What is the significance of the cooperation between Procter & Gamble and Wal-Mart for Chinese enterprises?

The cooperation between Procter & Gamble and Wal-Mart has changed the operation mode of the two companies and realized a win-win situation. At the same time, the four concepts of their cooperation have evolved into the standards of train consignment chain management. These four concepts can be represented by four letters, C (Colaboration), P (Planning), F (Forcasting) and R (Re-plenishment).

"C" - Collaboration

It's not a collaboration where two businesses have an ordinary buying and selling relationship, but a collaboration that creates a win-win situation for the same goal. Retail stores do not stock inventory, and the inventory pushed to suppliers, increasing the cost of suppliers, it is not called cooperation. If the retailer and supplier *** with the retail store customer satisfaction as the highest goal, to cooperate, can let both sides become a winner. Such cooperation is long-term, open, and to *** enjoy each other's information, the two sides not only in the strategy of cooperation, in the operation of the implementation of cooperation. Both parties must first agree to keep each other's information confidential, set up a mechanism for resolving disputes, and set up a method for monitoring operations and a profit-sharing strategy. The goal is to minimize costs and expenses while maximizing sales.

"P"-Planning

The train consignment chain management originated from the retail of daily necessities, and there was no P in the beginning, but later, because of the application of other industries, it was considered necessary to incorporate the P. The P is planning, and the two companies work together to plan a lot of things. There are a lot of things to plan. In operation, there are product categories, brands, and programs; in finance, there are sales, pricing strategy, inventory, safety stock, gross profit and so on. Planning by both parties on these issues can sustain the realization of **** the same goals. In addition, the two sides can be product promotions, inventory, new products on the shelves, old products off the shelves, and some other things *** with the planning.

"F" - Forecast

The two parties may have different views and different information about the forecast of sales. A supplier may be accurate in forecasting a particular category of goods, while a retail store may be accurate in forecasting a particular item based on actual sales, but both sides must finally work out a forecast that everyone agrees on. The system can automatically make basic forecasts based on the raw information, but seasonal and fashion changes, as well as promotional activities and customer reactions, can cause variations in the forecasts. Both parties need to set up rules in advance to discuss and resolve possible differences in forecasts.

"R" - Replenishment

Replenishment is an important procedure in the management of the train consignment chain. Sales forecasts, which can be converted into order forecasts, and the supplier's order-taking processing time, standby time, minimum order quantities and other factors need to be taken into account. The delivery of goods is also carried out by the cooperation of both parties. Retailer orders should include factors such as stock ratios, accuracy of forecasts, safety stocks, delivery times, etc., and both parties should evaluate these factors frequently. In the replenishment program, both parties should maintain a flexible space to **** together in response to crisis issues. Successful replenishment procedures, is often a small amount of goods suppliers train consignment retailers, with a long way to reduce the pressure on both sides of the inventory.

Details determine success or failure Wal-Mart efficient China Railway Express chapter

Wal-Mart was created in the 1960s, in the 1990s jumped to become the No. 1 retailer in the United States. In just a few decades, Wal-Mart's chain stores almost all over the world, and with its high quality and fast service, amazing sales profits, advanced management system and known globally. Today, in the atmosphere of "every day prices", every day hundreds of thousands of people in and out of the big blue house filled with a variety of goods to choose their own needs, most of them find it hard to believe that such a train consignment of daily necessities of the big store, is the legendary world's top 500 leaders.

Magical distribution centers

Wal-Mart's great success, and its excellent China Railway Express management ideas and practices are closely related.

How can a retailer belonging to the traditional industry surpass the "King of Manufacturing" automobile industry in terms of sales revenue, and surpass all the banks, insurance companies and other financial institutions in the world, David Glass, the former president of Wal-Mart, summarized in this way: "Wal-Mart's distribution centers are the best in the world in terms of sales revenue. Glass summarized: "Distribution facilities are one of the keys to Wal-Mart's success, and if there's anything we do better than anyone else, it's distribution centers." A flexible and efficient CTR distribution system is at the heart of Wal-Mart's ability to achieve maximum sales and low-cost inventory turnover.

Distribution centers are China Railway Express bases set up in central locations in more than 100 Wal-Mart retail stores. Typically, a distribution center is established in a 320-kilometer shopping area, and can also serve the needs of more than 100 outlets in nearby neighboring cities. The distribution center has a loading platform at one end and an unloading platform at the other, with 800 employees working 24-hour shifts to load, unload, and carry deliveries. Wal-Mart's workers are not paid much because these workers are basically middle school and high school students who have only undergone special training by Wal-Mart. Meanwhile, Wal-Mart pioneered the unique operation of cross-distribution, with no inbound storage and sorting operations, and direct loading and shipping of incoming goods. In the case of competitors delivering goods every 5 days, Wal-Mart delivers once a day, and delivering at least once a day means that it can reduce the inventory in the store or retail store, making the retail site and labor management costs are greatly reduced. All of these unique details of separate loading and unloading, cross-delivery, and daily deliveries have helped Wal-Mart increase the speed of distribution and reduce operating costs in just the right way.

