---
title: "Winning in the New FMCG World Means Winning in the Supply Chain"
description: "As the FMCG industry enters a new world of transformed consumption, branding, marketing, and technology, the supply chain must also evolve. Ande Zhilian (annto) is at the forefront of this change, advocating for a collaborative approach to supply chain reconstruction that empowers both brand owners and distributors to achieve end-to-end efficiency and business transformation."
author: "陈思廷"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2023-04-11"
language: "en"
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# Winning in the New FMCG World Means Winning in the Supply Chain

> As the FMCG industry enters a new world of transformed consumption, branding, marketing, and technology, the supply chain must also evolve. Ande Zhilian (annto) is at the forefront of this change, advocating for a collaborative approach to supply chain reconstruction that empowers both brand owners and distributors to achieve end-to-end efficiency and business transformation.

**Introduction:** The new world we are about to face has seen earth-shaking iterations and changes in consumption, branding, marketing, and technology. There is no reason for the supply chain to remain in its old model without change.
The new world of the supply chain is an important part of the new FMCG world, and sustained, profound changes are taking place in this field. What Ande Zhilian (annto) is doing is part of this wave.
From April 6 to 8, the 8th China FMCG Innovation Conference, themed "New World, New FMCG," was successfully held in Chengdu! The core theme of "New World, New FMCG" ran through the entire three days and fourteen main and sub-forums, resonating strongly with FMCG manufacturers.
"The new world is here—how can we win in it?" This is certainly not a simple question to answer; it involves strategy, organization, culture, brand marketing, and more. Mr. Hou Xiaohai, CEO of China Resources Beer, highlighted several key aspects of the new world system: talent perspective, brand perspective, culture perspective, and customer perspective. In addition, Mr. Liang Pengfei, President of Ande Zhilian, believes that "supply chain reconstruction is becoming an important lever for enterprises to drive 'end-to-end efficiency improvement + business transformation and change.'"

**Supply Chain Becomes the Boundary of Innovation**
In the new world, manufacturers that cannot innovate effectively are likely to lag behind the times. How much can we think of about innovation, and how much can we actually achieve? The gap between the two is often determined by the supply chain. The ceiling of supply chain capability is often the ceiling of our scale, and it is also the reason why many wonderful innovations cannot be realized and remain just ideas. You might want to achieve customized consumer demand; you might want to launch new products on a smaller scale and at faster speed; you might have a lot of online traffic that can be converted into a large number of orders... But no matter which idea, the key questions for implementation are always: Can it be done? At what cost? How soon? Is there positive profit? Yes, turning any idea into reality requires a price, which depends on the cost and efficiency of the supply chain. It can be said that in an era where technology, creativity, and even resources are no longer scarce, whoever has the ultimate supply chain capability has a greater chance to win in the new world. So, how can we build an ultimate supply chain system? On the morning of April 6, Mr. Liang Pengfei, President of Ande Zhilian, clearly stated in his speech, "Co-building, co-creating, and sharing is the only way to the supply chain of the new FMCG world."

**With Whom to Co-build, Co-create, and Share**
To discuss how to co-build and co-create, we must first clarify with whom. In Liang Pengfei's design, brand owners and distributors are the two most important protagonists in co-building and sharing. The supply chain (logistics) of the FMCG industry chain must be integrated to form a new cost structure and efficiency standard for the supply chain that is suitable for the future.
**The traditional multi-segment, fragmented supply chain under the distribution model is transforming into an integrated end-to-end + fully digitalized comprehensive supply chain model.** However, the reconstruction of the FMCG supply chain cannot be achieved overnight; it is phased, rhythmic, and gradually consolidated.
The first phase of supply chain reconstruction is co-building and co-creating with brand owners. Brand owners are the chain masters of the FMCG industry chain and represent the advanced productive forces of the industry. They continuously pursue sales scale and operational quality. Therefore, brand owners have sufficient capability, status, and strength to initiate supply chain reconstruction and change; they are the natural initiators of supply chain reconstruction. But why do many brand owners trust Ande Zhilian and co-build, co-create, and reconstruct their supply chain systems with it?
**The core reason is that supply chain (logistics) capability is the operational foundation of an enterprise, and the primary requirements for supply chain change are safety and professionalism.** Choosing to trust Ande Zhilian, **firstly, Ande Zhilian was born out of the successful supply chain transformation of Midea Group.** Midea's supply chain transformation strongly supported Midea's sustained high-speed development for many years; **secondly, in recent years, Ande Zhilian has served numerous leading brand enterprises in the broad FMCG field**, making it the supply chain service company that best understands the needs and pain points of brand owners and can provide optimal solutions. Therefore, in the first phase, it is Ande Zhilian that supports brand owners in achieving supply chain reconstruction.
**The purpose of this phase is to promote the brand owner's supply chain toward 'end-to-end efficiency improvement + business transformation and change.'**
The second phase of supply chain reconstruction is co-building and co-creating with distributors. Distributors have always been the main force of urban supply chains and will continue to be. But today's distributor supply chains must face the issue of professionalization.

