The new retail concept has swept across all retail-related industry chains, and some traditional FMCG brands well-known to consumers are also seeking transformation in the wave of new retail. Traditional FMCG brands often have a certain reputation among consumers and relatively complete systems in labor, materials, and channels. However, in the wave of new retail, with the changing proportion of online and offline consumption year by year, how to use the internet and information technology to unblock the traditional FMCG market's main channels; how to use information and data to analyze and predict consumer demand, achieve intelligent allocation, reduce losses, and save costs through integrated inventory management, and meet picky consumers with flexible and fast services, has become a key issue that traditional FMCG brands must address in their transformation to new retail. Dilemma: Information lag makes transformation difficult for FMCG enterprises "Which products are unsold, which products need to be returned to the factory, and where are our end consumers? When we hand over products to first-tier distributors, the entire information stays at 'how much inventory I have,' and we may only get a vague feedback after a quarter. The lag in information makes it impossible to accurately align production plans, sales forecasts, and marketing plans," said a manager surnamed Wu, who is in charge of e-commerce at an FMCG company. However, after adopting a professional supply chain data service system, all data and information of the FMCG company can be collected in real time, making it traceable; after effective management, data and information can be applied to various areas of enterprise development; and while sharing data, a certain degree of privacy is achieved. "It is precisely because of the internet and the technological accumulation of BEST Supply Chain that many of our businesses have abandoned the history of relying on experienced employees' memory operations, and we dare to do and innovate," said Manager Wu. As Manager Wu said, most traditional FMCG companies still rely on experienced employees to remember where different types of goods are placed in the back warehouse and to manually count inventory of different products. In addition, many FMCG products, especially food and beverages, require effective date management of inventory, which is difficult to achieve through manual memory. If first-in-first-out and first-expiry-first-out are not implemented, there will be significant losses from short-dated or expired products, and such losses for distributors will ultimately affect the brand's market and sales. How to Break Through: Supply chain system products precisely empower and help management upgrade Hong Yiwei, Sales and Marketing Director of BEST Supply Chain Business Unit, introduced that in the new consumption era, end consumers have higher requirements for experience, and offline consumption, as the best scenario for user experience, will usher in the next spring. However, the traditional distribution system that currently supports the flow of offline goods presents a state of relatively backward management, excessive reliance on manual labor, insufficient informatization, and low efficiency, unable to carry the new demands of the new consumption era. BEST has been deeply cultivating the development and service of smart supply chain systems for many years, and has continuously explored, iterated, and upgraded in its own practice of providing logistics services to a large number of customers, making BEST's logistics information system the most suitable for practical logistics management applications. It can help traditional distributors quickly modernize their management, and together with distributors, improve supply chain management efficiency and calmly respond to the changes and challenges of the new consumption era. "The 'Baizhihui' product is a system platform specifically designed to help distributors manage warehouses and transportation. It is 100% based on cloud SaaS, so distributors do not need to deploy local servers or equip IT personnel. They only need to open an account for distributors to use immediately. Baizhihui engineers will help distributors use BEST's modern warehouse management system WMS and BEST's very mature management processes to manage inventory, accurately manage products in each location, manage the effective dates of each category, help distributors improve inventory accuracy, reduce inventory losses, make the entire warehouse operation more efficient, and lower inventory holding costs. Reducing the warehouse's dependence on experienced old employees also helps enterprises advance towards modern management. In terms of transportation and distribution, the intelligent scheduling and intelligent loading functions of BEST's TMS system can complete the scheduling of hundreds of orders in minutes, with very high efficiency and accuracy, making vehicles more efficient, loading more reasonable, and saving a lot of transportation costs. Distributors can completely save the tedious manual scheduling and manual loading, and save this part of personnel costs," said Hong Yiwei. According to statistics, the 'Baizhihui' product launched by BEST Supply Chain has been applied in various provinces and cities across the country, winning wide acclaim from users. Data shows that after using this product, the comprehensive logistics efficiency of enterprises can be improved by 30%-50%, costs are greatly reduced, and some even save more than 30%. According to analysis by relevant industry insiders, in the next 3-5 years, even if online sales continue to develop, offline retail will still account for about 75% (currently about 85%), but in the internet era, in the new consumption era centered on consumers, the traditional distributor system centered on merchants will definitely undergo profound changes. "Now the FMCG industry is exploring the direction of change and transformation models. At present, this may still be a difficult problem, but we believe that with the help of smart supply chains, we can try to break the deadlock together." -END-
Dealer Operations · Management & Methods
How to Break the Deadlock: What Else Can Traditional Distributors Do?
The new retail concept has swept across all retail-related industry chains, and some traditional FMCG brands well-known to consumers are also seeking transformation in the wave of new retail. Traditional FMCG brands often have a certain reputation among consumers and relatively complete systems in labor, materials, and channels. However, in the wave of new retail, with the changing proportion of online and offline consumption year by year, how to use the internet and information technology to unblock the traditional FMCG market's main channels, and how to use information and data to analyze and predict consumer demand, achieve intelligent allocation, reduce losses, and save costs through integrated inventory management, and meet picky consumers with flexible and fast services, has become a key issue for traditional FMCG brands transforming to new retail.
