South China City Network: Looking at the current situation of MRO integration

In recent years, the term "industrial Internet" has indeed been very hot. Under the basic state policy of supply-side reform, Internet information and technology will change people's lifestyles, and will also bring about profound changes to traditional manufacturing and channel circulation. The development of the industrial Internet will expose China's economy to a new era of reconstruction.

In the so-called "new era", the key point is to remind everyone that the environment is changing, and you have to change. The structural upgrading of China's industry and the rapid development of the MRO industry under the wave of the Internet not only require the manufacturing companies to further transform and transform their models and technologies, but also sounds the alarm for transformation and upgrading of corporate procurement management.

"We are not a trader and distributor."

According to statistics, there are more than 300,000 scale manufacturing companies in the domestic market, and there is a variety of procurement system docking needs. However, the traditional MRO procurement with “unclear prices, multiple intermediate links, complicated categories, and decentralized procurement” has been extremely incompatible with a huge demand market.

According to the "Analysis Report on the Development Prospects and Investment Strategies of China's MRO Industrial Supermarket Industry 2015-2020" released by the Industry Research Institute of Qianfeng, it is shown that the MRO industrial product store is more traditional than ever in information technology, cost, brand and service. Industrial product sales channels have advantages.

In the past ten years, the MRO e-commerce platform has been displaying a flourishing pattern in the Chinese market with its own characteristics. However, the market is not yet mature. Everyone is still groping for a business model that is more in line with the development of the industry. Many companies take the path of traders and distributors, rely on commodity trade to enter the industrial Internet market, and lack innovation.

The development of channels for online and offline integration and effective integration are new opportunities. “We are not traders and distributors, but we want to be leaders and reformers who lead the healthy development of the industry and carry out mode innovations.” Mr. Fan Xiaojun, head of South China City Network, said that they do not want to go along the old road of the past and hope to pass Model innovation to seek some breakthroughs.

It is reported that South China City's parent company, South China City Group, has a strategic layout covering eight major logistics nodes in the country and a number of offline suppliers, manufacturers, retailers and agents with a scale of 500,000. It is true that South China City has the inherent advantages that other industrial e-commerce platforms do not have.

In this regard, Mr. Fan Xiaojun believes that in the field of industrial Internet, offline channels must be solid in order to be able to initiate explosions online, and the new model of industrial interconnection between online and offline industries must be based on the accumulation of big data with sufficient volume.

"Effective combing and consolidation of industry sources and suppliers"

With the transparency and localization of all levels of the supply chain, at the same time, the use of the global, widespread, high-efficiency facilities of the Internet, as well as the diversification and breakthrough of technological innovation to integrate into the development of the industry, the integration of China's industrial MRO supply chain It is becoming easier.

Many well-known companies such as Gussein, Misumi, Zhenkunxing, Xiyu, South China City Network, and Industrial Products Exchange have adopted the operating model of “Online Industrial Products Mall”. It is no exaggeration to say that the core competitiveness of the industry e-commerce platform is concentrated in the control of the channel. The platform will integrate all manufacturers, agents, and retailers to establish new distribution channels so that the entire logistics efficiency can be improved and the intermediate links can be eliminated. At the same time, costs can be greatly saved.

As one of the transformers of the industrial MRO supply chain, South China City Network and Jingdong Cloud have created a one-stop shopping platform driven by technology and big data—the industrial product MRO Mall. “We have effectively combed and integrated supply sources and suppliers in the industry to create an efficient supply chain that empowers large and medium-sized companies and small B-type retailers,” said Mr. Fan Xiaojun.

More and more Chinese enterprises have continuously opened up information, trade, and technical barriers between supply and demand sides, built upstream and downstream platforms for Unicom, empowered participants in the supply chain, and maximized their effectiveness.

"The ultimate direction of industrial e-commerce development"

Mr. Fan Xiaojun believes that the integration of online and offline B2B e-commerce platforms will be the future direction of development. According to the data, South China City Network's e-commerce transaction volume (GMV) exceeded 300 million yuan in FY17. According to Mr. Fan Xiaojun, such performance is still good in the professional B2B field.

According to Mr. Fan Xiaojun, the South China City Network will continue to exert its efforts in two areas. First of all, taking the self-operated store as a starting point to “deepen and make thorough” the corporate procurement in the MRO field of industrial products, when the time is ripe, it will consider to copy building hardware, automobile and motorcycle industries and other industries. In addition, the online transactions of Huanan City merchants will be online, accumulating transaction data, establishing credit files of suppliers and buyers participating in platform trading operations, and laying a solid foundation for further business development in the later period.

Simply solving information asymmetry has become the e-commerce past tense, integrating and optimizing the entire supply chain system, combining the entire industrial chain ecological platform of warehousing logistics, supply chain finance, SAAS, big data and other ancillary services is the ultimate development of industrial e-commerce direction.

Statement : This article is an original work of South China City Network. Please indicate the source.