The 4th "FMCG + Internet Conference" in 2018, co-hosted by New Distribution and Yunmei Shares, was grandly held on March 18-19 at the Fairmont Chengdu Palm Springs Hotel Conference Center! It attracted over a thousand distributors, manufacturers, and internet companies from across the country, with a full house and unprecedented scale. The following is the speech delivered by Mr. Ma Yufeng, founder of Yunmei Shares, at the conference, organized by New Distribution for our readers. The internet has developed for decades, and many changes have occurred. The most important change is that all industries no longer discuss whether they need to transform to the internet or upgrade information tools. Transformation and upgrading have become a consensus across the industry. Of course, other problems have arisen. With the continuous emergence of oligarchs and the constant downward expansion of business, many regional distributors and even some brand owners seem to have no way out. What should distributors do when facing centralized giants? Today, I'd like to share my viewpoint: the future of B2B is decentralized. In fact, for distributors, decentralization is not the goal; evolving into an intelligent supply chain enterprise is our true direction. Facing rapid iteration of various business formats, we must first have dialectical ability to identify our own value and advantages. What is the greatest value of a distributor? It is the meticulous cultivation in the region, accumulated connections, customers, channels, and experience. These are the most valuable resources for distributors, and they are also what centralized internet platform oligarchs lack. Some platforms talk about empowerment, giving you this or that empowerment, because they know what they need and lack, but our distributors do not know what they have and what is most valuable. Is the platform necessarily the best? Or is short-term business growth brought by the platform good? As a distributor, you must think clearly: your vehicles, goods, or capital are not your advantages. Your true advantage is the connections and channel resources accumulated over time. This is your core asset. Now many distributors have joined centralized platforms for B2B transformation. Can this be a one-time solution? We have been thinking about this, and we found that it is not the case. Centralized platforms have strong absorption capacity. When distributors cooperate with such platforms, resources accumulated over decades, such as channels, business flow, and user flow, will quickly be integrated into the platform, and once integrated, it is difficult to separate. After integration, your value will no longer exist. Like a squeezed sugarcane, distributors will lose their most precious wealth and gradually become helpless. Besides joining platforms, distributors have other transformation paths: investing in building their own B2B platforms. What is the prospect of this path? During the five-year rapid development period, we should thank the pioneers. The emergence of these B2B platforms has become the driving force for industry change, providing us distributors with good experience and methods to build our own B2B platforms. Even so, we still do not have a complete path. Transformation is not just having a B2B website or warehouse. From what I know, some distributors who transformed to B2B are not doing well. Transformation requires a complete set of tactics, a systematic construction from warehousing and distribution, B2B mall, user system, business system to fund settlement. These five are indispensable; otherwise, it is difficult to truly improve operational efficiency. Many distributors develop their own systems, which I think is unnecessary. No matter which method you choose, if it cannot help you improve efficiency and strengthen your main business, it is a waste of money, time, and manpower. Yunmei has conducted in-depth research on the market for over a decade, visiting thousands of users, and we deeply understand the current industry development trend. For distributor transformation, it can be divided into two stages: first, strengthen the main business and optimize existing resources; second, share and symbiosis, co-create and win-win, evolving into an intelligent supply chain company. Now everyone is talking about transformation, but transformation often has a slim chance of success. Except for a few leading companies that can talk about transformation, upgrading, and tracks, I think the majority of distributors should not easily talk about transformation, but rather evolution. This is my viewpoint and also Yunmei's. Whether it is biological evolution or human evolution, all changes are made for survival, natural changes, and such evolution is valuable. So, what are the characteristics of evolving into an intelligent supply chain company? An intelligent supply chain can establish an interconnected system for FMCG from product, centralized procurement, warehousing, distribution, personnel, and capital. It integrates a visit sales system, warehouse management system, and B2B mall system. The intelligent supply chain achieves features such as intelligent vehicle scheduling, intelligent order allocation, and intelligent distribution route optimization, helping distributors significantly reduce operating costs and improve efficiency. Take warehouse turnover rate as an example. In the past, one turnover took 45 days. After evolving into an intelligent supply chain company, it may now take 10 days, or even 2-3 days. The warehouse turnover rate has increased fivefold, and operational efficiency will be greatly improved. In addition, there is a naturally formed shared and symbiotic ecological characteristic. By allying with other distributors that have evolved into intelligent supply chain companies, warehouse utilization can be improved and order volume increased. Naturally, the largest local shared and symbiotic comprehensive ecosystem will form. You will have unique market service capabilities, more competitive and defensive than centralized platforms, and centralized giants will actively embrace you. To do a good job, one must first sharpen tools. Yunmei has spent 8-9 years focusing on this system, providing distributors with a complete B2B system solution, empowering distributor evolution, and helping distributors evolve into intelligent supply chain companies with zero risk and low cost. The complete B2B system solution consists of five subsystems: intelligent same-city shared warehousing and distribution system, intelligent financial settlement system, intelligent B2B trading system, intelligent convenience store operation management system, and intelligent business flow management system. The five systems are interconnected, forming an intelligent supply chain ecological closed loop. The biggest risk in transformation is the bottomless pit of capital expenditure and the difficulty in finding technical and operational talents. Yunmei can truly help our distributors transform, provide permanent technical support, reduce costs by 95%, and truly achieve nanny-style service. At the same time, it can improve your profitability. Yunmei's mission is to help the distributor community strengthen their main business, optimize existing resources, and create a shared and symbiotic ecosystem. The industry development trend is irreversible, and we should actively embrace this era! Yunmei also has an open mind to help distributors save costs and avoid wasting money on the road to transformation. Yunmei promises: as long as you encounter difficulties in transformation, Yunmei will share all knowledge and speak without reservation. Yunmei is a nanny, partner, and server in your transformation and evolution! That is my sharing. Thank you all, and thanks! Click Read the original text to see more of the 4th FMCG + Internet Conference... -END-