Customer overview
Meicheng Digital Technology Group Co., Ltd. is a well-known IT retail benchmark enterprise in China and a leading mobile application solutions integrator in the country. Its core business is composed of ten major business divisions. The business scope includes digital product retail, LEGO product retail, LEGO education, K12 education, and other business segments.
Meicheng Group is rooted in the IT industry, with the mission of “leading IT trends and integrating technology to empower customers.” Starting from customers’ actual business scenarios, it provides customized solutions, gradually expanding from distributors/retailers to technical services. At the same time, it has ventured into K12 education and established the Onezero brand. The development and transformation of its business have shaped Meicheng into a responsible and evergreen enterprise.
Meanwhile, Mr. Wang Yibing, CIO of Meicheng, also expressed his expectations for Kingdee: to build an information platform that supports the entire group’s business and aligns with the group’s future development.
On the path of enterprise development, Meicheng Group needs to integrate its online and offline operations by connecting finance with business and achieving synchronized inventory between online and offline channels. At the current stage, the separation of finance and business, as well as the lack of unified online and offline inventory, poses challenges. The financial manager has proposed the integration of finance and business to achieve consistency between accounts and actual inventory. The warehouse manager has requested inventory consolidation to meet warehouse management requirements. Meanwhile, sales staff hope to obtain more accurate cost and profit data. These demands have presented challenges and difficulties for the company’s management and future planning.
Business Challenges
Meicheng Group currently operates over 100 stores and has established shops on multiple online platforms. Its business divisions handle corporate orders. However, the existing system separates finance and business, making accounting difficult and online-offline inventory synchronization challenging, which brings significant challenges to the group.
Centralized procurement and distribution are difficult to plan and allocate accurately.
With over a hundred stores and multi-point deliveries from suppliers, issues such as centralized distribution after failing to meet the minimum order quantity, centralized procurement, and centralized settlement urgently need to be addressed.
With sales channels being dispersed, inventory management and sharing have become challenging.
The volume of inventory in and out is enormous, and online and offline inventories are not unified. There are issues with incorrect equipment serial number identification that require adjustments. Stores frequently borrow products, which need to be recorded and reflected in the inventory. Additionally, there are numerous stock transfers, making inter-organizational settlements complex.
Rebate policies and numerous business documents make business matching and calculations a challenge.
Suppliers have numerous rebate policies with complex calculations. Meicheng handles a large volume of business documents, making it difficult to match applicable rebate rules and allocate rebate performance effectively.
Multiple business systems have resulted in data fragmentation
Multiple systems operate independently, leading to inconsistent data and business processes. With the development of business and management requirements, there is an urgent need to integrate these systems.
Solutions
Meicheng Group aims to establish online and offline channel business collaboration and sharing, achieve seamless connection between upstream and downstream links, thereby improving business efficiency, enabling shared and optimized inventory planning, and integrating business and finance to support financial accounting. This will drive the group’s overall digital transformation and support its development and transformation goals.
Centralized procurement fulfills procurement needs across various scenarios
Centralized procurement enables business scenarios such as insufficient store order quantities meeting the minimum delivery threshold and centralized ordering with separate deliveries. It also facilitates the collection of demand quantities from each store and the rational allocation of goods when suppliers deliver in batches.
Unified inventory management enables efficient collaboration across all business scenarios.
“Through real-time inventory synchronization, we can more efficiently obtain accurate inventory information, providing a reliable basis for inventory allocation. With a large number of daily inbound, outbound, and repair orders, the system allows us to quickly adjust and correct incorrect serial numbers, greatly facilitating warehouse operations and handling of special business scenarios,” said Xu Long, the warehouse manager. With the system’s coverage and implementation across the entire group, overall operational efficiency has increased by 40%.
Hu Bo, IT Manager of Meicheng Group, summarized: “Through the comprehensive implementation of Kingdee Cloud Galaxy, Meicheng Group has effectively enhanced its inter-business collaboration capabilities, improved operational efficiency, and achieved business-finance integration. This provides strong support for obtaining financial information and offers a digital and systematic foundation for the group’s decision-making.”
Rebate management provides a basis for rebate settlement.
“Before using Kingdee, we relied on spreadsheets to match business documents and rebate policies, which consumed a lot of time for matching and calculations. Now, the system automatically matches policies and calculates rebate amounts, allowing rebates to be directly offset against payments and performance allocation. This has brought great convenience to our operations,” said Xu Xuming, a business staff member.
Rebate management enables the setup of rebate policies based on dimensions such as business documents, materials, and material groupings, allowing customizable rebate policy configurations for various rebate business scenarios. Through the matching of business documents and rebate policies, rebates are calculated automatically. The results can be used for rebate settlement and distribution.
Constructing a unified information management platform for group operations
Based on the characteristics of the wholesale and retail industries and aligned with Meicheng Group’s business operations, multiple heterogeneous business systems were integrated to construct a unified information management platform for the group. This platform enables centralized procurement across various business scenarios, online and offline collaborative sales, unified inventory planning and allocation, and other business processes. It achieves financial goals such as centralized settlement between organizations, unified settlement for customers and suppliers, and precise financial cost calculations. Overall, it fully realizes the management objectives of business-finance integration, unified group operations, and unified inventory planning and coordination.
At the same time, the construction of the distributor collaboration platform was completed from scratch, enabling end-to-end monitoring and management of processes such as online ordering by distributors, backend approval, credit limit management, shipping, rebate calculation, and utilization.
“The business-finance integrated system built by Kingdee allows financial operations to be supported by business documents, enabling the direct generation of corresponding vouchers through business documents, which simplifies the work of financial personnel. The first-in, first-out cost calculation model also allows us to calculate costs and profits with greater accuracy,” said Sun Longmei, a financial manager of a business division.
Project Value
Empowering the supplier-distributor collaborative ecosystem
Completed integration with six heterogeneous systems, connecting upstream and collaborating with downstream partners. Achieved business collaboration with suppliers and distributors, saving over 80% of offline reconciliation and credit management time, and realized the management goal of upstream and downstream integration.
Empowering Internal Control of Procurement Risks
Through a centralized procurement solution, support centralized-distributed and centralized-centralized-distributed business scenarios, enhance bargaining power, reduce procurement costs, and optimize the allocation process. Combined with overall inventory management, arrange the optimal allocation currency, while improving system operation efficiency by 30%.
Empowering Internal Control of Inventory Risks
Through an inventory management solution, address challenges and pain points such as frequent stock movements and extensive cost adjustments. By adopting a centralized settlement approach, resolve the complexity of settlement relationships between stores, achieving a 40% improvement in system operation efficiency.
Empowering Rebate Management with Data Support
Using rebate management, address challenges such as complex rebate calculations and difficulties in settling with suppliers. By setting policies and enabling automatic rebate calculation through document matching, eliminate the pain points of manual calculations and manual verification with suppliers. Support rebate allocation and provide a systematic basis for calculating sales performance for business representatives.
The Value of Digital Transformation
Integrate six heterogeneous systems to break down information and business silos, achieve real-time synchronization of online and offline operations and inventory, and enhance the ability for operational control and unified resource allocation.
Break down internal barriers, connect externally, and achieve efficient collaboration with suppliers and distributors, improving business calculations and operations by more than 30% in terms of time.
Integrate online and offline operations, enable unified allocation of inventory across hundreds of warehouses, including store warehouses, e-commerce warehouses, group warehouses, and outsourced warehouses, and empower the integrated management of customer resources.
Move offline operations online to reduce costs and increase efficiency, significantly improving user business efficiency by over 20%.