Kingdee

Jianye Group: The innovator of Zhongyuan Dadi’s material procurement model

 

Customer Overview

 

CCRE Residential Group (China) Co., Ltd. was established in 1992 and is committed to becoming a promoter of the urbanization process and overall social progress in the Central Plains. Taking root in the Central Plains for 29 years, Jianye Group has always adhered to the corporate ideal and mission of "let the people of the Central Plains live a good life" and adhered to the professional pursuit of high-quality residential development. In 2020, Jianye Group's sales amount was 102.624 billion yuan, and the total contracted sales construction area was 14,597,103 square meters. In 2021, the group won multiple awards such as "No. 41 on the 2021 China Real Estate Excellence 100 List" and "No. 1 in Comprehensive Strength of Henan Real Estate Enterprises in China in 2021", firmly ranking at the forefront of real estate companies.

 

At present, competition between real estate groups is increasingly evolving into competition between industrial ecology, and business model reconstruction, business model reconstruction, and industrial layout reconstruction are becoming key directions explored by real estate groups. At the same time, new changes have also occurred in the procurement business of real estate groups. The state has put forward "online electronic bidding and procurement" requirements for procurement-related businesses in real estate groups. The decline in profits in the "Silver Age" has also made the supply chain the main optimization direction. The needs of downstream customers are becoming more and more personalized, and the upstream supply and demand relationship has changed. The supplier cooperation mechanism has changed from focusing on "management" to focusing on "collaboration".

 

As the demand and quantity of the group's procurement business have gradually accumulated, the original operation and management system of Jianye Trading Company has been unable to adapt to the fast, efficient, traceable, and visual business needs. Multiple decentralized systems are used, and each business link is relatively isolated. , system data cannot be deposited, and supplier management is difficult. To achieve a "systematic and efficient" management model, companies have an urgent need for digital transformation.

 

Business challenges

 

Since its establishment in 2013, Jianye Trading Company has been assuming the role of the materials company of Jianye Group, responsible for the procurement of materials in 15 categories for each project company of the group, with an annual procurement volume of approximately 2 billion. The business is complex, there are many types of projects, and the number of contracts is huge. A lot of work needs to be carried out with the help of multiple systems of the real estate company, and a lot of manpower is invested in it. Jianye Trading Company urgently needs to establish its own business system to solve the following difficulties:

 

1. Lack of independent business system and “extracorporeal circulation” of business processes

 

There is a lack of a system that matches the business of the trading company. Sales contracts and purchase contracts are managed separately based on the real estate cost system and expense system, which cannot reflect the full picture of the trading business; the business cannot be online, and the receipts and payments and contract settlements need to be manually counted by the handling personnel. Conversion and follow-up are prone to errors and material loss.

 

2. Order management relies on manual labor, and progress risks are difficult to control.

 

In the absence of a material supply platform, material planning, material requirements, arrival acceptance, etc. all rely on offline collaboration among handling personnel. Progress is difficult to track, process risks are prone to occur, and supply chain business process supervision is difficult.

 

3. Long-term reconciliation of contract settlement is inefficient and error-prone

 

There is no management closed loop for business transactions between trading companies and suppliers. Fund settlements between project companies, trading companies, and suppliers require verification of various data details. Payment and settlement actions are difficult to directly correlate with corresponding business processes. Orders and settlement are relatively separated, and settlement information Lagging, manual verification is prone to errors.

 

4. Material control standards are confusing, and price control is difficult to stop bleeding.

 

Without the support of the front-end business system, the material price library is difficult to accumulate quickly, and the management standards are not unified, making it impossible to build a material price library for trading companies.

 

Solution

 

Whether the materials company and centralized procurement business are well controlled or not has a major impact, directly affecting the company's procurement costs, labor costs in the collaboration process, the degree of transparency and monitoring of the procurement business, the cost of taxes, and the prerequisites for future layout of supply chain finance. Jianye Trading Company lacks an intelligent system that fits its own modules. Whether from the perspective of solving current problems or improving efficiency, it is urgent to carry out informatization construction of the procurement company. Jianye needs to create a new path of digital procurement of its own.

 

Focusing on the "digital intelligent service 4.0" strategy of Jianye Group, starting from the perspective of "standardization, efficiency improvement, staff reduction, and risk control", through rigorous planning and implementation plan design, Jianye Commerce uses smart construction and mobile supplier portals as its core Front-end portal; using contract management, order management, production value management, payment management, and settlement management as the business center to define and control the logic in the business process; realize business digitization through the cost system, procurement system, expense system, and master data module. Precipitate with data assets.

 

 

The business system is fully online, accurate and controllable

 

Li Xueyong, Director of Commercial Operations of Jianye, once said, “In the past, completing a project required operations on multiple systems other than the company’s. Signing and executing the contract with the project company was in one system, and signing and executing the contract with the supplier was in another system. "On the other hand, the two systems cannot be connected, and monitoring is very troublesome. The whole business cannot be seen intuitively. Management has no way to start and can only follow up afterwards, which is very passive." After the business system is completed, from the signing of the contract to the settlement of the contract, after the business process is transferred from offline to online, the contract, payment, and settlement will become more intelligent. The entire process is not only fully controllable, the information is updated in real time, but also internal and external Business flows are seamlessly connected. Suppliers, trading companies, and project companies can both work on the move and link up at any time. The company's operational management level has been greatly improved.

