The development of furniture enterprises should pay more attention to the Quartet "value chain"

Under the value chain system, successful companies will mobilize the entire value group-including suppliers, cooperative enterprises, distributors and even customers, rearrange their roles and mutual relations, and jointly create greater value.

Although the road to economic recovery is still long, the stabilization and recovery have at least allowed entrepreneurs to devote some time and energy to sit down and consider the company's future development strategy.

After going through this financial crisis, the pattern of world economic development will surely change a lot, and Dongguan enterprises will of course be no exception. So, what are the important changes? What impact will these changes have on furniture companies in Dongguan? What preparations should companies make and what changes can they try?

The global economic growth rate will be greatly slowed, consumer confidence will be severely frustrated, and consumer behavior will become sensible and cautious. This is the judgment of economists who are more convergent. The previous large-scale manufacturing and large-scale sales The golden years will be hard to see for a long time. In the post-crisis era, more companies will shift their attention from the industrial chain to the value chain.

In the era of large-scale manufacturing and sales, the prices of materials and services provided by suppliers determine the procurement costs of enterprises, and the purchase prices of distributors determine the selling prices of enterprises. Therefore, enterprises are concerned about the industrial chain, reducing procurement costs as much as possible, and increasing selling prices. In order to maximize profits; in the post-crisis era, companies will pay more attention to the value chain, instead of pursuing the minimum procurement cost, but pursuing a faster response speed; instead of pursuing the highest selling price, they are looking for ways to sell to customers by adding dealers The number of commodities maximizes the profits of both parties.

Under the value chain system, successful companies will mobilize the entire value group-including suppliers, cooperative enterprises, distributors and even customers, rearrange their roles and mutual relations, and jointly create greater value.

The current industrial chain system is a single-line, step-by-step process in which suppliers provide raw materials, manufacturers complete production, products are sold to distributors, and then distributors sell to customers. Under the value chain system, the customer's needs will be the center, and the four parties will interact to become an interactive system.

In an interactive system, manufacturers and consumers are more closely connected. Take IKEA as an example. The world ’s largest homewares sales trust has always adhered to two traditions. One is experiential sales. Everything is for the seller to experience and feel. The second is DIY (short for “Doit youself”, that is Do it yourself), to buy furniture at IKEA home you need to install it yourself. The two traditions of IKEA insist on "customer participation". It does not regard the provision of products and services to customers as a simple transaction, but as a new division of labor, that is, some of the original processing The work done by retailers and retailers is left to the customers to complete, and the company is dedicated to providing customers with products at reasonable prices and high quality.

At the same time, the interactive system also emphasizes the interaction between manufacturers and suppliers and distributors. Manufacturers should actively invite suppliers and distributors to participate in the product design stage. Suppliers know from which aspects they can save costs and improve performance. Therefore, the design and production cycle of the product can be accelerated, and the inventory cost of both parties can be minimized. Taking full account of the opinions of the distributors, on the one hand, it can produce products that are more in line with the needs of the market. Unconsciously recommend this product to customers; on the other hand, you can timely understand the accurate sales information of the product, adjust production in time, and reduce inventory pressure.

The adjustment from industry chain focus to value chain focus will be one of the important directions of enterprise development in the post-crisis era. Focusing on this direction, domestic enterprises and export enterprises have different strategies for adopting strategies, and the author will further discuss in the future.

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