The stagflation of the global economy shrouded by the epidemic is obvious. Under the current environment, enterprises have encountered various problems and confusions. Which development path is more suitable for them, and which set of theories can better guide enterprises to survive and develop in adversity? in front of various enterprises. 2023 will be the 15th anniversary of Nature’s envy entering China. Since entering China in 2008, Nature’s envy has achieved continuous growth. In addition to high-quality, high-safety, and high-value products, it is inseparable from Opening Nature’s envy’s deep cultivation of the global supply chain, with this question and Nature’s envy’s good market performance, we interviewed Mr. Zhang Senfu, CEO of Nature’s envy China, to come Listen to what he has to say.
Mr. Zhang Senfu, CEO of Nature’s envy China
Martin Christopher, a well-known supply chain management expert, put forward the conclusion in 1992 that “the competition in the 21st century is not the competition between enterprises, but the competition between supply chains and supply chains” has already become a reality. With the rapid development of the economy and the increasingly clear division of labor among enterprises, the supply chain will become the core of enterprise competition. How do you view this change?
Zhang Senfu said that with the advancement of economic globalization, cross-border procurement has become a trend, and almost all famous companies in the world will choose to join the wave of international business. In the context of economic globalization, it is difficult to go alone in the long run. Enterprises must learn to fight side by side with other enterprises and form their own supply chains. Therefore, the management ability of the supply chain has become an important index for evaluating enterprises, and it is the core competitiveness that all enterprises should pay attention to.
Nature’s envy, as a TOP brand in the field of natural care, what is the selection criteria for the supply chain?
Zhang Senfu confidently said that the parent company, American Organic Group, has been deeply involved in the personal care industry for many years, and has a complete supply chain system. In addition to quality, cost control, and delivery time, the selection criteria are clear about the production process, production standards, and raw material standards. requirements. For example, in the upgraded spice selection of Nature’s envy, we will first focus on the world’s highest-quality origins, and then go through inspections and strict internal audit mechanisms, and finally choose the perfume family that has been in Grasse, France for 264 years. Combining the ancient fragrance-making process with modern technology, it is well-known in the fragrance industry and has a number of international certifications, so as to ensure the purity of the fragrance and meet the standards of Nature’s envy.
For supply chain management, what specific measures does Nature’s envy take to implement?
Zhang Senfu replied that there are three main measures to implement:
1. Unified management and effective management. Do a good job in the establishment of the system and discipline of the procurement center, and carry out effective planning, organization, control and supervision of the material procurement work throughout the enterprise. In the supply chain network, the procurement center is the server, and its plans are issued by various departments, and its purchases are demand-driven purchases, which is just the opposite of the plan allocation process in the planned economy era. Procurement plans can be made directly according to material requirements, which can achieve truly effective plan procurement. The procurement process can achieve “best price, timely supply, and guaranteed quality” due to the cooperation of suppliers.
2. Communicate well with suppliers. Enterprises and suppliers have formed a relatively stable relationship through continuous communication. Enterprises maintain long-term contact with suppliers, which makes purchasing more convenient, and most suppliers are satisfied with conducting transactions with previous customers, because in this way Not only can it reduce risks, but it can also improve transaction efficiency and overall competitiveness. Whether it is in terms of price or transportation costs, both parties can negotiate well, so that both parties can achieve a win-win situation.
3. Carry out effective quality control. Through centralized procurement and unified procurement, the source of major materials entering the enterprise can be controlled. In the process of establishing the supply chain, the product use files of all cooperative enterprises must be established. Through these files, it is easy to distinguish manufacturers with long-term cooperation experience from those who do not know, and it is also easy to distinguish reputable and Manufacturers with superior quality and ability to perform contracts are screened out from manufacturers with poor reputation and ability, so as to effectively control the quality of purchased materials.