 

Order circulation is linked online and can be checked in a closed loop

 

Now, each business organization can view order information and process progress in real time through its own portal. The system will remind suppliers and order project engineers to pay attention to the shipment progress, and an alarm will be automatically issued when the timeout expires. As the payee, the project company needs to confirm receipt of the goods within 10 working days of delivery. If the timeout expires, an early warning message will be sent and the initiation of subsequent business will be affected. At the same time, the process of receiving and returning goods, which is a headache for the project party, construction party, suppliers and supervisors, no longer relies on manual labor. There is no need to manually compare contracts and orders. It only needs to be done through the online platform on the mobile terminal. Complete the order confirmation, return and other processes. In view of the over-ordering problem that is very distressing for operation and control, in the past, operators had to spend a lot of time collecting and summarizing contract execution status every month, which was time-consuming and labor-intensive and could not be verified. After the platform was launched, it not only set over-order warnings in the process, but also set up special procedures for relevant personnel. Approval authority for excess orders when required ensures smooth flow of all order information.

 

Automatic verification of payment applications makes settlement more efficient

 

After the business is completed, the trading company needs to initiate the payment and settlement process. Among them, checking the supplier's supply details, sorting out the reconciliation details, whether invoicing is issued during the reconciliation process, whether the reconciliation is timely, how to operate the supplier's payment actions after the reconciliation is completed, and improving payment efficiency, etc., are common tasks for financial personnel. Scenarios to face. Since Jianye Group has many projects, the procurement requirements for each project are relatively large, and payment and settlement are very labor-intensive. After online management and control through the system, all project requirements are converted into orders, as well as the arrival quality inspection, invoicing and settlement of the orders can be viewed online, and finally payment can be automated online. In addition, the system executes commands according to the set template, which is less error-prone, more efficient, and the process is more standardized.

 

Standardize material management and control, data assists price decision-making

 

Due to the lack of a front-end business process system, Jianye Trading Company has never had an independent material library and cannot manage existing materials. The management of corresponding suppliers is also relatively simple and lagging behind. After using Kingdee's material platform, Jianye Trading Company established an independent and specialized material library in its business system to sort out and standardize basic information such as material customers and suppliers from the source and usage process. On this basis, the entire procurement process will precipitate material supplier settlement and price data in the entire financial process. The group can use a large amount of precipitated data to analyze price trends and carry out price control to help the group make decisions.

 

Project value

 

1. Build an efficient operation platform

 

Unify the platform and establish a mobile business center: Unify the employee entrance, open up the platforms of Mingyuan, Lanling, EAS and other parties, and the business is operated on the unified platform. The mobile application greatly facilitates front-line personnel and empowers the business. Linking upstream and downstream: Online links to 1,000+ and 450+ projects, enabling sales, procurement and commerce to work on the same platform, improving office efficiency by more than 40% and reducing communication costs.

 

2. Realize full-line management and control of business

 

The intelligent business supervision process has brought considerable changes to Jianye Trading: the audit efficiency has been improved by 30%; the output value has been automatically declared to be 600 million yuan; the average daily warning reminder is 54 times, and the average monthly order generation is more than 500 orders. The entire business process of agreement-contract-order-receipt-payment is controlled online, helping to improve material supply efficiency and reduce costs.

 

3. Automation frees up labor

 

Since the independent business system of Jianye Trading Company was launched, the system automation solution has replaced most of the work that originally relied on manual labor. The error rate and complexity of many key business links such as output value declaration, payment, settlement and other processes have been greatly reduced, and the workflow More efficient and convenient. The personnel investment in the same position has been reduced by nearly 50%, and idle staff have been deployed by the group to more challenging positions. Without increasing human investment, the company's resource allocation has been optimized and improved by liberating labor through automation.

 

4. Risks are controlled and decisions are based on basis

 

By realizing visual collaboration of the entire business process, business data can be known, risks can be controlled, and management goals can be predicted. On the one hand, there is a closed loop from the association of internal and external contracts, synchronization of contract lists with orders, online delivery, receipt, invoicing, and payment of materials to control business risks; on the other hand, the timing of signing internal and external contracts is linked; the signing of external contracts and orders are linked; Linkage of orders to delivery and receipt; automatic system control to avoid system risks. Precipitated process data to better drive management decisions.

 

Digital transformation value

 

At present, Jianye Trading is gradually getting rid of the constraints of the traditional ERP model by building a platform and managing and controlling business, and is transforming into EBC. The company has achieved comprehensive links with its employees, project companies, suppliers, construction parties, supervisors and other ecosystems, empowering everyone and management, and achieving data-driven insight, prediction, analysis and risk control.

 

In the future, Jianye Trading will continue to expand its capability radius and service radius, help the group enter the Greater Central Plains, accelerate the development stage of "big operation, big synergy, and big cycle", and promote Jianye Group to achieve "building a sustainable connection with customers (obtain data)" The digital intelligence strategic goal of "providing the people of Central China with a full-time, all-domain, all-scenario digital service system for a happy life" is an industrial ecological platform.