"Whoever can seize the problem of the central warehouse can seize the future." These words that point out the importance of the central warehouse come from an old ceramics person who has been deeply involved in the construction and ceramics terminal market for more than 30 years - Geshi Ceramic Tile Chengdu Distributor Fan Chengke.
In recent years, the topic of central warehouses has often been mentioned by many manufacturers in the upstream of the ceramics industry. Many ceramics companies have successively deployed central warehouses across the country, opening up a new situation in the back-end services of the terminal market in the ceramics industry.
1 Ceramics companies and dealers are facing severe inventory pain points
In recent years, the growth of the real estate market has slowed down and the proportion of finely decorated houses has become increasingly obvious. Under this situation, the development of the building ceramics industry has slowed down significantly, from the incremental market to the stock market, and market competition is increasingly intensifying. At the same time, in the face of shrinking growth momentum, the shortcomings of the industry's emphasis on warehousing and logistics have begun to emerge.
Keeping inventory has always been a common phenomenon in the entire ceramics industry. Once the ceramic tile kiln is fired, it cannot be easily stopped or converted. The reason for this is not only the high cost of switching production and opening a kiln, but more importantly, to ensure a certain scale of inventory products. In the early days of the industry, the building and ceramics industry had no worries about sales, and the inventory held by ceramics companies was equivalent to hoarding gold. However, as the industry enters stock competition, non-stop operation of kilns and the accompanying inventory have become the biggest burden and risk for ceramic companies.
Relevant data shows that as of the end of 2020, the ceramic tile inventory of three listed companies in the construction and ceramics industry has reached nearly 100 million square meters. Among them, the inventory of some ceramics companies has increased by more than 50% within one year. Much higher than the production growth rate. Huge inventory pressure is directly reflected in warehousing costs. Warehousing costs for ceramic companies include not only high self-construction costs or rental costs, but also hidden costs including standardized management and digital operations. Therefore, the preparation and inventory of ceramic tile products and the improvement of inventory turnover rate have become common concerns for ceramic enterprises.
The ones who are most worried about inventory issues are terminal dealers. Ceramic tiles are large in size, heavy in weight, and difficult to transport. These characteristics determine their shortcomings of slow transportation speed, low efficiency, and high circulation costs. To reduce costs and improve efficiency, dealers also need to prepare their own inventory. There are many types and specifications of ceramic tile products, and the popular decoration styles in the market are changing rapidly. While dealers are preparing new designs and colors, they are unable to sell the old products in stock, and the inventory pressure is increasing.
2 The central warehouse has become the key to reducing costs and improving efficiency
At present, problems such as high inventory pressure and high logistics and transportation costs have caused dealers to feel considerable pressure to survive and are in urgent need of help from manufacturers. at the same time,More and more dealer franchise brands want to invest lightly and do not have inventory. When a ceramic company is recruiting investment, how to attract dealers to join? Whether to establish a regional central warehouse becomes key.
Ceramics companies have set up central warehouses in important logistics centers across the country, which will help the brand in at least two major ways.
For dealers, manufacturers set up central warehouses, and dealers operate terminal stores directly cutting off inventory and stocking. This saves a large amount of operating costs at the beginning of opening the store, and can travel lightly, to a large extent. Business risks are avoided. In addition, setting up a central warehouse can greatly shorten the logistics transportation distance and time, help dealers save logistics costs, improve distribution efficiency, realize sales and product inventory to be closely linked, and reduce later operating difficulties. At the same time, the huge storage capacity of the central warehouse can also ensure sufficient supply of products and respond to customer needs in a timely manner.
For ceramic companies, setting up central warehouses across the country not only reduces the inventory pressure on ceramic headquarters, but also effectively helps dealers reduce operating costs, becoming a highlight of brand investment. From the perspective of brand strategic layout, the central warehouse radiates to third- and fourth-tier cities, and ceramic enterprises can use this to form a highly advantageous "asset-light operation" investment model, thereby realizing channel sinking, quickly opening up the market, and expanding market share.
As the key to reducing costs and improving efficiency in terminal store operations, dealers are happy for manufacturers to set up central warehouses. Yang Zhongquan, a Chengdu dealer of Eagle Brand who was interviewed by China Ceramics Network in the "Tao Xing China" national ceramic tile and sanitary ware market survey, said that the most direct and effective role of Eagle Brand in setting up a central warehouse in Chengdu is reflected in the development of distribution channels. At present, Chengdu Yingpai has developed 30-40 secondary agents. The central warehouse + Yingpai store model has largely solved the problems of inventory preparation and logistics for these outlets. According to a dealer of Eagle Brand in Taiyuan, Shanxi Province, Eagle Brand has set up a central warehouse in Beijing and Tianjin, which can reduce its single logistics cost by more than 40%.
3 Ceramic enterprises build their own central warehouses or cooperate with home furnishing logistics companies
In recent years, many ceramic companies have realized the importance of setting up central warehouses for brand development, and have vigorously established central warehouses, such as Jiajun, Yingpai, Guanxingwang, Samit, Huiya, etc. Among them, Yingpai and Guanxingwang also used central warehouses to develop a profit model of "light asset operation".
It is understood that Yingpai has established stores in Hefei, Anhui, Shijiazhuang, Hebei, Linyi, Shandong, Chengdu, Sichuan, Gao'an, Jiangxi, Nantong, Jiangsu, and Changsha, Hunan.It has nine central warehouses in Jinan, Shandong and Beijing and Tianjin, covering Southwest, North China, East China and other regions. In the future, it will continue to expand the layout of central warehouses in various regions. After launching the Eagle brand store project in April 2020, as of the end of 2020, Eagle brand has opened more than 100 Eagle brand stores. Guanxingwang has built a marketing model of central warehouses + smart stores, and has successively deployed central warehouses in central cities such as Guiyang, Tianjin, Changsha, and Nanjing. Brand investment activities have also been carried out vigorously across the country. In 2020, there were more than 160 new customers nationwide. Bit.
All the ceramic companies listed above build their own central warehouses to empower dealers, while Oceano has developed a service model, which is to cooperate with home logistics companies.
It is understood that Oceano and home furnishing logistics company Anju have deployed central warehouses in Nanjing, covering the two major provinces of Anhui and Jiangsu, and use their intensive warehousing operations to help manufacturers empower dealers. What Yi Anju provides to Oceano is an overall supply chain solution, not just warehousing and logistics. It also provides integrated trunk line, distribution and upstairs services for large slabs and rock slabs. Li Yao, general manager of Oceano Supply Chain Management Center, once said that in order to empower dealers, Oceano had previously built seven central warehouses across the country and also tried to build and develop its own service team and service system. By comparison, he believes that it will be more efficient with a systematic and professional third-party service provider.
It is reported that there are many professional home furnishing logistics companies like Yianju. Such companies are represented by Jiajutong, Yizhitong, Yiyoutong, Yianju, etc. Their core business is home logistics, providing home furnishing e-commerce services across the country. , manufacturers, dealers, and consumers provide one-stop full home logistics services, as well as two business models: outsourcing and direct operation.
As the key for ceramic companies and dealers to reduce costs and improve efficiency, central warehouses are an important means for brands to empower dealers and expand rapidly through lower markets. Do you recognize the value of the central warehouse? Has your brand set up a regional central warehouse? Welcome to leave a message to discuss!
(Author: Sitao)
