/ Daily News/August 05, 2022 Guangzhou -- The 5th China Industrial Products Digitization Summit Forum was held in Guangzhou on July 30. This conference is sponsored by Tobey network, supported by Guangdong E-commerce Association, co-organized by Gaimenda Industrial Products Group -- Gu Anjie, Yiheda, Xinfangsheng, Zhenkunhang, Qixin Group, Jihu (GitLab) and other leading enterprises in the industry. About 300 people attended the conference, including government leaders, experts and scholars, heads of associations from all over the country, entrepreneurs from upstream and downstream industrial chains, industrial digital platforms and so on.
Zhou Jianliang, assistant to CEO of Xinfangsheng Holding Group and general manager of NKA Division, delivered a keynote speech at the meeting. The transcript of the speech is as follows:First of all, I would like to say hello to my online friends. Many people watch the live broadcast online. Many friends with Brother 2 for many years, Xin Fangsheng is also, anyway, every session I will come. Don't bother me, I did a very bad job in the last few presentations. I didn't digitise at all. I just talked about this stuff every time. This time, I made a report that even I could not understand. There was little introduction by Xin Fangsheng. I only made a brief introduction to warehousing, logistics, layout and industrial receivable scale.
XinFangsheng has been doing one thing for 33 years, which is to help the production, construction, processing and manufacturing enterprises supply goods.How? We've been doing this for more than 20 years, starting in 2000, in the form of front store and back warehouse. Xinfangsheng has cooperated with China Construction for a long time, and Yunzhu.com is also our high-quality partner. In the case of Zhongjian, many of his project managers first look for the nearest XinFangsheng service on Baidu. If you search "Guangdong Xinfangsheng" on your mobile phone, you will see that it is very close to you. Where is your factory? Our warehouse layout is there.
Second, who helps you buy? One of our partners once commented on us, "Mr. Zhou, they said that you are an industrial Internet company, and they also said that Xin Fangsheng is a large industrial products company. May I give you a comment?" I said OK. He said that your Xin Fangsheng is a labor-intensive, asset-heavy industrial Internet company. We have 8,000 employees excluding the secondary and tertiary industries, and more than 10,000 if we include the factories in the secondary and tertiary industries. How are the 8,000 people distributed? Nearly 3,000 are logistics and warehouse drivers, and nearly 3,000 are one-to-one VIP on-site sales staff working in the front line, as well as one-to-one customer service staff to solve problems on site. There are nearly 400 people in the team who build the technology platform. There are 200 people in Beijing and 2 technical teams in Xi 'an and Wuhan, which provide strong background support for the digital transformation of Xin Fangsheng.
After the introduction of Xin Fangsheng, let me talk about the supply chain. Just now, the host introduced that Xinfangsheng has done a lot of work on warehousing and logistics layout in recent years, which is actually the construction of supply chain. We are doing something between the upstream and downstream. We often say internally that profit is really bought, not sold, because the market determines your direction. As Zhao Benshan said, the general environment is not good, and wherever you go, the general environment is not good, because you cannot decide the market. But as an enterprise, we can decide that profit is bought, not sold. Therefore, in recent years, we have realized the original digitalization based on the digital supply chain. This is the first point, why the digitalization based on the supply chain is valuable.The word I talked about most is "collaboration". Whether it is external or internal, or as a partner, it is more about collaboration. One cannot do it by oneself. The national environment promotes the improvement of digitalization, and Xin Fangsheng is also moving forward in a difficult disk. Last year, the national report on accelerating the digital transformation of state-owned enterprises really touched the pain of our previously unreachable central enterprises, and gave us great opportunities. This is policy-driven, and policy-driven is the general environment. However, when the general environment comes, the small environment will ruthlessly abandon you if you do not do well. Xin Fangsheng then did a lot of research. In 2018, we launched the "100 Billion to Go Plan", which is the fourth year. We have been studying how to go in the future. On the 30th anniversary of 2019, our president shouted out the strongest voice to the outside world: "I will only do one thing in the rest of my life, that is to promote the progress and development of industrial products." We only do this one thing, so our mission is to create industrial products ecosystem, leading the progress and development of the industry, which is an industry mission of Xin Fangsheng.
Where does our confidence come from in this process?
Market size, this is the environment. As a matter of fact, our environment has always been very good. Everyone said that in recent years, due to the epidemic, the environment was not good and it was difficult for enterprises to do business. I am very responsible to tell you that the receivable amount of Xinfangsheng has increased by 35% every year in the past three years. Why? Maybe the environment you see is different from the environment we see. We see a lot of opportunities in the environment. Although it is very tiring, we work hard in this situation. Want to let customers digital, empower customers, our internal work must be practiced first. In the past two years, Xin Fangsheng has been doing internal work. As a digital platform, how to digitize itself first? That's why the topic of my talk today is "The value of digitization based on Supply chain", because internally we have benefited from digitization.
We have two management ideas
One is lean thinking and the other is digital value. Without digital, any action or initiative you take is a slap on the head. Often tell customers and partners, what is the use for you to look at this report? Because this report has no value, if you want to have value, all the online, that data is useful, precipitation data is useful, you can analyze, otherwise you are just the original "look at the report". The leader used to like to see the report signed, and then no. In the past two years, we have cooperated with upstream suppliers and manufacturers as well as downstream logistics and warehousing in the whole digitalization process. Xinfangsheng uses a large middle desk to connect all the HHGS used internally with SM, CM, WMS, TMS, customers' OA, ERP and customer platforms. All the data are kept in the large middle desk.
