Yunnan Baiyao logistics management status quo

Yunnan Baiyao is a typical state-owned pharmaceutical group enterprises, both production departments, and sales departments; both independent accounting units, and non-independent accounting units. Existing wholly-owned, control and participation in more than ten enterprises, the group's total assets of more than 800 million yuan, net assets of more than 400 million yuan, annual sales of more than 800 million yuan. It is a large-scale pharmaceutical enterprise group with scale and brand advantage in Yunnan Province. Background Analysis Yunnan Baiyao has encountered very prominent management problems due to inefficient logistics operation and other reasons at the same time of its rapid development. Its specific performance is as follows: in the procurement management, blind purchasing leads to material and liquidity backlog and serious waste; supplier management is chaotic, often "once a day, once a minister", suppliers change with the change of the supply manager, supplier qualification can not be guaranteed; warehousing management of material backlog is serious, and some materials can not necessarily be used for 10 years after buying back, in the manual operation, it is impossible to count the efficiency of the use of inventory materials; some of the materials in storage management, some materials may not be able to use 10 years after buying back, and in manual operation, it is impossible to count the efficiency of the use of inventory materials. The efficiency of the use of inventory materials; some materials because of moisture absorption, air drying, volatilization and lead to the natural loss of inventory; sales, the market forecast is not allowed, often changes, not only can not guide the production, but also to the production of a lot of trouble; the phenomenon of tampering with the goods in various regions is very serious, the company can not be effectively controlled; workshop logistics is very poor, there are a lot of semi-finished products, raw materials are backed up in the workshop, and from the accounts of the enterprise is very good. And it is very difficult to inquire these assets from the accounts of the enterprise. Logistics Solution In response to these phenomena, Yunnan Baiyao hired a professional logistics consulting company, using PM3 (enterprise operation management model) system, through management consulting, standardized implementation and maintenance, tailored a logistics information solution, so that the core departments of the information flow, logistics, capital flow, knowledge flow in parallel processing, eliminating the information silos, and achieve integrated management. Specific practices are: Integration of logistics centers First of all logistics centers according to the region, commodity type, customer type of business division, funded by the branch, respectively, the establishment of a logistics management office, is mainly responsible for the development of procurement plans, commodity procurement, the logistics center of the commodity deployment, warehousing and transportation resources, such as rational planning and deployment. In principle, the commodity procurement of each logistics center is unified by the logistics management office, but individual special varieties can be purchased separately by each logistics center. Each logistics center carries out commodity costing separately, and the deployment between each branch is still settled in accordance with the current sales and purchase form. On this basis, when the time is ripe, the Group will carry out business process management reorganization (BPR). The logistics centers are merged into one large logistics center. Logistics center for independent accounting, the establishment of the financial account center, the branches and logistics centers for internal transactions and settlements, the branches are only a sales business and management, but also separate independent accounting. Efficient and fast chain distribution flow system management to establish a fast logistics response system, through accurate and efficient request for goods, distribution and transportation system, to achieve cost reduction, optimize the inventory structure, reduce the purpose of the bonus accounted for; to provide the lower limit of the inventory, the alarm is born in the request for goods function, the distribution object and the deployment center can be automatically based on the inventory situation alarm generated request for loans, and does not require manual intervention, but also fast and accurate. It does not require manual intervention and is fast and accurate. Support the distribution center through the image management distribution object inventory, and active replenishment. Distribution center is a complete system, in the system can be all the store's inventory through the image to manage. Distribution center contains all the inventory of all stores, which can be queried separately. Efficient, scientific and rapid warehousing, transportation logistics management Assuming that the process of outgoing warehousing is: allowed to allocate goods → picking → delivery. Picking is the process of moving the goods from the warehouse to the distribution area according to the instructions, and shipping is the process of handing over the goods to the customers or the transportation department. Dispensing process by the computer according to the first-in-first-out principle of automatic allocation to generate the picking list, accelerate the turnover of goods. These outbound business operations. In the PM3 system are clear operating tips, thus improving the efficiency of the treasurer. And it can effectively reduce the possibility of misdispatch and record errors, which provides a guarantee for improving the service quality to customers. Implementation Effect Through a period of implementation, the new logistics program shows obvious feasibility and effectiveness. Quantifiable implementation results Through the implementation of ERP (Enterprise Resource Planning), Yunnan Baiyao sales revenue increased by 14%, inventory decreased by 15%, reducing the enterprise's capital occupancy rate; delayed delivery decreased by 30%, improving the enterprise's credibility in the market competition; the enterprise's purchasing lead time shortened by 2 weeks, saving the procurement costs; production costs decreased by 10%, effectively increasing the enterprise's production profits and market competitiveness. The enterprise's purchasing lead time was shortened by 2 weeks, and purchasing costs were saved. Non-quantitative effects of the implementation (1) strengthened the enterprise production planning. Through the implementation of ERP system, basically eliminated the manual production planning mode of scheduling arbitrariness, and become a manufacturing center according to the group's internal orders to arrange the production task list, the workshop according to the task list for production, so that the company's production is closer to the needs of the market. (2) Improve the enterprise procurement target, reduce the inventory of raw materials. The use of ERP system material requirements planning and purchasing behavior of Enron purchasing department makes the company's procurement strictly linked to the production of material requirements, thus effectively reducing the inventory of raw materials. (3) Provide strict means of material consumption management, effectively reducing the workshop's material consumption. Through the implementation of the material rate limit of collaterals, each batch of production for the material of the end of the day, strict cost assessment and other means to eliminate the workshop over the material rate of collaterals, internal pressure on the material or hide the material and other behaviors, reducing the workshop's material consumption. (4) Through the use of PM / BMS (Business Management System), based on the computer's powerful calculation function and the timeliness and accuracy of information transfer, has now achieved single product accounting, more accurate calculation of the cost of a single product, gross profit, etc., to facilitate the statistics of the company's sales performance. (5) Elimination of information silos. The use of telecommunication networking PM / DBCOPY (database transport replication system), clearing up the information islands that exist in the enterprise, strengthening internal collaboration, and realizing the mutual transfer of business data, so that the supervision and management of in-depth, real-time. The system involves standardization of ideas, the use of management plug-in technology and atomized task technology, the management of business processes in the business process of each business segment of the abstract formation of a series of original tasks, and then in the abstraction of the general significance of the enterprise organizational structure model based on the introduction of the "independent unit" concept. On the one hand, it adapts to the business and finance of multi-level independent companies in the management group, and on the other hand, it supports the dynamic reconfiguration of the customer system, which not only adapts to the management needs of different customers and the business reorganization of the same customer, but also adapts to the future management and operation of the enterprise, the change of operation and the need for continuous adjustment of the organizational structure with a certain degree of innovativeness and operability, and it is a more successful case in the logistics management of the pharmaceutical enterprise. The case has been formally selected by the China Federation of Logistics and Purchasing organization selected by the "2002 Logistics and Purchasing information technology excellent case collection.