Title line tracking "VMI mode"
Each order, when the manufacturers raised the glass to celebrate, his heart is sour, because he knows very well, sitting in the A few "brothers", and even with a partner for 5 or 6 years, it is likely that the next order will not see them. Let ordering will become a "separate feast" for many reasons, including the strong pressure ordering model and dealers increasingly heavy inventory is the dead center of the problem. 2010, China's famous women's clothing enterprises, Zhejiang Impression Industrial Company Limited took the lead in the part of its brand Qiu Shui Yiren channel pilot VMI model (i.e., the supplier manages the inventory, simply put), is unified by the brand manufacturers distribution of goods. Is unified by the brand manufacturers distribution of goods, sold out of all return). This move has stirred up a thousand waves, becoming the focus of attention of industry insiders, especially brands and apparel dealers. What kind of goods circulation system is this? How does the market reflect? In the last issue of "VMI model, an atomic bomb in China's apparel industry" ("Apparel Dealer" magazine, 2010, 6, P52) after the report, this issue through the Qushui Yiren general agent and franchisee of the practice of experience and development proposals, as well as experts in the system analysis, a true reproduction of the idea of the development of the system of distribution of goods pathway and the existence of some of the problems. Some problems. This article does not have a program solution, but will give us a deep level of development thinking.
Title general agent: logistics and cultivation function highlighted
In the 2010 CHIC exhibition business forum, the first ladies' wear hosting organization in North China - Beijing Qingqing ladies' world leader Jiang Yongqing in China's top ten outstanding general agent when he won the feeling: a lot of general agents and manufacturers to break up or unpleasant, not in the beginning stage, but in the beginning of the development of the system, and the development of the system. Happy, not in the beginning stage, but in the Jiangshan down after. I often think, general agent irreplaceable development force is what? In terms of the development stage of the brand, the initial stage to develop the market, good brands and products, as well as team building and stable franchisee team is the core. Market expansion is relatively mature, refined management, enhance the profitability of a single store is the key. Apparel industry development to the current stage, the biggest common problem is too much pressure on inventory. We also face this problem, the warehouse is getting bigger day by day. 08, 09 years of inventory pressure can not breathe, sales are growing, but the profit margin is declining. 2010, one of my agent's brand QiuShuiYiren head office launched the VMI model, 100% returns. This is a pioneering move! Let the franchisee to realize the zero inventory operation, so that dealers have the energy to study and do their own business.
Jiang Yongqing briefly shared by the participating dealers warm applause, this applause is the "Pilot" pragmatic statement of respect, but also on the distribution model of the feelings of anticipation.
For the team of Jiang Yongqing, who had the honor to follow the head office of Qiu Shui Yiren to test the water distribution system, recently, they used the sales data to show the results of the implementation - "This season's performance increased by 45% year-on-year."
Small standard distribution system in the pivotal role
However, any change in the occurrence of positive and negative factors, the same VMI distribution model is also the emergence of such, how to listen to the total agent will be excited, but a pondering on the possibility of becoming a burden on the heart. Jiang Yongqing's Qiu Shui Yi Ren brand manager Liu Hongxin frankly said: "We also experienced a mixed state of mind, like is able to operate without inventory, worried about what manufacturers are doing? Now it is commodity management verticalization, what will be the next step?"
This year, Zhejiang Impression Industrial Co., Ltd. faced major changes, first of all, clearly set the goal of listing in China in 2013, through the "Zhejiang Impression Industrial Co., Ltd. management first equity incentive shareholding agreement", the company managerial level above more than fifty employees as the company's preparatory shareholders in the notary public notarized the completion of the agreement under the notarization of the personnel, and secondly the company in the conduct of Huge internal organizational reforms, the establishment of internal market chain buying and selling mechanism ......, these are rendering the brand manufacturer's plan metaphysics.
Change lies heavily in the hearts and minds of the people, and if you can't net the hearts and minds of the people, the change will lose its own momentum and significance.
