Reborn in 08, a heretical cultivator starting a business

Chapter 176 Community Group Buying Launched, Future Logistics Explosion!

U-Tuan Technology Headquarters.

"Today is a great opportunity to test the future of logistics, so don't let us down!"

Looking at the surge in orders, Wang Junshan said.

Logistics manager Xu Jingshuo said confidently, "Chairman, just you wait and see. In the past few months, our Future Logistics has undergone tremendous changes!"

Jiang Fan also smiled and said, "Currently, campus group buying is being promoted in six provinces, covering more than 500 universities in 15 cities. Our future logistics is also being promoted in sync, and has been deployed in 15 cities!"

"While I wouldn't say it's 100% covered, it basically covers the urban areas."

"Last month, community group buying was piloted in Jeju and Binhai City! This month, we plan to fully promote community group buying in the urban areas of fifteen cities!"

"We have no pressure at all with these orders for Little Duck washing machines."

Seeing Jiang Fan and Xu Jingshuo's confident expressions, Wang Junshan smiled.

During this period, he was busy with the ten major warehouses and revitalizing Xiaoya, and didn't pay much attention to YouTuan Technology.

However, the speed of development of YouTuan Technology was outstanding, even beyond his expectations.

At the last strategic meeting, Wang Junshan decided to delegate authority, allowing the group-buying business to be responsible for its own profits and losses and develop on its own.

Unexpectedly, Jiang Fan was indeed a talented individual. He didn't ask headquarters for money, but his development efficiency far exceeded expectations.

The campus group buying platform has expanded in multiple directions, centered around seven major warehouses, covering fifteen cities and more than 500 schools.

They also fully upgraded YouTuan Group's delivery system, creating regional warehouses and delivery stations to build the logistics of the future!

Central warehouse city, two-tier logistics system: central warehouse - distribution station.

For Vipshop orders in Jeju and Binhae, the goods are shipped directly from the 50,000-square-meter central warehouse in Jeju to the distribution stations in each district, and then delivered to the door by couriers from the distribution stations.

For cities without a central warehouse, the system is a three-tier system: central warehouse - regional warehouse - distribution station.

For example, many schools in Zibo City have also started campus group buying, but they do not have a central warehouse. They only have newly built regional warehouses with an area of ​​only 5000 square meters.

It mainly stores small quantities of fast-moving consumer goods, small household appliances, and specialty products of Zibo City.

Other products are shipped from the Jeju central warehouse, delivered to the Zibo regional warehouse, and then to various distribution stations, where couriers deliver them to your door.

“Well done. It seems that YouTuanTuan has given you the right to develop on your own and expand using your profits. The progress is excellent.”

Wang Junshan's delegation of authority enabled the development of YouTuan Group Buying:
"Are the eight newly added regional warehouses in Zibo and other cities, as well as the more than eighty distribution stations in fifteen cities, leased or purchased?"

Wang Junshan asked the key question.

"Boss, there are eight regional warehouses, ranging in size from five thousand to ten thousand square meters. Six of them are old warehouses that have been bought out and renovated."

“With the current financial crisis, prices are at their lowest. I calculated that the cost of buying out the property plus the cost of renovation is roughly equivalent to the rent for the next four years, so I might as well buy it outright. I can also apply for local subsidies and tax breaks to further reduce costs.”

"The other two options involved a buyout cost plus renovation costs, which would have required five years' rent, so we opted for leasing."

"There are still 83 delivery stations, 67 of which were bought outright. The cost of the buyout plus renovation was less than five years' rent, and they are located in the suburbs. The prices are very low, but the transportation is very convenient."

"If the cost of buying out and renovating is higher than five years' rent, then we just lease directly."

“Excellent. The cost of buying out the property plus renovation is less than four years' rent, so we can take it. Five years' rent is also fine; we can just buy it outright. Once the renovation is complete and we need funds, we can mortgage it again.” Wang Junshan was very satisfied.

Other platforms, unable to grow large enough, may disappear within a few years, so leasing is naturally the main focus.

But with the future of technology, there will be e-commerce, campus group buying, and later community group buying, all of which will require warehousing!
The demand for warehousing is long-term and will continue to exist.

If the cost of buying out the property plus the cost of renovation is less than five years' rent, then why bother renting it?
Buy it outright!

With subsidies and tax breaks added, a buyout is even more cost-effective.

Once the renovation is complete, the money can be used as collateral for a loan to cash out and then used to buy out and renovate other low-priced factory buildings, without tying up much working capital.

The annual interest is also far lower than the annually increasing rent.

Wang Junshan is well aware that with the economic recovery next year, the real estate market will boom, and rents will also skyrocket.

Currently, the cost of buying out the property plus renovation is equivalent to the rent for the next five years. In reality, with subsequent rent increases, it's only equivalent to the rent for three years.

It can be said that the current period is the best opportunity to buy assets at rock-bottom prices.

