Yu Liang: In the era of Black Iron, reengineering vanke supply chain!5 big thinking, with you!
On March 10, 2020, three supply chain control systems in the real estate industry determine three ways for developers to live!In the article, I mentioned that industry giants built a closed-end supply chain management and control system, which was mainly discussed from the perspective of supply chain performance risk in the era of fast turnover.Recently (February 11, 2022), Yu Liang, chairman of vanke’s board of Directors, said at the annual meeting of the group that “if you dare to fight, you will win”, the real estate industry has entered the era of black iron, and is shrinking its balance sheet, which will be a year of burning Bridges and desperate battle.In terms of supply chain reconstruction and process reengineering, Vanke further strengthened the closed-end supply chain control system.It used to be based on risk, but now it’s based on cost.Yu Liang introduced the case of BYD and pointed out: in the face of the industry is already about 10% of the marginal profit, should we reinvent the process?Let me cite one of my most impressive things, I visited BYD, Wang Chuanfu said that he does not produce tires and glass, other production.I said car parts are ripe for use.But it turned out that this was still golden age thinking, finding various parts manufacturers, you could put the car together.He said yu total each parts have manufacturers, each manufacturer should earn 10% of the profit, put together how we make money?In the past, we could outsource every aspect of real estate, and we could still make money if we outsource every aspect of real estate. Can we do that today?All the work is done by hand, and everyone has to make 10%, and we’re not going to make any money, so we’re going to reengineer.Of the impression that manages this ministry deeply to development is the case that buys hand mechanism inside about wooden floor base material.Therefore, our erector culture is always asked to do a contract outside, yesterday said the site coining a removal of 200,000, 300,000 normal.We are now in the age of black iron. Who will do it if we don’t do it ourselves?Many of our cost-plus charging models will be overturned, and our past way of spending too much, being a setter, pretending to work with others, and subcontracting layers on layers must not be feasible.For the organization, these are the things we may need to adjust in the face of change.Vanke’s speech has always been a barometer of the industry. In view of Yu Liang’s speech, other real estate enterprises and suppliers will also be thinking about it.The following points of view are only for reference: 1. Can other real estate enterprises refer to this supply chain reconstruction of Vanke?A: Real estate enterprises without a certain size cannot learn from Vanke’s self-established supply chain system.At present, country Garden has done best. The self-built factories can not only meet internal demand, but also realize external supply, which has a strong cost advantage, such as Hyundai Zhumei.2. Will there still be cooperation opportunities between suppliers and Vanke?Answer: Yu Liang always put forward this idea, and then to fall into full bloom, there is a certain gap period.But Vanke does not rule out taking the lead from wood products, ceramic sanitary ware, intelligent products, kitchen appliances and other categories, which have a large space for cost compression.Therefore, for other non-important categories, there may be more opportunities to kick the rest for the time being!Of course, for the categories mentioned above, especially for those suppliers who are seeking to go public or are seeking national distribution or have strong product strength, there is a window opportunity to reach strategic cooperation with Vanke and create new joint venture brands.3. Will Vanke’s reconstruction of supply chain system have impact on construction?A: The so-called impact refers to whether Vanke’s purchase orders will decrease and whether it will affect suppliers’ interest in mining and construction.On October 19, 2021, Professor CAI Zhudu said in an article titled “Don’t Be a Competitor’s Business everywhere” on We-media, “Starting a business within an enterprise is a rarity of success.For companies to innovate, they have to derail.”Mining and building independent of Vanke development, this is a sure thing!At present, mining & Construction serves a wide range of customers. As for the decrease of future orders, it is impossible to judge depending on the development of mining & Construction.4. How to understand process reengineering?A: Supply chain management is upgraded from traditional supply chain to digital supply chain.Use digital means, reduce waste, efficient adaptation.Say a scene, say Vanke wants to make an apartment, need wood floor.Therefore, through digital means, the upstream and downstream can be fully integrated. What raw materials are selected in the product library, which factory is designated for production, how much raw materials are used, what production process standards are, and when they can be produced and delivered to the site can be seen at a glance.Customized adaptation production is made according to the grade and positioning of the project, so as to save costs, improve efficiency and reduce the workload of purchasing order specialists in the past projects.5. What are the influences or requirements of the black iron age proposed by Yu Liang on the suppliers?A: Fine contract.Especially on the cross construction responsibility is not clear, sporadic projects to be strictly controlled.Vanke will re-optimize and iterate on contracts, strengthen supplier responsibility boundaries and quality effects, and reduce unnecessary additional expenditures.Cost actuarial.Suppliers hope to control the profit margin of cooperation through imbalanced quotation. Vanke will make actuarial calculation item by item to squeeze out the bubbles in the quotation. Therefore, suppliers need to be cautious when bidding to win the bid.Disassembly, disassembly, disassembly.Vanke’s bidding has a very distinctive, that is to dismantle the machine.Through disassembly, the reasonable cost of material is calculated.For the supplier, it is necessary to cooperate with Vanke to provide a certain number of samples in advance to complete the product selection of disassembly scheme, which will also increase the marketing cooperation cost of the supplier to a certain extent.Supplier partner’s professional level, the ability of efficient cooperation to further improve.Both of these capabilities affect indirect costs.Therefore, if suppliers want to live well in the era of black iron, they should not only have strong marketing force and product force, but also have the corresponding supporting organization force and service force.Conclusion I read yu Liang’s speech, the heart can not calm for a long time!After reading it, I kept introspecting whether I, as a real estate professional, had the courage to face challenges in the cold winter.However, I saw that some we-media interpreted Yu’s remarks as: Overtime delay, work intensity will increase, salary will be reduced, if you can do it, if you can’t do it…Does selling the negative energy of anxiety actually help readers and fans?Industry development trend has been irreversible, comply with The Times, embrace change, become the strong in adversity, it is possible to “live”, live well!Instead of complaining, take action!