--- title: "Wang Qi of Weijie City Distribution: New Era of Consumer Supply Chain, Exploration of City Distribution Operation Innovation" description: "At the 'Empowerment · Evolution 2017 (2nd) China FMCG + Internet Conference' held in Chengdu on March 22, Mr. Wang Qi, CEO of Weijie City Distribution, delivered a forum sharing titled 'In the Era of Consumer Supply Chain, Exploration of City Distribution Operation Innovation'. The following is a transcript of his speech." author: "王琦" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2017-03-24" language: "en" canonical: "https://xinjignxiao.com/en/articles/wang-qi-of-weijie-city-distribution-new-era-of-consumer-supply-chain-exp-ce8fedcf/" markdown: "https://xinjignxiao.com/en/articles/wang-qi-of-weijie-city-distribution-new-era-of-consumer-supply-chain-exp-ce8fedcf.md" original_source: "https://mp.weixin.qq.com/s/LD-J0nGC2D_GjXAfXaSfMA" translation: "https://xinjignxiao.com/zh/articles/%E5%94%AF%E6%8D%B7%E5%9F%8E%E9%85%8D%E7%8E%8B%E7%90%A6-%E6%B6%88%E8%B4%B9%E4%BE%9B%E5%BA%94%E9%93%BE%E6%96%B0%E6%97%B6%E4%BB%A3-%E5%9F%8E%E9%85%8D%E8%BF%90%E8%90%A5%E5%88%9B%E6%96%B0%E6%8E%A2%E7%B4%A2-ce8fedcf.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/wang-qi-of-weijie-city-distribution-new-era-of-consumer-supply-chain-exp-ce8fedcf/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Wang Qi of Weijie City Distribution: New Era of Consumer Supply Chain, Exploration of City Distribution Operation Innovation > At the 'Empowerment · Evolution 2017 (2nd) China FMCG + Internet Conference' held in Chengdu on March 22, Mr. Wang Qi, CEO of Weijie City Distribution, delivered a forum sharing titled 'In the Era of Consumer Supply Chain, Exploration of City Distribution Operation Innovation'. The following is a transcript of his speech. **_At the 'Empowerment · Evolution 2017 (2nd) China FMCG + Internet Conference' held in Chengdu on March 22, Mr. Wang Qi, CEO of Weijie City Distribution, delivered a forum sharing titled 'In the Era of Consumer Supply Chain, Exploration of City Distribution Operation Innovation'. The following is a transcript of his speech:_** Distinguished guests and friends, good afternoon! I am very glad to have the opportunity to share with you in beautiful Chengdu. In recent years, various new business models and forms have emerged, especially in the consumer sector, showing great vitality and progress. You might say, why does business feel increasingly difficult and money harder to earn? We miss the good old days of making big money and drinking big bowls. The period from 2000 to 2002 saw the burst of the first internet bubble, when many companies struggled and were in dire straits. But after 2010, we witnessed many successful companies, including the now brilliant BAT. Recently, I read Wu Xiaobo's 'Tencent Biography' and gained deeper insight: when pressure is immense, it is precisely the prelude to a company breaking out of its shell and growing rapidly. The theme I share with you today is related to this background. With new consumption and new retail becoming hot trends, what can we do? Where are the opportunities for mutual achievement between city distribution and consumer supply chain? My sharing is mainly divided into four parts: 1. What is city distribution? Why can city distribution make urban life better? 2. What changes has new consumption brought to the supply chain? 3. Innovative thinking in city distribution operations 4. Case reports from Weijie projects First, let's discuss the relationship between cities, urban clusters, and city distribution. Looking at the course of China's urbanization, it has been fruitful. From the reform and opening up to last year, the scale and number of Chinese cities have grown rapidly. The urbanization rate increased from 17.92% in 1978 to 57.35% in 2016, a growth of 2.2 times. The urbanized population has approached 800 million, which is remarkable. China's urbanization is the fastest in the world. About a quarter of the world's cities with a population over 500,000 are in China. Cities are very important economic entities, and the resulting consumer and city distribution demands are massive markets that many companies focus on. Taking the East China Yangtze River Delta economic belt centered on Shanghai as an example, there is over 14 trillion yuan in consumer demand and a 500 billion yuan city distribution scale annually. The function of city distribution is to meet the city's circulatory system and supply guarantee system, playing a crucial role in the operation of the entire city. I remember a few days before the military parade in Beijing in 2015, I went on a business trip. Due to traffic control, many restaurants were closed. I walked several streets without finding a place to eat. If I weren't a bit overweight with fat reserves, I might have fainted from hunger on the roadside. As a consumer, unmet needs are very inconvenient, and as a practitioner, I deeply appreciate the value of logistics support. City distribution serves consumer enterprises and consumers. Through resource allocation and operational design, city distribution companies provide planned and immediate delivery to stores and residences, carrying logistics services for high-frequency, small-batch, various product types, and multiple temperature zones. How complex are the products? Let's analyze from several angles. From the perspective of city distribution operations, product attributes can be divided into short-shelf-life products, short-radius products, long-radius products, and large items. Short-shelf-life products mainly include fruits, vegetables, fresh produce, aquatic products, meat products, and dairy products; short-radius products mainly include water and beverages, rice, flour, cooking oil, snacks, condiments, and daily chemicals; long-radius products mainly refer to 3C products, clothing, and pharmaceuticals; large items are mainly represented by large home appliances and furniture. The product categories served by city distribution vary greatly. If we consider improving operational efficiency and resource utilization, city distribution is infrastructure that accepts all types of products without discrimination. A friend once asked me why we are called Weijie City Distribution, not Weijie Logistics or Weijie Transportation. Mainly because city distribution is a self-contained system and a closed-loop ecosystem. Consumer goods today mainly use an inventory sales model, with an extremely low proportion of customization. Therefore, the order starting point for city distribution differs from other logistics services. It generally starts from a city warehouse or central kitchen and delivers to stores