh cooked food

There is no shortcut in this respect. If we want to run our own business, we need to accumulate and cultivate talents steadily. For example, the bread and noodle masters of Darun Fat, why are these people willing to work in supermarkets instead of going to professional brand stores? They are well paid and motivated enough.

But few enterprises are willing to do so. In the stores, these classes are relatively inefficient, but they are structural supplements in the fresh system. Today, the challenge is even greater. Small-scale style bread, pastries and delicatessens are springing up in the community. They have unique taste, attractive packaging, and warm environment. Customers will inevitably choose fewer products for the single industrialization of supermarkets, and supermarkets will also need to change according to the situation. We can see that some stores in Darunfa have enlarged the contents of pasta, ready-made hot food, characteristic joint venture, and so on, keeping the attraction of processed cooked food on the spot.

If it is a joint venture, it is necessary to design a good incentive mechanism.  Many supermarkets do not regard the joint venture as a person, but emphasize the management and cost deduction blindly, ignoring the quality of goods, style and attractive appetite of the scene, so that customers feel that the purchase of cooked appetite is the core element of the joint venture management; because such skilled workers are difficult to replace, supermarkets should do more services. Yonghui will use the mechanism of technology partnership to operate, which will undoubtedly stimulate the enthusiasm of craftsmen; however, these courses themselves need the interaction of comprehensive popularity in the market, and it really needs courage to do well.

II. Food Supply Chain

As a result of the actual operation of supermarkets in recent years, standard food, department stores and home textiles should be greatly impacted. Although e-commerce has been criticized for fake goods, physical stores are not worth celebrating in this process. Many times, customers have divided their shopping channels, and quite a number of customers care about whether there are goods or not. The value. We can predict that mobile e-commerce will not reduce its growth rate because of the SAIC sampling report.

In addition to the convenience of e-commerce, the core of the decline in supermarket food performance is the difference in supply chain efficiency. When advertising, promotionists, logistics fees and retailer fees are all added to food items, the channel cost of standard food will inevitably remain high, and the commodity price will inevitably be high relative to the number of exclusive stores and retailers. Shuangxi's price comparison in physical stores is somewhat suspected of being too fast for a while, although we all face common quality problems. On the other hand, due to the inefficiency of intermediate communication, the time from production to terminal is bound to be longer. From the process of design and production, there will also be efficiency differences with e-commerce in terms of packaging fashion, trial period and so on. After most manufacturers start their own e-commerce business, they will inevitably gradually reduce their dependence on traditional channels.

1. Real retailing needs to design a mechanism to make new products flow faster in the terminal.

But in most cases, suppliers are passionate about new products, and lack of enthusiasm to remove unsalable goods, like constipation, occupy too many ineffective goods on the shelf, the essence is that consumers show low efficiency. Better display, better price, more variety and more fashionable packaging should be the effect of industrial supply chain.

2. Improving Channel Efficiency

Firstly, we should promote the supplier incentive plan with sales as the main mode of cooperation as soon as possible. We should transform most of the channel costs into sales realization and profit margin as the main way to create fair trade.

Secondly, the supply chain information should be liberalized so that suppliers can directly connect the terminal inventory of physical stores.

Thirdly, we should unimpede the import and export mechanism of commodities, reduce or abandon the new product fees by a large margin, and reduce the elimination of unsalable products.

Fourthly, through technical means to control the total inventory in the channel, accurate logistics, telling turnover: only when the total cost of the supplier channel can be reduced and the money can be made in the traditional channel, can the supplier of standard food work hard for this channel.

Taobaochong is full of fake goods. It is an opportunity for physical stores to seize the opportunity. It is a faster and more reliable commodity management in the supply chain.

For physical stores, the purchase of standard food and industrial products can be reduced, while optimizing the cooperation mechanism is the main direction of supply chain building, just like the second landlord of department stores, you only control the charge, you have to give the payer freedom.

3. Fast Management and Control Operating End

In addition, in addition to the painful contract with the procurement, the huge coordination cost of logistics chain and operation chain often makes the supplier suffer. The invisible contest between physical store headquarters and stores will also bring huge expenditure to suppliers. Shop idle collaboration, not focused operation will also make suppliers speechless. In this process, in addition to large brands, suppliers always sandwich biscuits, different systems, similar problems more or less exist.

Headquarters stipulated new products, display, implementation of the price, good promotion planning, store execution varies greatly, not all systems can be very powerful. Food needs to be managed from the perspective of full value chain.

