China is at a critical stage of transitioning from 'high cost, high growth' to 'low cost, medium-high growth'. With constraints from the environment and resources, and rising costs of land, labor, and capital, enterprises must invest in R&D for product upgrades while actively responding to market changes and meeting demand.
Data shows that China's socialized supply chain costs account for about 18% of GDP, compared to 7%-8% in Europe and the US, and as low as 5%-6% in Japan, where four general trading companies serve over 80% of the market.
China is at a critical stage of transitioning from 'high cost, high growth' to 'low cost, medium-high growth'. With constraints from the environment and resources, and rising costs of land, labor, and capital, enterprises must invest in R&D for product upgrades while actively responding to market changes and meeting demand. However, they must face the reality of inefficient and high-cost distribution in traditional Chinese circulation, with distribution channel costs in the FMCG sector remaining above 30%-50% for a long time.
At the same time, the current mainstream consumer group advocates fast work and slow living. The traditional sales forecasting model based on large shopping malls and large displays is incompatible with the personalized, random, and timely nature of consumer demand. Pre-sales, personalized customization, and same-day delivery have quietly become mainstream consumption features. Only through high-quality supply chain services and improved collaborative efficiency can enterprise costs be reasonably controlled and the diversity and timeliness of consumer demand be satisfied.
The core of the supply chain is cross-industry and cross-enterprise collaborative integration. It can effectively reduce enterprise operating costs and transaction costs, improve collaborative efficiency at all stages, and also help connect production and consumption, promote supply-demand matching, optimize allocation, and unite upstream and downstream supply chain partners to jointly improve efficiency and effectiveness through the supply chain.
This time, the state prioritizes cities where the year-on-year growth of total retail sales of consumer goods is higher than the national average. On the one hand, these cities have large consumption volumes and cover many people in the circulation field; on the other hand, there is significant room to reduce redundant construction and resource waste in the urban circulation supply chain.
This favorable policy proposes a series of measurable indicators and improvement targets that can be transformed into social efficiency gains, such as inventory turnover, distribution costs, order fulfillment rates, and product quality. It is a pragmatic approach. It also provides strong confidence and support to industries and enterprises that are continuously exploring modern circulation supply chains.
So which industries and enterprises will become key support targets?
Those with standardized and shared base services; using unified circulation turnover tools; building standardized and intelligent information sharing platforms; adopting green technologies to improve the green level of supply chains; and using supply chain management models to upgrade traditional industries. Among them, typical enterprises that have taken the lead in sharing logistics base resources and circulation resources include Xianyi Supply Chain and Chuanhua Smart Logistics Port. By integrating and sharing resources in regional bases, they improve circulation and distribution efficiency and provide supporting value-added services.
A Modern Circulation Supply Chain Service System is Taking Shape
With the deepening of supply-side structural reform and the successive introduction and improvement of relevant national supporting policies, the supply chain is ushering in an important period of historical development opportunities. As the world's second-largest economy, China's innovative development in the new circulation field is moving to the forefront of the world. A modern circulation supply chain service system integrating online and offline is taking shape, injecting new momentum into China's economic growth.
Eternal Asia, one of the typical representative enterprises in supply chain management and services, is the first listed company in China's supply chain industry. It has been innovating and developing in the supply chain service field for 21 years, and began accelerating exploration and accumulation as early as 8 years ago, actively participating in the transformation of the circulation supply chain industry.
Currently, it is building a new ecosystem for the circulation industry in nearly 320 cities across the country, undertaking centralized procurement and distribution for major supermarkets, small and medium-sized chain franchises, and ordinary stores, reducing circulation costs, increasing physical store revenue, and achieving rapid response and efficiency improvement. Through supply chain management models, it is comprehensively advancing the establishment of a new circulation comprehensive trading company that integrates supply chain services, global procurement and sales, capital finance, and industrial incubation.
Take Hong Kong, a commercially developed and land-scarce city, as an example. Originally, supermarkets had tens of thousands of products and thousands of suppliers. Every day, supermarkets had to handle hundreds of store deliveries and central warehouse deliveries, with each brand delivering its own products, causing numerous problems such as service costs, distribution efficiency, and response speed. By introducing modern supply chain management concepts, leveraging advanced information systems to optimize supply chain links, eliminating supermarkets' own warehouses, and implementing centralized collection and distribution, unified warehousing and distribution, communication costs between suppliers and supermarkets are reduced, urban distribution efficiency is continuously improved, circulation costs are reduced, traffic pressure is alleviated, environmental pollution is reduced, and consumer demand is quickly met, contributing to the construction of a 'green city'.
This has significant reference value for improving the supply chain distribution capabilities in the circulation field of the key cities covered by this policy.
Source: Wanlian -END-