Click 'Read Original' for details. "The unified warehouse and distribution market is huge. According to 2016 data, the national urban distribution scale is about one trillion yuan, two to three times that of the express delivery industry in the same period, but relative to such a large market, the concentration and intensification of unified warehouse and distribution are extremely low." In the FMCG circulation field, unified warehouse and distribution has been a hot topic in recent years. Various forces are trying or paying attention to this business model. Logically, unified warehouse and distribution is an intensive economy that separates business operations from warehouse and delivery, achieving socialized division of labor, serving as the underlying infrastructure for commercial development.
Unified warehouse and distribution is an inevitable requirement for channel reform In the planned economy era, the state implemented a unified purchase and distribution system with supply and marketing cooperatives as the main body, which was in fact unified warehouse and distribution. In the era of commodity shortage, the rationing system effectively met people's basic living needs. After entering the market economy, commodities became greatly abundant, and the single channel was broken, forming multi-level channels that interweave. The dealership system combining commercial flow and logistics became the main form of commodity circulation. This high-cost, centralized dealership system provided a fast track for brand owners' products to enter the market.
However, with intensified market competition, brand owners' channel promotion and maintenance costs are rising, while channel-level profits are declining. This has brought the unified warehouse and distribution model into widespread attention.
Six key elements of unified warehouse and distribution operations Unified warehouse and distribution aggregates goods from multiple brand owners or distributors for centralized storage and intensive delivery. The reason this model can save costs and improve efficiency is based on the combined effects of six aspects: product category distribution, high-frequency and low-frequency combination, order quantity, distribution network density, business management processes, and system technology. If these six are unbalanced, warehouse and distribution cannot achieve the ideal state, and reducing costs and improving efficiency becomes empty talk. This is a major operational challenge for unified warehouse and distribution.
Product category distribution, high-low frequency combination, business management processes, and system technology belong to the operational level, which the unified warehouse and distribution operator can control. Order quantity and distribution network density belong to the commercial flow level, which is uncontrollable externally. External uncontrollability directly affects internal costs and efficiency. How to coordinate internal and external factors to control warehouse and distribution costs within 2% is a major issue for unified warehouse and distribution operations.
Balance among the six elements The separation of commercial flow and logistics is the theoretical basis of unified warehouse and distribution and an inevitable result of social division of labor. However, viewing them in isolation is a misconception. The essence of business is transaction; transactions generate changes in ownership, thus forming logistics. The front-end commercial flow and the back-end logistics are mutually causal. Without commercial flow, there is no logistics; without logistics delivery capability, commercial flow is stagnant. Therefore, the unified warehouse and distribution operator should regulate or intervene from the following six aspects:
1. Provide security to the cargo owners (brand owners or distributors) to form a relatively stable, large-scale full-category supply chain; 2. Plan warehouse and distribution recruitment systematically, fully considering factors such as high-low frequency matching, standard and non-standard products, distribution network layout, and simplicity/complexity of order delivery scenarios; 3. Form strong relationships with terminal retail stores through delivery and service; 4. Implement channel reform to eliminate the 'second-tier distributor' role, using warehouse and distribution fee leverage to guide suppliers (brand owners or distributors) to sink channels, increase distribution network density, and increase order quantity; 5. Open platform warehouse and distribution network points to suppliers to expand coverage of second- and third-tier products and enrich order volume; 6. Introduce B2B platforms or independent controlled companies for self-operation to further balance the six elements.
The focus of unified warehouse and distribution is on orders. If order sources are uncontrollable, distribution is uneven, and frequency is inconsistent, integrated warehouse and distribution operations will always be irregular. No matter how perfect the processes, advanced the technology, or refined the operational management, efficient operations are difficult to achieve. This is one of the fundamental reasons why unified warehouse and distribution is difficult.
Therefore, to achieve ideal warehouse and distribution efficiency, effectively control costs, and reduce operational risks, it is necessary to have scale in orders, density in distribution network points, complete product categories, and reasonable high-low frequency product matching. This requires warehouse and distribution operations to maintain high coordination with brand owners or distributors in planning, coordination, organization, and communication. When necessary, intervene in commercial flow to solve the stability and balance of order sources, promoting the healthy development of third-party unified warehouse and distribution.
On October 21-22, during the Autumn Sugar and Wine Fair, New Distribution will host the '2018 FMCG Urban Distribution Logistics Conference'. We will invite industry experts, FMCG warehouse and distribution specialists, and distributors who have transformed into unified warehouse and distribution platforms to discuss and answer questions about future trends in FMCG urban distribution logistics and practical cases of distributor transformation, under the theme 'New Distribution, New Urban Distribution'. We hope to bring you different inspiration and thinking!
