Gege: No. 1th Store Supply chain management solutions for reference

Sina Science and technology news July 20 afternoon, 1th store Chairman Gege today in the 2012 generation of electronic Commerce annual Meeting from inventory, distribution and information platform, and so on in detail on the supply chain of 1th stores management.　　Public information shows that in the first more than 20 years of experience in retail industry, has been responsible for supply chain management in the Amazon.　　The figure is Gege, chairman of No. 1th store.　　Today is also a person in the e-commerce industry, trends I will not say, I will directly share how efficient supply chain, especially with the practice of shop 1th to share, our practice is not necessarily suitable for everyone, but I said some of the ideas and methods to see if there is anything you can learn from. You know E-commerce I think the core or how to give customers want the goods, where he wants and time to send to his hands, and quality and quantity.　　Show goods, promotions This step is very important to attract customers to see, but ultimately realize all this is the logistics of this piece, but also to achieve effective service, which requires management. In a few ways, the first challenge we face.　　Second, what kind of solution, our solution is just for you to learn from, some good innovative practices also share with you. What challenges do we face? We know that e-commerce Internet economy in the rapid development, and we also know that China's e-commerce is still in infancy, there is a huge space, we see the growth of orders, because of a variety of promotional and competitive promotions, orders vary greatly, often can be several times a day change, How do you handle this? Because it is a fast-growing, store 1th we have burst warehouse at least 5 times, from the original 6,000 square meters of warehouse now to 260,000 square meters warehouse, this growth is a good thing, but all these to the end there are many physical constraints.　　For example, just talk about the explosion, warehouse too large cost is very high, the warehouse is too small a lot of things can not be achieved. I'll talk about our model before I talk about planning, here is a foreshadowing, we hope that the entire supply chain model is quite flexible, in terms of supply chain single mode, it is difficult to become flexible, reduce your costs, improve your effectiveness, we have physical goods, service virtual goods,　　Our warehouse if there are some of the collection, warehousing costs are basically the supply chain commitment, there is a mode of transfer, such as my platform to accept a lot of traffic, customer orders, and then to the supplier, let us suppliers to complete the final logistics and final service.　　Distribution links have a number of models, can be from the distribution, to the supplier to take their own delivery, or direct distribution of suppliers.　　We divide the customer into individual customer, enterprise customer and group purchase, so the way of logistics is different, many times we customers a large number of products, to their staff benefits, or holiday to buy goods are boxes into boxes, or even a car to buy, this time does not need to pass us, directly by the supply of goods we business customers shipped past. Now our layout is basically like this and IWarehouse now has 15, in the north, Upper, Canton, Chengdu, Wuhan, such as Guangdong and Shanghai, the customer base is large enough, it can accommodate an almost a separate whole variety of warehouses, can meet all the needs of the surrounding. We are generally a warehouse can cover the surrounding 250 kilometers, can reach the second day distribution, 24-hour distribution, and as the north, on, canton these big cities have our own distribution, these distributors they can do that day distribution, so we launch a variety of services to meet the different needs of customers. Building huge warehouses in places like Chengdu and Wuhan, its order is not big enough, and the coverage of the crowd is not large enough, so it can have some localized goods, fast-selling goods, or my customers waiting for you to receive the goods, his demand greatly reduced such goods. Later in the three-tier cities are more localized products, fast-selling goods.　　Our supply chain planning should be taken into account, taking into account the cost of warehousing and handling costs, etc. We have a number of models of logistics, we have more than one warehouse, as we have 5 warehouses in Shanghai, each warehouse can only be part of the product, can not meet all of the largest warehouse we have more than 30,000 square meters, also can not accommodate all the products, what is the relationship between the many shops?　　