China SHEIN Expands Its Domestic Supply Chain Layout With Over 10 Billion Yuan By Kapoklog Logistics
SHEIN expands its domestic supply chain layout with over 10 billion yuan, AI powered Excel, supply chain planning adjustments, procurement of "magic tools", and inventory optimization
1, Expand domestic supply chain layout by over 10 billion yuan, SHEIN launches another 10 billion yuan traffic explosion plan
Supply chain construction continues to expand, domestic supply chain layout exceeds billions, accelerating progress
As the front-end "explosive order plan" is fully launched, it is reported that SHEIN's back-end supply chain construction is also expanding and accelerating, providing core support for global sales and further enhancing the competitiveness of brands, products, and industrial belts.
It is reported that SHEIN's "SHEIN Bay Area Smart Industry Park" located in Zhaoqing, Guangdong has recently completed project acceptance and delivery, and is expected to officially enter and use it within the year. SHEIN Bay Area Smart Industry Park will create a distributed smart logistics industry park with international and modern level, further consolidating and improving SHEIN's cross-border e-commerce supply chain system, driving population inflow, employment, and promoting the development of a series of related industries such as fashion industry, logistics transportation, and service trade, helping to promote the high-quality development of cross-border e-commerce industry.
This project aims to fully integrate existing resources and utilize land without adding new land. At present, SHEIN has leased over 700000 square meters of warehouses in Zhaoqing, and a new project has leased 260000 square meters of warehouses. According to reports, SHEIN's total investment in warehousing and supply chain in the region has reached billions of yuan.
The SHEIN Bay Area Smart Industrial Park is just one of SHEIN's key projects in the domestic supply chain matrix. The SHEINBay Area Western Smart Industrial Park, also located in Zhaoqing, has a total investment of 3.5 billion yuan and is planned to build a smart park that integrates intelligent sorting centers, order distribution centers, and intelligent manufacturing factories. It is expected to be completed by the end of this year. After the project reaches production capacity, it is expected to achieve an annual service trade export volume of 3.5 billion yuan.
In addition, the SHEIN Bay Area supply chain project located in Zengcheng, Guangzhou has officially started construction at the end of September 2024. The first phase of the project has an investment of 3.69 billion yuan, and the total investment of the third phase of the project is in the tens of billions of yuan level. Through the construction of a global delivery center through a "green, intelligent, and automatic" integrated supply chain, it provides core support for SHEIN's global sales. After the third phase is fully operational, the annual export volume is expected to exceed 100 billion yuan, and it is expected to attract about 100000 industrial talents during the peak period.
SHEIN has been continuously cultivating in the field of supply chain for over a decade, establishing a smart supply chain matrix that radiates cities such as Guangzhou, Zhaoqing, Foshan, and Jiangmen.
Relying on a well-established industrial chain and supply chain foundation advantages, SHEIN's innovative digital flexible supply chain has rapidly emerged in the global fashion industry, and SHEIN's independent brand has grown into one of the four major fashion brands in the world; In recent years, SHEIN has continuously expanded its platformization to drive more brands, merchants, and industrial belts to go global. Currently, it has driven over 300 industrial belt sellers to go global in more than 300 cities across the country. Chen Shaotong, Vice President and Secretary General of Guangdong Clothing and Apparel Industry Association, believes that by continuously increasing investment in the domestic smart supply chain system, new quality productivity represented by SHEIN is promoting the efficiency improvement of traditional industries, and through the dual engine of "independent brand+platform", it is driving more merchants, brands, and industrial belts to enter the international market.
Original article: Expanding domestic supply chain layout by over 10 billion yuan, SHEIN launches another 10 billion yuan traffic explosion plan
2, AI powered Excel: Instantly visualize multiple sheet reports
Today, I will share with you how to use AI to assist Excel in data analysis. What we mainly introduce is the correlation between AI and Excel, that is, tables and data. What is the most commonly used Excel? Formula.
If we don't know how to write VBA formulas in Excel, what is our usual approach? Should we look for the Excel experts around us, or perhaps spend 1-2 weeks learning an Excel course, or spend money buying a VBA formula or code?
When we use AI tools to clearly express the specific row and column of data, their relationship with other rows and columns, or what kind of effect they produce, we only need to provide clear and explicit tables. AI can automatically generate relevant code or VBA formulas for you, and it can help you quickly complete table generation and data filling.