Conference Time October 21-22, 2018
Conference Venue Hunan · Changsha Gaoqiao International Commodity Exhibition and Trade Center
Conference Content October 21, Day 1, Sub-venue: '2018 Changsha Regional King Development Alliance Conference' 8:00-17:00 Focusing on regional big merchants' resource sharing, leading the S2B2C new business era
October 21, Evening 18:30-21:00 Private board closed-door exchange dinner (VIP)
October 22, Morning, Main Venue: '2018 China FMCG Urban Distribution Logistics Conference' 9:00-9:20 Ren Xiaodong, Secretary-General of FMCG Association and Partner of New Distribution: Launch and speech of China FMCG Urban Distribution Alliance Project 9:30-9:50 Zhao Bo, Founder of New Distribution: Same-city logistics: the most effective transformation and upgrading path for distributors 9:55-10:15 Wang Qi, CEO of Weijie Urban Distribution: 'Follow the rhythm of commercial flow changes, firmly grasp platform construction' 10:20-10:40 Chen Siting, CEO of Wanchaobang: 'New urban distribution is a key link in supply-side reform' 10:45-11:05 Xu Yonggang, CEO of Maidelin: 'Differences between traditional warehouse distribution and digital warehouse distribution' 11:10-11:30 Mu Weiwei, CTO of Zhoupu Software: 'Technology-driven efficiency improvement in unified warehouse and distribution' 11:35-12:05 Roundtable forum: Urban distribution, what exactly should we earn from? (Yishang Logistics, Gongwu Logistics, Kaidongyuan, Yuncangpei, Chengpu Logistics)
October 22, Afternoon, Main Venue: 14:00-14:20 Sheng Yan, Yijia Logistics 14:25-14:45 Wang Jianjiang, CEO of Hailian Tianxia 14:50-15:10 He Yan, Fengwang 15:15-15:35 Zhong Shuo, CEO of Wangcang 15:40-16:00 Rong Jun, Jiangsu Huashang Urban Distribution 16:05-16:25 Lu Lixin, Gongwu Logistics 16:30-16:50 Roundtable forum: How to break the deadlock when fellow distributors don't enter the warehouse? Distributor transformation representatives in warehouse and distribution logistics: Yunbang Logistics, Jingmen Pengdun Meiyitian, Sanxian Lianggou, Jiangsu Huashang Urban Distribution, Jingwei Logistics
List of Participating Companies In no particular order Hunan Zonglan Diandan Network Technology Co., Ltd. Jingbang (Wuhan) International Freight Forwarding Co., Ltd. Mengniu Dairy Qinghai Hanxiang E-commerce Co., Ltd. Unilever Service (Hefei) Co., Ltd. Shanghai Branch Huicong Hunan Xuanang Food Co., Ltd. Guangzhou Tongdaoren Information Technology Co., Ltd. Qingdao 888 Trading Co., Ltd. Uni-President Enterprises (China) Investment Co., Ltd. Hunan Province Zhongxiang Gongpei Logistics Co., Ltd. Shenglong Ingredients COSCO Shipping Logistics Warehousing and Distribution Co., Ltd. Guangxi Yongpai Liquor Co., Ltd. Shangqiu Kangrong Trading Co., Ltd. Jinan Dingzhong Economic and Trade Co., Ltd. Liaoning Bimai Agricultural Technology Co., Ltd. Kunming Xiongjia Trading Co., Ltd. Shaanxi Houheng Trading Co., Ltd. Guangzhou Dingwo Enterprise Information Consulting Co., Ltd. Shaodong Jiajiale Commercial Firm Boda Trading Industrial Bank Changsha Branch Wuhan Mucheng Convenience Store Chain Co., Ltd. Fujian Fuxing Yuncang Logistics Co., Ltd. Guizhou Yilimi E-commerce Co., Ltd. Jiangxi Xiao Laoer E-commerce Co., Ltd. Jinshankoufu Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd. Shanxi Dezhun Supply Chain Management Co., Ltd. Shaoyang Tongdeli Trading (Xiangbang Logistics) Huanfu Tongda Express Urban Distribution Beijing Xinjingxiang Food Co., Ltd. Wuhan Huizhong Tianhong Liquor Co., Ltd. Changsha Paide Biotechnology Co., Ltd. Chaoan Tuqiang Guizhou Yihe Bopin Supply Chain Management Co., Ltd. Jiangxi Kang'en Industrial Development Co., Ltd. Xiangtan County Yisuhe Town Yuhua Paper Store Luoyang Yuanlang Trading Co., Ltd. Tongchuan Yaozhou Huayuan Supermarket Co., Ltd. Hunan Yongfu Jiujiu Trading Co., Ltd. Zhejiang Chengchengtong Logistics Co., Ltd. Chongqing Kaiguo Materials Trading Co., Ltd. Beijing Xianmaixianmai Data Technology Co., Ltd. Hanchuan Qixing Trading Co., Ltd. Tongxin Jiuzhi Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. ......
Distributor Transformation Representatives (Proposed) In no particular order Rong Jun, Chairman of Jiangsu Huashang Urban Distribution Network Co., Ltd. Wang Bo, Chairman of Hubei Yijiaren Logistics Co., Ltd. Jiang Shuming, General Manager of Chengdu Xingrenxing Trading Co., Ltd., Sichuan Liu Jichen, Chairman of Shandong Yunbang Warehousing and Logistics Co., Ltd. Tu Mingyu, Chairman of Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Yang Su, Chairman of Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Yuan Xia, Chairman of Sichuan Bajie Supply Chain Management Co., Ltd. Li Qiangyun, Co-founder of Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Zhang Jianyong, Chairman of Henan Xuchang Jiulegou E-commerce Co., Ltd. Ma Haichao, Founder of Hebei Changyi Logistics Co., Ltd. Meng Yucun, General Manager of Hebei (Chengde) Wulian Yuncang Co., Ltd. Zhang Xun, Chairman of Urumqi Su'an Jinchi Logistics Co., Ltd., Xinjiang Zhang Hailing, Chairman of Jilin Sanxian Lianggou Qiang Huitao, Founder of Hebei Dunjie Supply Chain Management Co., Ltd. Liao Lei, General Manager of Hunan Damei Supply Chain Management Co., Ltd. ......
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