Simple to see theoretically very easy to understand, is that your product is placed in a warehouse inside, this is how to let a number of order optimization, minimize as far as possible. I have the allocation between the library and the library, we have the initiative and passive redeployment, like Wuhan customers under the order, if some goods only Shanghai, Wuhan did not, or I put the goods to Wuhan to sell in that place, or is the passive allocation, is the customer single down after I know that the demand according to the demand for care orders transported to Wuhan,　　At this time you also have to consider the cost, if I directly from Shanghai to customers, or to focus on Wuhan to send customers, this time there are cost differences and customer experience differences. There are two key points I say, one is called the last kilometer, is I for how to send goods to the company, at this time have our own distribution team to do. There is also called the first kilometer, the first kilometer easy to overlook, in fact, I hope that my inventory is less, but too little will affect the lack of rate, this time if it is dependent on the distribution of suppliers often according to his schedule to distribution, too little he is unwilling to send, he will concentrate to a certain amount before sending, this is actually increased our inventory, Also often leads to shortages. If I have a lot of suppliers to take the goods, I call the first kilometer to pick up the goods, we will certainly several benefits.　　First I can follow my frequency to pick up the goods, the second increase efficiency, I can be a number of suppliers to get the goods back, so the high delivery rate, while let my warehousing costs down. These concepts must first have an integrated platform, this is our electrical business began to pay attention to this point, before the Amazon (Weibo) is called the Next generation tomorrow, I was thinking these points is very important, the first is that this system must be integrated, can not have a lot of aloneStand, is a system. Second, it will always be, I can always know any one commodity, this commodity in what state, where, in the supplier's warehouse, or in the process of delivery, or in the process of separation, or packaging process, or finally sent to the customer process, which I want to be very transparent to each item,　　The whole supply chain is very important.　　And because our e-commerce is a very new industry, its business model is constantly groping the process, not very mature copy over can do, each model in the operation of the process to modify to improve, so the whole system of the flexibility is very important, is the system itself to have the honor. The last point is scalability, E-commerce is a scale game, you do a very small size must not, must do large-scale, it can thin your operating costs, talent costs, marketing costs, at this time all the systems must be scalable, can be expanded to include two points, 1th as your flow increased, your customer base increase, The increase in orders, you have to be able to handle more orders, you can accept so many orders. 2nd, your costs are falling, not up, or flat.　　That means you have to analyze all of your business model masks do not have scalability, there is no scalability, even if you make money I do not think it is worthwhile to spend time. With these points, our supply chain inherits the information platform for store 1th, to suppliers, for our logistics and distribution business for our customers, basically all of our partners can use this platform, from this platform we share the same information, but each function is not the same, And our own 1th store is to release the logistics instructions, procurement instructions, tracking all the distribution status and so on, which is equivalent to a platform by a number of different users at the same time. We hope that this platform to create a full E-commerce solution, this program is for ourselves, but also for our businesses, but also for our customers. is to put all our capabilities, existing capabilities, including our front desk display commodity capabilities, including our ability to pay, warehousing capacity, member management capabilities, marketing capabilities, and so on, all the ability to become a service, the service itself is for internal and external use,　　The future of shop 1th itself is also a big solution in the midst of a customer, even a lot of our business models are in the middle of this large platform of a customer, including our own group buy, our famous special selling and so on are such a large platform solution, we call the 1th Shop full service platform.　　This platform includes a kilometer of door-to-door harvesting, warehousing according to its different storage requirements to decide what to do warehousing, such as the fast-selling goods, because the fast-selling products in our storage inside its warehousing method is not the same, because it is very fast turnover, and turnover is very large. The whole warehouse is classified according to the attributes of the commodity, it needs to be active, for example, we should have special storage facilities for drug care, and aSome 3C valuables need security, the quick sell goods to turnover very fast.　　