A few days ago, at the launch of the sustainable development of agricultural products circulation project held by the China Chain-Store &amp, Wang Wei, chairman of Fresh Legend, said that the distance of a turnover basket is an important key to solving the problem of China's fresh profits.

It is reported that the gross profit of Fresh Legend vegetables is close to 40%, but the price of vegetables is also very low, behind which the turnover basket plays an important role. "Fresh Legend has been in business for seven years and there is no chance if we do freshness the traditional way and go for profits with farmers. The real problem to be solved is the supply chain, in terms of sustainable development, to find our own unique path." Wang Wei said.

For the phenomenon of base direct mining, which is talked about a lot in the industry, Wang Wei believes that at present is exist in name only, there are not many companies that really to the base of direct picking. Over the years, through visits and studies around the world, Wang Wei has increasingly found that "China's retail predicament is not superficially to decorate the shops a little better, to deliver goods to the home, or to give a little money to the capital, but to make a radical change in retail technology and logistics efficiency."

Wang Wei studied the cost rates of foreign supermarkets and found that domestic supermarkets are very close to those of European and American supermarkets in terms of other cost rates. However, the labor costs of domestic supermarkets are expensive. The core problem is that the human efficiency of domestic supermarkets is extremely low, rather than high staff wages. For example, ALDI has 3.5 people on a shift, about four to five times the domestic efficiency.

Wang Wei had thought that using a single basket to achieve seamless docking would be more labor efficient and result in less product loss. But in the end, it turned out that the cost of the package was very high, with just one package costing more than 7% in the whole fresh flow process. Even these non-standard packaging materials, recycled packaging materials will make fresh secondary pollution, which is also an important reason for the loss of fresh produce.

For example, Cang Shan pepper, according to a 2.9 yuan per catty calculation, with a carton can be loaded 24 pounds, 1 yuan each carton, which adds up to a cost of 7.2%, but if the turnover basket is used, a basket of only 14 pounds, combined to the cost of each catty only 3 cents, the cost of only 1%, so the cost difference between the turnover basket and the use of carton is 6 points.

For example, the use of turnover baskets, 12 tons of potatoes per truckload, packaging materials can save 1500 yuan, cucumbers can save 1300 yuan per truckload, apples can save 3696 yuan per truckload, which is a real gap. Even taking into account the cost of use such as reverse logistics and cleaning of the turnover basket, there is a 5% benefit.

It is reported that the number of turnover baskets used by Fresh Legend is around 30,000 per day, with a total of 200,000 turnover baskets. If 30,000 swing baskets are used a day, calculated as a basket of 5 yuan, that's 150,000 yuan a day for the company. There is also a saving of 2 points in the handling process, so using turnover baskets is good for the environment and even better for efficiency.

When it comes to supply chain issues that the industry is concerned about, Wang Wei said that the supply chain should not be understood as finding farmers to collect goods. “In real supply chain reengineering, the core of base procurement is standards, not procurement."

Wang Wei said Fresh Legend requires processing to be front-loaded, extending it all to the fields as far as possible. The best and most harmless preservation technology for fresh produce is temperature control, which is the only way to keep fresh produce fresh because the main problem of fresh loss is caused by heat. So how to keep the freshness from heating up? Only by letting the internal temperature of the freshness drop to 2-8℃ within 24 hours of picking, the freshness will stop growing and once it stops growing it will not heat up and the loss will drop dramatically. This is the core reason why Fresh Legends purchases at the base.

At present, basket transit in the Fresh Legend distribution center has reached 60%, bringing in tens of millions of yuan to Fresh Legend this year alone. But on the other hand, the process of putting in and using the turnover baskets, also known as folding baskets, has been so painful that Fresh Legend lost close to 20 million yuan in turnover baskets alone to get the system built.

Fresh Legends has opened up the whole frame from the field to the shop. Today, Fresh Legend not only uses turnover baskets for fresh produce, not only learning from the EU's turnover baskets but also developing its turnover baskets and owning the intellectual property rights of fresh produce turnover baskets, realizing the flow from base to loading.

According to Wang Wei, the three main elements of supply chain reengineering are, firstly, accurate inventory and timeliness control, secondly, commodity standard setting and processing at source, and thirdly, the upgrading and seamless use of logistics carriers. He said Fresh Legend has been promoting the standardization of turnover baskets and warehouse board logistics to enable the sharing of carriers. "This profit should not be a corporate profit, but should become a cost saving to society and a contribution to environmental friendliness."