Chapter 73: Ingredient Supply Chain (Collect!)

Zhang Zehong had already communicated with Zhong Huazhi in advance.

Before he came, Zhong Huazhi regarded himself as Jiagu's person - at this time, only Jiagu could accept him, otherwise it was hard to say whether he could hold on.

In the face of the predicament, the partners who used to drink and talk about wine turned their faces, and those who avoided them avoided them, and there were competitors who were eyeing him and wanted to swallow the only remaining capital in his hands.

Although Zhong Huazhi remained calm on the surface, his heart was already cold.

Jiagu appeared in time, and Zhong Huazhi still had a few eyes, just to observe whether he came in halfway to rob while he was on fire, but as a result, he offered generous conditions when he had not yet determined his intention.

Isn't this really coming with sincerity!

Zhong Huazhi accepted Jiagu's acquisition of his food supply company, not cash, and converted into a small number of shares.

Jiagu's fourth subsidiary, "Jiagu Ingredients", was born.

Zhong Huazhi, as the person in charge of Jiagu Ingredients, reported to the company's board of directors on the next deployment.

"From the perspective of market capacity, the supply of catering ingredients is definitely a big runway. China has a total stock of more than 2 trillion catering markets a year, and in terms of the value of ingredients, it should be nearly a trillion-level market, so this market runway is long enough. ”

"But this market is traditionally very inefficient. Catering is divided into many levels from the production area to the wholesale market to the final retail and restaurant, and it is currently very inefficient. ”

"Today, the F&B industry will usher in an era where the supply chain is king. ”

"In my experience, the domestic food distribution market can be divided into three main parts. ”

"The first is the distribution of ingredients for small and medium-sized restaurants. In China's catering industry, small and medium-sized businesses still account for the majority of the total. These small and medium-sized stores have diverse and limited demand, which requires third-party suppliers to have sufficient customization and integration capabilities to form scale effects, which is precisely the biggest business opportunity in China's supply chain market.

It can be said that in order to succeed in the field of food distribution for small and medium-sized restaurants, it is necessary to rely on the steady and steady tactics to harvest small and medium-sized restaurants in the regional market, adopt transparent operation and promotion, without large-scale investment, and do a good job of service without various promotions. ”

Zhong Huazhi stopped, took a sip of water, and continued,

"The second piece is the distribution of ingredients for high-end restaurants and hotels. ”

"This domestic market space is also quite large, but in this field is basically the industry veterans can be started, and the requirements for industry experience are higher.

In direct proportion to the relatively high barriers to the industry, the profits are also more lucrative. However, due to the long period of the account, there will be certain problems in capital turnover, and entrepreneurs without financial strength need to be cautious when entering this field.

Basically, every city will be entrenched in three or five predators with an annual distribution volume of hundreds of millions. These distributors generally bind one or two large customers with resources in the early days, and reach this scale through long-term accumulation, but because of the pressure on capital turnover due to the account period, it is more difficult to go up, and the general annual turnover of about 200 million is the limit.

I can be regarded as an old cannon in Hong Kong and Macao before, and the annual delivery volume can reach 70 million, which is not a good result, but at least it has opened up the situation. ”

"Finally, there is the distribution of food ingredients in vertical industries, including the distribution of food ingredients in the canteens of enterprises and institutions, canteens of colleges and universities, etc. ”

"The advantage of this is that the customer base is highly focused, and the profit margin will be relatively large. The sooner a regional subdivision of a customer enters it, the more obvious the rainbow effect will be, and under the current special domestic national conditions, if you play from top to bottom, a dozen will be a large number of customers. ”

This is the talk of experience, and everyone here listened very carefully.

Zhong Huazhi paused, and then added with confidence: "In the field of fresh food distribution, there is such a saying: start by resources, expand and operate.

There are many contacts in the catering industry, and these are all resources. If you are not a person in this industry, it is difficult to get through with this model. And allow me to boast about myself here, I'm the kind of person who has the resources to start out. With the support of Jiagu and the opening of the way with connections, the first one or two steps of the most difficult ingredients in Jiagu have been basically solved.

But this field is not able to become big enough after the start, relying on the first-mover advantage to block the way of others.

Because no matter how big you are, you will never be able to take away all the customers. There must still be a chance behind others, so it's a long-distance run. In long-distance running, it is you who run faster than others for a long time, rather than relying on short sprints.

Therefore, in the long run, the food distribution industry is a business that pursues efficiency, and needs to consider continuous operation capabilities. The reason why some large companies can be selected by customers is that you can consistently provide a good input-output ratio, not because you are a large company. ”

......

Hearing this, Qi Zheng already wanted to applaud Zhong Huazhi.

A round of applause for his insight.

Take North America, for example.

Sysco, the largest food supplier in North America, has entered the Fortune 500 list. According to the financial report provided by it, its annual revenue is as high as tens of billions of dollars, accounting for more than 15% of the market share of the U.S. supply chain.

At present, the annual turnover of the leaders in the domestic market is only about 100 million yuan, accounting for less than 0.1% of the estimated market.

The catering market in China and the United States is also huge, why has there been no supply chain giant in China so far?

Industry insiders generally believe that Sysco is a rich and capricious owner, and it has been dominating the market position through mergers and acquisitions to gain the right to speak on prices.

That's true.

However, the tactic of playing mergers and acquisitions to grab the market is not uncommon in any country and any industry.

