Septwolves CIO peak Interpretation: "Wolf Totem" balance of the road

Monopod believes that enterprises should use IT to manage well the internal strength, in order to support the further expansion of enterprises 189 Lian Yue Road, Xiamen, seven wolves flagship store, seven wolves often appear Chairman Zhou Shaoxiong Industrial Co., Ltd. figure. He takes a stroll to this busy store on the first floor of the headquarters building every day, and sometimes he adjusts the store's furnishings according to different costumes. Each adjustment, will be online and offline through the seven wolves system spread throughout more than 3000 stores north and south. Thanks to its strong channel expansion and marketing, Septwolves achieved high growth for several years in succession. Its 2007 main business income was 876 million yuan and its net profit was 88.7 million yuan, up by 79.6% and 77.2% over 2006 respectively. In the economic downturn in 2008, the Septwolves also achieved strong contrarian growth with total revenue of 1.65 billion yuan and net profit of 140 million yuan in 2008, an increase of 59.8% over 2007. The end of 2007 seven wolves have stores (counters) more than 1900, now has exceeded 3000. Just as the Septwolves triumphed all the way, Zhou Shaoxiong made a surprising decision to slow down expansion. "In a period of rapid development, if the management system and the information system can not keep up, the weaknesses of the operation will be exposed, so we need to build a system to practice internal skills." Seven Wolf CIO Shan Feng said. Not long ago, seven wolves supply chain management system to complete the first phase of the implementation, sales and ordering efficiency greatly improved, but also the dealer management into a visual orbit. In Fujian, as the leader of clothing cluster, Septwolves was the first to stand out through brand operation and dealer channels. After a few years of rapid expansion, Zhou Shaoxiong believes that only by strengthening the management of the background and continuously exerting the management's marginal effect can the cost and risk of expansion be reduced. H & M's supply chain system is appreciated by Chow Siu-hung, a European retailing magnate who believes in a business philosophy of "time, quality and price" that seeks to strike a balance between efficiency and cost. Compared to another European clothing giant ZARA, H & M has attracted more customers because of cost control and a one-third cheaper commodity price than ZARA. However, do not forget, H & M and ZARA's management model is dominated by direct sales stores, which can strengthen the channel terminal control. As is still the wholesale and franchise-based seven wolves, how to follow the H & M? Change mode and all the garment enterprises in Jinjiang, Quanzhou, Fujian, like the seven wolves at first through the development of regional distributors, through their understanding of the local market and influence, to jointly expand the market. With the development of enterprises, Septwolves gradually developed into a wholesale business, franchising business, franchise stores supplemented by mode, the proportion of direct sales stores less than 10%, currently less than 300, but the Septwolves are still increasing The number of outlets. For the retail industry, no matter what mode of development, the control of the terminal is very important. In the dealer mode, when the clothing wholesale to the dealer, the ownership transferred to the dealer there, and store management, product display, and even discounted sales recommended by the seven wolves, but still dealer-driven, Septwolves had been difficult Channel terminal influential. However, the success of the Septwolves at that time lay in the brand operation. Through a series of commercials such as television commercials and films, the brand image of the Septwolves gradually gained popularity and the terminal sales continued to increase, which also brought huge profits to dealers . Constant brand, making seven wolves in the dealer's position is also getting higher and higher, seven wolves in the channel of voice is getting stronger. In order to strengthen the management of the channel terminal, Septwolves hope that the concept of direct retail into the wholesale model and join the model, the original wholesale-based management mode to the direct management of retail business model changes. Wholesale model to inventory management as the core, while the retail direct mode stores and merchandise planning and management as the core, compared to direct mode can achieve more sophisticated management, faster response. In the previous wholesale model, the seven wolves store replenishment always need to check every night after the daily report, and to assist regular inspections of the store to know the number of replenishment, replenishment relatively passive and slow. Most importantly, if you can not keep up with the sales data, it is difficult for the enterprise back office to respond quickly to the market. After the transformation into the retail direct mode, Septwolves headquarters for each store replenishment advice, promotion time, the price can immediately through the system recommendations. For example, when the replenishment, when discounted promotions, the discount rate of sales, how to decorate the display and other details of the shop, all through the headquarters of the Septwolves in Xiamen passed to the dealers, franchisees and outlets. From a management point of view, the retail direct marketing model is more proactive. However, the mere shift from the wholesale model to the retail model does not fully improve the efficiency of the supply chain. A fast and flexible response to the market requires granular control of every aspect of the supply chain, including re-carding and process optimization at every point of production-manufacturing-sales. Zhou Shaoxiong opted to slow down growth without realizing the optimal allocation of the entire value chain. Extending the supply chain Careful franchisees found that after the summer of 2008, receiving errors greatly reduced the situation. They do not have to come back and forth to return the wrong goods. Prior to this, the Septwolves used manual loading, the carton is always handwritten section number, number of pieces, customer number and other parameters, but often mixed mixed color mixed delivery; or delivery quantity abnormalities, mainly reflected in the number of short , Outside the box marked non-standard, illegible writing, there is no