Power supply Chain

The following is a transcript of Gege's speech at China e-commerce conference and e-commerce exposition:

"In just": Friends, guests, good morning! The first time the organizing committee invited me to make a speech called "Electric dealer run-off supply chain", may be they see I have done a lot of supply chain work, I would like to talk about the supply chain. In fact, I have more time in the past few years in the customer experience, I think the people of the world, the customer experience of the market.

Mr. Song thinks that China's e-commerce is only a small setback, not the winter, in fact, I am more optimistic than Mr. Song, I think it is an excellent opportunity for e-commerce development. We are very fortunate to grow in the era of e-commerce booming, to us is the times headwind.

Let me first explain why I am so optimistic, first of all, China's internet users have been far more than the United States population, in the past 10 years has developed 15 times times, just over 500 million, the network penetration rate over 40%, this gives us a very large foundation. Then look at the new network plan is also more than hundreds of billions of 2003, 30 times times, and immediately to more than 700 billion. The whole net purchase growth rate is 5 times times more than GDP growth rate, so in these several directions China's e-commerce is rising stage, and now the base is very small, have huge potential. So we do e-commerce at this time is a very good time.

In the whole e-business development, Consumer-to-consumer, business-to-business and so on, the company is the fastest growing sub-industry, because the network economy has developed, some of its previous barriers have been eliminated, including online payments, there is a logistics, so on this above we want to see how to make our development healthier, faster, The first point is the customer experience.

E-commerce has its own characteristics, first it is virtual shopping, merchandise is not visible, and the entity shop is not the same, so many times is relying on pictures, text guidance, by the simplicity of the process, the public, so that customers are easy to shop, rather than see customers in the store to see what impulsive shopping, Customers online shopping more rational. The whole process of shopping is certainly more complex than the physical store, because it needs to register, address, do a lot of choices, and payment, to lose a lot of information, it must be more complex than the physical store. Another is that it than physical shopping there is a time lag, from the order to receive the goods there is a time difference, this time lag may change a lot of ideas change, he then after a single may feel it needs but after a few days he did not need. There is also a physical shopping it does not need too many systems to support, there is a storefront, shelves, and then customers can see the goods, made a decision. But in the electronic commerce needs a lot of technology, it can be said that E-commerce is a high-tech, which is why in the traditional shopping and E-commerce there is a big difference, one of the differences is the talent difference, because E-commerce needs a lot of it talent, technical personnel, it needs to be a lot of customer behavior simulation, give it to use model to predict , to guide, to rely on the ability of technology to do a lot of things, to the whole process of automation. Another point is that before the customer received the goods, in this whole process, the responsibility of the electrical business is very large, because we are responsible for the choice of customers, because the correctness of the goods, its quality, shelf life, to be responsible, this is very different from the traditional retail, with these differences we find that the customer experience is not the same. Because the customer experience in the physical retail is his experience in that environment, you can use the scene at the time, with sound, light, with a variety of shelves and so on to guide. and electronic commerce depends on the website, the website process and the picture, the text description, the recommendation and so on to affect.

What is the customer experience in E-commerce? It is not one thing, many people think that the customer experience is the final delivery of the experience of the moment, or I call Customer service, customer service to answer my questions when the experience, these are just a lot of experience in the middle part. Actually the customer experience it is a comprehensive consideration, first of all, you have no customers want the goods, you do not have the goods he wants, you are no use cheap, because this is not what I want, quality can be guaranteed, the price is not affordable, delivery is not timely, payment has not I want the way, I am not feel enough to rest assured that security There are after-sales service and so on. The other one is the system, for example, as I was working in Seattle, there is an elevator not facing down the arrow, it is two lights, the left light on the elevator facing up, the right side of the light down, then I as a customer how I know is left facing up, right facing down, this is the engineer by their own design, This is not for customers to think, if you think for the customer you do not need customers to think, so that customers can not make mistakes. So the customer experience involves many aspects, is a comprehensive consideration. At the same time it is very real, can be refined, and then I say why it can be refined, we are how to refine, because you do not know how to refine this thing. And you can subdivide it into every post, every function, how does this affect the customer experience? You can measure it with a data KPI, evaluate it, and finally see improvements in this area, and see improvements to the customer experience in this area.

And one thing is that the pursuit of customer experience is endless, and the final pursuit of customer experience is a cost, for example, when I was in the global procurement of Dell, we know that the goods to 5 (English) is no longer down, because the cost is too high, I would prefer the quality of goods to the customer exchange, Rather than unlimited pursuit of the perfect quality of goods, because all the improvements are cost.