At this stage, we are in the transition stage from the traditional supply chain to the digital supply chain, and the digital supply chain is a major measure to solve the current situation of enterprises. Many enterprises currently have limited data visibility, insufficient predictive ability, inefficient workflow, slow response, rising costs, increasing customer complaints or complaints, interference from external potential risk factors, lack of trust among supply chain members, etc. Many problems. The essence of these problems is that the existing traditional supply chain can no longer keep up with the times and the pace of enterprise development. Although many enterprises have already taken the step of exploring the digital supply chain, most of them still don’t know what to do , Before getting started, it is imperative for enterprises to implement digital supply chain.
(Natural Door series products)
After Nature’s envy implements the digital supply chain, what changes will it bring to the enterprise, and what kind of profits will it create for the enterprise?
Zhang Senfu pointed out that there are three main changes:
1. “Throttling expenditure”; in the supply chain operating costs, labor costs often occupy a considerable proportion; and considering that the general trend of personnel salaries is constantly rising, enterprises will have more motivation to optimize this aspect. Through digital transformation and the application of related new technologies, human resources related to physical labor and mental labor have a substitution effect: an advanced manufacturing factory uses a flexible logistics robot based on AI technology, which saves about 30% of related manpower requirements, while in-plant logistics The efficiency has been increased by more than 2 times. A company introduced RPA (Robot Process Automation) technology in the order processing link to automatically perform data query, file export and other actions, shortening the average order processing time to one-tenth of the original, thereby greatly reducing related manpower consumption.
2. “Efficiency enhancement”: With the increasing importance of compliance topics in supply chain operations, digital technology has more application scenarios. For example, a courier company uses smart surveillance cameras to monitor and analyze the package sorting actions of its employees. If “violent sorting” (throwing customers’ packages) occurs, it will be pointed out and corrected in time. As for the application of electronic contracts, electronic signatures and other technologies to replace paper-based operations, and to prevent various frauds and frauds through technical means, it has become a standard operation day by day.
3. “Open source”; for manufacturing enterprises, digitalization first means “practicing internal skills” to make their own supply chain more competitive, which is conducive to opening up a larger market.
The market competitiveness of the supply chain can be embodied in transportation timeliness, quality control, etc. For example, express/logistics companies have improved processing efficiency and shortened logistics transit time by investing in intelligent sorting equipment in logistics distribution centers. In this way, it is easier to impress customers who have high requirements on logistics timeliness. The common requirements of customers also include: apply digital technology to trace the entire supply chain of goods, and accurately record the information of each key node. In the future, it will be difficult for logistics supply chain service providers without traceability to gain a foothold in the market.
Running a business is not an easy task, and problems in every link may cause damage to the business. To run a company well, the person who manages the company needs to have high concentration, communication skills, analytical skills, goal orientation, perseverance, and the ability to execute the mission. As the SEO of Nature’s Envy in China, what expectations do you have for the future of Nature’s Envy?
Zhang Senfu said that whether it is looking for a high-quality supply chain or its own factory, the ultimate goal of Nature’s envy is to provide users with better quality products. I believe that in the future, Nature’s envy will continue to improve its global supply chain system, cooperate with more international high-quality companies, graft global R&D achievements and supply chains, share natural personal care products from sunny California, and bring more A natural, healthier, more beautiful and more fashionable lifestyle has become a leading natural personal care brand in the Chinese market.
The three-hour interview ended quickly. During the interview, we had an in-depth understanding of the business philosophy and development ideas of Nature’s Gate. Since entering China in 2008, we have continuously provided consumers with high-quality natural organic products and practiced the concept of green environmental protection. , to fulfill the social responsibility of a corporate citizen. In terms of performance, it has achieved continuous growth, and in the development of the enterprise, it has found a path suitable for its own development. The road to enterprise development is long. Under the impact of Internet thinking, the transformation of traditional enterprises cannot be delayed. In order to achieve a short, flat, and block-based development model, a company’s own path needs to be constantly innovated and constantly found out. The same development path as Nature’s envy is suitable for you.
(Source: New Vision)