or other terminals. The frequency of city distribution is high, usually daily, every two days, or weekly. The weight range is generally 20kg to 2000kg, and the daily mileage of delivery vehicles generally does not exceed 200km, and in small cities, not more than 100km. The direct delivery model from manufacturers is difficult to control in cost, so those terminal distribution businesses at the end of long-distance transportation are too small in volume and are a supplement to the city distribution industry. City distribution is the means of delivery in the consumer supply chain and is a very core functional module. Let's look at the changes in the consumer supply chain. The supply chain is the main organizational form of industrialization. This chart fully displays the entire supply chain process of a manufacturing enterprise, from procurement, production to sales. In the analysis of the supply chain profit model, we can see that logistics is indispensable, but the profit margin of logistics is very small. It is also understandable that as infrastructure, if profits are too high, it would lead to increased commodity prices, which is not right. So logistics ultimately is economies of scale, and business volume is an important barrier. This chart shows the traditional consumer supply chain model, where brand owners complete product distribution and delivery through trunk transportation, multi-level warehousing, and multi-level distribution. In the past era of economic dividends, this model was extremely valuable, benefiting many friends here, making money hand over fist. However, the advent of full competition has gradually made this model ineffective, and operations and efficiency are becoming increasingly difficult. The harder the times, the more they breed change. Like the transformation in catering, the transformation in FMCG and retail is already happening and is irreversible. Should we change? If we don't change, we will lose everything; if we change, we may gain more. What is new about new retail? 1. The distribution model will change; internetization is a necessary means to improve efficiency and profit. 2. Chain convenience stores may become the ultimate retail model because they have the highest supply chain efficiency. Examples include Germany's Aldi and 7-Eleven. Many of our traditional mom-and-pop stores have great opportunities for transformation, which is why B2B platforms are so hot. 3. Channel functions change. The marketing economy becomes a selection economy. In the past, retail served producers and suppliers; today and in the future, serving consumers more is what creates value. 4. The attributes of consumer goods are also changing, adding more functionality, such as the pursuit of health products; they will also have more emotional and social attributes, such as community fan economies. 5. Consumer personalization is becoming more obvious. Besides pursuing cost-effective products, consumers will have stronger self-identity and personalized needs. Product segmentation and specialty products will have a larger market, and the C2B era will definitely come. In this situation, the cooperation and game-playing between brand owners and retail enterprises will become increasingly complex. But regardless, improving supply chain efficiency is the key to winning in retail. Therefore, new consumption is the core driving force for supply chain transformation. City distribution can only develop through innovation to adapt to the new demands of the consumer supply chain. Where is the 'newness'? The core is to possess lean management and technology application capabilities. In the past, city distribution was mostly a small fleet model with narrow management boundaries, insufficient team professionalism, and backward information technology, making it difficult to provide high-efficiency and high-quality service operations. With the expansion of chain operations and the need for flexible supply, city distribution must transform from a resource-based enterprise to an operations-based enterprise. The level of offline operations is the core capability of logistics. City distribution companies must deeply understand customer needs, have the ability to design and optimize processes, and ultimately solidify processes through systems to improve resource utilization and provide customers with cost-effective services. Let me show you the system operation process. From order processing, intelligent scheduling, route planning, and process management, our intelligent system is indeed important. It is the core carrier and information bus of city distribution operations. Whether in the warehousing module—functional area planning, operation processes, inventory management—or in the delivery module—vehicle management, node control, and store delivery—it can play a huge role in ensuring smooth and orderly operations. Finally, let me share a service case from Weijie City Distribution. This is an FMCG B2B platform project. We replaced the original multi-level warehouses with a two-level warehouse design, matched orders and vehicle times, and managed processes very precisely. We also scientifically designed warehouse planning and operation processes, greatly improving operational efficiency and reducing logistics costs. Weijie entered the city distribution market not to become a larger fleet or a capacity pool with many vehicle sources, but to become the most efficient and best-service city distribution platform. Our team is young, professional, and energetic, committed to pursuing transparency and data-driven operations. Through intelligent information systems and resource management capabilities, providing 365-day, 24-hour uninterrupted support services is our goal and service commitment. Here is a photo from our post-holiday commendation meeting for Spring Festival transport support. We thank the management team and drivers for giving up their Spring Festival holidays to persistently provide services to customers. Because we are professional, we are better. While receiving customer satisfaction and recognition, we have also won many industry honors in recent years, motivating us to improve and grow. Diligence cannot compare to talent, and talent cannot compare to trends. In this era of change, there are challenges and countless business opportunities. Let go of nostalgia for past prosperity, re-arm ourselves, build new competitiveness amid turbulence, and create greater value under pressure. This is the best choice for our generation of entrepreneurs. Thank you all! For more on-site highlights, click the 'Read Original' link below. -END- --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671