As China's real estate market has gradually entered the period of stock housing, the home improvement and home furnishing industry has also entered an era of coexistence of large stock and small increments.
Due toThere are many types of products, low technical barriers, low entry thresholds, sufficient raw materials, and high degree of chain fragmentationand other reasons, there are a large number of furniture manufacturing enterprises in China, and the number of enterprises will reach 7,273 in 2022, with a compound growth rate of 3 from 2016 to 20223%。
The downward trend of the industry is superimposed on the impact of the new crown epidemic, and the increase in the number of enterprises continues to increase the pressure on corporate profitsIn 2022, the operating income of China's furniture manufacturing industry will be 7624100 million, down 8 percent year-on-year1%, the proportion of loss-making enterprises is as high as 2192%, the overall growth of China's home furnishing industry has entered a speed bump.
The era of reckless heroes faded, and organizations that developed on the basis of dividends began to face bottlenecks, gross profits continued to decline, and the industry reached a new watershedThe pursuit of the ultimate cost reduction and efficiency increase, and the reshaping of the growth curve of enterprises have become new problems faced by enterprises. Swept by the wave of digitalization, digital and intelligent transformation provides enterprises with an explorable development path.
As a representative field of the traditional manufacturing industry, the average digitization rate of the home building materials industry is only 10%, and it was once rated as the industry field farthest from digitalization.
As a leader in the wooden door industry, TATA wooden doors keenly perceive that the level of intelligence will become the core competitiveness of various industries, and quickly focus on the key aspects of procurement to explore intelligent transformation.
In 2023, TATA Wooden Door will choose to join hands with the domestic digital intelligence procurement service provider Spending Bao to build a digital intelligence procurement management platform, and help TATA Wooden Door realize the digitization of the whole procurement process through docking with TATA's internal ERP system (SAP), open up the digital breakpoint of the whole procurement chain, realize information sharing and real-time data exchange, form a strong auxiliary role for TATA wooden door procurement, and help TATA wooden door to achieve separation from the previous process. The transition from extensive management that relies on manual experience to lean management that relies on full-link, integration, and accurate data-based decision-making.
In the procurement processPinch the two lifelines of "efficiency" and "cost".
According to incomplete statistics, the total output value of enterprises in China's wooden door industry in 2022 will be 130.4 billion yuan, a year-on-year decrease of 1865%, reducing costs and increasing efficiency has become the key point for enterprises to improve their competitiveness.
"We often say that the first chain is the core competitiveness of an enterprise, and the efficiency of the first chain is a powerful driving force for enterprises to reduce costs and drive market share. Procurement, as a key link in the chain, connects the upstream and downstream of the enterprise ecology, the business ecology, and the terminal delivery, and is the core transfer station, in which various resources, information, and plans are interactively circulated and disposed of. It is imperative and imminent for enterprises to promote digital intelligence in procurement from the top down. When it comes to the digital and intelligent transformation of procurement, Le Yongbin, CIO of TATA wooden door, said bluntly in an interview with the first new voice.
The basic logic of digital intelligence in procurement is the pursuit of cost and efficiency. The long service chain and poor coordination of each node are the stubborn diseases of the traditional home furnishing industry, and informatization is the key to ensuring the "fast and good savings" of home furnishing services. The time cost and labor cost caused by the lack of informatization are the space that can be greatly improved in the entire process of the enterprise. "From a business perspective, any business will pursue extreme cost and high efficiency. Le Yongbin said.
Efficiency is the lifeline. Especially in the field of customized home furnishings, products are driven by customer needs, which is a great challenge for front-end ** and product research and development.
Le Yongbin said to the first new voice, "Customized home furnishing is the to C mode, and what we want to do is to make small batches, or even single piece customization." Advantage in inventory, but the biggest problem is efficiency. "The whole delivery cycle, from getting the order, to making the budget, the menu, and finally to the delivery and procurement of raw materials, only by ensuring efficiency can we ensure delivery.
