In today's uncertain domestic and international economic environment, the traditional offline distribution system in the FMCG industry still accounts for the majority of sales, but it is showing a clear downward trend. Meanwhile, emerging channels such as traditional e-commerce, live-streaming e-commerce, and online-offline integrated channels have been growing continuously in recent years. These channels share the characteristics of being digitalized and relatively fragmented. Omnichannel operations have almost become a required course for most FMCG companies, but they bring with them relatively smaller and more uncertain individual orders, leading to high order acquisition and logistics delivery costs for brands, increasing the burden on enterprises. Clearly, China's FMCG industry has entered an era of omnichannel competition. How can these problems be solved? Let professionals answer these questions. On June 30, Anneng Smart Logistics, Quanzhou Logistics and Supply Chain Association, and LOGworld, together with more than 100 brand enterprises including Xiaohutuxian, Uni-President, Zhihu, Anta, Zhongqiao Sports, Liby, JOMOO, Maocunzhang, and SKSHU, successfully held the "Omnichannel, New Growth: 2022 Supply Chain Innovation Practice Seminar" in Quanzhou, Fujian. The meeting focused on topics such as diversified retail channels, online-offline omnichannel "One Inventory," and bC integration trends, with in-depth discussions and practical exchanges. 1 In the Era of Omnichannel Competition, How to Efficiently Respond to Uncertainty Challenges? At the meeting, logistics directors from various companies, including Chen Zhouchuan from Qipai Group, Wang Xiaofeng from Xiaohutuxian Liquor Group, Qiu Peirong from Anta Group, Fang Duiyuan from JOMOO Kitchen & Bath, and Shi Kunliang from Anneng Smart Logistics, reached a consensus during the roundtable dialogue: Supply chain capability is an important indicator of a company's distribution efficiency and overall profitability, directly reflecting costs, efficiency, and service in the product sales process, and is also a key capability for maintaining stable competitive advantage in the stock competition. Omnichannel growth is an inevitable future growth model, and omnichannel collaboration capability is the key to achieving it. The drastic changes in the consumer market have brought huge challenges to brands' supply chain capabilities. Smart logistics and smart supply chains are undoubtedly important foundations for supporting industrial and market transformation and upgrading. In fact, in the era of omnichannel operations, a smart logistics system aimed at user service and experience can solve not only cost issues but also find business growth from fragmented opportunities, improve delivery experience, and address high inventory pressure at the channel level. Through in-depth enterprise research, Pan Yonggang, Dean of LOGworld Research Institute, found that facing diversified channel development, brand enterprises are seeking "One Inventory" and digital supply chain transformation. Dr. Lin Tai'en, Chief Product Officer of Anneng Smart Logistics, pointed out that all enterprises are currently in a highly uncertain environment. Quickly identifying, responding to, transforming, and accumulating market opportunities is the core of strengthening business operations and the key to responding to uncertainty challenges. The improvement and upgrading of the supply chain bring lower costs, higher sales, and better experiences. Brands committed to omnichannel growth need not only to integrate online and offline, b2b and b2c in business flow and promotion, but also to establish integrated logistics capabilities that combine online and offline, b2b and b2c. A low-cost, efficient, and good-experience supply chain system brings enterprises not only direct benefits but also stronger resilience, lower trial-and-error costs, and more frequent market opportunities. In today's uncertain times, these capabilities are particularly important. 2 What Can Supply Chain bC Integration Bring to Enterprises? Zhihu, a young brand established in 2014, has been among the top five in national online retail sales of household paper for five consecutive years. At the meeting, Chen Zhiyong, Senior Director of Warehousing and Logistics, mentioned their Anhui Wuhu bC Integration Warehouse project. In addition to meeting the peak daily demand of 200,000 online orders, it also handles Zhihu's offline distributor, community warehouse, and community transportation businesses. The Wuhu warehouse has become an important regional center warehouse covering Anhui, Zhejiang, Jiangsu, Shanghai, Shandong, Henan, and other regions. Ma Zhifeng, Senior Manager of Zhongqiao Sports, elaborated on the pain points in the entire supply chain logistics of footwear and apparel brands, from planning, procurement, production, logistics, to distribution, and stated that the industry urgently needs third-party logistics service providers capable of providing end-to-end full-chain supply chain services. For these two companies, the former's bC integration warehouse project was built with the support of Anneng Smart Logistics, and the latter also believes that Anneng's professional supply chain logistics service capabilities are among the best in China and will explore further cooperation opportunities with Anneng. 3 What Problems Can Anneng's "One Inventory" Solve? As a core member of Midea Group's industrial digitalization landscape, Anneng Smart Logistics played an important role in Midea's "One Inventory" supply chain upgrade and transformation. Midea Group also relied on Anneng's "One Inventory" solution to achieve channel reform, business transformation, and efficiency improvement across the entire value chain. Thanks to this, Anneng Smart Logistics has accumulated professional channel supply chain transformation capabilities and digital operation experience, and from the perspective of brands, has seen more problems, ultimately creating a "One Inventory" unified warehousing and distribution solution applicable to various environments. Anneng's "One Inventory" has achieved comprehensive sorting, solidification, and standardization of omnichannel logistics scenarios; based on logistics planning, it integrates warehouses of all-category customers within the planned warehouse area, creating an efficient