YOUNGOR Gets 700 Million Financing From China Fusion International Trust

The announcement did not mention this.

On the evening of August 30th, the mid term report released by YOUNGOR showed that in the first half of this year, the company achieved operating income of 5 billion 352 million yuan, down 6.87% from the same period last year, and realized net profit of 581 million yuan, down 59% compared to the same period last year, and the earnings per share were 0.26 yuan, down 59.38% compared to the same period last year.

Among them, the first half of 2010 to achieve real estate business revenue of 1 billion 691 million yuan, operating profit margin of 30.28%, compared with the same period last year by 2.01 percentage points.

"The competition in the future will be the competition of the entire supply chain."

Li Rucheng, chairman of YOUNGOR group, was an early advocate and implementation of the concept of "supply chain competition" in the clothing industry. He said with a grain of truth: in the public regard the whole Chinese garment industry as the representative of the backward productive forces, YOUNGOR Clothing Co., Ltd., through a series of supply chain reforms, has been free from the backlog of goods under the difficult situation of oversupply.

During the 9 years, the stock turnover days were reduced to 1/10. YOUNGOR's inventory management experience is actually a "vitrification" change that makes market data more pparent.

master

YOUNGOR is actually carrying out supply chain reform under the circumstances.

Before and after 2001, the clothing market has changed from a seller's market to a buyer's market, resulting in a thin profit.

At the same time, the garment industry is also facing a series of challenges: the original mode of production scheduling according to order can not meet the market demand in time, resulting in overcapacity of garment factories and inventory backlog.

Besides, the pressure of inventory and logistics costs is prominent. Enterprises generally lack the insight and quick response ability to market demand.

YOUNGOR also encountered the same problem.

In 2001, YOUNGOR had a large backlog of funds for only one shirt.

Chen Zhigao, deputy general manager of YOUNGOR, said that in 2001, before YOUNGOR realized that supply chain management had to be done, various new problems had emerged.

One of the most outstanding is not only the backlog of inventory but also the number of days of inventory turnover reaching 360 days, which is equivalent to a turnover of only one year.

Everyone knows that timely replacement of distribution strategy according to the needs of the market is an effective way to solve the backlog of inventory, but how can we timely reflect the information of sales channels to production and distribution links? Chen Zhigao said that YOUNGOR started with the real data of sales terminals.

It is not that YOUNGOR did not grasp the sales data of each business point before that, but the data in different regions were scattered throughout the country, and not focused on headquarters management. In the case of the authenticity of these data, it is very difficult for YOUNGOR group to analyze these data, let alone take these data to guide production and distribution.

Chen Zhigao regrets the difficulty of YOUNGOR's unified data management.

It is easy to think of the resistance that is the incompatibility of sales networks. Everyone knows that information opaque means more loopholes.

So at the very beginning, YOUNGOR chose the pilot implementation. The IT department first built a data warehouse system for regional services in Anhui, Henan and other regions. At the same time, it also ensured that the sales situation from the front line could be understood by the head office in time.

On the premise of mastering the front-line data, YOUNGOR immediately launched the DRP (distribution demand planning) system, which manages the distribution network of enterprises, enabling suppliers and distributors to submit orders in real time, inquire about product supply and inventory status, and obtain market, sales information and customer support.

Rapid adjustment of production

Data statistics is not the final method to solve the backlog of stock. It is only a foundation. To achieve zero inventory, we must let production design and so on.

Links are smart.

There is a "343" principle in the clothing industry, that is, after receiving orders from garment factories, the 30% of the total volume of the first batch will be put into the market.

The first 30% of the goods were used to test water in the market.

In those goods, which styles are popular and which are not popular, manufacturers will revise orders according to the feedback from the market. Orders are generally the expected quantity of production. The second batch of 40% cargo is basically the main force of market sales according to market demand, and the latter 30% mainly satisfies the replenishment demand.

This industry standard leads to whether the sales information can be quickly fed back to the manufacturers and become the key to win the market for garment manufacturers.

Gu Yuejun, the information director of YOUNGOR group, said that the benefits brought by the data warehouse system to YOUNGOR were very obvious: from 2001 to 2009, the national retail business of the enterprise increased by 20% per year, and the number of inventory turnover days decreased by 36 days per year.

Smart supply chain

YOUNGOR hopes not only to achieve zero inventory, but also to enable the entire operation link to move. Like intelligent robots, not only all links can adjust strategies according to the needs of the market, but also the decision-making process of the whole group can become more scientific.

In September 2009, YOUNGOR and IBM, which had been building the supply chain for 8 years, tried to make YOUNGOR's supply chain more intelligent.

It is understood that IBM has designed a "drinking mode" for YOUNGOR's downstream supply chain, that is, when beer is served, the waiter can see how much wine you have left through a pparent glass. If you want to pour it on you again, there will be very little left to drink.

This is just like how much YOUNGOR has sold through the Internet to store the western style clothes, and then decide whether to supply or not.

The "drinking mode" should extend to the entire supply chain. In the future, YOUNGOR's information system must get through every aspect of the suit production, from fabric, production, distribution to sales, and YOUNGOR's boss can see the production and sale of every suit in his office, the sales situation of every store and the distribution of each suit.

With the help of IBM's business intelligence software Cognos, YOUNGOR can timely extract important data from the supply chain system and carry out multi-dimensional analysis on demand, assist the leadership in formulating company strategy and production procurement plan, respond to ever-changing clothing market demand at any time, and synchronously issue delivery orders of goods through unified system platform, and timely adjust strategies.

Gu Yuejun, chief technology officer of YOUNGOR group, said that Cognos is very open and compatible with all kinds of databases and data warehouses, which saves much manpower and time cost for system deployment.

In fact, the data analysis of sales channels did bring great profits to YOUNGOR. YOUNGOR had more than 2000 stores before it was integrated into more than 1500 now, but its sales volume has increased 3 times.

This will not only save resources, but also help the inventory of goods.