The movement and circulation of objects have been an indispensable and promoting link in the process of social development since ancient times. In the 1980s, the term "logistics" was introduced to China. The circulation of objects is no longer just as simple as transportation, but includes In the physical flow of goods from the supply place to the receiving place, according to actual needs, the functions of transportation, storage, loading and unloading, packaging, circulation processing, distribution, information processing and other functions are organically combined to achieve the process of user requirements.
The secret to the rise of Aneng Logistics
As early as 1993, SF Express and Shentong Express were established. Before entering the new century, Yunda Express and YTO Express were also established. The development of the logistics industry has paved the way for the take-off of e-commerce, but it is also facing severe tests. The overall situation of the logistics industry is still small stalls fighting each other. There are only a handful of large-scale formal logistics companies, and the extreme dispersion and low technology content lead to a vicious competition cycle. In 2007, Wang Yongjun, who graduated from Fudan University with rich professional experience, saw the broad prospects of express delivery and fast-moving industry and the status quo that did not match with them. He believed that the logistics industry had unlimited opportunities and he was able to show his strengths here, so he determined to devote himself to logistics. industry. "The logistics industry at that time was in the early stage of the industry development cycle, just like the home appliance industry that just came out of black and white TV sets. The prospects were very broad." In 2011, Wang Yongjun, who was determined to work deep here, joined the company as a partner who had just started a year. Aneng Logistics was a little-known express company with only 20 outlets at that time. After years of work and study, Wang Yongjun participated in the formulation of the logistics industry standard rules: from the establishment of the company system to the standardization of prices, from market development to system innovation, Aneng Logistics participated in the growth cycle of China's logistics industry, and Wang Yongjun was also here. Feel extremely excited and proud in the stock wave.
Wang Yongjun believes that a team with innovative genes is the key to success. The Aneng Logistics team is not satisfied with "doing a little business", but a team with big dreams and willing to innovate. This logistics company, which has only been in business for more than a year, has attracted Wang Yongjun with its innovative genes and has also begun the process of industry standardization and standardization.
pioneered the franchise system
As an industry with huge investment, Aneng Logistics even encountered the dilemma of "funding chain break" several times at the beginning of its business. Until the end of 2012, Aneng introduced external funds from Sequoia Capital for the first time, and the cash flow was sufficient. When it comes to difficulties in the past, Wang Yongjun feels the cohesion of the team. “If the team does not have a high degree of cohesion to overcome difficulties, there will be no future opportunities.” The opportunity Wang Yongjun said refers to the franchise system created by Aneng Logistics. Today, Aneng is the leader in the fast-moving industry, with a peak shipment volume of more than 42,000 tons per day. The original 20 outlets have expanded to more than 20,000 today, covering all cities and towns across the country, making it China’s largest express network ——The franchise outlets are indispensable.
Now, branch franchise is the standard mode of China's network logistics development, but a few years ago, the center direct operation + branch franchise + last mile joining 's Anneng model was still a great innovation. A few years ago, the logistics industry in China’s villages and towns generally struggled with each other. Large and small logistics companies have mixed good and bad, lacking service awareness and industry standards; on the other hand, due to geographical factors, resources are difficult to reach, and the franchise model has achieved the last mile delivery. Up. In order to complement the franchise system and realize national inter-provincial transportation, Aneng has established a system similar to the high-speed rail network: 170 distribution stations across the country are connected in series by regular scheduled shuttle buses. After the truck arrives at the station, it passes through the last mile to join. The merchant delivers the goods to every customer. The advantages of the
franchise system are: First of all, franchisees can solve part of the needs for development funds. In the past, Aneng’s new outlets cost millions of dollars from renting venues to store decoration, to buying cars and hiring labor. In addition, they have to bear a loss period of months or even a year; and the franchisees are their own bosses, and the store does not need to be large, and they can also operate concurrently, and they may even have no fixed place. Ask relatives and friends to help, without paying a fixed salary. Commission by piece, thereby reducing fixed costs to a minimum, with an investment of 300,000 to 400,000 yuan, which can pay back the cost within one year and quickly make profits. This is a very good individual business for the people in county towns and villages. On the other hand, Aneng provides franchisees with brands, fixed-time and fixed-point transportation networks and management experience, which has transformed franchisees from "guerrillas" into "regular forces." In addition, the local resources deposited by the bosses of counties and villages are alsoVery impressive, it takes several years for the headquarters to set up branches to accumulate. Aneng’s business quickly spread across the country through its franchise online stores. Timed fixed-point + last-mile delivery’s high commitment to customers and high-quality services have also driven the popularity of the franchise system. Therefore, the efficiency of the franchise system to generate profits is extremely high. High.
