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VX'S BUSINESS
SAFEGUARD FOOD SAFETY AND
PROTECT THE GOOD LIFE
HOMEVX'S BUSINESSSolutions and Digital ServicesIntegrated Supply Chain

Drive business growth

Business scenario

A globally renowned meat production supplier sells its products in over 100 countries and regions. Since the establishment of its first factory in China in 2001, its business has developed rapidly, covering 23 provinces, 5 autonomous regions, and 4 municipalities directly under the central government. Its products include fresh meat, frozen meat, meat products, and other series, and its business covers multiple channels such as catering, supermarkets, e-commerce, and convenience chains.

How can the supply chain support customers' strategic goal of increasing their business scale from 6 billion to 30 billion over the next five years with "the lowest cost and the best service"?

Business challenges

Challenge 1:

The network structure lacks systematic planning. During rapid business expansion, due to a lack of overall consideration and timely adjustment, there are many unreasonable aspects in the customer's production capacity and warehouse layout, resulting in a large number of cross-regional long-distance deliveries.

Challenge 2:

Logistics resources are extremely dispersed. Customer business is spread throughout the country with numerous terminal branches, and most end distributions adopt local regional logistics service providers. Due to the scattered distribution of goods at the destination, a large number of less-than-truckload shipments have been made, and the bargaining power is limited, resulting in overall high logistics costs.

Challenge 3:

The operation system lacks sufficient collaboration. With the rapid growth of business, customers have put forward higher requirements for demand forecasting, inventory holding cost control, and the construction of production and sales coordination systems.

Challenge 4:

The phenomenon of information information isolated island is prominent. Customers need to connect with multiple logistics service providers during transportation. Due to differences in level of informatization, there is a lack of transparency throughout the entire order lifecycle, as well as visual tracking and rapid response to performance.

Response plan

Response 1:

By using the "Cyberverse" product, network planning scenario optimization and simulation can be completed at a few minutes. Taking into account the business layout, production and procurement, and logistics network distribution in the next five years, we design the optimal supply chain network solution for enterprises to ensure service while reducing logistics costs.

Response 2:

As an integrated logistics service provider, VX can provide customers with a nationwide network layout and reduce logistics and management costs through integrated transportation resources and intensive management.

Response 3:

VX provides not only logistics services, but also 4PL proxy operation services. At the same time, VX’s supply chain digital product matrix can help customers achieve demand forecasting, inventory strategy optimization, production plan optimization, and provide integrated production and sales solutions.

Response 4:

VX has a mature OTWB system that can cover diversified business scenarios for customers. Through EDI integration with upstream and downstream, it builds an order-based supply chain control tower, and helps customers improve the visibility and controllability of the entire supply chain process.

Value return

By optimizing the supply chain and undertaking logistics business, we aim to provide customers with integrated supply chain solutions with “strategic planning+tactical planning+operation implementation”. While supporting the strategic growth of customers' business, we expect to achieve a logistics cost reduction of over 10%.