collaborative warehouse model. Zhihu's Anhui Wuhu bC integration warehouse project is actually a case of Anneng's "One Inventory" model proposed for the FMCG industry. Without changing the original business flow, Zhihu's sales companies, agents, and distributors no longer need to handle distribution; all are changed to unified warehousing and distribution by the bC integration warehouse built by Anneng. The original multi-level distribution to terminals or consumers can now be completed in at most two steps. The number and total area of agents' warehouses have been significantly reduced. The result is improved inventory turnover efficiency, faster inventory flow, and significantly reduced warehousing costs. "One Inventory" not only solves cost reduction and efficiency improvement, but Anneng's logistics data middle platform also allows enterprises to understand real-time inventory data at each node, make immediate decisions, allocate nearby and manage overall based on sales conditions of different channels, and connect online and offline, reducing conflicts between online and offline channels, creating greater market growth, and applicable to more business scenarios. Chen Wei, Director of Anneng Smart Logistics' Home Appliance Industry, also stated that as brand industry competition intensifies and growth slows, the essence is to improve distribution efficiency. Business flow changes drive logistics changes, changing the traditional practice of paying and stocking up, and channel distributors transform into operators; logistics transformation is an important lever for enterprise transformation. As mentioned earlier, in Anneng's "One Inventory" model, channel distributors no longer need to perform transportation, warehousing, and other functions. The liberated merchants have more resources and energy to transform into operators, focusing on marketing and services, which greatly enhances the brand's market competitiveness. 4 "Infrastructure Resources" Support Anneng Smart Logistics in Serving More Industry Enterprises Currently, Anneng Smart Logistics has provided smart logistics services to more than 3,000 brand enterprises in areas such as general FMCG, home appliances and furniture, and 3C digital products. Rich data and practical experience accumulation allow Anneng to provide flexible and cost-effective supply chain support based on customer enterprise types, which also puts Anneng at the forefront of the logistics service industry. At the same time, through years of transformation practice with the "One Inventory" solution, Anneng's infrastructure layout has accumulated solid "infrastructure resources" nationwide. Currently, Anneng Smart Logistics has 5 million square meters of warehousing space, 136 distribution centers, more than 1,500 forward warehouses, 200,000 distribution routes, and more than 3,000 delivery and installation outlets, achieving full coverage order fulfillment services to 2,875 districts and counties and 39,000 townships nationwide. As the meeting was held in Fujian, where e-commerce is booming, Zhang Shuai, General Manager of Anneng Smart Logistics Fujian Branch, also emphasized Anneng's small-package e-commerce project and detailed the four core advantages of Anneng's e-commerce warehousing and distribution network: First, layout in core cities: E-commerce warehouses are located in core cities such as Guangzhou, Shanghai, Wuhan, Beijing, and Chongqing, breaking city restrictions and meeting customers' personalized needs; Second, online "One Inventory" solution: Breaking platform barriers to meet brands' omnichannel "One Inventory" operations; Third, bC integration: Providing customers with bC integration implementation plans, gradually achieving bC integration through personnel and equipment integration, inventory sharing, and integrated bC distribution; Fourth, in-warehouse customized services: Providing customized services based on industry characteristics, customer needs, and different scenarios, supporting multi-industry, multi-scenario in-warehouse operations. The strong warehousing and distribution network resources allow Anneng's "One Inventory" model to break regional and industry category restrictions, providing customers with more tailored professional services. It is reported that at the end of 2021, Anneng Smart Logistics Fujian Branch launched a small-package e-commerce project for vertical e-commerce, manufacturers, and consumer goods trading customers, including main products such as full warehousing托管 services, warehousing + express/less-than-truckload services, and warehousing + city distribution services, meeting the multi-scenario experience and standardized service products of small-package e-commerce warehouse customers. 5 Building Omnichannel Competitiveness to Win the Future In the era of omnichannel competition, FMCG brands have no way back; they must face the challenge head-on and carry out integrated online and offline operations. This is an inevitable result of the changing times. Whoever can build a comprehensive omnichannel supply chain system and strong omnichannel competitiveness will continue to survive and develop in the future. Building omnichannel competitiveness is not easy, and almost no brand can build all the capabilities alone. Let professionals do professional things, choose a good partner to help brand enterprises complete the omnichannel bC integrated supply chain system and build strong omnichannel competitiveness, which is crucial to winning the future. Do not miss the opportunity to build key capabilities during times of change; once missed, the industry's future may lose your presence.
Brand Marketing · Management & Methods
In Today's Uncertain Times, How Does Anneng Smart Logistics Help Brands Build Omnichannel Competitiveness with Professionalism and Efficiency?
Amidst economic uncertainty at home and abroad, the traditional offline distribution system in the FMCG industry still accounts for the majority of sales but is declining, while emerging digital channels like e-commerce and live-streaming are growing. Omnichannel operations have become essential, but they bring smaller, more unpredictable orders and high acquisition and delivery costs. Anneng Smart Logistics' 'One Inventory' solution integrates b2b and b2c logistics to help brands reduce costs, improve efficiency, and build omnichannel competitiveness.
