Retail industry chain management solutions

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1. The primary characteristics of chain operations

Chain operation is a form of commercial organization and management mode, which is a commercial operation carried out by a consortium of several shops or branch enterprises under the unified leadership of the same business name.

The characteristics of chain operations are mainly that the headquarters is responsible for purchasing and distribution, and stores are responsible for sales. Through the standardization of corporate image, the professionalization of business activities, the standardization of management methods and the modernization of management methods, complex business activities are based on the division of functions. , The realization is relatively simple, so as to realize the economies of scale. The characteristics of chain operations are six unifications: unified procurement, unified distribution, unified identification, unified marketing strategy, unified price, and unified accounting.

It is easier to confuse chain operation with unified distribution. As the name suggests, unified distribution means unified purchase and separate sales. In order to reduce the cost of purchasing, several sales departments united to make centralized purchases. By increasing the quantity of single batch purchases, the profit margin of the purchasing department was increased. There is no requirement for a close relationship between the various distribution departments, and it is a lower-level organizational form.

As a chain headquarters, more important than unified procurement and unified distribution, it must also have the functions of comprehensive management planning, product development, business model development and research, business guidance, and staff training to ensure that corporate characteristics and operating styles are available in all chain stores. Can be faithfully reflected. Develop a set of standard and feasible operation and management models and effectively implement them in the branches, and lock the customer’s feelings about the chain brand, which is the prerequisite for establishing the chain system. Therefore, a shipping store with only unified distribution functions can never be regarded as a chain headquarters, and unified distribution is by no means a chain operation.

2. Chain operation is the integration of a complete set of retail business operation technology

As an advanced form of commercial organization, chain operation is embodied in the integration of a set of commercial operations. This technology integration should include at least five core technologies:

1. Computer management technology. Computer management system is the soul and forerunner of chain operation. Mature computer management technology should include at least the following aspects: system technical specifications and data standards, powerful network link functions, reliable background and foreground processing systems, convenient operation control systems and operation interfaces, and continuously improved system intelligence.

2. Central procurement technology. The central procurement system is the cornerstone of the chain. Its core lies in the use of computers as the basis, the integration of duties, responsibilities, powers, and benefits as the standard, quantitative assessment and variety management as the means, comprehensive use of a set of mature procurement operations technology, and implementation of centralized Purchasing achieves the goals of reducing costs, improving efficiency, and increasing sales, and it is by no means the concept of unified distribution.

3. Logistics distribution technology. Logistics distribution is a key link for the smooth operation of chain operations. Without successful logistics and distribution technology, there will be no successful chain operations. Logistics distribution technology includes: data import, bar code preparation, distribution system, distribution quantity, variety control, return processing, warehousing and transportation, etc.

4. Marketing innovation technology. As market competition intensifies, marketing innovation technology has become increasingly important. Marketing innovation technologies include: store CIS design, holiday combined marketing, special display, variety management, sales methods, customer resource management, service etiquette, etc.

5. Human resource management technology. The technology emphasizes the development and utilization of human resources, emphasizes cost and efficiency, cultivates team spirit, establishes an assessment system and incentive mechanism, enhances the loyalty of talents to the cause, and changes passive personnel management to active human resource management. Through its corporate culture penetration and human resource management, Wal-Mart changed the stereotyped and solemn of the German sales staff to enthusiasm, increased the contribution rate of employees, and strengthened the cohesion and affinity of the company.

3. Management control is the guarantee of chain operation

Chain operation is a close organization form. A series of strict and complete systems have been formed to regulate various behaviors and relationships in order to ensure the efficient operation of the organization. The chain headquarters’ management and control of the chain stores are mainly manifested in two aspects. The first is the implementation of the business management model, and the second is the grasp of the information flow.

1. Standardized and modelized operation and management.

The essential feature of chain operations is that the chain headquarters share resources and capabilities with all chain stores. As the specific management of the management philosophy of the chain operation headquarters, the chain headquarters must use advanced business management concepts for employee training, employee work arrangements, responsibilities, service standards, store display, advertising, marketing, customer relations, customer complaint handling procedures, and inventory Conduct in-depth research on all aspects of chain store operations such as control procedures, accounting procedures, cash and credit management procedures, safety production, emergency handling, etc., standardize every work in the chain store management process and form a chain list Shop work manual. It is the most important training material for chain store employees and a quick reference manual for the daily operation of chain stores. Based on this, the chain stores carry out all daily operations and share the operating technology of the headquarters. This is a necessary guarantee for the headquarters to ensure that the chain stores carry out all business activities in accordance with a unified standard model, and it is also a necessary condition for copying chain stores.

2. Fully grasp and use information flow. The development of chain operations determines the increasingly decentralized nature of operating stores. Faced with chain branches in scattered locations, the headquarters must enable all sales front-end and back-office support agencies to share information in real time. The headquarters management agency must implement “zero distance” management of the chain stores to achieve real-time monitoring of all business links and take care of these aspects. The information involved is recorded in real time and analyzed in depth. Otherwise, the formation of a chain network will not be possible, and the advantage of the chain operation that the overall is greater than the sum of the simple parts will not be reflected.

