Supply chain technical services to improve low profit operation jingdong industrial products service Chengdu construction materials optimization of comprehensive cost
China’s construction industry output profit margin in 2021 was only 2.92 percent, the lowest level in nearly a decade, according to a statistical analysis of 2021 Construction Industry Development released by the China Construction Industry Association.Among them, the high operating cost becomes the main factor that restrains the profit margin of construction industry.According to statistics, the average operating cost rate of top-ranking construction enterprises listed on A-shares is as high as 89%, and nearly 90% of their operating income is used for purchasing materials, paying labor costs and paying subcontractors for labor services.How to use digital technology to better control the cost is one of the core issues facing the current development of construction enterprises.Recently, Chengdu Construction Engineering Materials Co., LTD. (HEREINAFTER referred to as “Chengdu Construction Engineering Materials”) has reached a cooperation with JINGdong Industrial Products to jointly serve Chengdu Construction Engineering Group Co., LTD. (hereinafter referred to as “Chengdu Construction Engineering Group”) to carry out the transformation of digital intelligence of supply chain with procurement management as the entry point.The two parties will optimize the overall cost of the supply chain by improving the synergistic efficiency of all links of the supply chain from procurement management, inventory management to performance delivery.Chengdu Construction Engineering Group is one of the super large comprehensive enterprise groups with the most competitive strength in the construction industry in the central and western regions.It has built and participated in more than 1,000 large-scale projects such as Chengdu Tianfu Square, Chengdu Shuangliu International Airport, Xichang Satellite Launch Center and Taiyuan Satellite Launch Center, and has been listed in the “Top 500 Chinese Enterprises” for 11 times.As the secondary unit of Chengdu Construction Engineering Group, CHENGDU Construction Materials co., Ltd. is mainly responsible for the management of the collective procurement platform of Chengdu Construction Engineering Group.As a typical construction enterprise, the supply chain management of Chengdu Construction Engineering Group is also a highly complex system engineering.Projects of CHENGDU Construction Engineering Group involve general contracting, construction and installation, real estate development, municipal roads and Bridges, cultural tourism hotels and other fields. Suppliers’ resources are scattered, making it difficult to maximize the utilization of resource value.At the same time, the construction period of engineering projects is often tightly arranged, and there are high requirements for the timeliness of procurement performance delivery. Once the material delay occurs, the project will be delayed and the overall project schedule will be delayed.In order to help Chengdu CONSTRUCTION Engineering Materials better plan and coordinate supply chain resources across the country, JINGdong Industrial products has built the first intelligent procurement management platform for Chengdu Construction Engineering Materials. By realizing unified management and contract performance tracking of collectivization, it can efficiently allocate material flow, reduce material waste and improve project operation efficiency.In the early stage of cooperation, the technical delivery implementation team of JINGdong Industrial products, including product managers, project managers, R&D personnel and consultants, conducted a one-month on-site survey to gain an in-depth understanding of business needs.And based on the digital procurement mall solution Jingcaiyun completed the procurement mall portal, material management, commodity management, procurement transaction coordination, background management and other full-link module process sorting and function design, to ensure that the mall operation logic and function meet the requirements of Chengdu Construction Engineering materials management.On the basis of the system construction, JINGdong Industrial products also helped Chengdu Construction Engineering Materials to complete the “seamless link” of supply chain resources and realize the digital construction of “business network”.In the past, material product information/parameters of the construction industry are not unified, and the problem of incomplete industry attributes is prominent, leading to the phenomenon of one product with many merchants and one product with many prices is more common, and it is difficult to implement unified management.Relying on Mercator standard commodity database, JINGdong Industrial products will clarify specifications and price standards for suppliers of Chengdu Construction Engineering materials, laying the “cornerstone” of commodity digitization.At present, chengdu Construction Engineering material suppliers have completed digital docking with Chengdu Construction Engineering Purchasing Mall.The existing supply chain resources of JINGdong Industrial products will also enter chengdu Construction engineering Purchasing Mall to further expand the resource pool of Chengdu construction engineering materials and realize the selection of the best among the best.Procurement management is only one of the links of the supply chain. In order to optimize the overall cost of the supply chain, it is necessary to comprehensively consider performance, distribution, storage and other links.Therefore, jingdong industrial products according to the characteristics of chengdu construction group supply chain joint xing-cheng as logistics co., LTD., chengdu through intelligent mobile warehouse, Beijing ark, enterprise distribution center and a series of industry supply chain, a new generation of infrastructure and intelligent digital mobile storehouse management platform, help chengdu construction group to achieve precise management of materials for the production site,Thus reduce the service cost and maintenance cost in supply chain management.Among them, intelligent mobile warehouse and Beijing industrial cabinet focus on the solution of the site of material management.In the past, construction enterprises usually set up a temporary warehouse near the site to store a certain amount of materials, which workers could collect through warehouse personnel when needed.Although this mode can guarantee the timeliness of supplies, it also gives rise to a series of problems.On the one hand, traditional management methods mainly rely on manual bookkeeping and manual statistics, often “do not know what there is in the warehouse, how much is left”, the formation of a large number of sluggish inventory.On the other hand, each item of materials received cannot be associated with the project and construction task, making it difficult to accurately calculate the project cost.Jingdong industrial products made of smart mobile warehouse digital management platform by using intelligent mobile warehouse with hardware, such as Beijing workers ark, links with the enterprise purchasing management system, realized the data storage materials and project data, employee data of get through, can not only will each be receiving goods and recipients, recipients project matching, accurately calculate the cost of production,The remaining inventory can also be monitored in real time through data kanban for predictive maintenance.In addition, JINGdong Industrial products also sorted all materials purchased by Chengdu Construction Engineering Group into nine common engineering and construction scenes, including temporary construction scenes, civil construction scenes, interior decoration, strong electricity scenes and weak electricity scenes. Workers can quickly screen according to the scenes when receiving materials, so as to further improve the material receiving experience.Enterprise distribution center is mainly to solve the material from suppliers to intelligent mobile warehouse and Beijing cabinet between the “last kilometer” logistics network.With jingdong industrial intelligent decision-making system, supply chain enterprise distribution center can effectively link the chengdu construction materials for all suppliers, service providers, and the third party logistics, scatter different suppliers of category, order and logistics channel package unified distribution to near the construction site after integration, to achieve “single”, effectively reduce the inventory management costs.In the preliminary pilot cooperation, Chengdu Construction Engineering Group has deployed a total of 9 jinggong cabinets in the TOD project, which are used to store common materials such as leakage circuit breakers and expansion screws.Outside the cabinet, the data kanban can display the data such as quantity in storage, amount in storage, total amount of receiving and amount of receiving, so that the inventory and material consumption speed can be clearly seen, which significantly improves the accuracy and planning of supply chain management.Kang Di, general manager of key Customer Department of JINGdong Industrial Products Industry, said that as a system, the enterprise supply chain seeks not to minimize the cost of a certain link, but to optimize the overall efficiency and cost of the supply chain by coordinating all links.Therefore, in the process of digitalization of supply chain, we should not only consider the digitalization of a single part, but realize the global digitalization from the whole link of goods, procurement, contract performance and operation, which is also the service logic that JINGdong Industrial products has always insisted on.In the future, JINGdong Industrial products also hopes to copy the “Chengdu Construction mode” to more partners in the construction industry to promote the digital-intelligent transformation of supply chain in the engineering and construction industry.