New Retail From Supply Chain To Demand Chain Evolution

Under the new competitive environment, simple supply chain management thinking needs to evolve: this evolution is based on better and timely customer satisfaction oriented.

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In fact, from the point of view of management, the nature of supply chain and demand chain is interlinked. Both emphasize coordination and integration, emphasize the overall efficiency, and pay attention to efficiency and cost.

The biggest difference is that the "demand chain" management emphasizes customer orientation, takes the analysis and research of perceived customer needs and commodities as the starting point of management, and links all functions of the supply chain, such as inventory, production, procurement, logistics and so on, together with the front-end demand and commodity management to form a closed loop and data closed loop, from the beginning of demand to the middle production and then to the final distribution. This is the key idea that must be borne in mind in the innovation and evolution of retail enterprises.

The evolution from supply chain to demand chain originates from

The process of management, selection, prediction, replenishment and promotion of goods is separated from consumers and consumption scenes. That is, the degree of refinement of the location and supply organization of many products is far less than the emphasis on consumers' portraits. That is, they do not have a full and in-depth portrait of the products they sell, and at the same time, they do not fully integrate the product portrait with the consumer portrait and the type of "field".

It leads to not knowing what shops should sell, what is the real reason behind the good selling products, and the sales of the products and the losses caused by the loss of the best sellers, which are the core elements of the three retail outlets of people, goods and markets.

If these questions can not be answered, the management of the back end supply chain will take care of it.

Moreover, the production, purchase, inventory and logistics plans at the back end of the supply chain are not fully linked with the front-end commodity plan and demand plan and promotional pricing plan, which leads to the contradiction between demand and supply. The problem is that consumers do not enjoy the back ends of the commodities they really like, but the goods supplied by the rear end do not need the front end, and the sales and supply chains are in conflict.

It seems that enterprises are developing at a high speed, but there are many hidden dangers in operation, such as sharp increase in personnel, rising costs, serious waste, low efficiency, customer complaints and so on. They become the sharp sword hanging on the head of retailers, and there is hardly any linkage between the retailer's business plan and the integration of financial plans.

The final result is that although both the front end and the back end generate and collect a large amount of data, these data are often not utilized, lacking of deep analysis and data mining, resulting in inadequate data analysis for business guidance, and much of the work also relies on low efficiency support of manual heap and spreadsheet.

It also needs to influence demand and even lead demand. This requires intelligent demand chain management centered around the overall framework of "people, goods and fields" to enhance the accuracy of business forecasting, and provides solutions for application scenarios such as intelligent commodity management, intelligent pricing, promotion management, sales forecasting, automatic replenishment and allocation, inventory management, logistics planning, decision-making simulation and so on. These scenes are completely connected in series, and are not fragmented. The ultimate goal is to achieve intelligent and efficient decision-making of relevant application scenarios. The essence is to solve the five core problems of "what to sell, how much to shop, how much to promote, how much to make up, how to earn", and really solve the pain problem of retail enterprises as the scale of revenue increases, inventory growth is too fast and labor costs are too high. The requirements of the new retail and new circulation industry on the management of commodities are not limited to meeting the needs.

For example, 1 billion of sales companies often stock around 2-3 billion.

But when revenue growth to 6 billion, enterprises do not want their inventories to grow to 15-20 billion over the same period. It is necessary to introduce the concept and technology of demand chain management at 1 billion, so as to help enterprises effectively control the proportion of inventory sales to 15%, and the profit margin will be increased by more than 5-10%.

In addition to data driven decisions, demand chain management needs to upgrade through the "data driven decision" to pform the collaborative relationship between consumers, retailers and product suppliers. It means that the analysis of capital flow, information flow and commodity flow will go beyond the height of consumers and enterprise organizations (value alliance), and seek the best collaborative relationship in the whole demand chain value maximization.

Therefore, enterprises must shift the focus of attention from supply to consumer demand, making the demand chain possible: more than the supply chain provides consumers with more value.

The demand chain leader is consumer demand, and the form of consumer demand is actually commodity. Therefore, guided by the demand of consumers, the chain of supply chain is driven by the meticulous management of commodities, and eventually becomes a closed loop, which becomes the essence of demand chain.

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