Wu Zhengyao: Inventory is the "Gate of Life" of the company

"In the era of traditional lighting, inventory is a weapon for corporate competition. In the era of LED lighting, over-inventory is the tomb of the company." General Manager Wu Zhengyu of Yiguang bluntly said.

In the traditional lighting era, most companies have to do inventory, because the traditional lighting technology route has been stable, companies can quickly find accessories after receiving orders, and carry out large-scale production.

However, in the era of LED lighting, the inventory cycle with traditional lighting is very different. The reporter also found that some companies have found that most companies have said they will not do a lot of inventory.

Yi Zheng, General Manager of Everlight believes that because traditional lighting is not like the semiconductor lighting industry, it does not operate according to the thinking of the industry chain. In fact, behind the inventory of companies is the standardization, individualization and specialization under the competition of the industrial chain. Only the upstream chip makers put forward the corresponding standards, in order to consider the standard issues in the replacement of the chip.

However, standardization must be individualized in the future. In fact, standardization refers to standardization of component interfaces, and other aspects are personalized by the enterprise. Just like Shenzhen is doing a cottage mobile phone, its upstream chip solution company does a good job of the whole machine program. Manufacturers only make changes in the personalized interface. At the same time, they jointly make professional mobile phone shells, and they are professional for display screens. After docking, product production and response speeds are particularly fast. At present, its specialized division of labor for semiconductor lighting has not yet been presented, but it will certainly be presented in the future.

Wu Zhengyi said that there are two principles in the management of Yiguang's internal inventory. The first principle is to use the greatest efforts to respond to the needs of customers. This is a proposition. The second proposition is that inventory is garbage. Many people in the industry may not yet recognize that inventory is rubbish, and that inventory is the lifeline.

For Yiguang, it is now in the distribution period of the channel. Circulation is the main mission of the company. Yiguang will survive through the landfall landing of the rapid circulation help channel and grow.

Yiguang Sichuan's business staff responded that some large distributors have a lot of brands operating. At this time, Everlight is just one of the brands. What should we do? Wu Zhengyin believes that most of the new brands are now entering the original channels and doing well. It usually goes through four stages: penetration, parallelism, expulsion, and monopoly. This often starts from one part and gradually expands. This part must have a strong competitiveness, which must enable the company to form a focus on superior resources.

Focusing is an extremely necessary and effective method when corporate resources are limited. Focus on the category, focus area, focus on customers, focus on personnel, through the formation of potential energy and asymmetric advantages, to promote the local qualitative change, the formation of a new business structure, and promote the overall situation. Focus is on expansion, not contraction. This is a process of subtraction. The purpose is to do better multiplication. Greedy people get together.

Yiguang's product circulation means that we must stand out among related categories and form our own competitive power. Everlight needs to make products cost-effective. To be cost-effective means to focus, focus on some dominant categories, and take advantage of the styles. Then the collaborative management, the upper reaches of the product price to come, the middle reaches of the operators began to focus on this product, terminal distributors have begun to focus on the product, together to promote this product, to market share.

By quickly deploying points and focusing on advantageous resources, the scale and flow rate can be made. Once the scale and flow rate are formed, the flow of inventory is more likely to consider the turnover rate, reaction speed, and planning ability under a relatively stable business scale. This relies on the timely and effective implementation of information in all aspects of the entire industry chain of the Everlight Global Network, including plan matching from the upstream chip, plan matching between the manufacturing end and supplier, and e-commerce sales plan matching by Everlight. Sales and inventory matching.

Everlight can now see the operator's inventory dynamics every day, and operators can also see the daily light of Everlight. In the next stage, Everlight also considers the inclusion of suppliers and distributors under the plan in order to control each other's inventory dynamics and allow Everlight to maintain a stable inventory level.

At the same time, Everlight also considers the docking of interfaces from the component design of the entire product. This year, Everlight has begun to experiment with some modular things. For example, after the heat dissipation, light emission, and driving of lamps and lanterns are unanimous, the ceiling lights and downlights have different requirements in terms of luminous coefficient, etc. After standardizing the interface in this block, downstream suppliers may produce a lot of things, and dealers can quickly dock after they get it. In this way, different parts may be prepared with different parts. When the time comes, everyone will be able to quickly set up and achieve rapid response in the case of a relatively small inventory size.

Finally, Wu Zhengyi also said that this year's LED industry competition, inventory is actually a key point of the company, or is a life gate. If companies manage poor inventory, the competition of enterprises will certainly have fatal problems. By managing inventory, companies will be able to win, and at the very least they will be able to stay alive.