Han Yongsheng, Chinese Academy Of Sciences: Supply Chain Will Become The Biggest Profit Growth Point For Enterprises

At the second China clothing e-commerce summit recently held, Professor Han Yongsheng, a doctoral tutor of Management School of Graduate University of Chinese Academy of Sciences, gave a brilliant speech on the development of e-commerce.

Han Yongsheng: I am very glad to have the opportunity to attend our electronic commerce conference.

I have been in the clothing industry YOUNGOR for five years.

Today, our channels have undergone tremendous changes, from traditional channels to the network channels in our hearts. In our network, there are hundreds of millions of Internet users, who live in the network.

In addition, the traditional channel has paid a huge price due to the network channel.

30% of the sales amount is digested in the channel.

Our enterprises generally pay more attention to our products and pay attention to our channels.

But what I want to say today.

Whether traditional channels or network channels, we need to pay much attention to the supply chain.

Our supply chain has become a very important factor in today's competition.

And it is also the biggest growth point of our enterprises.

Recently, I am doing a lot of pformation of enterprise supply chain.

I made a famous women's clothing business in Hangzhou, and I began to make a famous footwear enterprise in Wenzhou immediately.

Take this Wenzhou enterprise, their sales are 3 billion, profits are good, 15%, 4.5 billion, but today we can see that our clothing enterprises, as long as the best sellers must be out of stock, we can hardly catch up.

Internationally, with Adidas and Adidas as high as 45%, what about us?

We can imagine that in fact, there are two kinds of shortages in stores. When our customers arrive at the store, they can not find the products and go away. The other is that the dominant customers find it, but they break the code and are out of stock. The two types of customers add up to 50%.

There are some products that are constantly discounted, which will bring great destruction to our profits.

If the apparel industry can grasp the supply chain, the profits of enterprises will be doubled.

In our industry, the stock of underwear industry is the biggest part.

The turnover rate of underwear industry is two years' turnover. Men's clothing turns once a year, and women's clothing turns two times a year.

Look at the best companies in the world. People turn around 12 times a year, so we can see that there is a huge gap in our industry.

I just looked at the supply chain briefly. I took the 3 billion of the enterprises I mentioned just now, and the profit of 3 billion sales and 15 points has been very good.

If I discuss with him, if we can catch up with the assumption that it can be fast, then how much is the sales promotion?

Sales said there were 30% or even greater improvements.

I said that even if the increase of ten points increased sales by 3 hundred million, what would be the profit contribution to our enterprises?

The cost of the product is only 20%, which is 60 million or 2.4 billion.

We made 3 hundred million of the sales and got 450 million of the profits. In addition, if we can reduce the sales volume by half, is it possible to reduce the discount much less?

20 points, I will take 10 points, which means that our unit price can be increased by 10%, 10 points is 3 hundred million, we change the cost, the original cost, we do fifty million, we will earn 2.5 billion, plus the previous 2.4 billion can almost double our profits, reaching 4.9 billion, so I help you to pform the supply chain, you put 0.9 billion as my consulting fees, how much do you take 4 hundred million, how can we do this business together?

So I want to say that in our industry, the supply chain becomes the essential element, whether online or offline.

Why can't our supply chain do well?

First, there is a challenge for our enterprises. I spent three lines and a red line. What is the red line?

It is not to say that the business volume is bigger, the business is to make money, not the turnover, the key lies in how much profit is made.

If the other two options, a black line, a large number of enterprises because of inventory dragging you to death, many of our supply dealers, they have a lot of inventory, they earn is inventory, and there has been an annual loss, so the establishment of competitive advantage becomes crucial.

So we need to have a big strategic system.

What decisive competitive advantage does your enterprise have to establish, and what is the decisive competitive advantage?

There are three conditions: {page_break}

First, meet the important needs of sufficient customers.

Second, we can not do what our competitors can do. Third, we can not afford to take big risks ourselves.

We reformed an enterprise in Hangzhou. I just came back from Quanzhou the day before yesterday, and there was a local company.

What are the characteristics of this enterprise?

What is the pain of our customers?

What kind of people are competitive?

If our enterprises want to be competitive, they will become doctors in the industry. What is the pain of patients?

What is the antidote?

If we can guarantee the best sellers, there are no salable goods.

Unsold goods can not be sold, and orders can be cancelled.

Suppose we have such ability, is there any problem in attracting investment in the market?

There is no obstacle.

If you do Internet sales, Internet users will give you goods immediately if they place an order. If they fail to deliver the goods, if he exceeds his endurance time, he will never place an order with you, he will go to another place.