With the VMI distribution model in North China to implement the systematic open, Jiang Yongqing team open up the knot. They realized the important pivotal role of the general agent in the promotion of the current distribution model.
The distribution system is actually a model of sales to production. This requires a well-developed national network data control system, daily sales day into the logistics reflection system and synchronized product production capacity as well as high-quality franchisee team to do support. For the current state of development of China's logistics system and brand development level and geographic environment, to realize the operation mode of large logistics system is very difficult. This is the general agent at this stage in the distribution model has an important role in the reason. And the near attack far delivery is more applicable development mode, that is, in the scope of logistics and manpower can be directly controlled, brand manufacturers for direct control, for logistics and manpower management is relatively weak through the third party's power to reach, such as the general agent.
Small standard logistics and training functions in the enlargement
Now Liu Hongxin 6:00 a.m. to start busy, sometimes busy until late at night, every day to review a large number of deployment of documents. Liu Hongxin introduced: "The first batch of orders for summer clothing is made by us according to the customer's sales plan for the same period last year, combined with the headquarters of the research and development of the 'automated ordering system', automatically ordering the orders of the stores, this batch of orders to the time of loading, according to the number of 1 hand directly to the stores, after the franchisee does not need to replenish the goods manually. They sell every piece of clothing, will be reflected to the national network sales system, brand headquarters and general agents will see, and then timely according to the "sell a complementary one" to help them make up." Such a small and precise work requires more professional logistics team to do support. In the hands of Liu Hongxin has been turning two accounts, that is, the flow of goods and cash flow. The nimbleness of the distribution system also drives the flow of funds, realizing the franchisee to sell a batch back to a batch of money.
As a "sell a complementary" form of distribution, the speed of logistics operation is directly related to the terminal of the gold sales speed, Liu Hongxin said that the current near the region is generally sold out the next day to the goods, far away, according to the time of the road, generally the longest 3 days to the goods, but because the store has prepared enough first single volume, the same can ensure that franchisees have goods to sell.
The vertical management of goods, on the one hand, so that the general agent of the control of goods deployment capacity weakened, on the other hand, so that the general agent of the logistics transit function to enhance. The so-called general agent of the goods control ability in the weakening, mainly refers to the deployment of goods, but for the analysis of sales data and terminal performance control ability to strengthen. Distribution system model can reduce the dealer's inventory pressure, but if the dealer is not operating properly, it will bring great risk to the manufacturer. Therefore the comprehensive quality of the franchisee team is very important. "We have always focused on the quality of the dealer team and performance improvement, this year to further strengthen the training, store visits and terminal guidance." Liu Hongxin said that the frequency and effect of training and supervision is directly related to the operational risk of the head office, is the primary guarantee to improve performance.
Small label sales integration of the concept of development
Why QiuShuiYiren headquarters dare to use the "VMI full return mode" for the operation, the key issue is that there is a set of self-contained goods flow system, this set of systems for the first batch of orders for goods, intermediate replenishment orders, inter-regional transfers, and the final order! Point in time, there are strict time requirements, all involved in this set of "VMI full return mode" of the general agent and downline customers must be strictly in accordance with the implementation of this set of procedures, when received by the company's "sell one to make up for a" command, must accept all the goods, when received by the company's returns Instructions, must be the first time to return, otherwise the company will not be able to operate, will be the inventory pressure, so the head office to participate in this model of the customer has strict regulations, such as franchisees do not strictly enforce, will be heavily penalized or restored to the original ordering model,
Sometimes, the head office and the franchisee will be a contradiction in terms, the head office to take into account the operation of the whole board of directors, and the franchisee to consider the interests of a single store! For example, in the return of goods, at the end of the period when all the stores best-selling models size are broken, the head office will consider assembling all the C-level stores best-selling models to the A-class stores to the fastest possible speed to sell out, and the franchisee believes that this is a storm of money is not willing to transfer out, at this time, in the goods in and out of, the franchisee must listen to the head office's requirements, the small interests must be subordinate to the large interests, which really realize the goods from the top to the bottom of the Vertical management. Vertical management of the benefits of breaking the relatively closed channels before, the flow of goods a single situation, through the integration of the sales system, you can maximize the flow of goods up to realize the positive, negative, horizontal multi-dimensional circulation, thereby reducing inventory.
