Fang Jianhua, founder of women's clothing, on supply chain

The supply chain is the next disaster for the entire Chinese brand and the World brand.

Fang Jianhua, founder and CEO of Women's Clothing

China's supply chain or electric business has developed to today's juncture, the technical level of everyone, supply chain this team, punctuate too wide, too deep, there is no one can say that they have developed a set of mature systems, including the use of rubbing fist grinding the traditional brand of the Internet.

I have a point that may sound a little bit of a shrug and come out and discuss with you: Supply chain is the next disaster for the world brand.

It can even be said that the supply chain is the entire Chinese brand and the next disaster of the world brand, even Apple such a bullish brand is no exception. Now the electric business is not the original Taobao college students open a shop can be developed very well. From the recent two years, the ability to grow good electrical goods card, is a strong team, especially the supply chain.

2010, electronic commerce accounted for only 20% of our company's sales share, 2012 our business revenue has been fully from the line, the first quarter of this year's sales growth of 6.6 times times, sales of more than 100 million. This group of data outsiders seem to be the glory of Mann, but for our team, but it is time and again the severe test.

The layman sees the lively, the expert person sees the doorway. As we all know, in the Internet, in the E-commerce industry to do the brand, especially clothing brand, is how bitter force.

On the network retail brand supply chain status:

2011, we are 30% of the fast supply chain is out, direct procurement led to some of the style of fabric experience unsatisfactory. 2012, I gave the team a dead order, must upgrade the processing plant qualification, the quality to the national first-class standards (custom fabrics and production).

Supply chains have left too many scars on Chinese brands, and many have died in inventory because of runaway supply chain management and cash flow breaks. They are crazy to expand the category, a large number of blind production and Futures, a big reason is not flexible supply chain caused by the consequences;

2011, the design and development of a wide variety of fabrics, concentration is not high, the fabric of the rapid supply chain requirements higher; but we have to face this brutal reality, fast supply and quality is a natural pair of friends.

No reasonable control of shipping time: Not set up batches, according to the sales season, according to the number of sales shipments plan. A large number of shipments lead to a long delivery period, warehousing turnover slowed down. Often in the peak season, large quantities of goods will lead to the tail product inspection pressure Alexander, Warehouse put down. From the boss to the operating layer, every day with the production of the buttocks behind round and round, mess hemp, sales and production noise.

No planned addition, the number of add orders and production capacity and staffing does not match, the supplier resources to keep up. Operations do not understand the production, production does not understand the operation; The boss is the same, some people understand the operation of the production, understand the production of the operation, often appear in the operation and production of people run to the Boss Office reason.

Shipments, the delivery cycle control does not form a normative system, and even promised to the customer's pre-sale can not be shipped on time in accordance with the contract delivery, not on time delivery to customers.

Many bosses think that the cheaper the better the processing plant, the process costs about the lower the better, so that production staff full street parity, that person to do, this is the farmers will do things, not called system, who will do, but will lead to disastrous consequences.

All clothing brands, inventory is fatal. We also analyzed the reasons for this:

1, a large number of blind orders, the traditional clothing brand to open a big show will, performance shows, to the agents dozen chicken blood, agents head a hot, on a lot of orders. Brand of a summary, this quarter of the order is not small, but the agency's inventory pain in the back of the continuous suffering. At this time, party A's psychology muttered, this year this agent is not good, next year another, again not the company will take this area agent closed, the company directly dry.

2, E-commerce now provoked in full swing, many people want to catch the bus, as the saying goes, either e-commerce, or no business. As soon as they got on the bus, they were carried a lot of goods and blew up a lot of advertisements. I have a friend in the traditional field, said: "I blow a 20 million of ads this year, I do not believe this evil, but you these young people." As a result, seven hundred thousand or eight hundred thousand of the day's advertising, only in exchange for less than 100,000 of sales, warehouse pressure a lot of goods. Finally understand that E-commerce is not so simple, anyway, I am now the bitter heart of the gentle persuasion: the lofty high-rise ground, your past is not equal to the present.

The biggest advantage of internet retailing is that brands face consumers directly. Master all the end members of the consumer demand information, completely your quarterly development of goods, with your old customers, combined with some of the Internet marketing methods to achieve accurate forecasts, those goods good sales, those goods should be eliminated. Combined with the sales cycle of commodities, we can scientifically budget the next quarter of the order should be down to how much.

Last year, we sold 1.85 million pieces of clothing, which is to use this method. To year-end inventory of less than 150,000 pieces, inventory turnover rate 5.5 times.

Last year, I saw many of my peers, including myself, devote 50% of my energy to the supply chain. System Information flow, supplier qualification standards and re-validation, improve the quality of fabric accessories, optimize operation and supply chain docking process, improve the precision of style sales, balance the quality and speed of manufacturers and so on.

How will we supply the chain in 2013?

The production mode of adding a single is not changed, only the flexible supply chain can be changed, which is the root of solving the problem. Our principle is to stock the fabric rather than blindly produce it into a lot of finished products.

Rather than give up sales, do not produce substandard products.

Through "futures" and "flexibility" separate to do the production of goods, this will be the key to success or failure in 2013.

Reduce the number of suppliers, optimize the complexity of the production of a single process, streamline production management and quality control personnel, retain the intensive force, and supply chain manufacturers to reach a strategic partnership. Only if the supplier is full, we (brand) can have a good day.

Quality control management and billing staff separate two classes of the management, to eliminate all kinds of "water."

To withstand the waves of supply chain, must have their own ideological awareness:

What kind of performance management system, decide what kind of action result;

What kind of supplier determines what kind of speed and quality;

What kind of ideological consciousness determines what kind of person we are;

What kind of person decides what kind of thing to do.

How to ensure product quality standards?

Establish standard system of product quality;

Strict review of the supplier's qualifications, not in many but in compliance. Traditional areas, there is said to have a hidden rule: the production of orders to the management staff to take Commission, do not take commission of a bad person. Clearly is a good supplier, because do not know the unspoken rules, because do not know a person, later because of a variety of quality problems and was rejected, the truth, you know. That's why the boss has to personally vet the supplier's qualifications. Once the approved supplier, no one shall be free to replace.

Quality control personnel, the more refined the better, the high standard of goods is not found out, but a high standard of suppliers to do it. A lot of people have a misunderstanding, quality inspection of the people a large pile, processing plant goods sent over, returned a batch of a group, the result of the cost is higher, the supplier is not happy.

Train the core factories, plan ahead and make sure that these factories have a single day;

Not set too much check the link, but with qualified quality control personnel (Quality Control Manager) Shidi, and then to the warehouse quality control supervision;

In the design and development, unqualified fabrics, no qualified fabrics can not be tested to design style, to achieve quality control from the source of commodity planning to start;

With the development of the two or three-line city, the production workers plummeted, 80, all the students are graduating from university, do not want to do clothing workers. "The future of the brand's supply chain will require a higher level of technology, the level of automation has become more and more high, the entire national business cluster, more and more concentrated, for example, Zhejiang Haining leather, each region has a regional advantage of each region, now alone alone is difficult to win in the future competitive advantage. Therefore, we have to carry out market structure segmentation, industrial upgrading. ”

Especially clothing this multiple SKU supply chain, must be intelligent, standardized, rapid and information-based, the future will certainly focus on each of our pieces, each cloth, there must be a unique identification code, in the production, all products can be real-time tracking.

Skilled workers are the "working emperors" of the next era. The brand in the Internet retail era has to change the supply chain industry's ambition, only to stay on the enterprise's needs, only to take a regressive path.