On December 9, 2016, a top domestic specifications of the real estate industry chain builder event - optimal mining platform 5 anniversary of the annual meeting was held in changsha wanda mandarin hotel, nearly half of the top enterprises with hundreds of domestic indicate the building materials product supply executives to celebrate together, for the upstream and downstream industry has brought an unprecedented exchange of thoughts and feast.
Evergrande is a real estate leading enterprise in China, and also an important real estate purchaser on the platform. At the event, the chairman of Evergrande group materials company, Mr. Xu wen, Shared the road and future work plan of Evergrande's 10-year strategic procurement.
The following are some of the live records:
Mr. Xu wen, chairman of Evergrande group materials co
Mr. Xu: thank you so much for the opportunity for the Chinese real estate association and the prime platform to give Evergrande materials to the bbbb-0, to share the experience of Evergrande material gathering, to share the journey and achievement of the 10-year strategic purchase of Evergrande.
Evergrande from 2006 onwards, began to create the high-quality goods route, to the all across the country, and in the project USES the fine decoration, Evergrande in system started in 2007, Evergrande set up material equipment company, is responsible for Evergrande group all fine decoration as well as the important material centralized purchasing of equipment, material company is founded in 2007, to 2016 in just the past 10 years, during which Evergrande have also made very good grades, including aspects of purchase quantity, purchase quantity is $6, 2008 as of the end of November this year to purchase more than 13 billion, is expected to reach more than 14 billion 2016 purchase amount. According to Evergrande's strategic development over the next three years, we expect that the total number of purchases will be between $25 billion and $30 billion three years from now. It has reached the level of medium-sized real estate.
After 10 years of development, Evergrande partners had only 100 in 2009 and now reach 400 and gradually increase. The material equipment class 200 home, the material class has 200 or so. Among them are well-known brands at home and abroad and we cooperate. Both domestic and European companies are among the top 10 companies in the industry, even the top 3.
With the development of Evergrande, individuals believe that the important achievement is to grow up with our suppliers and partners, which is a proudest achievement.
Such as zhuhai China, we have cooperation for 10 years, the first year cooperation amount is only a few million, when researchers only 38 people, rent a very old plant, after ten years of development, has become our very important partner, so far this year has more than 400 million. The engineering industry is second to none. Companies such as vanke and vanke have established strategic partnerships.
Another is the three trees, is the first time in 2009 and Evergrande do engineering, used to do retail, after 10 years of development, Evergrande done better, every year is Evergrande rated as outstanding suppliers, because the amount of coating industry itself is small, also reached nearly one hundred million yuan. Most of all, if more than 40 of China's top 100 companies have cooperated with him, the industry has gained a good reputation.
Haier group, the earliest Evergrande cooperation from the cabinet, because haier itself in terms of comprehensive strength is very strong, finally all aspects of different category expanded cooperation, full cooperation, cooperation again behind the kitchen electricity, clean of pottery and porcelain, including fine decoration comprehensive cooperation.
These three cases, from different latitudes, embody the growth of win-win cooperation with Evergrande.
In the next three years, we will reach the procurement of between $20 billion and $30 billion. We are faced with the purchase quantity that we dare not predict after eight years. After reflection and summary, we have made some progress in the past 10 years. But many have not done better. Including the current management structure, management system, management concept, also cannot adapt to the current enterprise development scale. We cannot adapt to the development of the future, nor can we adapt to the change of society. Therefore, we have conducted many discussions and studies internally, and decided to prepare for the improvement and improvement in the six aspects.
First, raise the cooperation threshold. There are two criteria for Evergrande cooperation. One is the top three international brands and industries. We are more focused and more focused on the top three industries.
Second, pay more attention to quality, excellent price. In the past, the development of Evergrande, the product to the cost of the victory, now gradual transformation, hengda product quality is higher and higher, the price is higher and higher. Evergrande puts forward the principle of premium price, not all products are priced at a starting line, and many brands have his value. Different products, different level positioning we will use different price system. Arrangement in our different buildings to use, so this year we have on our purchase of each category, we through group within three latitude of the system, to assess the top ten of each industry, industry in the first three, also can entrust a third party to evaluate, including optimal mining platform, the industry's top, the preferred brand, we will internal form every industry of the country's top 10 standard, and the first three of the nation's standards.
In addition among has cooperation partners, will put forward higher standards and requirements, in the past based on the selection of partners are industry top ten international brands, Evergrande management aspect to them, both strength and degree of refinement and high enough, and more extensive. So it's flawed, not perfect. Evergrande revolves around specific cooperation in three latitudes, a guarantee of supply, quality guarantee, service guarantee, and more detailed and specific standard requirements for partners.