The second is to reduce costs. Most of our industrial customers are manufacturing and manufacturing enterprises. I often tell them that it is too difficult to reduce costs. For example, two days ago, the steel bar dropped to more than 3,000 yuan. As we all know, the capacity of the cement industry has reached its peak in the first half of this year. Many kilns have to stop. There are two main elements of high operating cost, one is raw ore and the other is raw coal. However, the whole finished product is controlled by the state. At this time, how can enterprises reduce the cost? One is to lower prices, pressure the price of suppliers, but you dare to pressure raw coal suppliers? Dare not. The enterprises that make auxiliary materials and industrial products for us will choose to substitute. Can you reduce the cost of this price by 10% in the bidding and annual price and diversify the procurement? But after more partners cooperate with us, they will show all the figures on the platform. I have always said that the reduction of explicit cost is done by Xinfangsheng for you, and what Xinfangsheng should do for you is the hidden cost that you did not know before. This is the business idea, which is to find waste, remove waste and exceed customer expectations. I found out what you can change, because the numbers are accumulating, I can help you with the data.
Delivery limitation. Just now I mentioned the composition of 8000 people, among which 3000 people are one-to-one resident staff. These lads have entrance permits and their cars have been prepared. Because the site order link is the whole operation and maintenance link, the final need to subdivide research. Talking about the second collaboration, I just mentioned enterprise collaboration, production collaboration and demand collaboration, that is to say, you can send your needs to me through the digital platform. The next step is what I want to collaborate with. The cooperation with my original factory, original supplier, and internal work of the enterprise are all completed on the platform. This process through the customer is not feeling, customers only have two feelings, one is when the order, the other is when the goods. In the background, we have circled the whole digital chain. The distribution, personnel and track of the background are the collaboration after industrial connectivity.
Let's talk about Xin Fangsheng's vision, which is rarely said at the conference. Xin Fangsheng's vision is that everything connects the world. Originally, we understood selling goods to places where they could be sold, to China and abroad, but now Wutong, originally Wuhan is called a thoroughfare of nine provinces, which means that all directions are accessible and the traffic is relatively good, and it is the same for Xinfangsheng. We can provide customers with a platform through the Internet built by the human freight yard, no matter what the situation. All the numbers we have on the platform create value for our customers that you may not feel, but you can write a report a year later and say, "Oh!" We educate customers and cultivate their sensitivity to numbers, including cloud, number, wisdom and wisdom. According to the requirements of different types of customers, we set up four different needs of the background. You only need to provide your questions, and the rest will be given to Xin Fangsheng. Two days ago, I went to a central enterprise to do management training. After listening, they said: "Originally, as long as you find Xin Fangsheng, there is no need to care about other problems." I said yes. He said, "Really?" I mean it. You only need to give us your needs, our cloud, number, wisdom, huizai, whether small or medium-sized customers, central state-owned enterprises, large enterprises, we have a specific business division team to correspond to one by one, we are the industry BD corresponding to different customers. As a one-stop service platform, we have the responsibility and obligation to get through to the upstream and downstream customers. What's more, we are the data service provider. Previously, a single data had no value and no feeling, but now Xinfangsheng has served nearly 1000 cement factories across the country. The online data of 1,000 cement factories purchasing goods in a month is very scary. After this data comes out, do you tremble when I talk to you with massive data? This is the digital value created by Xin Fangsheng. < / p > < p > we stick to "three big capacity" in an effort to < / p > < p > is a digital capacity < / p > < p > 2 is the ability of supply chain < / p > < p > three is close-fitting service ability.
I will not talk about digitalization. I am a non-professional, but we understand the theory and can build digitalization according to customer needs. We are currently doing two core things, one is supply chain, and the other is landing service. Why? Because whoever can occupy the last kilometer, the service rating will be higher.
Our products have been divided from more than a dozen categories at the beginning to 44 categories at present, from more than 300 categories to more than 5000 categories. The visible SKUs are 3 million. We also have a national inventory of 1.2 billion yuan of nearly 500,000 square meters below the line, and a stock of 300,000 kinds of normal commodities stored in the warehouse, which is higher than the moving-pin analogy. Why would I dare put a billion dollars in stock there? Without the backing of the numbers, dare to save? I dare not save. According to the customer's purchase demand, put the products with high moving pin rate in the warehouse.
Where is our warehouse management capability?
Warehouse management ability lies in our country nearly 15 first-level warehouses, more than 90 sub-warehouses, the group's warehouse turnover rate of 14.5 days, more than one billion mobile sales. We use digital analysis in the whole process, which is internal. Only when the internal cost is reduced can we help you reduce the cost. I said to help you reduce the cost, but my own cost is still so high? This is the value of digitization. If digitization does not produce effective value, why do it? So we reinvented the upstream suppliers.
This is our four coordination, order coordination, management coordination, settlement coordination, commodity coordination. In fact, more collaboration is the channel buyer, and Xinfangsheng is more about what we can create for you. What is my core competitiveness? I can circle what you can't do for you first.
Background construction, Xin Fangsheng is a data service provider, that is, we are a large business in the middle, both upstream and downstream in this platform, our procurement, data, sales, including internal personnel portrait, our internal EHR system are in the same system. So the whole data coordination, headquarters, regional, branch, center, individual, these five levels see the same data, because this can build the whole data system for customers. The whole system is more optimized for our internal things. In the past two years, we did not only do one thing, which is to set up national warehousing logistics. We made more efforts on internal digitalization, including on-site logistics, rewriting of WMS, SRM and CM. Shandong government has granted 150 mu of land, and the fully automatic intelligent warehousing and logistics base will debut in June next year, which is the first large-scale fully intelligent logistics warehousing and distribution system in the industrial products industry.
Our future planning, next year or the year after next, we will build all the second and third tier cities in the country to complete their own advance warehouse, no matter where your project is, I put the order in the background to the local advance warehouse, by it for distribution, this time is faster.
That's all for today's sharing. Thank you for your tolerance and understanding.
