---
title: "Interview with Zhou Bin of Guanjiapo: Four Steps and Three Rhythms for Distributor Transformation"
description: "Zhou Bin, co-founder of Renwoxing Technology, believes that traditional distributors have only used Guanjiapo software for inventory management, but now they must adopt internet tools for online ordering, payment, and connectivity. He outlines four steps and three key rhythms for distributors to transform into regional supply chain service platforms."
author: "新经销团队"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2018-04-05"
language: "en"
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# Interview with Zhou Bin of Guanjiapo: Four Steps and Three Rhythms for Distributor Transformation

> Zhou Bin, co-founder of Renwoxing Technology, believes that traditional distributors have only used Guanjiapo software for inventory management, but now they must adopt internet tools for online ordering, payment, and connectivity. He outlines four steps and three key rhythms for distributors to transform into regional supply chain service platforms.

△**Co-founder of Renwoxing Technology** Zhou Bin
Guanjiapo has nearly 800,000 licensed customers nationwide, giving it a large user base across China. In the view of Zhou Bin, co-founder of Renwoxing Technology, traditional distributors have only used Guanjiapo software to achieve inventory management functions, adding information technology tools to traditional business. However, with the proliferation of information tools and changes in the overall consumption environment, trading and distribution companies must now also learn to use internet tools. These internet tools are not just simple inventory management; they must also support online ordering, payment, and other functions, enabling all links to be interconnected.
Chengdu Renwoxing Software Co., Ltd. is a provider of management software and ERP cloud services for small and medium-sized enterprises, offering information solutions for SMEs of various sizes and growth stages. Its brands include "Guanjiapo," "Renwoxing," and "Qianfangbaiji," with products covering inventory, finance, ERP, CRM, OA, e-commerce, and mobile commerce. Recently, New Distribution interviewed Zhou Bin, co-founder of Renwoxing Technology, hoping his insights and views will bring some food for thought to readers.
△Guanjiapo Chengdu Headquarters
1
**Industry + Internet**
Relevant data shows that there are 6.8 million retail small shops in China, a huge number, mostly distributed in third- and fourth-tier low-tier markets. The highly fragmented state leads to diverse needs from small shops, which places higher demands on distributors.
"**Supply chain is a rigid demand, but only by relying on a physical supply chain can an unbreakable dependency be formed.** " Zhou Bin, co-founder of Renwoxing, told us, "For traditional distributors, only when you have a certain voice in the industry and can integrate everyone to build a complete supply chain system can you form a solid competitive barrier."
Zhou Bin is the co-founder of Renwoxing Technology. Before founding Renwoxing Technology, Zhou Bin had been involved in e-commerce training, online brand incubation, and had also built his own B2B platform. Years of rich e-commerce industry experience made Zhou Bin realize the importance of the supply chain to the entire distribution industry.
"**The future competition for distributors is no longer about controlling products and stores, but about competition in the supply chain ecosystem.** Our product helps distributors achieve industry plus internet, complete digital upgrade, help downstream distributors do B2B, and help upstream integrate supply chains to become regional kings. Guanjiapo has nearly 800,000 licensed customers nationwide, with a large user base across the country. In the past, traditional distributors only used Guanjiapo software to achieve inventory management functions, adding information tools to traditional business. But now, with the popularity of information tools and changes in the overall consumption environment, we believe that trading and distribution companies must also learn to use internet tools. These internet tools are not just simple inventory management; they must also support online ordering, payment, and other functions, enabling all links to be interconnected."
2
**Regional Kings Have Great Potential**
With the entry of capital, the FMCG B2B industry has entered a state of accelerated integration. Currently, many regional distributors are beginning to transform, using self-built platforms and other methods for digital upgrades. This inevitably leads to local platforms encountering head-on competition with national platforms during development.
"I think this phenomenon is inevitable. Although national platforms have advantages in brand, capital, etc., regional platforms still have significant room for development. Analogous to China's road conditions, national platforms are like well-developed main highways, but in various places, there are still many intricate country roads. China's market is large enough, and development is diverse and rich. On the other hand, from the perspective of small shops, small shops have no loyalty. 'Whoever has good service, affordable prices, and fast delivery, we order from them,' which determines that small shops' supply channels cannot be controlled by one or two platforms."
"**Regional platforms will definitely exist for a long time**," Zhou Bin believes. Only localized warehousing and distribution systems are the most efficient. Through deep cultivation of regional markets, local platforms understand the needs of local small shops and provide flexible and efficient services such as account reconciliation and delivery, which national platforms cannot satisfy.
