Click to read the original text for details. FMCG B2B has gone through five years, which can be described as vigorous. With the support of capital and brands, it has been conquering territories and forming alliances, enjoying a moment of glory and a promising future. Now B2B has reached the mid-game, but we find that this road is still rugged, bumpy, and full of ups and downs. 01 Industry Pain Points Are Difficult to Effectively Solve For self-operated B2B platforms, most platforms are still struggling among order density, distribution density, and product density. This is manifested in three aspects: First, order density is insufficient, efficiency improvement is slow, and the effect of warehouse and distribution integration is not obvious; Second, regional scale development faces bottlenecks, and expansion leads to rising marginal costs; Third, scale and covered cities cannot undertake nationwide stock transfer. The "big dealers" who previously waited and watched or tested the waters have successively entered the game, but the change in identity is not recognized by local peers, who harbor wariness and a strong sense of insecurity. "Wanting to obtain more local orders" is the core dilemma faced by dealers transforming into platforms. For matching B2B platforms, although they have connected with traditional small stores, they have not yet provided better solutions for the carrier of commodity circulation. City distribution is the "pain point" of matching platforms. Platforms are tools for connection. To truly achieve the upgrade of the entire channel, the most critical factor is the brand owners. Currently, brand owners have seen the trends and potential of B2B and highly recognize it. Some brand owners with awakened awareness have begun to embrace B2B, but from the cooperation situation, although B2B platforms have great potential, brand owners are still dissatisfied with the platform's covered cities and scale. Currently, there is no truly national order platform, warehousing and distribution platform, supply chain finance platform, or marketing promotion platform to help brand owners achieve the goal of "refining the existing stock and expanding the increment." Most brand owners are dealing with regional platforms, and the overall marketing functions cannot be transferred to the digitalized supply chain. A small amount, partial, and regional refinement of existing stock is not enough for brand owners. Based on such thinking and observation, the China E-Commerce Association FMCG Branch hopes to establish a public welfare "China FMCG Supply Chain City Distribution Alliance" organization, building a bridge for scattered B2B platforms, dealer-transformed warehousing and distribution platforms, and third-party city distribution companies, allowing national brand owners to reach thousands of local warehousing and distribution platforms at the fastest speed and highest efficiency, and enabling "four-in-one" (undertaking logistics, information flow, capital flow, and sales promotion) dealers to focus on the single sales promotion function and undertake the brand owners' deep distribution in the past. 02 What is the "China FMCG Supply Chain City Distribution Alliance"? We believe that the rapid development of FMCG B2B in the past five years has basically achieved the "first order integration." The digital transformation of order platforms has taken a big step forward in the efficiency of commodity circulation, but warehousing and distribution in commodity circulation remain difficulties and obstacles. The FMCG industry needs a national trunk and branch network to truly realize the busification and routing of warehousing and distribution logistics. Whether it is a self-operated B2B platform or a traditional dealer transformed into a warehousing and distribution platform, due to their scattered, partial, and single nature, they cannot undertake the supply chain digital transformation of enterprises with strong "order allocation rights" and "order allocation volume." Especially for enterprises with a scale of over ten billion, brand owners have a strong rigid demand for omni-channel supply chain services. Based on this, the China E-Commerce Association FMCG Branch initiates the proposal to establish the China FMCG Supply Chain City Distribution Alliance public welfare organization. With the help of social forces, build a socialized, third-party national logistics city distribution alliance. Empower local regional warehousing and distribution platforms, especially those transformed from traditional dealers as typical representatives. Help upstream brand owners achieve warehousing and distribution through the "City Distribution Alliance" and improve the efficiency of commodity distribution a second time. In short, under the guidance of the association, unite all city distribution companies and dealer-transformed warehousing and distribution platforms across the country to establish an industry-wide "order receiving platform." Let city distribution platforms (demand side) not only receive local city distribution business but also connect to national city distribution business; let brand owners (supply side) save the trouble of finding third-party city distribution platforms one by one, region by region. We hope that under the association's leadership, publicity, and promotion, the alliance will become an influential industry supply-demand platform for city distribution orders and a "bidding and tendering center" for urban supply chains. 03 How Will the China FMCG Supply Chain City Distribution Alliance Operate? First, who organizes it? It is initiated by the China E-Commerce Association FMCG Branch. The China E-Commerce Association FMCG Branch has the most complete and authoritative FMCG industry experts and KOL resources in the country, capable of connecting numerous high-quality brand owner and dealer resources nationwide. Use the hand of "industry coordination" to promote industry progress and establish an industry-wide "empowerment system." Second, who participates? Participants include four parts: industry guidance units, initiating units, member units, and supply units (brand owners and retailers). Guidance units: Composed of IT technology companies with high industry credibility, third-party city distribution companies, and brand enterprises; Initiating units: Composed of influential KOLs among dealers in various regions; IT technology service companies; Member units: Composed of dealers transformed into warehousing and distribution platforms or third-party city distribution logistics companies in various regions; Supply units: Upstream brand owners/manufacturers, including but not limited to B2B, brand owners, catering chain enterprises, and chain retail groups. Third, how to implement? Step 1: City distribution enterprises in various regions apply to join the "China FMCG Supply Chain City Distribution Alliance" organization and submit their corporate functions and business positioning. For example, some alliance member enterprises position their business as achieving commodity distribution to local traditional mom-and-pop stores through unified warehousing and distribution; some position as catering city distribution; some use B2B platforms to achieve city distribution... Step 2: Upload the business needs of city distribution enterprises to the City Distribution Alliance, and display and publicize them; Step 3: The City Distribution Alliance promotes supply units to go online and connect with city distribution enterprises in various regions; Step 4: Upload city distribution orders for characteristic products from various regions. By aggregating the strength of all participants, establish the alliance's "traffic pool." Through industrial coordination of national resources, all participants can achieve symbiosis and win-win, truly realizing a national, social city distribution business network. Trend dividends always come from strategic vision. Lei Jun said, "Act in accordance with the trend." We have been thinking about the concept of establishing the China FMCG Supply Chain City Distribution Alliance for more than a year. B2B is already in the mid-game. How should the road be taken? We have proposed a solution of a "national supply chain alliance organization."
Supply Chain & B2B
B2B Mid-Game: Big Moves Ahead | China E-Commerce Association FMCG Branch Proposes Establishment of "FMCG Supply Chain City Distribution Alliance"!
FMCG B2B has been developing for five years, but the industry still faces unresolved pain points. To address these, the China E-Commerce Association FMCG Branch proposes establishing a public welfare "FMCG Supply Chain City Distribution Alliance" to connect scattered B2B platforms, dealer-transformed warehousing and distribution platforms, and third-party city distribution companies, enabling national brands to efficiently reach thousands of local warehousing and distribution platforms.