"Chinese people like to be bosses, because it represents a kind of hope," Wang Yongjun said. With the motivation to make money and hard-to-reach resources, franchisees may invest 300,000 yuan to do what the company can do with 1 million yuan. It can be seen that the franchise system is not only as simple as institutional innovation, but also an efficient use of social capital, using the least amount of money to drive the upgrade of the entire logistics network, "is a very suitable method for China's national conditions" . Today, the logistics in the city has formed a dense network. The more logistics develops, the more breadth and depth are required. The franchise system is a system that is more remote and has more advantages. In a small village, franchisees can be very flexible. Such a development path of "rural surrounding cities" is the most grounded and therefore the most vital. The specific management of
is very complicated. From the franchisee's willingness to join to the rules and regulations, from supporting its development to establishing a management and control system, how to improve service quality and operational efficiency, all need to be continuously improved; in Aneng Logistics's express network throughout the country There are a large number of products in different kilogram segments, 170 distribution centers and more than 3,000 vehicle lines have been established across the country. How to use real-time dispatch centers to use digital methods to intensively cultivate and optimize the full load rate and direct delivery rate of each vehicle Reducing costs is a complex process. In order to solve these problems, Aneng invests 100 million yuan in IT every year to establish systematic planning, mobilization and management capabilities. Among them, it includes a highly digitalized monitoring system to manage national KPIs, digitizes all ecosystem operations, and inputs each franchisee into Aneng's logistics management system to comprehensively optimize human efficiency, vehicle efficiency, and field efficiency. Specifically, "How to achieve punctual arrival and reduce cargo damage? Our monitoring system has tracking statistics in every link. Only when each branch abides by the rules will the entire system be perfect and the quality of service can be guaranteed." How can
save "one penny"
save one penny? The expansion of is one of the important measures. Wang Yongjun mentioned that in 2019, Aneng optimized a profit of 4 cents on each piece of goods and generated a profit of 400 million yuan. Relying on scale to generate benefits is an important basis for the real economy to differentiate in today's fierce competition.
"Now, customers are extremely price-sensitive, and it is difficult to charge a penny more than their competitors", Wang Yongjun described the current highly competitive real economy. In 2019, Aneng Logistics lowered its calculation-to-toss ratio twice, that is, lowered its prices. This greatly increased the volume of transported goods, but did not reduce profits. "We will not lose money to gain scale, but continue to achieve effective scale." Wang Yongjun explained that the price reduction is actually due to seasonal sales considerations. In the off-season, the car's full load rate decreases, and a moderate price reduction can "fill the car"; Prices will be increased again during peak seasons around November and December. In addition, in the long run, with the continuous improvement of efficiency, the cost of is decreasing year by year, so Aneng is willing to return 70%-80% of the cost reduction to the market in order to obtain a larger effective scale.
This year, Aneng saved 4 cents through the dispatching of a large number of vehicles, field dispatching, and people dispatching. In addition to expanding the scale, it also included digital management, investment in technology, and operational genes to improve efficiency. The combined effect of . Any large-scale enterprise is implementing digital management to optimize efficiency. The express delivery industry has already enjoyed the dividends brought about by the efficiency improvement, and thus gained the ability to pay for high-tech; and whether the technological tools purchased at high prices can be used for its use, and the combination of management, it needs the team's operational genes to play effect.
For example, the prices of different categories of goods such as red dates, rice, electronic equipment, and furniture are different. The home is large in size, electronic equipment is heavy, and red dates are light. How to price the category? How to formulate a promotion policy? How to ensure the full load rate and on-time rate of the vehicle? The data collected and mined by technology is very important, but to be applied in practice, it also needs to combine the accumulated experience of the team over the years. This is the operating gene that Wang Yongjun emphasized-it has been infiltrated in the logistics industry for a long time, and Aneng’s team knows how to fill and install a 17.5-meter carriage.In fact, the logistics industry is not just as simple as transporting goods, but a combination of physics, mathematics, management and other disciplines. How to load a truck is the most cost-effective and has the highest income? Will receive iron, cotton, clothing, or food when I go to receive the goods today? Electronic equipment or furniture? This depends on experience to make accurate matching. If a car is not full, the efficiency will be lower than that of the competition, and profits will fall. This is the cruelty of the efficiency war in the logistics industry. Without operating experience, it is impossible to formulate a strategy that integrates local characteristics and local industries, and the price adjustment policy will appear rigid and unrealistic.