What is a good experience? I am speaking from these five aspects: the first aspect, the cornerstone, is the commodity must be rich, must have the customer wants the commodity, otherwise the customer is not interested in you, but you must have the target crowd, you cannot pursue your website to have all groups, the price, the security, is convenient, in time, this is the cornerstone. The second aspect is the process and the system, must be simple, does not need the customer to think, moreover conforms to the custom of the customer. For example, the Caribbean island is a good environment for environmental protection, the traffic card is originally red but it is in order to blend with the environment to turn it into a green, so the place often accident, this action is very good, but it is not in line with customer habits, so this design is also easy to let customers out of accidents, problems. So the entire process we require the engineer's design can not only he made the system itself, but to fully do the customer survey. We in the design process to the customer please come over a discussion, including the design plan and our company potential customers together to discuss, see is not very user-friendly, is not in line with the habit of customer purchase. The third aspect is personalized, everyone feels very comfortable is if you call customer service, or I often live in Shangri-La, if the waiter can call out your name you feel very cordial, feel is personalized service for you. Personalization is important throughout the shopping process. If based on your past buying behavior, search behavior, merchandise related behavior, give you a lot of personalized services, if said, "Mr. Wang, you probably shave every month with a bottle, now to one months to remind you to buy shaving fluid," so you feel very warm. The last aspect is the problem processing, the customer finally is to solve his problem, I want to know this package is not able to arrive in time, why not, the light attitude is not able to solve the problem, so how to deal with the problem how fast, complete, one-time is very important. We in the assessment KPI once problem solves, how once solves the problem. The five is service, our service is higher, not lower.

How the customer experience is associated with every job, first of all, the distribution staff should be good attitude, distribution timely, there is no damage, missing, missing, of course, you can do a lot of additional, such as saying that the distributor in the customer's doorstep is not smoke, and can not wear dirty shoes to the customer's home, and so this is the rule, Some are extra, there's rubbish in your house, and I'll take it out for you. This is the contribution of the Distributor to the customer experience. In terms of customer service, he is able to solve the problem in a reasonable and one-time way. From it to be very simple, search convenient, do not need any speculation, see half-day instructions and in the inside toss half-day, but very simple. From the product department is very important, first of all, it wants to buy the goods customers need, and then it to ensure that these goods are not out of stock, because many very hot goods customers like, but always a short while, a while, so the customer experience is very poor. Now we personalize the EDM, to give each customer a unique EDM, according to his behavior to give him the recommendation of our products and remind him, as you buy this product, you did not buy, but the goods arrived, and then I remind you that this product is now reduced, I would like to remind, Let customers feel this unique personalization. From the warehouse, the inside of the picking, packaging very carefully, so that the goods do not damage, packaging is also good, but also to make contributions to customers. QC is to ensure the quality of goods. The description of the article to meet the nature of the commodity.

Now let's talk about how we make it.

Shop 1th is three years ago in July, online, more than 3,000 products, so far there have been 140,000 products, 11 product lines, registered users have reached 12 million. In order to manage the standardization and refinement, we put all the goods, inventory, distribution and customer classification, goods have physical goods, we still have a lot of services, such as mobile phone recharge, water and electricity charges, air tickets, train tickets and so on. From the stock we have free inventory, consignment stock and transfer inventory, inventory stock, you can buy hairy crabs, dumplings and so on. In terms of distribution, we have their own distribution team, distribution of about 70% of the distribution, as well as we are to the supplier to take delivery, as well as direct distribution suppliers. From the customer we have a personal, group buying and corporate customers, according to the different characteristics of customers have different service content.

In terms of the supply chain, we analyze the needs of customers, from the customer's needs and potential needs to purchase goods, and then we try to move up, is from the previous distributors, distributors, wholesalers and so on to move to the manufacturer, to the warehouse center, our storage Center also has a graded warehousing center, the final distribution. From the distribution, we talk about more than 30 distribution on the cooperation, covering the whole country.

From the inventory management, we first in the front from the procurement of the supplier very strict certification, after certification from the storage of the time there is a quality management team, they have a vote of veto, as long as they say this product quality instability they can go to collect. With the supplier periodically check the supplier's timely delivery rate, the quality of goods and so on. From our system there is an automatic procurement system, when the inventory is lower than the security inventory, and then automatically orders, and then sent to the supplier, and then tracking the entire delivery process. At the end of the customer, we have the goods when the customer can buy immediately, out of stock when the customer can be registered pre-sale. In the absence of this product, we can focus on the customer's key words to the statistics, finally send this information to our product department, the product department according to this information to purchase, we know how many customers are interested in which goods, so we can target our customer base to buy the goods we want.

From the layout of the supply chain is like this, the beginning of this year we have about 40,000 square meters of warehouse, warehouse for us is a very big bottleneck, we have to solve this bottleneck now the country has 220,000 square meters of warehouses, and the future is 10 tens of thousands of square meters of warehouses. We are now in Beijing, Shanghai, Guangzhou, Wuhan, Chengdu, a total of 220,000 square meters of warehouse. will also be in the areas such as Jinan, Xi ' an, Shenyang and other places to build warehouses. Our distribution site has covered more than 30 cities and should cover more than 100 cities by the end of next year.

