Pisen successfully connected the online and offline supply chain system to allow the shortest path for all products in delivery and the efficient operation of eCommerce shops like WeChat, Yihaodian, JD.com, and Taobao on one platform. In practice, 90% or more of the orders will be completed automatically that the users can buy the items they want conveniently in the “last kilometers”.
Corporate profile
Pisen is an O2O electronic company in Guangdong that specializes in smart mobile peripheral devices. It is founded in 2003 and is dedicated to the research and development, manufacturing, and marketing of mobile power sources, digital consumer electronics, cloud router, and smart devices since then. It has some 1,000 retailer shops all through China for creating an O2O shopping platform — “Pisen –same-day delivery” through its 3 major service systems, namely, “same price online and offline,” “same-day delivery to hundred cities,” and “portable service.” This makes O2O shopping convenient for consumers.
According to Pisen, the consumer electronics brand, it just took 30 minutes to sell RMB2.5 million worth of products on “11.11,” and hit the level of CNY6 million in 2 hours, and reached the amount of CNY10 million by 10:10 am. As of 11:59 am on November 11, Pisen has successfully secured total sale revenue amounting to CNY20 million on the “11.11” promotion. The consumer electronics market is highly competitive at the white heat stage, how could Pisen just spent 2 years to emerge as the leader and surpassed its sales objective by two-fold?
Transformation of O2O for a new mode of eCommerce
Pisen proposed the innovative idea of “two-way O2O”(online to offline, offline to online) under which some 400 retailing shops offline will be integrated with the same-day delivery eCommerce online shops, including T-mall, Taobao, and JD, into one system. With the full utilization of the accurate and speedy data transmission of the eCommerce shops and the well-developed logistics system, Pisen can make “same-day delivery in a hundred cities or the orders can be waived” logistics service possible.
The same-day delivery eCommerce management system is the back-end management system of Pisen for shopping with same-day delivery, including series of business management from ordering to the end of the transaction that principally contains: system management, basic management, product management, front-end management, order management, distribution activation, warehouse management, shop management, logistics management, sale return and exchange management, promotion management, financial management, customer management, marketing management and system spreadsheet management with simple use and high-efficiency function.
For the initiation of eCommerce operation at the beginning of 2012, Pisen adopted the Kingdee EAS for offline business integration to make full channel O2O marketing integration possible. Customers can choose the most convenient way of shopping through T-mall, JD.com, and the same-day delivery online shop of Pisen for ordering or dial the 400 number, mobile phone app, or even at the retailing shops or with the courier service persons.
In more than 110 cities across China, Pisen adopted the dispersion of warehouse system to allow for the shortest distance for delivery to the hands of the consumers. The 400 call center is the centralized system for assignment delivery orders to respective warehouses for dispensing of merchandise. The orders will be converged at the call center of the corporate headquarters that in turn assigns the delivery orders to the warehouse nearest to the locations of the consumers for shipment. The concerted effort of the two modes of operation makes same-day delivery in a hundred cities easily. This helps to break the bottleneck of eCommerce in logistics service.
Additional value offline
Pisen also launched its portable service with the use of Kingdee EAS to support local, alternate sites, merchandise pickup, return, exchange, and even every courier service personnel is the extension of the retailing counter. Courier service personnel not only can complete the delivery of merchandise and also present sample items to the customers through the analysis of customer needs. This makes repeated sales possible and accomplishes same-day delivery to your door, including the services of installation of accessories and system, fine-tuning of wireless network on the products, and so forth. Services could be developed as per the needs of the customers without limitation.
High efficiency online and offline platform
The O2O of same-day delivery service helps to integrate the systems of different vendors thereby established a supply chain for online and offline connection. With the integration of the Kingdee EAS through these interfaces, automated data retrieval could be done with the simultaneous warehousing and dispensing for ship, automatic write-off of sale return without any additional manual work required and make the information timely and accurately presented. The rapid delivery is accomplished by Express 100 service while the online marketing function integrates Taobao, Yihaodian, and Paipai for high market share and reduction of the risk of idle inventory.
The two-way O2O of Pisen yielded lucrative returns. The service attitude and delivery lead-time of Pisen is second to none in the industry with an inventory turnover rate that was improved by 2.8 times. Members can enjoy a special offer at the membership level. It is echoed with other marketing tools that help to reinforce customer bonding. In just half a year, its flagship at T-mall has accomplished revenue growth from CNY360,000 to CNY4.27 million. The Pisen O2O phase III allowed for doubling the sale in two years and help to track sale information all the way through for showing the status of operation timely. This will be essential for operation management and decision-making.