**Brand Owners**
**Value of Supply Chain Reconstruction They Can Share**
With over a decade of practice, Ande Zhilian has done well in the first phase of supply chain reconstruction. Over the past decade or more, Ande Zhilian has set up over 5.5 million square meters of warehouses nationwide, with a service network covering from first-tier cities to 99% of townships across the country. Through this supply chain service network, Ande Zhilian has provided supply chain services to 3,000 well-known brands in FMCG and other sectors.
**1) Value of Omni-channel One-inventory Co-built with Brand Owners**
The co-creation between Ande and brands has brought three innovative values.
**Logistics efficiency:** Integration of brand RDC and distributor warehouses, unified warehousing and distribution with one inventory, direct delivery to each store (small b) by the co-distribution center with standard lead time/pricing, forming a standard/cost from factory off-line via co-distribution center two hops to b; optimization of warehouse quantity and area; reduction of transportation routes, increased order consolidation; 100% palletized transportation; direct shipment from factory off-line; reduction of intermediate links; reverse logistics, unified collection and return of empty bottles.
**Asset efficiency:** Inventory and capital: significant optimization of inventory turnover days, inventory-to-sales ratio, inventory cost, capital cost, etc.; value chain efficiency: significant improvement in production-sales linkage, factory assets, and turnover efficiency.
**Digital upgrade:** Business online, orders fully entering the logistics OTWD system, order/inventory visualization and collaborative control; omni-channel order information integration for online and offline, data collaboration and intelligent decision-making.
**2) Operational Quality Changes After Co-creation and Supply Chain Reconstruction**
**Cost standardization:** After standardization of urban distribution costs, logistics costs are separated from original policy packaging, with comparative analysis for efficiency improvement; channel differentiation and cross-region control: with one-inventory sharing, electronic coding is applied when co-distribution center ships to b (mature cases in baijiu), achieving both goals; coding technology also supports differentiated operations for mid-to-high-end products.
**Product lifecycle management optimization:** Turnover days, FIFO, fast in fast out, product freshness, user experience; three shelf-life warnings set at product inbound to reduce near-expiry products.
**Focused channel optimization:** Find distributors that truly serve terminals/bC integrated user operations; implement sales policies based on product sell-through, changing the simplification of sales policies; one-inventory supports full-chain inventory visibility and sharing, supporting the implementation of key marketing business changes;
**Digital upgrade:** Distributor "SaaS+" transformation, online business management for stores ⟹ brand-side omni-channel business digital operations ⟹ production-sales linkage (T+3) efficiency.

**Distributors**
**Value of Supply Chain Reconstruction They Can Share**
With the disappearance of the demographic dividend and downward economic pressure, competition in the FMCG market has shifted from incremental to stock competition, and distributors are facing at least three major challenges. First, the trend of channel flattening is almost independent of the distributor's will. In stock market competition, distributors often passively accept adjustments to their operating regions and channels, leading to operational uncertainty. Second, channel diversification and fragmentation are inevitable; the low threshold of FMCG brings new peers and new competition endlessly. The third challenge is the wave of business digitalization, which is unavoidable. Brand owners promote marketing channel digitalization, but distributors face operating multiple APPs for different brands; terminal transaction orders are mainly placed via phone calls, WeChat, or SMS, which is inefficient.
Regional major distributors are repositioning themselves, shifting from traditional trade models to a new dual-wheel development model of "market operation specialization + logistics service specialization," building professional capabilities to support sustainable growth/operations. Under Ande Zhilian's co-building and co-creating model, regional major distributors can share the following two values.
**1) Increasingly Professional Market Operations**
Resolutely strengthen product-side market operation capabilities: strengthen terminals, go down to the grassroots/BC integration, improve brand response capability/cooperation stickiness; multi-category operation and regional market coverage: link more categories; enhance regional market coverage, focus business vision on a city, and cultivate intensively. Actively embrace dataization: online-offline integration, distribution-retail integration, B2b/B2c platformization.
**2) Independent, Professional, and Asset-light Logistics**
**Standardized logistics services:** Professional warehousing, standardized distribution, FIFO and fast in fast out inventory; meet fragmented order needs with three/two/one deliveries per day for different channels; build the capability of an omni-channel terminal delivery network: enhance delivery capability and terminal coverage in the region, support brand owners' two-hop to b delivery requirements.
**Professional and digital services:** Professional division of labor in fulfillment and delivery (logistics/information), improving fulfillment efficiency and saving logistics costs through professional logistics operations and IT iteration. Full-process order visibility in transit and electronic signature.
We are about to face a new world where consumption, branding, marketing, and technology have all undergone earth-shaking iterations and changes, and there is no reason for the supply chain to remain in its old model without change. The new world of the supply chain is an important part of the new FMCG world, and sustained, profound changes are taking place in this field. What Ande Zhilian is doing is part of this wave.


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