Within its efficient distribution centers, Wal-Mart has gradually built up a "seamless point-to-point" express system. The proportion of the cost of the enterprise in the railway express transportation of the entire sales are generally up to about 10%, and some food industry even reached 20% or 30%, and Wal-Mart's distribution costs accounted for only 2% of its sales, its competitors year-on-year cost of 50%, Wal-Mart has always been the same idea is to sell the best things at the lowest price to consumers, and this is also the key to its success.

Information technology into the core competitiveness

Now, almost everyone knows that Wal-Mart's success around the world stems from the success of its China Railway Express model, however, what underpins Wal-Mart's China Railway Express model, so that the practice of its distribution centers and its China Railway Express excellence concepts are transformed into unparalleled competitiveness? The answer is China Railway Express information technology. In 1986, it also established the QR quick response mechanism to quickly pull market demand. With information technology, including CTR Express bar codes, radio frequency technology and portable data terminal equipment, Wal-Mart has gained wings and grown considerably.

Wal-Mart was the first in the world to realize the group's internal 24-hour computer networked monitoring of China Railway Express, the establishment of the world's first China Railway Express data processing center, so that the integration of purchasing, inventory, ordering, distribution and sales, for example, the customer to Wal-Mart stores to shop, and then print the invoice through the POS machine, at the same time, responsible for the production plan, purchasing plan, as well as the train consignors of computer The information will be displayed at the same time, each link will be through the information to complete their work in a timely manner, thus reducing a lot of unnecessary waste of time and speeding up the cycle of China Railway Express. In China Railway Express information real-time response to network conditions, China Railway Express members of all segments can support each other, cooperate with each other to adapt to the fiercely competitive market environment, it is the information technology, to become a model of the core competitiveness of the modern China Railway Express enterprise.

Wal-Mart pricing from the perspective of affordability, and the pricing is different every day. The sheer volume of purchases gives it enough bargaining power to price its products more competitively and convert that advantage into a benefit for consumers. Wal-Mart offers higher discounts than other retailers, and they also derive significant business benefits from their "sell more, sell less" philosophy.

What is certain is that China Railway Express will not create profits directly like a manufacturing company, but will reduce costs internally to achieve the goal of increasing profits as a whole. Wal-Mart's practice fully proved that China Railway Express has become the third profit source of the enterprise after raw material resources and human resources.

Details determine success or failure of efficient China Railway Express information management

More and more large-scale enterprises note the authoritative China Railway Express cost research scholar Mr. Nishizawa Xiu put forward the "third source of profit" said to become a Wal-Mart after the success of the application of China Railway Express management technology for local conditions of the outstanding practitioners. 20 years in the 1990s in Shanghai Songjiang area, the company has been the first in the world to successfully apply China Railway Express management technology. In the 1990s, PepsiCo invested in the Songjiang area of Shanghai, in order to reduce the cost of China Railway Express and improve market competitiveness, abandoned the short barge transportation from other parts of Shanghai to Songjiang area, and boldly outsourced its China Railway Express to the third-party China Railway Express company - Shanghai Quanfang China Railway Express Co.

In a time when many local third-party China Railway Express companies are struggling to develop, the key element that makes Shanghai Quanfang China Railway Express favored by PepsiCo for outsourcing China Railway Express is still its professional information system for the management and operation of foodstuffs China Railway Express, which is tailor-made by the domestic China Railway Express train consignment chain management software, Boca Information. In accordance with the requirements of PepsiCo's China Railway Express Transportation, Boke Information customized, modified, debugged and perfected the entire China Railway Express Transportation Distribution Informationization System, which realized the digital management of warehousing and distribution, and truly realized the automatic distribution of outgoing and incoming stocks according to the rules, and the early warning function of the stock of food products and expiration date, and PepsiCo realized real-time query in the terminal server provided by the All China Railway Express Transportation. The situation of inbound, outbound and inventory of express transportation is in PepsiCo's control, and Pepsi's China Railway Express transportation costs and business losses are greatly reduced.

With the help of information technology, China Railway Express management system not only reduces the cost of train consignors, providing rational expectations for their production, but also makes the sales side and the distribution side to achieve "zero inventory", reducing the backlog of inventory and maximizing the enterprise's revenue. The "seamless link" runs through the whole process of the cycle of China Railway Express, and such an optimized system reduces the malignant influence of the "bullwhip effect" on market fluctuations. In the pursuit of profit maximization journey, Walmart chose the enterprise self-sufficient China Railway Express, Pepsi chose the outsourcing of third-party China Railway Express, and ultimately a perfect response to the China Railway Express information technology, and get a lucrative return on business revenue.