Chain operation is a relatively new form of business operation. It represents a set of advanced management ideas. It relies on scientific and technological information and standardized management to carry out low-cost replication and expansion, thereby achieving economies of scale. It is the inevitable requirement of the enterprise’s own development after the enterprise has developed to a certain extent, and it is a manifestation of the mature development of the enterprise.

With the development of the industry, most of the current chain dealers have realized the informatization of warehousing, logistics, and cash register systems in each headquarters and remote chain stores, and can perform detailed statistics on the inventory of goods in each chain store, but , The data exchange between each branch and the headquarters adopts more traditional methods, such as dialing, and transmitting data regularly every day. The headquarters cannot obtain the data of each chain store in real time, and the cost of telephone charges is also high.

An earlier popular solution was to use DDN/FR dedicated lines to interconnect stores with the headquarters. However, the disadvantages of this method are also obvious. The installation speed is slow, and the increase of branches is restricted by local lines. The shortcomings such as high cost of use, in today’s chain industry is getting meager, its expensive use cost is unacceptable; and if you continue to use the telephone dialing method, there are weaknesses of slow speed, small capacity, and poor security; the chain industry There is an urgent need for a reliable, safe, and cost-effective network transmission solution.

In recent years, VPN has attracted widespread attention because of its characteristics that it can use public network resources to establish a safe, reliable, economical, and efficient transmission link. With the support of VPN technology, chain stores in different regions only need to access the local Internet to form an efficient and unified VPN network. Most VPN solutions are based on traditional VPN technology, suitable for various access methods, use NAT to solve the problem of lack of addresses, develop an easy-to-use management interface, flexibly find faults and attacks, formulate Internet behaviors, and control Internet whitelists and blacklists. The list, etc., provides a high-security, high-performance, and high-stability VPN solution for the chain industry.

The specific functions are introduced as follows

Basic data

Multi-level coding structure, product SKU contains multiple attribute values. Product number management of style, color and code is clear and scientific. Advanced coding scheme is the key to excellent stability of information system.

Commodity information, supplier information, employee information, regional information, etc. are clearly classified and structured scientifically.

The system can formulate different operation permissions for different operators and cashiers, which can effectively control the permissions and correspond to the management structure and work function division in the enterprise. At the same time, for the operators with the same operating authority, the specific data operation authority can be set in detail, and the data range that they can operate can be strictly controlled.

Procurement system

Procurement management is the source of all businesses. How to purchase goods reasonably, not only can ensure continuous purchase, but also reduce inventory, reduce the capital occupied, and promote the virtuous circle operation of the enterprise, which is the focus of each business’s planning. The system takes these issues into full consideration, and can use commodity codes or barcodes completely. In each business document, use the interchange calculation of bulk, box, and quantity to realize multi-channel generation of purchase-related documents.

Sales System

Wholesale customer management:

Carry out comprehensive information management for customers, grasp customer-related information, and detailed purchase history. And use this as a basis to evaluate customer grades and credit limits, as well as credit indicators such as discount rates and return rates owned by customers. Detailed customer management reports provide concise and clear customer information.

Sales Order:

When making a sales order, the system automatically prompts detailed inventory information and customer information. The operation is simple and effectively improves sales efficiency. The rights and responsibilities are clear, and the person in charge of each document can always track the detailed status information of the document in the operation process.

Allocation and distribution system:

Based on sales at the front desk, automatic replenishment can be implemented with one-for-one replenishment, or special replenishment can be requested.

Warehouse Management System

Strictly control incoming and outgoing goods, with clear and detailed records of all types of incoming and outgoing goods, and standardize the warehouse incoming and outgoing processes. Make the goods in and out of the warehouse scientific, standardized and accurate. Detailed records of each entry and exit of the product details and related documents, the reason, the person in charge of each link, and the status of the entry and exit documents at each stage. And can inquire at any time.

Provide customers with scientific and standardized warehouse inventory methods and inventory operation procedures.

Scanning of warehouse storage greatly improves the efficiency of warehouse storage.

It supports inventory counting device for warehouse inventory.

Branch Management System

Supervise the inventory and sales of all branches and counters across the country. Always review the relevant sales information and daily operations of each sales outlet, and the relevant reports can reflect the relevant information of each outlet in detail. The system supports sub-regional management of stores and realizes multi-level store structure composition.

Decision Analysis System

Based on scientific commodity attributes and level division, the system provides detailed, scientific, and effective analysis reports based on the huge business data in the database. It can help companies review the sales and inventory changes of products of different regions, types and attributes, comprehensively and accurately reflect the operating conditions within a period of time, and help decision-makers to more intuitively grasp the company’s macro and micro conditions.

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