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Many people don’t know that 7-11 (Shanghai), Starbucks Coffee (Shanghai), MUJI, Shandong Uni-President Ginza Volume Supermarket… These retail brands we are familiar with are behind a logistics service provider-Shanghai Unichao Logistics.
Faced with different customers and diversified business formats, how does this logistics service provider deal with the dilemma of “difficult to adjust” customer needs?
Perhaps this is exactly the problem that Shanghai Tongchao Logistics has to face. As a logistics company under the Taiwan Uni-President Group, Shanghai Uni-Super Logistics is a subsidiary of Uni-President 7-11 (Shanghai), Starbucks Coffee (Shanghai), Shanghai St. Cool Stone Ice Cream, Uni-President Donuts Food, Uni-President’s Afternoon Tea Scenery, and Shandong Uni-President. Ginza mass merchandise supermarket, Sichuan Youmart, Shenzhen Kangshimei commercial chain and many other circulation companies provide commodity distribution services, involving convenience stores, catering, hypermarkets, and pharmaceutical chains.
Because each format has different requirements for commodity distribution. For example, convenience stores need to be disassembled and shipped, while hypermarkets need to deliver FCL, catering also needs cold chain distribution, and pharmaceutical chains need to manage batch numbers of drugs; in terms of temperature, they need to have room temperature, low temperature, and frozen full temperature layer. Coverage. Therefore, this multi-format, multi-temperature mixed distribution mode puts forward higher requirements for the supply chain management of Unisuper Logistics.
“The difference between our logistics and other companies is that we serve a variety of formats, and the distribution needs of each format are different.” Li Jiahao, planning director of Shanghai Unisupermarket, told reporters.
In this issue of the supply chain version of the case report, we will reveal the operation mechanism of multi-format logistics and distribution for you.
Different customers, different picking modes——
“For 7-11, we adopt pick-up sorting, and for Starbucks’ low-temperature products, we adopt a seeding model.”
The Tongchao Logistics Center (DC), located in Songjiang District, Shanghai, is busy and orderly. The steel shelves of the logistics center several meters high are divided into two parts-temporary storage space and picking storage space. The bottom layer of the shelf is a picking storage location, and the upper layers are temporary storage locations. The picking storage space is used to store “commodities to be picked”. The goods stored here will soon be allocated to the designated area of each store, and then be distributed to the store in a centralized manner. When the goods stored in the temporary storage space need to be replenished, the forklift will move them to the picking storage space.
In other words, after the supplier transports the merchandise to the logistics center, the merchandise will be placed in the temporary storage location, and then the temporary storage location will be allocated to the corresponding picking storage location. Dividing the shelf into two areas seems to increase the complexity of the operation, because there is an additional action from the temporary storage position to the picking storage position. However, in terms of space cost and work efficiency, this approach is actually the best choice.
Space in the logistics center is precious. In order to save space, goods are placed on multi-layer shelves. For goods located on high-rise shelves, if they are directly sorted to the corresponding location of the store, it will undoubtedly increase the difficulty and complexity of picking, and setting picking storage space seems to add a “buffer” to the logistics center, which is convenient The “pick-up” of the product.
Correspondingly, the operators of the logistics center also set up two types of work. One is the forklift driver, who is responsible for moving the goods from the temporary storage location to the picking storage location; the other is the picking staff, who is responsible for assigning the employees of the picking storage location to the designated area of each store according to the order.
Of course, this also brings management challenges.
“The picking staff will not pick them if they see that the goods on the order are out of stock in the picking area.” Wu Yaoming, the director of logistics of Tongchao, told the reporter of China Business News. In order to solve this problem, Tongchao Logistics has set a minimum number of goods in the picking area. Once the goods in the picking area are below this number, the system will prompt the relevant operators to replenish the picking storage space. “The minimum number of picking areas varies from product to product. Some products with high sales, such as purified water, have a relatively large number.” Wu Yaoming said.
So, how does Tongchao Logistics meet the different needs of customers?
In fact, Tongchao Logistics adopts different picking modes for different customers. It is understood that the picking modes adopted by Tongchao Logistics are divided into multiple methods such as electronic label extraction, electronic label seeding, wireless trolley, and manual labeling. “We use different picking methods for different customers according to different customer needs. For example, we use pick-up sorting for 7-11, and for Starbucks low-temperature products, we use seeding.” Wu Yaoming told ” Reporter of China Business News.
Among the commodity sorting modes, the most common one is the picking type. As the name implies, pick-up picking is like picking fruits, which “pick” the goods from the picking storage location to the corresponding area of the store. At the overlap between the first and second floors of each shelf, there is a red LED light. Pickers use RFID (Radio Frequency) tags to scan the corresponding sensing area. The LED lights up and tells the pickers the next step. What’s the job? Which picking storage location is the product to be inspected, how many products are needed, and so on, until the entire order is picked.
“LED lights play at least three functions. First, it can display the number of products that should be picked in the picking storage space; second, it can count the products; and finally, it can also realize the function of product freshness management.” Wu Yaoming said .