However, why does Sysco stand out from the crowd, and there is no "first bird" in China?

The reasons are manifold.

From the perspective of the market environment, the survival environment of the U.S. catering supply chain is better.

Western food is more standardized. Sysco's main business is to provide Western-style food ingredients and tableware and kitchen supplies for restaurant companies, and the standardization of Western-style fast food provides convenient conditions for the supply chain.

Chinese food is no bigger than Western food, let alone dark cuisine like the British. Chinese cuisine has always been known for its complex processes but complete in color, flavor and flavor, which puts forward higher requirements for the ingredient supply chain.

In the face of the Chinese market, even Sysco is not confident enough, "If we enter China, we are not so confident that we can do well." ”

In addition, most restaurant companies in the United States are equipped with storage and preservation equipment in their stores, and have the corresponding ability to preserve the freshness of ingredients. As a result, the purchasing habit of American restaurants is to purchase the volume for several days at a time. In the case of stable customer flow, the ingredients purchased by American restaurants at one time can maintain their normal operation for 2-3 days.

Therefore, Sysco does not need to deliver goods to the store on time every morning like domestic catering supply chain companies. It only needs to be shipped within 24 hours of the customer's order.

However, the rent cost of domestic stores is high, and most restaurant stores are reluctant to keep inventory, basically only purchasing the ingredients of the day, and the amount of each category of goods purchased each time is small, which puts forward higher requirements for the delivery timeliness and cost of catering ingredient enterprises.

However, the external environment is not the decisive factor.

The supply chain market is a relatively low-margin industry, and although Sysco has a monopoly on nearly one-fifth of the market share, Sysco cannot change that. Jiagu established its own supply chain enterprise, not for the profit of the enterprise itself, but to digest the production capacity of the entire Jiagu system that may explode in the future.

Therefore, for supply chain enterprises, survival is more important than development.

The key to Sysco's survival is a strict management system and efficient operation mode, which is what Zhong Huazhi called "expansion and operation".

If Jiagu Food Company wants to develop and grow, it needs to put more effort into internal management.

In the case of Sysco, the first step is to standardize the origin, which depends on intensive management and sophisticated cultivation techniques. The quality control at the source can save a lot of trouble for the subsequent circulation links. The goal of Jiagu agriculture is to gradually improve intensive management, which echoes the requirements of Jiagu ingredients.

Secondly, there must be strict processes and review standards before they can be incorporated into the supply system. In this way, some safety problems from the upstream supply chain can be effectively avoided, so that the source of ingredients can be traced.

Finally, it is necessary to have an efficient distribution system structure, from the warehouse to the distribution fleet, only a perfect service system, in order to leave loyal customers.

The structure of the distribution system is the core of the entire supply chain, and it is also the most gold-swallowing link.

It just so happens that Wang Yuye is also most concerned about this issue.

He asked Zhong Huazhi: "Old Zhong, what do you think about the logistics layout?"

Zhong Huazhi is obviously confident, "Jiagu Ingredients adopts an asset-heavy operation mode in terms of logistics layout, and the goal is to have at least 80% of its logistics distribution centers and logistics vehicles. Although the investment in building its own logistics system is huge, it can provide a guarantee for the company to achieve a higher level of logistics management and system upgrading, and it is also conducive to forming an unshakable market position. ”

As he spoke, he showed an excited expression of eagerness to try.

For a person who controls the food supply chain, he has long wanted to have his own logistics system, but unfortunately he has no money, so he can only sigh.

Now that he has become a big dog, he can't turn the world upside down.

"Ahem......" His thoughts are not too obvious, Wang Yuye had to remind: "To control the pace of expansion, although the operation of heavy assets is good, it is destined to expand slowly." The first step of the head office's requirement for Jiagu ingredients is to occupy an absolute advantage in South China, and then expand to the whole country. ”

The head office invested one billion yuan in the Jiagu food subsidiary, which is already a huge amount of money.

However, for the logistics layout of heavy assets, it is just a drop in the penny.

Just talking about cold storage and cold chain vehicles, if you really want to build it, it is a bottomless pit, and how much money is not enough to spend.

Hearing this, Zhong Huazhi reined in his thoughts and nodded, "I know that the construction cost of procurement, sorting, warehousing, logistics and other links is high and difficult, which poses a great challenge to the capital and operational capacity of the enterprise. Our initial goal is to cover South China within three years, and then to expand. ”

Qi Zheng on the side finally added: "The self-owned logistics system must be built, but the self-built quality inspection team cannot be relaxed. It is necessary to strictly monitor the collection, storage, processing, transportation and other links of food ingredients in the whole process to ensure food safety. This is even higher than all other requirements. ”

As an ingredient supply chain, I am most afraid of food safety problems.

No matter how good the other links are, as long as there is a serious safety incident, the entire company's reputation will be devastated.

The tragedy of a rat poop spoiling a pot of porridge has never been uncommon.

Zhong Huazhi responded seriously.

Even if Qi Zheng does not remind him, Zhong Huazhi has always been strict in food safety monitoring. This can be seen from the fact that he had to personally inspect the farm to evaluate the quality of chickens and ducks and then include them in the procurement chain.

Of course, it is better for the upper echelons of the company to maintain the importance and reverence for food safety.

Zhong Huazhi is not afraid of management troubles, but he is afraid that the company will relax in a place where it should not be relaxed in order to be greedy and cheap, which is the bane.

If you don't have a conscience, you will never go far.

......