First of all, it is required that the partners have to set up the inventory, not be able to carry out the production after receipt of the order, and the annual demand should be 20% as a safe stock. We also ask the supplier to accept my orders unconditionally as long as they cooperate with me. We often do not do it, which is not allowed. The supply guarantee is specific to which day the goods are delivered, allowing for the error of the day, if more than this time for severe punishment. In terms of quality assurance, factories are appointed, which factory produces the guarantee quality to eliminate the slacking. We need to improve the service guarantee, and we should have a special team with evergrande. Now also to improve, to achieve 30 days without reason return mechanism, we Evergrande procurement is internally is a department, foreign is a complete service, we will according to the requirements of the market, to carry out the service. For example, we used to place the orders is every month, then put forward the slogan, we are social enterprises, taobao, jingdong, buy things never buy only once a month, definitely want to buy it. Therefore, the slogan "all on-site orders can be made at any time". Of course, there is a process of reform. Now, the order will be placed on the next two orders from one month to the next, including the return of the goods. The future service will also be self-improvement, the goods will be returned to the construction site and returned within 30 days. Therefore, three aspects of the future cooperation partners, especially strategic partners, have put forward higher standards and requirements. If you can't meet the requirements, you should withdraw from the cooperation with evergrande.
Of course, Evergrande has always been a win-win business, with so much higher requirements for suppliers, what can we offer suppliers? Ability and the response of supplier, can we achieve the future three years we will sign a contract, will be put in the next three years contract, in the next three years the supply of locking, give the supplier have a long-term and stable supply, do the improvements. Otherwise, we will not be able to do this in the short term.
Second, improve operational efficiency. Startup time is done according to the business process, planning, distribution department, settlement department, according to a business process to do, now I think to do so, both the efficiency and the surface will not be able to meet this requirement, so the internal change of change, settlement, plans to push the integration of business operations, each order issued, to finally reach the site by a department is responsible for, including pay. Therefore, we are more efficient. Besides this, we have more emphasis on product research and quality control. Special materials technology department and quality management department. Improve the efficiency of operation and enhance the research on new technologies, materials, and quality control. The inside has already been implemented, and the new architecture was approved last week, and the new architecture has been implemented.
Three is to improve the logistics distribution capabilities, in the past should be point to point, the electrical appliances directly to the hangzhou suppliers such as the boss, if is 200 projects distribution, to 200 site is a factory, the current distribution system is perfect, the arrival of the goods on time rate reached more than 95%, but we still don't meet, hope to go further, so the next step to build Evergrande own logistics distribution system. In principle, a transit warehouse is set up in each province, and the supplier will send the goods to the transfer warehouse in the future. Have two benefits, quality control in the future, transit warehouse, construction time and nervous, goods and more, if things will appear to be of poor quality, if return to building site here in a hurry to pay, no return to quality defects, sampling inspection time again at the same time, so the quality of the control has an important significance. First of all, the quality acceptance shall be carried out after delivery to the transit warehouse. According to the quality standard, the original sample shall be inspected and tested. The site is then sent to the site to achieve 100% zero defects.
Another is to ensure that project accurately the arrival of the goods on time, we are superior delivery cycle, normal is a month of time, because need to prepare, distribution, and so on, for this reason the site of the project may be in advance, or reported more than is the case, cause the backlog materials. Future build transit warehouse, will put an end to the backlog of site issues, may supply cycle is 7 days, the site needs to be 1000, 7 days in advance to order, from changsha to yueyang is 7 days, this time is quite enough. So this is a historic reform and breakthrough. It must be done, and the work is ready to start.
Fourth is to improve quality control, evergrande is fine decoration delivery, a standardized operation has a certain time. In the past, many products have been used for 10 years, but we will pay more attention to improving the quality of market mainstream products and research the market. Including new health, environmental protection, green, our latest 2017 decoration standards, such as adding new air pollution control system, to China's haze. Including other aspects, we will be moving with the market. Internal formulated the unified standards of product quality at the same time, product acceptance criteria, finished product protection standards, combined with the market mainstream product standards, combining Evergrande situation, to develop a more stringent standards than the market. It is not possible to say that the quality of the project is worse than that of the market retail, while the construction of the headquarters and the on-site acceptance of the construction of the construction of the system. In the future, a lot of quality management is at headquarters. This reform has added many people. There are 155 people in total, the headquarters is now about 100 people, 400 site acceptance in the country, 50 materials quality technical engineers have been added. To increase the control of material research and quality research. It is a reform that will be controlled by the headquarters. The past is based on the site, the goods to the acceptance, the future is the headquarters unified control. Will strengthen the quality control of the factory at the same time, the headquarters of the key control the supplier's factory personnel, and management of the chain will be extended to the control of raw materials, especially for air control, environmental indicators, plywood will control the environmental control of raw materials, semi-finished products.
Five is to improve informatization level, Evergrande the development of the material supply was founded in 2007, we are the manual order, all is faxed copy, then use the uf order platform, and using the SAP system, now we want to adapt to market changes. To mobile Internet, mobile terminal to spread, including user interface, to taobao, jingdong so useful, so in the future regardless of the monthly, annual, and stock inventory, intensified in terms of information. Easy to use, fast, mobile will have higher goals and requirements.
Ten years' journey, the record is Evergrande to create a brilliant moment together with China, more records of the industry's focus and persistence. Today, regardless of the size, experience and technology of the company, the Chinese products have been transformed into a leading enterprise in the wooden door engineering industry. In the future, China products will continue to follow Evergrande's solid and strong step, gradually improve its own industry competitiveness, and improve the management mechanism to achieve a bigger leap.