From the customer experience, the first point is how we implant the concept of customer experience into the behavior of all employees. First, we're looking for a third-party company that specializes in customer surveys, they surveyed us with a customer's overall experience, and then we linked that to all of our employees, and we could see how much this metric is now, if this month reaches our goal, All employees have bonuses, if there is no goal and penalties, etc., so that all of our employees know what the customer experience is, know what the relationship with their position, and then each of our departments will have its KPI, this KPI is related to the customer, each department has what kind of KPI. For example, such as delivery timely delivery, the success rate is not timely, but the final customer has accepted, there are broken omissions. Commodity richness is based on the market of goods and our commodity coincidence degree, so we basically put all of our post KPI with scientific indicators quantified, with a measurable way to set up a goal, each employee knows as long as he achieves his goal to the customer experience must be improved.

What do we do with the improvement of customer experience? Because if you do it in generalities, because the company's resources are limited, so we generally are more scientific methods, Pareto analysis, customer experience with a number of factors, we have listed these factors, such as the reasons for the distribution, there are after-sales service reasons, there is the reason for the article description and so on, We have all the factors listed, and then we see how many customer complaints per week are related to these factors, and then we put the resources on the largest number of issues, to solve these bottlenecks, after the change to solve the details of the problem, relative to these bottlenecks one by one elimination.

After three years of efforts, we have done is still far from enough, the pursuit of customer experience is indeed endless, we feel only better, not the best. We have achieved some results, from our growth, from the 08 opening year of turnover 4.1 million, this year we should do 253 billion or so. Rankings from the site we are in Alexa China's latest ranking of about 150, is the most growth of enterprises. Finally, I would like to emphasize that "customer experience is the future of excellent electrical and other electrical business of the watershed, the people of the world, customers have to experience the market," Thank you!

"Moderator": The next question is three questions. Mr. Gege is talking about the customer experience today, but he is a supply chain expert, so you can ask this question.

"Question 1": I am very grateful to the host to give me this opportunity, I was from the purse net, is focused on mobile payment of a specialized company, this May to the People's Bank of the third party to pay the license. I would like to ask you, Sir, Shop No. 1th is based on mobile terminal Customer experience products, shop 1th in the choice of mobile communication Terminal Client Mobile E-commerce products, in the mobile payers face to pay for corporate partners, what are the conditions and requirements?

"In just": we launched the Palm 1th early this year, can download, one is the iphone, one is (English), one is (English), in the North Canton Deep bus Station also has our virtual supermarket, that is, you take a mobile phone can directly scan the two-dimensional network, one-stop purchase of goods. From the mobile payment, because we move the payment is recently introduced, we started to launch to the palm of the store can only be paid, one months before the online payment, now has two, one is Alipay, a merchant bank. Choosing from payment is definitely an advantage in choosing cost and security.

"Question 2": Hello to Sir, we are a local retail enterprise, in E-commerce this piece of the project we are also in the study, in this process we feel that advisory services is very important, you just mentioned in the speech, you in the actual operation of the business also useful to consulting companies to provide services. We have some doubts about this one, how do we choose a consulting firm? In what way can it provide the corresponding service? And what is its actual benefit? How do we make the 1th store?

"In the first": we have asked the company three years ago for us to do consultation, please Deloitte and so many companies have been consulted, there are some strategic advice, some actually, including now we ask a few consulting companies to help us do warehouse automation. We think that these inquiries are really going to have a result you have to clearly define the objectives of the consultation, and to have some executable project out, rather than often give me a concept is over. So we generally give these consulting firms the final goal of delivering, which is that you have to define several executable projects, and it will be with me to execute these projects.

"Question 3": Thank you, Director, I'm from Eric Consulting Group, we have been the pursuit of the goal is to help enterprises dream how to land, just in the total wonderful speech I was concerned about the 1th shop has been on a large number of fresh food, I would like to ask about the total, fresh food market is always our field of electricity in the gap, Because I bought some fruit online, but vegetables and seafood has not been fully available, that in packaging, inventory, logistics to management, I would like to listen to how to make fresh food for better logistics and distribution, better customer experience.

"In the first": food, especially fresh food, food safety and quality assurance is of paramount importance. I give an example, we have hairy crabs, we went to Yangzhou Lake pack more than 100 meters of water, with the captain of the contract called false one penalty thousand, so as to truly guarantee the quality. And we go to special inspection, and they watch the crab send the process, to win the assessment. Now we think that the business certification is the most important, with our cooperation with organic vegetables, there are frozen, fresh fruit, we have to do field trips. We have been slow, and the three of our applications are still in line, but if we find a customer complaints, the decision is very timely to deal with the suppliers can also deal with, including the next frame.