(a) Business and mining needs to establish good business rules, clarify responsibilities and prohibit them;

B) Ensuring the focus of procurement work planning, which is the premise of store execution;

(c) The three chapters of the statute with suppliers should provide a counterpart for coordinating the work, so that no complaints from suppliers can be left unattended;

D) The key is to establish the terminal resource management capability of headquarters.

(e) To stipulate the scope of flexibility in store operation;

F) Control key elements such as display, price, turnover and order quantity through system data.

3. Department Store Supply Chain

Department stores have the same characteristics as fresh ones, such as expanding the source to reduce supply chain costs, and having long shelf life and designable characteristics. Therefore, the category of fast turnover has become the core of the choice of its own brand. Today, with the development of e-commerce and the popularization of small-scale production, self-owned brand and buyer system have become hot words again. Department stores need to use a more urgent way to achieve supply chain change, not only to emphasize the same ability to discover fresh, but also to emphasize the same ability to destock food, otherwise the exhibition hall phenomenon will become more and more obvious.

With the rise of new consumers, the frequency of household consumption of department stores is actually accelerating. For example, many household bottles, cans, basins, sitting, sleeping, washing, cleaning, nursing, filling, loading and other appliances, the fashion and update cycle is getting shorter and shorter. The era of using a cup for several years is gradually getting farther and farther. Under such circumstances, the speed of commodity renewal in supermarkets is much slower than that in professional stores, which is often just a matter of purchasing vision and life experience.

To sum up, the supply chain of department stores is actually a problem of integrated operation.

1. Take popular department stores and style department stores as thematic business orientation

The so-called popularity, vision and appreciation ability are very important. Good grasp, enough to eat and drink, poor grasp, tragic. The so-called popularity also bears risks. Fast change is a prominent feature and needs a reflection mechanism. So many clothing direct collection is difficult to operate, the problem of inventory is too painful.

2. Basic Choices in Source Development

In the past, many supermarkets have tried OEM and owned their own brands. In the past, due to the lack of design ability, quality control ability, terminal digestion scale and inventory removal ability, conflicts with the original brand category, and the lack of sales enthusiasm of employees, many enterprises have tried, but failed. It seems that few domestic supermarket brands have done well. At present, the praiseworthy Watson's own brand goods account for about 20% to 25% of the total. Wanning also seems to have bright spots, most enterprises are not prominent.

For this reason, the ability to discover commodities should be put into the first item of supply chain management. However, source development can still be the first choice. To understand the process, process and cost of commodities, we can also supplement knowledge in the process of source procurement.

With the normal downturn of the economic situation, many source manufacturers are eager to find terminal exports. The decline in the initial purchase order provides a lot of space for source procurement. Some Taobao villages, towns and cities, and some special industry cities have a lot of source procurement space.

3. Start with the supplier

Own brand is the direction, but there is no ability, no talent, or do not play first. If you really want to find people, it is more suitable to find people with the category manufacturers, to know production, technology, sales and channels, but for the traditional supermarket, it is still more prudent for the time being, to take goods with suppliers, improve the conditions of supplier cooperation, and quickly go to inventory at the current stage is more suitable.

For this reason, procurement needs to pay more attention to the turnover efficiency of commodities, and put forward individual product suggestions from the perspective of fashion, style and function, while joint suppliers organize commodities from the aspects of process, cost and texture. For Department stores, customer demand may often be stimulated, a very personalized tool, may produce explosive effects, enterprise supply chain, is that someone has the vision to organize.

In summary, the supply chain of supermarkets is actually divided into three categories:

First, supermarkets have the ability to source, such as fresh and department stores, relying on procurement personnel, incentive mechanism;

Second, depending on the social brand, such as the big brand in Daihua, depends on the terminal scale and cooperation mechanism of enterprises.

Third, the middle level, such as many food brands, depends on the cooperation mechanism and planning ability of enterprises.

Today, in fact, all our explorations should focus on efficiency, a good way, great efficiency, suitable for their own mechanism, everything should return to the essence of better customer happiness, for this reason, the interests of the whole supply chain should be the same.

The era of retail industry regarding suppliers as fish has gradually gone far. Today's retail channel platform needs to upgrade its platform role. Especially, it is necessary to strengthen its service capability and improve its business informatization level. Today, with the network, opening and integration, the logistics and information flow of the supply chain can be smoothed and the total number of channels can be reduced. Cost, as a fast way to achieve consumer satisfaction, will always be the king of business! (Source: China Port Supply Chain)