Zhejiang's leading supermarket chain makes changes: using "big single products" to drive supply chain reform

Advancing Forum Analytics at China Data
Post Reply
zihadhosenjm25
Posts: 20
Joined: Thu Dec 12, 2024 3:05 am

Zhejiang's leading supermarket chain makes changes: using "big single products" to drive supply chain reform

Post by zihadhosenjm25 »

"One is tiramisu with different tastes in every bite, and the other is cheesecake with balanced taste."

Zhang Yibo, global partner of BCG Consulting, used a cake to compare the differences between the characteristics of different regions in the Chinese market and those in Europe, America and Japan. This is a huge opportunity for supermarket players who want to deeply cultivate regional markets.

At the "2025 Lianhua Huashang Business Conference" at the end of list of kenya whatsapp phone numbers , Hangzhou Lianhua Huashang announced that it would create a "new quality supply chain", establish a new supply chain development system, and cultivate "big single products".

In 2024, the hottest word in the domestic supermarket industry is "adjustment and reform", especially "fat reform". Yonghui, BBK and RT-Mart, which are active in the hot spots of public opinion, are all national "big guys". Some regional retailers are actually accelerating their actions, opening up a breakthrough for reform by "regaining control" of commodity rights and honing "commodity management capabilities".

Image

01

Focusing on "big single products" and creating a new quality supply chain

To achieve "big single product" transformation, reshaping the supply chain is fundamental. The supply chain reform promoted by Hangzhou Lianhua Huashang has entered a hard start from the organizational level, including adding new positions such as customer insight officers and category prescribers, changing the operating model, and restructuring the supply chain process to create new products.

In order to implement the "big single product" strategy, Tang Haili, deputy general manager of Hangzhou Lianhua Huashang Group, revealed that Zhejiang Lianhua even promoted the "very difficult" DPP (Direct Product Profitability) analysis to determine the actual profit of each product for use in supply chain management, product selection, combination planning and shelf layout design.



Image source: Hangzhou Lianhua Huashang

Now, when Hangzhou Lianhua Huashang purchases a product, it does not simply give the supplier or brand a purchase price, but conducts a cost analysis from the entire life cycle of the product. For example, how much white sugar is used? What is the quality and type of flour? What is the breeding cycle of pork? Even boars, sows, transportation, operating costs and other complete analysis methods are used to manage and analyze the supply chain together with suppliers.
Post Reply