The last kilometer distribution service This is easier to understand, of course, we have our own distribution station, we also work with more than 30 suppliers, through their delivery. We've invested a lot in SBY, and now it seems like we're going to use this system a lot, because it does have a large number of customer data, there are a lot of regularity, like our fast-selling products have a strong regularity, we know that the order has a number of cyclical, ordered goods have a lot of relevance, these we have a data mining, We have recorded the customer's past purchase, search, collection, and even the path to the product, and now we take it as a customer behavior model and use the customer behavior model to predict what the customer needs. At the same time for customers to send personalized services to remind customers to buy, or give him some letter of recommendation, with his buying habits very apt, this is personalized service, this piece we think the gap is still very far, this is just the advantages of e-commerce, all of our electric dealers should fully use this advantage, that is, let us truly personalized service,　　And this platform allows us to do this service. In terms of inventory, we now have more than 900,000 kinds of products, is entirely on their own management, our team mainly to do supplier certification, quality inspection and the final periodic KPI assessment, assessment of its shipments, service levels, product quality and so on, including the number of orders are by our inventory system to achieve, automatic orders,　　Do simple reviews manually. The last kilometer to tell you, I repeatedly stressed that the last kilometer is actually not what we particularly want to do, I think China if there is a very good tripartite logistics, we can give him this piece, we focus on e-commerce this piece. But we've been in the business for a long time and we've been analyzing our customers ' feedback every day, complaints and so on, and 60% of customer complaints are from the last kilometer, this is also very simple, because the final harvest of customer e-commerce is virtual, the final completion of this link is the distribution, delivery is not timely, service is not professional, attitude is not good, Customers are not able to deal with problems in time, will lead to customer dissatisfaction, so the front-end spent a lot of money to obtain customers, the result of the end of the customer offended, which we have been very distressed, and then we decided to set up a distribution team, distribution team we set up last August, now nearly 2 years,　　The first week on line I found that our distribution success rate, satisfaction and so on are better than the three-party logistics.　　Some place order is too big we separate, Shanghai light a city I from the earliest nearly 1 stations, then built 2 stations, now the whole of Shanghai now has 68 stand point to cover, each site is 600 to 1000 above, so the coverage efficiency will be high.　　The first kilometer door-to-door pick-up service, so that our shortage rate down, thus reducing our cost, this is more use of the supplier's warehouse. Order Travel Center is to make it inventory become very accurate, generally aHow many items do customers buy at once? A single about 16.7 pieces, before it takes several minutes, then to 120 seconds, now down to 80 seconds, our target average of a single goods to 50 seconds, this how to do?　　Certainly not a fine pick, generally speaking is to do wave times, and this wave is very scientific, and is efficient, we have to optimize this wave time, Potts finished again with electronic to separate pick. The use of a variety of advanced logistics technology, this is also not our innovation, in fact, excellent logistics companies have used these technologies, including electronic and electronic tags, the entire RF operation, as well as automatic sorting technology, improve the accuracy rate, so that the voice sorting, is not need to see a single,　　And there are a lot of electronic display on the top of a scan this above put 5, the top 3, it is best not to let the warehouse staff to think, so that their homework becomes very simple, the system let him do what he does, all the optimization depends on the system. This is our TMS system, this is our own use, there is a three-party logistics can also be used, the system is visual, that is to know where each of the last one.　　We also have a set of help customers to find this product, that is, the customer calls, we follow the intelligent expert system for tree-like search, is based on the symptoms of customer problems to look down, immediately can find this single goods is what is going on, what account.　　I conclude that I think supply chain management is the core competitiveness of e-commerce, because this is directly related to customer experience, related to our ability to reduce costs enough to allow our business model to improve. 2nd I just introduced the management system, this is our experience, I hope you can learn from, one is integrated, you can see all the systems in a large platform to share data, shared services, all of these services are received. There is all the data must be real-time, so that the supply chain transparent, it is enough to have the honor to change our business model at any time, with the largest cost to gradually decline.　　Our own experience is through the years of continuous improvement, we found that our cost is continued to decline, efficiency is improving, turnover rate is also increasing fast, from the beginning to now we really have a decline in turnover, but there is still a lot of room for improvement, that is, continuous gradual and steady to improve. The last point is that efficient supply chains are actually not only for the efficiency of shop 1th, it actually benefits both our customers and businesses, including all our tripartite partners. Thank you!