As regional supply chain platforms are being built with great enthusiasm, the discussion continues over who is playing the vanguard role in the FMCG channel transformation. Each distributor has different advantages and implementation processes, but the direction and destination are clear and unified. Today, let's talk about how distributors can build regional supply chain platforms based on their own strengths and resources.
Distributors all want to build their own platforms, but with so many platforms and unfamiliarity, what kind of platform is suitable? Self-operated unified distribution platform? Self-operated plus matchmaking? Matchmaking platform? Or others... Industry resource matching, platform channel connection I. Self-operated paving the way A. Applicable environment: single distributor, chain brand, strong second-tier wholesaler; B. Model description: Organize goods into warehouse through cash purchase or credit period, and collect product benefits. Distributors leverage their own high-quality products, manufacturer resources, and channel accumulation to build a regional B2B platform; C. Customer case: Tao Daqing, a typical case of single distributor transformation. Daqing Aohai Trading is a distributor mainly dealing in beverages, with nearly 20 years of corporate history. Before this, its channel traffic mainly came from salesperson visits and vehicle sales. In addition, a large number of backend personnel were involved in entering orders and matching inventory, leading to over-reliance on sales personnel. The operational problem of Tao Daqing also lies in the fact that its warehouse inventory cannot be synchronized with the front-end channels, and sales volume depends on the diligence of vehicles and personnel. With the rapid development of market demand and increasingly fierce market competition, Tao Daqing's original business model and information management are now inadequate compared to the company's growth rate. If no measures are taken to change this situation, the company will inevitably be passive in its future growth. The transformation and upgrading of enterprise e-commerce informatization is imminent. Over the years, Tao Daqing has continuously explored the introduction of internet tools, through its own platform, organizing goods, and delivering to terminals. While increasing sales of its own products, it has also driven sales of other products. The vehicle loading rate has increased, the enthusiasm of sales personnel has increased, and profits and turnover have also increased. Through continuous attempts, Tao Daqing has basically completed the transformation of its B2B marketing model. All transactions of Tao Daqing have been imported into the enterprise's online B2B trading platform—Baimi Cloud. The APP has 7,500 installed customer accounts, basically completing market coverage of Daqing urban area. Monthly ordering customers reach over 50%, of which self-ordering customers account for over 30%. Currently, more than 10 distributor enterprises have products on the platform. In a recent promotion organized by the enterprise, 180 SKUs were online, with daily sales reaching nearly 2 million yuan. II. Joint unified warehouse and platform building A. Applicable environment: multi-distributor alliance, strong chain brand, third-party logistics company; B. Model description: Organize different high-quality categories of goods into warehouse, settle only when goods leave the warehouse, charge warehouse and logistics fees in the middle, and use this rapid supply chain integration and product combination capability to jointly build and share urban B2B and chain systems; C. Customer case: Hebei Changyi Logistics. As a traditional distributor, Changyi Logistics initially tried to build a platform alone, but its own financial strength could not meet the platform's requirements, preventing full implementation of operational goals. Moreover, its product range was single, making it difficult to expand new products through platform operation. Internet informatization is changing rapidly, and various industry challenges are emerging. At the same time, many large e-commerce companies across the country are using their own B2B platforms to go down to the physical level and do light franchising (e.g., JD's JD Supermarket, Alibaba's Tmall Supermarket) to control stores. All distributors will face the situation of "no stores to supply," and distributors themselves do not have the ability to control stores. Changyi Logistics clarified the current market background: the purpose of unified warehousing for distributors of more high-quality categories is not simply to control warehousing and distribution costs, but to embrace a supply chain platform company that can do unified warehousing, platform operation, and gradually control stores. Therefore, Changyi Logistics adopted the model of shared warehouse and unified distribution, uniting local distributors or cargo owners with resources to put different categories of goods into the platform's warehouse for management, unifying products, platform operation, after-sales, distribution to small stores, and a unified light franchising system. The platform settles with the cargo owner distributors. The settlement cycle is usually only a few days (after the return period ends, the platform automatically distributes accounts). Zhongke opens the business of salesperson app ordering in the shared warehouse and unified distribution to the cargo owner's salespeople. When cargo owner B's salesperson serves terminals and places orders on behalf of the store, they will only see products belonging to B in the warehouse in the app. III. Heavy self-operated unified warehouse, light matchmaking A. Applicable environment: as a supplement to self-operated B2B platforms; B. Model description: The platform determines product categories, prices, promotions, and controls distribution and service capabilities for unified warehouse goods. At the same time, some distributors are introduced to join the platform, and after publishing their own products on the platform, the platform provides more natural traffic, driving matchmaking traffic; C. Matchmaking targets: ice cream, bread, cakes, frozen products; D. Customer case: Bangbianli ordering platform, a supply chain platform with chain convenience store genes. Due to complete product range, it is easily favored by small store owners, but not all products can be uniformly distributed. Frozen, low-temperature, and fragile products have special distribution conditions, so the matchmaking model is generally used for distributors to deliver to small stores themselves. Matchmaking without self-operated model is not recommended. Looking at the whole country, pure matchmaking platforms, without controlling products, prices, and services, find it difficult to capture small B and form a stable channel! Conclusion: There are thousands of platforms and tens of thousands of software companies. Distributor friends need to clearly see the platform model that suits them before choosing. As a leading B2B2C platform provider and service provider in China, Wang Shenbing, CEO of Zhongke Commercial Software, shared his ten years of experience in FMCG industry business model design and technology platform construction, suggesting that distributors combine their own resources and advantages to choose the appropriate supply chain model to build channel pathways. Although the supply chain platform is technology-driven, it is more important to rationally utilize resource advantages and gradually implement operational capabilities! Editor's PS: Wang Shenbing, CEO of Zhongke Commercial Software, will attend the 2017 (3rd) FMCG + Internet Conference held by New Distribution in Chongqing on November 8-9 as a guest speaker, where he will share more pioneering views. Interested friends should not miss this conference. 2017 (3rd) FMCG + Internet Conference will be held in Chongqing in November 2017. The conference will closely focus on the theme "New Forces, New Ecology," inviting domestic 1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to jointly explore a new chapter of cross-border integration! Click the link below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum -END-