3
**The Role Change of Distributors**
In recent years, the FMCG B2B industry has received significant attention from the capital market. Platforms such as Zhongshang Huimin and Yijiupi have received substantial capital support. Later, the entry of internet giants Alibaba and JD.com intensified market competition. In this context, subsidies and discounts to compete for small shop resources are common, and the role of distributors has gradually begun to change.
"If distributors purely act as movers for brand owners, it is increasingly difficult. In the past, the functions of distributors were nothing more than capital advance and channel circulation. Now, with the emergence of specialized division of labor in all aspects of the supply chain, the core value of distributors should also undergo some changes: feeding back channel data to upstream brand owners and providing better services to downstream terminals. During industry development, some distributors will inevitably be eliminated, while those who successfully transform will either focus on terminal services or transform into warehousing and distribution service providers."
**In fact, behind the crisis is opportunity; thinking about what customers want can solve problems.** Terminal retail customers want: more, faster, better, cheaper, one-stop shopping, good and cheap products, fast delivery, and good service. How to achieve this? That requires distributors to restructure accordingly.
△Renwoxing Cloud Flow Platform Model
"We help distributors transform from a single trader profit model to a regional FMCG supply chain service provider role. We not only do well in the existing trade's stock profit but also build our own supply chain ecosystem platform, enabling the **platform to have aggregation and transaction capabilities** to solve small shops' problems of greed, laziness, and desire for convenience, and one-stop online procurement; enabling the **platform to have intelligent warehousing and distribution management capabilities** to reduce warehousing and distribution costs and improve delivery efficiency; enabling the **platform to have financial capabilities** to reduce capital account period costs and cash purchase costs; enabling the **platform to have data carrying capabilities** to achieve big data-driven product selection, precision marketing, manufacturer R&D, and inventory reduction; in addition, enabling the **platform to have information distribution capabilities** to create an integrated service platform for industry ecosystem, industry information release, and industry training and education."
4
**Transformation Rhythm**
At present, most distributors' path to transforming into B2B platforms starts from their own agency brands, based on existing controlled outlets, putting existing stock online, then gradually expanding categories through procurement and sales to enhance terminal stickiness, expand the number of covered outlets, and then attract other regional distributors to join the platform. However, due to high overlap in covered outlets among regional distributors and some competition in agency categories, it is difficult for other distributors in the region to join, and migration costs are high.
In Zhou Bin's view, the core value of a regional B2B platform is to lay out an ecosystem and create network effects rather than merely pursuing scale effects. **Distributors should achieve regional platform transformation through four steps:**
> 1. **Platform first: use your own advantages to build a platform and put your existing stock online first.** The Yunliushui system can meet the diverse needs of distributors, helping them either build a large platform or meet the needs of a small mall.
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> 2. **Platform resource investment and integration: first put your own business online, while vertically integrating the industry chain, horizontally uniting distributors, and introducing service providers.** In the internet era, there are no heroes fighting alone; only through alliance and integration, laying out from a higher and larger level, can you win by standing on the shoulders of giants.
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> 3. **Centralized procurement and unified distribution to reduce costs and increase efficiency.** Now is no longer the era of heavy warehousing; the greater value of warehouses is reflected in warehousing and distribution. There is still much room for improving the operational efficiency of warehousing and distribution. Efficiency upgrades are not about manually improving our work efficiency; this must be left to technology. Intelligent warehouse management and systematic operations can greatly liberate labor costs, and system intelligence will bring unprecedented benefits.
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> 4. **Supply chain finance and big data services generate platform fission value.**
**In building a regional B2B platform, three rhythms are very important:**
**1. Clear platform development path**
First solve the enterprise's internal ERP informatization, then regional industry SCM supply chain internetization, and finally develop into regional industry platformization.
**2. Focus on stage service objects**
First empower distributors with new wholesale, then empower small shops with new retail, and third empower manufacturers and brand owners with new manufacturing.
**3. Grasp the stage operation rhythm**
For example, first put existing stock online, control products upstream and control stores downstream, completing 0 to 1; then horizontally unite and replicate more distributors, using a combination of unified warehousing and shared distribution plus direct distribution to serve small shops well.
Facing the impact of the internet, the upgrade and restructuring of the traditional FMCG industry is urgent for every industry practitioner. Correctly understanding one's role and clarifying one's strengths and weaknesses are the first issues distributors must face in transformation.
Renwoxing Software Official Website: http://www.grasp.com.cn/
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