Cost is also the lifeblood. With the expansion of business, the scale of the TATA wooden door market continues to expand, in the raw materials, the industry competition under the trend of fierce competition, TATA wooden doors to continue to maintain the high quality level of products, increase investment has become an unavoidable problem, although it is the industry leading players, but because of the industry involution, material versatility, rapid market changes, so most of the main material procurement is still based on the traditional offline procurement model. Offline communication will inevitably lead to enterprises facing problems such as long process cycles, difficulty in whole-process management and rules, data quality, and difficulty in forming data assets, in addition to low efficiency and high cost.
Driven by the changes of the times and internal demand, TATA wooden doors have opened the development path of digital and intelligent transformation in line with the times, and digital and intelligent transformation means that the traditional business model will inevitably change, and the procurement chain must maintain a considerable level of flexibility. With digital technology as the core, the front and back ends are linked, including the close integration of online and offline, which should not only be visible and controllable, but also reduce costs and increase efficiency, improve production and marketing synergy, and ultimately ensure product delivery.
Le Yongbin introduced that by the middle of 22 years, TATA wooden doors have completed the 10 version of the building. Flexible and independent configuration and scheduling by business domain, which can improve efficiency through modularity.
"When we talk about project effectiveness, we are actually pursuing collaboration and ultimate efficiency, and we want efficiency and benefits from collaboration, and we want benefits from fine operations, which is the direction of our digital intelligence. Le Yongbin said bluntly.
Remote login, record traces, multi-terminal interaction,The procurement management platform realizes multi-terminal online collaboration
TATA wooden door is a more typical channel model, the terminal link is huge and complex, the source of enterprise procurement is numerous, and the number of purchases is as high as billions. Based on the pursuit of ensuring quality, first-class advantages, batch advantages and efficient operation, the contradiction between the unified procurement of the headquarters and the execution efficiency of the factory is highlighted in the first link.
In September 2023, the first phase of the TATA wooden door digital intelligent procurement management platform project has been launched, realizing the ** procurement process of TATA wooden doors and solving many problems that existed in the past of the enterprise.
Le Yongbin introduced, "We first considered the part that is easy to cure, which is the basis of the first grade. Secondly, from the perspective of workload, priority is given to the part that requires a lot of labor and a lot of time, replacing manpower with computing power and replacing 'low-value work' with a digital intelligence platform. Again, it is a sensitive and high-risk part, which refers to the ** data in the procurement business, and we have also considered ** in order to avoid data leakage. ”
After the project was launched, the tata wooden door was inResource allocation, procurement planning, order management, financial reconciliation, and business managementand other procurement links to achieve online collaboration, through efficient collaboration, to seek the ultimate efficiency.
Take, for example, a purchase order. Through system docking, after the purchaser creates an order in SAP, the SRM system will automatically synchronize the order to the merchant. Merchants can achieve collaboration, and can even log in remotely through mobile terminals, and can confirm orders anytime and anywhere, so as to record and leave traces.
At the same time, procurement personnel can check the order delivery status at any time through the SRM system, track the order process, improve the accuracy and timeliness of order delivery, and reduce procurement costs and risks.
There are many problems that will arise when enterprises convey information through traditional offline models, the first is that efficiency and collaboration cannot be guaranteed; second, it has uncontrollable risks; the third is the security of highly sensitive information such as procurement** and quantity; The fourth is the issue of information retention after employee resignation. Now, through this platform, all of these problems can be solved, and the end-to-end information can be more transparent, and all links can be linked. Le Yongbin said.
The four goals of digital intelligence: collaboration, decision-making, cost control, and integration
"The ultimate goal of the digital intelligent procurement platform is integrationThe first phase of the project is guaranteed, and then the data is generated, and the efficiency and cost trend chart can be seen through the data. Le Yongbin said.