It will be gone by next year!
"The other two regional warehouses are only five times the rent for a buyout plus renovation. We can negotiate and reduce the total cost to 4.5 times, and then buy them out directly. The cost of relocating them later will be more than 100,000 yuan, and it will also affect operations and cause delays."

"Okay." Jiang Fan understood what Wang Junshan meant.

Renting for three years is equivalent to buying out the property, so there's really no need to rent.

After the economic crisis, such good things never happen again.

With the explosive growth of logistics in the future, Little Duck washing machines are experiencing a surge in orders with no pressure whatsoever.

YouTuan.com's order warehousing and logistics management system has completed version 1.0 after two months of development.

It has enabled API access to third-party warehousing and logistics services from SF Express and Haier RRS, as well as intelligent order dispatching in some regions.

Whether it's an order from U-Tuan International, Vipshop, or U-Tuan Group Buying, orders can be intelligently dispatched.

In cities where campus group buying has not yet been launched, 100% intelligent allocation has been achieved.

For small packages, they are directly assigned to SF Express.

Large items are handled directly by RRS Logistics.

However, in cities where campus group buying is launched, there are Vipshop orders, Future International orders, campus group buying orders, and their own Future Logistics, making it more complex and requiring intelligent allocation plus manual review.

Basically, both campus group purchases and urban logistics orders are allocated to Future Logistics.

In rural areas and places where logistics cannot reach in the future, the logistics will be distributed to RRS and SF Express.

This includes Little Duck washing machines; in urban areas, logistics will be handled by the company itself.

Townships and towns rely on RRS warehouses for shipping and RRS delivery.

Two weeks ago, YouTuan Group Buying began piloting community group buying in three major cities: Binhai City, Jeju City, and Namdo City.

The logistics of these three cities are also developing comprehensively in the future.

Every day, drivers deliver yesterday's community orders to community leaders and self-pickup points.

Residents of the community can then pick up their goods at the group leader's home or a self-pickup point.

It has only been going on for a little over half a month so far, and there aren't many orders yet, but the results are good.

Especially for homeowners and employees in company dormitories, who generally have higher incomes and computers at home, sales channels were gradually opened up through on-the-ground promotion.

For families with children who are university students, they have already been using YouTuan's campus group buying service at school, so they naturally support it immediately now that community group buying is available.

Of course, the most important factor is that YouTuan Technology has a very high brand awareness in these three cities.

The implementation went very smoothly.

However, it's still in its early stages, and there aren't many community group-buying orders yet.

Meanwhile, SF Express and RRS Logistics in the cities where the eight major warehouses are located are facing a shortage of transportation capacity due to the large number of orders being delivered to the whole country every day!
In order to increase the income of YouTuan drivers and to relieve the pressure on RRS and Shunfeng, Jiang Fan simply upgraded YouTuan's logistics to future logistics.

While transporting community group-buying goods, we also load local logistics parcels along the way onto the vehicle for delivery.

Small items are delivered directly to the distribution station, where future logistics couriers will deliver them to your door.

Larger items are delivered directly to the community along with other group-buying goods, with door-to-door delivery. The integration of group-buying goods and logistics and express delivery maximizes logistics efficiency and significantly improves delivery timeliness.

Future technology has saved costs, and drivers' income has increased significantly!
Unfortunately, there aren't many community group-buying orders, so they can't support the drivers, but with the addition of express delivery orders, that's enough.

This includes school express parcels, which are delivered by logistics drivers along with goods purchased through campus group buying to the school's YouTuan pick-up point, while regular parcels are picked up by students themselves.

For valuable and large items, we offer door-to-door delivery.

Next, several international warehouses for future technologies are ready to start construction, and the future logistics of the corresponding cities will also need to be gradually promoted.

The integrated model of campus group buying, community group buying, and express delivery logistics is undoubtedly very successful.

Especially now that there aren't many online shopping orders.

Even if SF Express and RRS offer Future Technology lower delivery fees, it's still 30%-50% more expensive than their own logistics.

That's without a doubt!
Future Logistics played a significant role in this Little Duck washing machine order.

The order assigned to RRS will not be delivered until tomorrow.

The orders assigned to Future Logistics have already been shipped out and loaded onto trucks.

Those that are nearby have already been delivered.

noon.

Wang Junshan, who was having dinner with several presidents of Binzhou University, received a call from Tang Zhi.

Wang Junshan was just about to speak when he went outside to answer the call.

Principal Li said, "I guess the Little Duck washing machines are selling like hotcakes. Let's hear what they have to say. Of course, if it involves trade secrets, then forget it."

"It's nothing," Wang Junshan said with a smile, and pressed the answer button directly.

If it's a confidential matter, Tang Zhi will contact Shen Huaijin directly and have Shen Huaijin confirm that Wang Junshan is available to answer the phone before transferring it.

Tang Zhi's excited voice came through the phone: "Boss, the Little Duck washing machines are selling like hotcakes!"

