Tuesday, September 28, 2010

Mengniu: standing on the crossroads?


Main attack in the major cities to establish a "business center" and the growth of the logistics team, could signal a leap is about to begin a new

Mengniu just 4 years old are beginning to realize the importance of construction of the foundation, and it has to channel construction, the training staff put on the agenda. Its most recent plan is from the main attack this year in major cities, "business center" to assist the business activities of the local dealers.

A rumor

There are rumors that, Mengniu and other places in Beijing recently set up marketing centers, supermarkets and other terminals in person to do sales and distribution, because the local dealer with the growing scale, the headquarters had no control. But Mengniu liquid milk sales leader Zhao minister insisted that the business development center and sales center is two totally different concepts, the role of business development center to help dealers grow their businesses, rather than replace them.

Concrete expression of this form of assistance is in every city, Mengniu headquarters staff assigned to the business center, promotion staff, tallying personnel development for the dealer business, helping them to tally, promotion, distribution by dealer do. That is, Mengniu a human and costs, the profits were to go shopping dealer sellers.

Mengniu's corporate culture, there is a "partner to make money", reflecting the business activities that all staff operating expenses paid by the companies, the profit will belong to the dealer. Zhao Minister said: "In the future we will build offices and directly managed the company, helping clients develop their business. Supermarket end we will not do it themselves, at least not nearly two years."

Dealer sales model system

In the past four years, Mengniu has been produced as a full distributor sales model. Such as its temperature milk, 15 per month customers will be the next to cargo plan, and a rolling 3 months to make plans, spread the direct sales department, sales department dedicated coordination and planning room, according to the company's production capacity situation and market demand configuration and organization of production output next month, and then distributed to customers as planned.

This model with the inception of the company's strength and product type. Mengniu's liquid milk products are mainly short-preservation at room temperature (45 days), long-preservation at room temperature (6 months, 8 months) and low temperature products (yogurt, fresh house) 3. Tetra Pak to one fell swoop famous pillow bags of milk and milk compared to the greatest advantage is a long shelf life, typically up to 45 days. As a result, the middle part of the time loss is negligible up to. The city-based companies such as Bright Dairy, due to the preservation of the main part is sent directly to the customer on the way with fresh milk, so cars with direct-to-end.

However, this model comes with a worry that the local dealer in the control terminal market in the main shop big bully, do not follow the provisions. For Mengniu, it's a great place to distributors sometimes accounted for annual sales of 20% -30% of the total. Mengniu employee said a Beijing branch, in the first half of this year's "boxes and polite" activities, individual distributors had already ignored the provisions of the company without permission not allowed unboxing unboxing.

In fact, as the big brother of Erie Mengniu companies are also beginning to go the way of dealers, but the development to the present, it has established offices in some cities, the marketing center directly to the terminal.

"Just playing, not buy"

But with the social resources to develop their own ways of doing things is always Mengniu and business ideas. It does not own transport vehicles, transport vehicles, all using social with their CEOs Niu Gensheng saying that "the fight, not a car." Thus, it saves a lot of people keep a car to support the expenditure.

However, doubling output to Mengniu transport a lot of pressure, speed will become paramount. Mengniu liquid milk storage and transport head Zhanghu Gang said he Mengniu Transportation Department from 2001 to the time, the company with annual sales of only 290 million yuan, but by the end of the year, that number has soared to 850 million yuan.

Zhang said Mengniu a relatively smooth logistics channels and good planning system. Customer pre-orders, in addition to the sales department, planning outdoor, also reached the logistics, so put capacity, market demand and logistics combine. Logistics can know exactly a month traffic next month, ahead of time resources, transport and transport mode preparation. In addition, the transport vehicles will be transported each time coming from outside the box, Tetra Pak and other raw materials and finished products shipped out to do a basic combination of the vehicle's usage increased a lot.

For the cold chain, Zhang Hugang stressed sure to build. "If you do date with products, it certainly is a great move. As to what way to do this action, is not yet determined, but is definitely a development target." Beijing, Tianjin, the two started in 2001 with sales of Japanese Mengniu yogurt production plant built in Inner Mongolia and Beijing, Datong County. Mengniu current practice, there is no storage conditions of the areas determined not to sell.

In addition, Mengniu in each of its shops, family-run shop, wholesale shops, retail devices available in the freezer, to ensure low product quality. As for Beijing, Guangzhou and other places are sold to low-temperature products, all going Automotive, despite much higher costs than rail transport, but in time can be guaranteed. Typically, the supermarket produce at low production of more than 3 days after the date of purchase will be refused, so Mengniu must ensure that their products reach the end within 2-3 days.

Make a list of each larger

Mengniu to reduce logistics costs is to try to keep a list of every larger, the scale, the various links in the transport can get discount on. Tetra Pak products such as the railway walk, a certain amount each year after the delivery of goods in the distribution box so you can get a good discount. The Tetra take the Automotive pillow products, and take the car and walk 5 tons 3 tons of cars, the cost to be much difference.

For a very short shelf life of cold products, reduce transportation radius can shorten transit time, which requires the production plant from the point of sale as possible. Mengniu milk is not out of principle is grassland, but the cup yogurt, you can build factories in other areas, using local surrounding milk. Mengniu third quarter of this year to establish a base located in Jiaozuo, Henan, can be expected to be completed early next year, mainly producing low-temperature milk, this way you can reduce the transport radius, central China to open up vast markets.

Zhanghu Gang said the company will also recruit in other companies did business the logistics backbone of people to play, and regularly organize training, with the co-operation with the industry in exchange.

A dairy investment analyst commented: "This is Mengniu's future development will play a crucial role."






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