This flow is standing in the overall business of sales height, like military warfare, only united, the heart of the big picture, in order to achieve the maximization of individual benefits (since the implementation of the distribution system, North China QiuShuiYiren 115 franchisee average performance growth rate of up to 45%, while the zero inventory is the best proof of the effectiveness of this model).
Small label VMI mode ------ future main mode of the supply chain of the clothing industry
In the interview, Beijing Qingqing ladies world leader Jiang Yongqing said, this set of VMI model is the impression of the CEO of the Zhejiang Industrial Company Limited Yao Yujian self-initiated, he passed more than a year of self-employment pilot, and supporting the self-development of the VMI software, in the current pilot of a number of provincial agents. In the current pilot of several provincial agents, this model has brought huge growth in the total agency performance, and all the inventory is borne by the head office, from the point of view of the current operation of the head office, very healthy, the entire Qiushui Yiren brand has been completely rid of the current general agent's disease: high inventory and high accounts receivable, the head office is facing a second takeoff.
At the same time, Mr. Jiang said, she is the agent of many other brands of women's clothing, but these other brands of women's clothing, she is faced with the problem of inventory and accounts receivable, on the one hand, the general agent of the inventory is very large, on the other hand, the general agent of the company owes a lot of money, at the same time, the general agent of the downline also owes her a lot of money to form a "triangular debt" relationship, she believes that the general agent of the company is a very important part of the company's business. If these brands do not adopt a new supply chain model, it is possible that one day face dominoes, ready to chain reaction.
Mr. Jiang highly evaluated this innovative supply chain model of Qiu Shui Yi Ren head office, she believes that, from the point of view of a general agent, this model can really solve the current high inventory and high accounts receivable problems, while greatly improving the performance of a single store, and this model represents the mainstream direction of the supply chain of the future apparel industry.
Small standard logistics cost control needs to be optimized
However, frequent deployment of goods, in reducing inventory pressure at the same time, but also invariably increased costs. Liu Hongxin is also a little worried about this, because the logistics costs are required to franchisees themselves. Is not a better circulation model to help franchisees save costs? This is the urgent need to optimize the place.
Title Franchisee: "VMI model" to bring high performance growth rate and zero inventory
Hebei Langfang QiuShuiYiren franchisee Liang Tao, Sun Dongfang couple is a multi-brand operators, the success of the opening of more than twenty boutiques, of which there are three QiuShuiYiren store, the largest 180 square meters. Liang Tao and Mr. and Mrs. Sun Dongfang gave a very high evaluation of the positive impact of the laying system to the terminal. This article is mainly from the impact on the management of the terminal stores and the development of the issue of the group, in order to allow industry insiders or experts to understand more about the current situation of the industry, and give positive development advice or support.
Liang Tao, Sun Dongfang couple's Qiushui Yiren brand supervisor Ms. Liang introduced, according to their current store volume, the first laying between 300-400 pieces, followed by intervals of a few days there will be a new model to the store, and "sell one to make up for a" system of bidirectional parallelism, so as to create a short, flat and fast product circulation system, although the daily inventory is less than one year less than in previous years, the daily inventory is less than one year less than in previous years. Daily inventory is less than twice as much as in previous years, but the performance is very big compared to the same period last year. "Although currently in the integration period, the manufacturer's goods to the cabinet is quite timely, usually about 3 days. Coupled with the first time to store each section has a certain amount of inventory, support terminal sales is no problem. In the inventory of this piece, usually there is a return or lateral deployment, to the end of the season the remaining goods will be a one-time return, and then all the next season's goods on the shelves." Ms. Liang said.