"In just half a day, the sales of the 699 twin-cylinder exceeded 20,000 units."

"The fully automatic pulsator priced at 999 has sold over 1.5 units."

"We've sold 2000 units of our 2999 yuan front-loading washing machine!"

"They're all selling like hotcakes!"

"So popular?" Wang Junshan was startled. "Does that mean the transaction volume has exceeded 3000 million?"

"It's over 3700 million. After deducting Vipshop's commission and shipping costs, Little Duck washing machines have already received 3000 million in revenue."

"Great! With this funding, Little Duck can upgrade two more production lines!"

Wang Junshan smiled.

In just half a day, over 3700 million yuan was traded – that's terrifying.

RRS takes a profit of over one million yuan in shipping fees, Vipshop earns around four million yuan in commission, and Future Technology also earns several hundred thousand yuan in shipping fees.

Little Duck washing machines have received 37 million yuan in revenue, with a net profit of over 7 million yuan.

absolutely okay.

Most importantly, this opened up sales channels!
The inventory of more than 75,000 units that had been sitting unsold for months was reduced by half in less than half a day!
There was no other way but to get the 7kg fully automatic pulsator down to 999, which is 100-200 cheaper than Haier's twin-cylinder model!

It's hard for consumers not to be tempted!
Users with limited budgets are especially sensitive to price.

If you have the budget for a semi-automatic twin-cylinder engine, you can go for a fully automatic one, so what are you waiting for?
They immediately placed orders.

In addition, Vipshop's 20% off promotion was time-limited, and everyone was afraid it would sell out, so they decisively snapped it up.

Not only do they buy it themselves, but they also invite their friends to buy it together!

The number of orders on Vipshop's backend has been steadily increasing.

Students and renters are all placing orders for the 699 yuan Little Duck double tank.

For home use, order the Little Duck fully automatic pulsator for 999.

A small number of users also directly purchased the Little Duck Roller for 2999.

All items are selling out fast!

More than 30,000 units were sold in half a day!

"Very good. At this rate, today we should have cleared out about 70-80% of Little Duck washing machine inventory and received 70 million in revenue!"

"Yes, boss."

"Okay, tell the logistics company to ship it as soon as possible."

"All warehouses are shipping at full speed. Especially Future Logistics, which has already dispatched several truckloads, and one truckload has arrived at Binzhou University."

"???" Wang Junshan was dumbfounded: "What do you mean? Binzhou University has received a truckload of Little Duck washing machines?"

"Yes, Binzhou University has ordered more than two hundred Little Duck twin-tub washing machines, almost three truckloads..."

Wang Junshan was dumbfounded, and the smiling principals opposite him could no longer laugh.

The atmosphere became very strange.

"Well, let's not send the remaining two trucks yet, we'll talk about it later." Wang Junshan suddenly realized.

Tang Zhi didn't report earlier or later, but only after the first truckload was delivered, he was deliberately playing the game of acting first and reporting later!
Now look what's happened, they've directly put several school principals on their feet!

I just praised Wang Junshan for his broad vision, sense of responsibility, and ability to revitalize the duckling industry.

Now, are they going to shut out Little Duck washing machines again and clear them out of Binzhou University?
Does it fit?

Wang Junshan didn't know what to say, he could only say that Tang Zhi handled this matter... damn well!

"Principal, I..." Wang Junshan looked troubled.
"If the Little Duck washing machines don't meet the dormitory regulations, I'll have them all taken back and I'll give them all a full refund. I absolutely won't cause any trouble for the school!"

Principal Song Xuehui sighed: "Junshan, how many watts is the Little Duck twin-tub washing machine?"

"Three hundred watts."

"Three hundred watts...that's not considered a high-power appliance."

Principal Li nodded in agreement: "It's about the same as two laptops."

"Okay, then let's keep it. But buying one for each dorm is a bit wasteful. Don't you have commercial washing machines? 20kg ones. Wouldn't it be better if the school bought a few and distributed them to the dorms for students to use, charging per use?"

Wang Junshan nodded: "Theoretically, that would be better, but how to charge is a problem. If we assign a staff member to keep an eye on it, the salary wouldn't be small."

"More importantly, if everyone pays attention to hygiene in these communal washing machines, there's naturally no problem. The real concern is that some students might throw their underwear and socks in together for washing. With so many people, what if there's cross-infection..."

"Ahem!" Principal Song's face darkened. "Junshan, you're right. It's better to have one small washing machine per dormitory. A big washing machine would be a real problem if something happened."

If nothing goes wrong, all is well. But if an accident does occur, the futures of the principals, vice-principals, and directors present today will be in jeopardy.

These days, washing machines with drying functions are all imported, costing over 20,000 yuan, which schools can't afford.

Without drying, viruses, fungi, athlete's foot, tinea cruris, and so on can easily spread from one group to another!
(End of this chapter)