It can even be presented as a visual report like BIL through a large number of composite data reports, because with AI tools generating corresponding code, we no longer need to reorganize detailed logic and write complex formulas in Excel.
We open a supplier basic information table, which includes the supplier's name, address, legal representative, business license, contact information, and other information. What is the process of collecting supplier information?
1. Fill out the information form based on the business license information and on-site inspection;
2. After confirmation by the supplier, stamp it;
3. The procurement team inputs the information into the computer one by one. This is very labor-intensive and labor-intensive. When we screen suppliers, we need an Excel spreadsheet with the conditions to be screened, and all supplier information needs to be filled in the corresponding places.
If we use AI to help complete the above, we need to write a standard prompt: First, set up a professional Excel expert to create a table and count which suppliers are suitable and which are not? Assuming there are 8 columns of conditions, which actually include the supplier's name, address, registered capital, establishment time, number of employees, basic information, etc., Excel is needed to organize them.
Previously, we used Excel to copy and paste data bit by bit, but now with AI, we no longer need it. We can directly request AI to help us generate a VBA program to quickly solve this problem.
3, The plan can be adjusted, but the rigidity of the supply chain needs to be considered
All predictions are wrong, a good demand forecast needs to be adjusted regularly and gradually approached. But this does not mean that the supply chain can respond infinitely: the flexibility of the supply chain is not infinite. When entering a certain time window, we need to control the adjustment of demand forecasting to protect the efficiency of the supply chain. Otherwise, it will result in excessive operating costs and waste of production capacity: frequent adjustments will disrupt the overall production and distribution plan, making overall delivery even more unpredictable; The more unpredictable it is, the more human intervention is needed, which leads to a vicious cycle and increases uncertainty, ultimately resulting in costs and inventory.
According to the impact on material procurement and production, we can divide plan adjustments into free periods, semi frozen periods, and frozen periods. We need to establish corresponding rules to manage different intervals.
The free period is generally outside the response cycle of the supply chain, where raw materials have not been ordered and production has not yet begun. The cost of demand changes is relatively low, and quantities, configurations, and dates can all be changed. Saying that the cost is' low 'assumes that these changes will not bring about incremental changes, such as adding new equipment, building new factories, etc. This range is "production based on sales", and the rule of the supply chain is to manage supply to meet demand: selling noodles is not afraid of you eating eight bowls, you can make whatever noodles you want, and you can make as much as you want.
The semi freeze period usually refers to the response period of the supply chain, at which point the long cycle materials have already been ordered, but the enterprise's own manufacturing has not yet started or progress is limited. The cost of demand changes is relatively high, and the quantity generally cannot be adjusted further, but the configuration and date are still acceptable, if the supply chain executes harder. For example, what you originally wanted was stir fried green beans, which will be served later; Now it can be changed to braised green beans and served early. At this stage, we should focus on demand management, supplemented by supply improvement - combining production and sales, and try not to change as much as possible; But if it changes, the supply chain will still do its best to meet it.
Once the freezing period is entered, the raw materials are already in place and production assembly has begun, the cost of changes is very high. At this point, the quantity of demand is fixed, the date is fixed, and the configuration is also fixed. We should prioritize demand management and focus on production and sales. At this time, the Braised pork belly you ordered is almost cooked. It is almost impossible to change it to Twice cooked pork. For sales, the key is to manage customer needs: Sir, I know you want to drink Lao Bai Gan, but we only have knives on hand. They are 99.9% water and alcohol, both of which can kill people. So, can you just make do with it? How about giving you a 5 cent discount?
Source: Practitioners of Supply Chain Management
4, The 'Dao Spell Tool' in procurement
The "Dao Spell Tool" originates from traditional Chinese philosophy and is often extended to four levels of problem-solving:
Strategic thinking (Dao)
Institutional Methods (Law)
Technical means (techniques)
Tool carrier
In the procurement field, this framework can correspond to different dimensions of management elements.