It is understood that in order to ensure the freshness of food, according to the principle of “first in, first out”, the ERP system will find the food that is closest to the shelf life and put it into the picking storage position first. All of this is done through RF (radio frequency technology). ) Replenishment system to indicate.
For different customers, how to find the picking mode that suits it? Wu Yaoming’s trick is: customers with many stores and few products use pick-up picking (moving picking trucks); customers with fewer stores and large numbers of products adopt seed picking (the picking truck does not move). Take Starbucks’ low-temperature food as an example. Because of the small number of such foods, seed picking is adopted. In the low-temperature storage of the logistics center, each store has a fixed shelf. If “seeding” is the same, the picker must put the goods of the store on the corresponding shelf of the store.
The essence of the supply chain is a race against time. Therefore, process optimization is essential. In Wu Yaoming’s words, the design of each storage space of the product is exquisite. According to Wu Yaoming’s experience, the storage spaces for fast-moving consumer goods should be placed together as much as possible; the storage spaces for goods of the same size and specifications should be placed together; the storage spaces should be separated for products shipped in pieces and full boxes.
In this storage center covering an area of 14,000 square meters, the pickers swiped the card with a “watch” on the card reader at the far left end of the shelf, heard a beep, and started their day’s work. This “watch” is an electronic label containing employee information, and each employee’s workload, work progress and other information are contained in this electronic label. The work status and work progress of each employee are transmitted to the ERP of Tongchao Logistics via the network.
At the same time, Wu Yaoming was “strategizing” in the office-without going to the scene, he knew the work progress of the logistics center through the office computer. Wu Yaoming learned about the progress of each business in the logistics center through the computer, and found a more time-saving method from it. Therefore, the on-site management of employees through electronic tags not only improves the overall delivery efficiency, but also accurately assesses the workload of employees.
Wu Yaoming called it “Process Optimization (PIP)”. “You can see through the computer which areas have surplus human resources and which areas are insufficient. I will dispatch the rich manpower to the areas with insufficient manpower.” Wu Yaoming told a reporter from China Business News.
From logistics to service——
“Unified Supermarket, 7-11, Starbucks, etc. not only outsourced logistics and distribution to Tongchao Logistics, but also outsourced logistics-related finance, human resources, and information systems to Tongchao Logistics.”
In fact, Uni-Super Logistics is just a replica of Taiwan Uni-President’s logistics business in the mainland. On the island of Taiwan, a company called Jiemeng Marketing supports more than 5,000 7-11 throughout Taiwan like an artery in the whole body. It can be said that Tongchao Logistics is the “mainland version” of Jiemeng marketing.
“You can’t imagine what people’s lives would be like if there were no 7-11 in Taiwan.” Su Tai’an, deputy general manager of Tongchao Logistics, told reporters.
Because 7-11 not only sells goods in Taiwan, but also provides various community service functions, including photo washing for consumers, payment of water, electricity, gas, communication, cable TV, telephone cards, stamps, and envelopes. , Providing many convenient services such as copying, faxing, online shopping, etc. Therefore, 7-11 has become an indispensable part of local people’s lives.
As a huge support system for Taiwan’s 7-11, Jiemeng Marketing distributes more than 60,000 tons of goods to more than 300 villages and towns in Taiwan each month, becoming Taiwan’s largest logistics company. In 2008, Jiemeng’s sales and distribution amounted to NT$45.4 billion. . Similar to Shanghai Tongchao Logistics, in addition to providing services for 7-11, Taiwan Jiemeng Marketing is also responsible for Uni-President Group’s Starbucks, Shengku Stone Ice Cream, Uni-President Donuts Foods, Uni-President’s Afternoon Tea Scenery, Kang Shi Mei, etc. Delivery to Taiwanese stores in a variety of formats.
If you understand its background, you will find that this logistics company has evolved from a department responsible for logistics. In 1900, Uni-President Superstores independent of the original logistics department (department) as a professional logistics company, and established Jiemeng Marketing Co., Ltd. Currently Uni-President has three logistics systems, namely: room temperature logistics, low temperature logistics, fresh food flow, Print logistics.
Jiemeng Marketing takes “introducing new technology and equipment, improving operation procedures, and improving logistics operation efficiency” as its logistics operation direction, and provides fast, correct and punctual services to stores. The application of computer and network technology has improved the work efficiency of each link in the logistics center. The work process is: the computer ordering system calculates the recommended order quantity according to the inventory and average shipment volume, and assists the ordering staff to order; the computer picking system assists in picking ; Conveyor belt and distribution system bring together the turnover boxes of dismantled goods in the same store; the computer transportation scheduling system assists the dispatcher to arrange the order of the delivery stores, choose the transportation route reasonably, and arrange the merchandise sorting according to the order of the delivery stores. The computer mainframe of the wireless transmission facility and the computer terminal on the stacker and the palm-type terminal realize the real-time transmission of information in the operation area of the logistics center.
Of course, whether Shanghai Tongchao Logistics or Taiwan Jiemeng Marketing, logistics and distribution are only one of the contents. The concept of intensive service is highlighted behind the logistics distribution.