packing list when it arrives, let alone automatic data analysis, supporting decision-making. The chaos of these goods went awry, starting with outsourcing factories upstream of the supply chain. In these years, the Septwolves gradually separated their production as an independent accounting unit and outsourced manufacturing to the Auxiliary Factory. At present, there are more than 100 SEW factories owned by more than 100 wolves. Except for the plant that retained its own 2,000-plus factory in Jinjiang, the birthplace of the Septwolves, all other production is completed by the SAFE. More than 100 outsourced factories were not standardized on delivery before, but different outsourcing factories, if they did not work well together, could have an impact on shipping efficiency and customer satisfaction. From June 2007 to April 2008 alone, there were 82 complaints and complaints from customers due to the more serious receipt of goods. Let's see how H & M does it. H & M does not have a self-built factory and is manufactured by more than 200 suppliers around the world. By implementing its global IT operations platform, H & M can respond quickly to fashion at a low cost. This is H & M's commitment to global resources Flexible configuration. H & M's strengths in the product arena are the organization and control of the product forecasting phase. More than 100 designers focus on global trends and features, absorb popular elements, and rapidly communicate consumer purchasing features through the store end system to organize production. Under a tight system, H & M guarantees a low-cost, rapid response from the popular forecast-design-production-product feedback-sale phase. In the summer of 2008, Septwolves implemented the GSP (Generic Scan Pack System) system for improving the factory's scanning packaging process. The original manual packaging was changed to a computer-scanning packaging. Order data can be easily and quickly obtained through the order data import function. Order splitting and consolidation capabilities for flexible order management. "The packing process is changed from manual to computer scanning and packing, the accuracy can reach 100%, the time is greatly shortened and the outsourcing factories cooperate with each other better." Introduction of Septwolves Information Center Wu Dongyu. Septwolves headquarters furnishings will be passed online and offline system to reach more than 3,000 stores across the country now has the core of the 30 outsourcing factories in the application of the system, they completed the seven wolves production orders, down from the assembly line When the box, each one needs to be scanned, if the wrong product is swept, the system will automatically prompt, so on the one hand will reduce the error rate of outsourcing factory packing, on the other hand seven wolves can quickly get the factory packing data , At the same time seven wolves headquarters will be able to reserve the warehouse according to the number of goods. Based on the GSP system, Septwolves can obtain the data of production and sales management and warehouse inventory management in time so as to arrange production plans and dispatch outsourced production resources more rationally. GSP system to achieve good control of the Association plant, no complaints have occurred. Not only the coordination of the upstream plant, unimodal pursuit of the production, distribution channels and end-consumer three aspects of the overall efficiency of the supply chain. At the channel end, the Septwolves, with more than 3,000 specialty stores (cabinets), are evolving into supply chain systems that play a role in business operations. At the just-concluded seven wolves spring apparel fair in March 2009, the just-in-time category planning module made Zhou Shao-hsi more clearly see the Septwolves' very detailed ordering data, which is crucial to the apparel industry. "We expect to find a viable way to achieve OTB (Open to buy) in the retail industry by dynamically allocating limited budget funds to the procurement of goods that generate the greatest profits or the largest market share." Monopoly frankly category plan is one of the foundations to build OTB. OTB, refers to the predictable turnover, capital and product turnover, to develop a procurement plan for each product. In the category plan, presents a variety of product styles, colors, styles, pricing, sales and other historical data, so Septwolves headquarters in the early stages of new product development, the market layout, sales targets in all channels have a comprehensive The planning, guidance seven wolves development team and buyers in accordance with this model to develop and help each channel to establish order planning. Prior to the application of the category plan, the various data of the goods scattered in different systems in various departments, the Septwolves can not be standardized analysis of the various indicators of goods, dealers often feel the order, the marketing and product teams are difficult to consistency Review the order data based on. In this way, on the one hand, dealers can not know the more accurate trend analysis and choose the right product, on the other hand, the terminal can not reflect the Septwolves to guide the development of goods. After the realization of the category plan, it has opened up the flow of various data and can be analyzed and shared at any time. As time goes on, the historical data of commodity index and marketing index will be gradually improved, and there will be more order bases for headquarters and distributors, laying the foundation for smooth planning, development and ordering process. Septwolves also take into account the extension of information on the upstream and downstream partners. For the downstream distributors, seven wolves have a dedicated team responsible for the dealer's shop or counter, to help them install the POS system, and even to help franchisees to plan and check their system. As for the upstream factory, the Septwolves will not only copy the system to more than 100 outsourcing factories, but will also include the manufacture of upstream-fabric manufacturers into the deployment system to understand the production and inventory of the fabrics. In unimodal planning, the next step will be the mining of business data. "This is one of the key points to enhancing the efficiency of the supply chain. Only when the data is accurately grasped and analyzed can the refined management be better."

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