For example, in the area of business management, we are currently going through the offline process, going down to explore the specific content of the manager model, as well as the standards and parameters of management evaluation, etc., which are still in the process of running-in. Le Yongbin also revealed, "But in fact, the platform has just been launched, and there are some data that can be supported, and there are certain conditions, and we plan to move it to the second phase with a high probability." ”
According to the project plan, the TATA wooden door digital intelligent procurement management platform will open up the digital breakpoints of the whole process such as business, order, reconciliation, contract and financial collaboration. Through digital technology, the full online control, data series management and process automation of the procurement business process are formed, helping TATA wooden doors to realize the unified management of the group's ** chain and improve the digital and intelligent management and control level of the ** chain.
In addition, the Expenditure Treasure procurement expenditure management system will also be connected with the internal SAP system of the enterprise to realize the automatic flow of information, and form an effective data precipitation on the platform to provide more accurate data support for enterprise decision-making.
Le Yongbin said. The following four objectives should be achieved throughout the project.
The first is ecological synergy. Ecological synergy is one of the core goals of TATA wooden doors. Multi-party collaboration such as interaction with first-class businessmen, information interaction, and interaction of raw materials is the basic trend of the digital and intelligent development of TATA wooden doors.
The second is data decision-making. How much does the enterprise want to purchase, what to purchase, what kind of business is needed, what is the delivery quality of the company, how to perform the contract, and including the cost, etc., to form data accumulation, and conduct data analysis through the data model to help enterprises make decisions.
The third is the cost of procurement operations. The essential goal of the digital and intelligent transformation of TATA wooden doors is to reduce costs and increase efficiency, as well as to clearly present the execution status of the procurement operation process, such as internal procurement-related businesses or operating costs between modules.
The fourth is the integration of industry and finance. In the process of project implementation, the whole process of business integration and business and finance are realized at the same frequency in real time, such as the time, push, and introduction of procurement order information in the whole process, interaction, and disposal.
A good partner is half the battle
The successful creation of a collaborative ecosystem of digital and intelligent procurement is due to the correct choice of partners. When choosing a service provider, TATA wooden doors take into account a number of factors.
First,Training costs. The particularity of the procurement system determines that the training cost of the first merchant and factory staff is a priority. The easy-to-use and easy-to-use procurement system will reduce the difficulty of enterprise promotion, which is also the advantage of cooperative service providers in learning costs.
Second,Service Guarantee. TATA wooden door is the pursuit of long-term stable and sustainable cooperative relations, rather than a hammer deal, service providers can give support and guarantee at any time, in order to build trust and close cooperative relations.
Third,Product suitability. How to improve the product in the future, whether it has the new technology and ability to enrich the product is an important consideration for TATA wooden door to choose partners. Service providers need to help enterprise businesses upgrade their business in the system platform through continuous product updates and iterations.
As an enterprise digital intelligence procurement SaaS service provider, TATA Wooden Door has given full play to its relevant experience in digital intelligence procurement transformation to meet the demands of enterprise fine management. In the future, we will continue to explore more new scenarios and new models of digital procurement, comprehensively help TATA wooden doors to achieve procurement strategy upgrades, and assist TATA wooden door procurement digital transformation from blueprint to landing.
Le Yongbin said, "Spending treasure can help establish a first-class mechanism for TATA wooden doors to deal with material procurement and production shortages, and the 'protection' function of this first-class mechanism is the smooth operation of TATA wooden doors." It is necessary to transmit information, share data, circulate and dispose of the same front and back ends on the system, further break the barriers of procurement data silos, and form a closed-loop management of the whole process of data. ”
He also said, "In the future, we also hope that through the upgrade, Spend Pro will be able to conduct a more objective analysis and explore the supporting role of the procurement ** chain in the end-to-end process and delivery chain, as well as in the overall digital strategy." ”
Under the new model, TATA wooden doors connect the entire interactive chain with the help of procurement, and form a benchmark model for digital transformation in the first-chain channel and strategic architecture, which has positive significance and enlightenment for the industry to explore more new scenarios and models of digital intelligent procurement.
In the future, TATA wooden doors will further respond to the new development situation with the help of digital and intelligent means, and continue to store energy in fine management, global business, chain integration, and sustainable development, so as to realize the cost reduction, efficiency increase, transformation and upgrading of enterprises.