The parent company of Uni-Super Logistics and Jiemeng Marketing is affiliated to the circulation sub-group under Uni-President Group. The unified supermarket is divided into catering, retail, department stores, leisure, express delivery, logistics and other businesses. UniSuper Logistics is not only responsible for unifying the distribution of goods in the mainland of Supermarket, but also provides various services such as site selection, engineering, IT, finance, human resources, legal affairs, and public relations for other brands under its umbrella.
In Unified Supermarket, 7-11, Starbucks, etc. not only outsource logistics distribution to Tongchao Logistics, but also outsource logistics-related finance, human resources, and information systems to Tongchao Logistics. 7-11, Starbucks is mainly responsible for Store marketing and planning, and other “peripheral” matters are handled by Tongchao Logistics.
In the Songjiang distribution center of Tongchao Logistics, a row of shelves is specially set up for storing office supplies in the store. In fact, the equipment procurement and distribution of Uni-President’s stores also follow the commodity logistics system. Regarding such an initiative, Wu Yaoming said that the unified distribution and management of office supplies by Tong Chao Logistics can not only save office supplies expenses in stores, but also grasp the purchase and loss of office equipment in stores, which will help store management.
“This intensive management helps each business unit (BU) concentrate on what it is good at, and for the entire group, saving costs is equivalent to spending a penny and doing two things.” Su Tai’an said.
Collaborate with stores——
“Logistics distribution, seemingly ordinary, but how do all the links such as ordering, supply, inspection, warehousing, replenishment, order receiving, tallying, distribution, and customer service, connect in series? How to achieve maximum efficiency at the lowest cost? This is the biggest A topic that needs a breakthrough.”
So, another question is, how does Jiemeng marketing work together with the store?
At around ten o’clock every evening, the store manager will place an order to the distribution center through EOS (electronic ordering system), and the order will be transmitted to the company’s FTP (file transfer system). After FTP receives the order, at about nine o’clock in the morning of the next day, the system will operate a “collection order” program inside the system. About to merge the orders of different stores according to the format, for example, merge 7-11 and Starbucks together.
At about ten o’clock in the morning, the distribution center will start “catching orders” on FTP, download the store’s orders to the distribution center’s server, and start preparing for sorting and delivery. In order to ensure that the distribution center will not miss the order during the “acquisition” process, after the “acquisition”, the system automatically executes the verification procedure and reconfirms the order with the store.
Next, from 12 noon to 19 o’clock in the afternoon, it is the time for the distribution center to pick the goods. As described in the previous article, the distribution center will adopt different picking modes according to different customers, and collect the goods needed by each store to the designated area, and finally transport them to the store by the fleet.
According to the requirements of supply chain management, orders placed in the store on the same day must arrive at the store before six o’clock in the morning of the next day. When the distribution center arranges the fleet to transport the goods, the “farthest principle” is implemented, that is, the store that is the furthest away from the distribution center is the first to be delivered. Only in this way can the goods arrive on time. Taking Shanghai Tongchao Logistics as an example, the distribution center in Songjiang has a distribution range of Yangzhou-Yiwu-Nanjing-Pudong, and Yiwu is the furthest away from the distribution center, about 354 kilometers. Therefore, orders from stores in Yiwu area are processed first.
Around 12 noon every day is also the most stressful moment of Wu Yaoming’s day. What Wu Yaoming is most worried about is the failure to receive orders. “Sometimes line problems or communication failures may cause the system to’lost orders.’ In addition, the operator’s operation errors may also lose orders.” Wu Yaoming told reporters of China Business News Express.
As an intermediate link in the supply chain, the distribution center needs to connect with downstream stores. “Our logistics system has been connected with the 7-11 store system, and the store can see the inventory of the goods in the distribution center at any time,” said Wu Yaoming. Although, as a logistics service provider, Tongchao Logistics belongs to “Party B”, the distribution center can make some suggestions on store orders based on product inventory data.
“We have set an upper limit for single product orders in the system. Once this limit is exceeded, the system will issue a warning. For example, according to past experience, a certain product needs to be ordered at most 50. Exceeding this number may bring inventory to the store. Pressure. However, due to operating errors of the store personnel, 100 orders may be ordered at a time, and the system will issue a warning at this time.” Wu Yaoming told reporters.
For suppliers, the logistics center also has the right to manage them. In the office area of Shanghai Tongchao Logistics, densely packed forms are drawn on a whiteboard. One of them is the “out of stock factor”. “There are three unfilial piety, and no’goods’ is the big one. Suppliers are not supplied in time and picking out of stock affects the sales performance of the store. Therefore, the factor of out of stock is a key KPI (key performance indicator) indicator of our supply chain. “Wu Yaoming said.
“For logistics and distribution, it seems very common if the links are disassembled, but from the perspective of the entire logistics center process, ordering, supply, inspection, warehousing, replenishment, order receipt, tally, distribution, customer service, etc. How to connect all the links, how to achieve the highest efficiency and provide the best service at the lowest cost, is the biggest topic that needs to be broken through. Logistics is an ordinary job; but it is an extraordinary career.” The profound significance lies in this, Wu Yaoming said .
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