1. "Dao Spell Tool" in procurement
1.1 (Strategy and Philosophy)
1.1.1 Promote green procurement and prioritize the selection of environmentally certified suppliers;
1.1.2 Develop a "localized procurement" strategy to reduce supply chain risks;
1.1.3 Supply chain strategic positioning (such as cost orientation, agile response, sustainable development);
1.1.4 The underlying logic of procurement (such as the value of procurement and the reasonableness of prices);
1.1.5 Core concepts of procurement (such as win-win cooperation, transparency and compliance, value innovation);
1.1.6 Positioning of supplier relationships (competition or symbiosis).
Core meaning: The top-level strategy, underlying logic, values, and long-term goals of procurement.
1.2 Law (Systems and Rules)
1.2.1 Develop the "Supplier Grading Management Measures" and clarify the entry and exit mechanism;
1.2.2 Establish a procurement compliance manual to prevent commercial bribery;
1.2.3 Standardization of procurement process (subscription → pricing → contract signing → acceptance → payment);
1.2.4 Procurement cost management system (such as inquiry and comparison system, negotiation system, bidding procurement system, electronic bidding procurement system, targeted procurement system);
1.2.5 Risk management system (such as market risk, contract risk, and funding risk).
Core meaning: The systems, processes, and norms that support the implementation of strategies.
Source: Kapoklog Logistics Supply Chain Restructuring
5, To optimize inventory, it is necessary to control these nine key points in order to achieve the small goal of reducing inventory
Optimizing (reducing) inventory in manufacturing enterprises is a long-term battle, especially when sales decline, the inventory funds on the books will become particularly conspicuous. So the boss gave an order, ordering the entire company to cut inventory and eliminate the "root of all evil" of inventory. Some radical bosses would demand to cut half of the inventory.
Inventory does not come out of thin air, for example, the inventory of raw materials is based on the calculation results of MRP to place purchase orders with suppliers.
If MRP calculation is not accurate, the purchase quantity will definitely be affected, resulting in excess inventory or shortage of materials.
Below, I have listed nine factors that may be key factors affecting the accuracy of MRP calculations. If we can control these key points, the goal of optimizing inventory will be easily achieved.
forecast
Firstly, the prediction must be accurate. If the delivery lead time requested by the customer is less than the lead time for raw material procurement, then we can only prepare raw materials based on the forecast, otherwise we will not be able to meet the customer's delivery date.
For example, the total time from placing an order to delivering the goods to the designated location is 2 weeks for the customer, while it takes 3 weeks for us to purchase raw materials, plus 1 week for internal production and transportation. Therefore, if we do not prepare raw material inventory in advance, we will definitely not be able to deliver on time.
The basis for stocking raw materials is the forecast provided by customers, so the accuracy of the forecast is crucial for the impact on inventory.
Source: kapoklog Logistics Supply Chain
6, Performance Management of Supply Chain
Based on Function vs. Based on Supply Chain Business Performance Evaluation:
Explain the differences between functional and supply chain based performance evaluation. Please describe what Yulong's KPI indicators are.
Overall performance measurement of integrated supply chain
Case Study of Supply Chain Performance Management
7, ERP is dead, the "middle platform" has cooled down, and "low code" is king. Is it true?
In recent years, there have been rumors in the industry that ERP is dead, the "middle platform" has cooled down, and "low code" is the king.
Regarding this rumor, today I will share my understanding.
When I first saw this question, I knew that everyone must have suffered from the loss of concept.
Some people say that after more than 20 years of development, the concept of "ERP" is no longer viable and cannot keep up with the times;
The rising star of the "middle stage" has gone through stages of rise, popularity, and decline, and has also cooled down.
A few years have passed, and unfortunately, the concept of low code/zero code has become popular again, so some people jokingly call it the era of "low code" king.
In fact, along the way, we can find that there has never been a lack of new concepts in the field of enterprise digitization. It seems to have formed a pattern, with waves coming every few years.
Do you still remember before, when the numbers in the enterprise report were not aligned, the middle desk came.
It was said that they wanted to 'remove the chimney' and spent tens of millions of dollars on the 'middle platform'.
In recent years, companies have just broken through the "data silos" and said they want to develop "low code" by eliminating programmers and returning the digital capabilities of the enterprise to business personnel.
I think everyone still suffers from the loss of concept.
There are many things that we cannot just understand their concepts. We still need to understand its essence!
So what is the essence of ERP, middleware, and low code?