And you have a lot of goods to meet their needs. Once they are not ready to sell, they are all pinched in their hands. So I want to say that in the industry, the supply chain has become a very important factor to enable us to establish decisive competitive factors.

So if we want to become competitive people, we have to solve the problems of the industry. What are their sufferings for consumers?

No matter online or in the actual shop, it is painful to find the product you want.

For dealers, best-selling products can not be made up, and large quantities of unsalable goods are backlog, which is very painful.

For ourselves, our dealers are not only asking for low prices, but 60 percent off, 65% off rows?

I can't earn much money.

A lot of inventory, our pain, our factories, replenishment cycle is too long, the replenishment time is not stable.

The upstream suppliers are too slow, and this series has become our pain. If we can solve this pain, we can build a strong competitive advantage in the garment industry.

Fast fashion and quick response are the drivers of continuous success.

This fast, everyone is learning, but few people can really learn.

Why can't we learn? Why are his problems so fast that we can't? I want to explain to you the way behind them.

We really limit our supply chain ideas. We always think that the key to doing business is to lower the cost of procurement.

So emphasize the lower raw material, what will the supplier say at this time?

Say how much you buy and how much you buy is cheaper.

So you are forced to buy more, and then you look for the production plant, you hope that the processing fee is cheaper, manufacturers asked how much you do?

Doing more can be cheaper.

Dealers do business, and I hope they can sell me a little cheaper.

I'll make it cheaper if you order more.

So in the whole head, it costs less and costs less.

And you assume that if you want to make it cheaper, your forecast will increase.

Finally, once the best sellers are sold well, we are looking for suppliers and distributors, which can neither be more nor less.

So the right supply chain is our own problem.

We put the concept of cost first.

Just to be an enterprise is to be cheaper. If I say it is cheap, I will close the business and not spend the money at the least.

So the purpose of an enterprise is to make money, not to make it cheaper.

So we forget that the goal of a real enterprise is to make profits. That is to make a profit and spend more money, so long as we earn more than we spend, what does it matter?

So we need to change our concept and we need to change from cheap to more profitable.

Making more money is the basis for our decision.

If the product is sold well, we will pay a little money to the supplier when we buy it. If we have money, we can make the devil go.

So we can get a lot of profits.

We can take profits from this piece, distribute them to suppliers, divide them into processing factories, distribute them to ourselves, and form the whole fast industry.

When we talk about strategy, how to write a short word, it is a Tian Jia. Chairman Mao said that the key to dividing the land among the local tyrants is our thinking.

We can't say that the supplier is a little cheaper. He will give you a little cheaper. Isn't that cheap?

In the end, you were all blocked up.

Therefore, the most important thing is to change the concept. We should buy the best selling products, what the customers want, the fastest value we purchase, the added value, the values and values, and earn no one to eat alone, no one will cooperate with you.

What is "harmony"?

The contract is the contract, everyone has food to eat, so can not dictatorship, can not eat alone.

My point of view is that our first order is smaller, and our bill is faster. So the key is whether we can break through the concept.

One big constraint is factories.

Factories are totally wrong in pursuit of profits and capacity.

Factories are not the bottleneck of our supply chain. What is the real bottleneck?

Loyal to our consumers, when he comes to our store, when he wants our products, the order we supply should respond quickly.

What do we need to do?

We need to convince ourselves that fast fashion and quick response are the key drivers and priorities of our day.

Persuading our team members to tell us what is right every day.

We need to cooperate with the system, we need channels, brands, suppliers, we need to meet our supply chain timely and appropriate time to give them, so I want to say, to convince our team, consumers are placing orders for us, we are self centred today, half a year ahead of time ordering, one year ahead of the design, we are guessing what consumers want, we have enough goods.

Because we hope our distributor will place an order and sell it to him immediately, and our task will be completed.

This is a completely wrong concept.

In the supply chain, only consumers can buy our products and sell them.

So I think consumers know everything. Consumers are placing orders for us. Whether you are online or offline, first of all, we need to pform our thinking. We should save a little bit, save a little, change faster for us, and earn more.

We should share these systems with the money we earn.

We abandon the original order, we choose high-quality suppliers, not cheaper, but faster.

We have plenty of time, but our order needs to be quicker.

Quickly become our main criteria for supplier selection.

You can sell less and sell more immediately. The extra profits should be given to our suppliers and our manufacturers, so this time it will change.

Tap water is the best supply chain.

Your home does not need a water tank, how much to use, how much to use, so our online business today is like tap water, we put one on the Internet, when customers order, tap water is put, goods come right away.

It makes us more profitable in the industry and brings huge competitive advantages.

OK, thank you, I will report here.