Wang Yongjun believes that now is the time for the structural transformation of the entire logistics market, and the small-ticket express in the fast-moving industry still maintains a rapid growth of 20%. At this time, Aneng must quickly increase its size, seize the advantage of scale, and improve efficiency through digital management; more The important thing is that the team itself keeps pace with the times and applies the accumulated experience to the new era to form a competitive differentiation. As the leader of the express industry, Aneng has the right to set prices. It formulates new price policies at the beginning of each year, moderately lowers prices in the main product segment, and transfers profits to the market. This not only increases Aneng’s volume, but also drives the entire industry to maximize efficiency. Extreme. It can be seen from that the so-called efficiency war is a price war for sustainable profitability. Only the money saved can be turned into profit, not just a price cut. Z7z express delivery industry's "three links and one delivery" and Best have been on the market, the price of express parcels has been reduced every year, and the profits of the three links and one delivery are actually increasing every year-this is the ultimate efficiency war brought about Profit gap. Some companies can achieve a profit of 50 cents per package, and some may only have 5 cents. This reflects the gap in the ability to improve efficiency—that is, the degree of digital management, the efficiency of operations, and the use of technological means.
Through these methods, Aneng saved 4 cents in 2019, widening the gap between Aneng and other companies: the scale and growth rate of Aneng far exceed other companies. In the long run, every penny will bring a profit of 100 million yuan. Five years later, maybe one penny will bring a profit of 300 million yuan.
The future of fast-moving industry
This year double eleven, the number of MiNi e-commerce votes of Aneng Logistics (the kilogram segment below 70 kg) exceeded 400,000. Now, the number of MiNi parcels has accounted for 72% of Aneng’s entire network. Only 10% three years ago, the growth rate is very fast. For Aneng, this is a new change. Wang Yongjun said that in addition to the volume of goods, the express network also depends on the ticket weight structure. The number of votes of MiNi e-commerce products is more important than the weight. First, because of the same tonnage, the gross profit of the small ticket is higher; secondly, the small ticket can increase the network density, increase the number of tickets delivered by franchisees, and reduce the delivery cost per single ticket. Finally, the entire network is more competitive in the market. Franchisees are also easier to make money, so they are driven to split into smaller franchisees. This increases Aneng's network density and raises barriers to competition.
From the perspective of the market, customers' demand is mostly small tickets, and the growth rate is faster. The major revolution in China's entire supply chain is to move to multi-tier distribution, to single-tier distribution or to sell directly to consumers on the Internet. Now, parcels are getting smaller and smaller, and the frequency is getting higher and higher, which has promoted the improvement of customer supply chain efficiency. . This is an opportunity brought about by the transformation of the market and economic structure, and Aneng is bound to seize this opportunity.
Now that Aneng has become the leader in express delivery, where are the opportunities in the future? Wang Yongjun believes that should focus on long-term, sustainable, and relatively unchanged things. Today, Aneng has many opportunities in the market, but most of them are "false opportunities." The growth and profitability of express receipts is a long-term trend in the next ten-year cycle, so Aneng regards this trend as the overriding strategic center. "If there is anything to do today, it is to do nothing, just to improve operations and efficiency, to ensure that we will firmly become the absolute leader in this strategic window of major structural changes in the express market." In terms of efficiency, Aneng must have a greater advantage over all its competitors, seize 30%-40% growth every year, and optimize efficiency to save another penny. After 5-10 years of accumulation, Wang Yongjun believes that Aneng Can become the absolute "Big Mac" in the logistics industry.
In the joint struggle of the team, An Neng's experience is trust and openness. Wang Yongjun believes that full trust should be given to the core management team, especially in times of difficulties and setbacks, trust can stimulate cohesion. Openness is the most important state that enterprises should maintain todayNowadays, the pressures and challenges faced by the company are multifaceted, and talents with various talents are needed. Technology, operation, management, and financing are a systematic process. Everyone needs to complement each other in each link. "Now, Aneng has both management talents with strong digital management and application capabilities, as well as very grounded operational talents. It also has excellent talents in communication with investors, board management and strategic planning, and finally formed A complementary and comprehensive team. Aneng is the most open team in China in the fast-moving industry. It can accommodate talents from different backgrounds from all corners of the country. As long as they contribute to the company and can play value, we will tolerate such people." Wang Yongjun Trusting An Neng's team is also an open environment in which talents can maximize their personal value.
For Wang Yongjun, he has become a promoter, standard-setter and witness of the fast logistics industry from a "ignorant and fearless" newcomer. He still bears in mind that he must look to the future. "The important thing is to set a challenging goal for the next ten years, otherwise it will not make progress and lose its competitiveness." This sense of crisis gives Wang Yongjun a lasting motivation and gives Aneng Logistics the direction to move forward.