Small label store managers pay more attention to ping efficiency and the management of goods
Focusing on the terminal stores, Ms. Leung introduced, store managers are now more refined than before in the analysis of best-selling models and the management of goods. "Terminal sales model has not changed, the morning or open morning meeting, set performance targets, do with and sales technology summary and guidance, the day for the time period target supervision and emotional mobilization, etc., but in the combination of goods, the store manager is more preferred to strong combination, that is, in the fastest possible time, so that more of the best-selling goods out of the flow, which may result in some of the Lagging models of slack, because these models manufacturers can be recovered, the store manager will think, 'we can push, or not, the important thing is that I want to make the store ping effect up.'" This is Ms. Liang's sincere feedback, but also a responsible performance of the franchisee. But short, flat, fast distribution and production is to let part of the models to pull performance, let part of the models to enhance the image, which is also the law of 2/8 sales. Good selling accelerated production, not good selling reduce production, to the market's reflection to the best-selling models to promote, is not precisely to enhance performance and reduce inventory performance? In addition, with the sharp knife products and competitors to fight, is not an additional chance to win?
In terms of goods, because of the unified management by the manufacturer, if the goods appear string code sales appear negative inventory or inventory is not allowed, the store manager and his team will have to pay the full responsibility. "At the beginning of the store there is always the phenomenon of negative inventory occurs, the highest a store manager and his team was fined 3600 yuan (the total value of the original price of the clothes), after the phenomenon of negative inventory less and less. Because the store manager will take the initiative to inventory several times a day, the fear of negative inventory. At the same time, the management of goods has been strengthened." The above two points are gradually strengthened in the management of terminal stores since the implementation of the layaway system.
While the goods management company requirements are very strict, but due to the arrival of timely, store basic best-selling models are not in stock, although the inventory is less, but the performance than last year has improved substantially, the best of the three single-store a store than the same period last year to enhance the 110%, and the other two single-store enhancement of more than 50%.
Small standard real zero inventory: the most ideal mode of joining
Leung Tao believes that at present, he is the agent of so many brands, there is no one brand is a full return, only the autumn water Yiren brand the country's first, because of this model, it is estimated that his profits this year will double last year, do such a brand, the franchisee is very painful, because the performance is higher than before, and do not have to bear the inventory, the take stock! Discounts have not changed, so the profits than before a large spoke degree of enhancement, cash flow is also more abundant, Liang Tao also admitted that if the franchisee does not cooperate with the instructions of the general agent, the general agent does not cooperate with the instructions of the head office, the head office will be faced with a huge risk of inventory, therefore, only the "win-win-win" consciousness, in order to do a good job "! VMI full return mode", in order to make "Qiu Shui Yi Ren" sustained, healthy and rapid development.
Based on the current profitability of the store, Liang Tao made it clear that he wanted to seize this opportunity, and in the second half of the year, will open two more Qiushui Yiren stores, hoping to have more profits.
Small mark a lot of processes urgently need to be simple
In addition to the pressure of logistics costs previously mentioned by Chen Hongxin, Liang Tao below the supervisor Ms. Liang also mentioned the problem of payback, due to the buy one to make up for a weekly basis to run a few times the bank, although the amount of funds occupied than before to reduce, but this is a waste of time, Ms. Liang suggests simply a one-time at the beginning of the season to provide a liquidity, the day-to-day Working capital is all controlled in this amount of funds, so that these processes can be more simplified and programmed, which is expected by the franchisee.
Afterword
By the current situation of China's apparel development and the environment, the road to the development of the distribution system is not a stumbling block, is a long process of metamorphosis and improvement. Qiushui Yiren's innovative development, for today's brands of the shortcomings of the ordering system has brought the development of reference. This article is only from the "real show, systematic thinking" point of view for the industry to bring some development insights, the details and development of which are still to be in the grind to find suitable solutions.
Previously, industry experts have mentioned the "ordering system + distribution system" combined with the development model, the ordering system part, the brand manufacturers have the absolute right to allocate. That is, with the advantages of the ordering system to avoid the risk of enterprises, accelerate the return of enterprise funds; with the distribution value to reduce the pressure of inventory. This is also worth thinking about a way out.