Sen Ying's "Green Reform"

Senying is one of the first companies in China to introduce modern wooden window technology into China, and currently occupies 25% of the Chinese wooden window market. But just six or seven years ago, the business was on the verge of collapse. The process of their death and resurrection was accompanied by painful reformation. Bian Shuping, chairman of Senying, is the initiator of this resurrection, and he implements the "green reform".

Give up the main business and focus on the secondary business

In 2006, Bian Shuping burst into tears in a speech before an internal training class. He believed that the company was on the verge of collapse, but the general manager and employees at the time did not feel this sense of crisis. Before, Bian Shuping left Senying for three years to do other business and handed over the business to professional managers. At that time, Sen Ying had annual sales of more than 200 million yuan, but the gross profit of products was greatly reduced, and a large number of accounts receivable were outside. .

On October 27, 2006, Bian Shuping asked the general manager to leave and returned to Senying himself, starting a reform to "pacify civil unrest". After a year, Senying recovered more than 100 million yuan of accounts receivable. However, under the high-pressure reform of Bian Shuping, the original management team continued to lose. Bian Shuping said that at that time, each person who left the company took away dozens of people. In April 2008, more than 200 people left. The total number of employees was only more than 600 before. The loss of a large number of people caused the outside world to think that Sen Ying was over, but Bian Shuping himself felt that there was no crisis, because the business operation was not difficult, and the cash of more than 100 million yuan on the book made people not panic, "By the end of 2008, we have Renovation and road building, and investing tens of millions to buy new equipment.”

In 2009, Bian Shuping had a sense of mission. He began to focus on "cleaning the periphery" and gradually sold other businesses other than wooden windows. Some of these businesses were very profitable. Although it was a pity, he did not find it difficult to give up . However, another focus within the Eagles caused him a bit of pain.

Senying's wood window products include two major technical systems, one is Italian-style wood-clad aluminum windows, and the other is German-style aluminum-clad wood windows. Compared with the four or five technical systems of its peers, Senying can be regarded as focused. But in early 2011, Bian Shuping proposed to abandon the wood-clad aluminum windows. In 2001, Senying first introduced wood-clad aluminum windows into China. By 2010, its output had reached the first place in the country, with sales of 200 million yuan, accounting for more than 50% of the company's total sales.

Cut off the main business and leave the sub-main business. Bian Shuping's move is incomprehensible. More than 70 service providers (ie dealers) across the country flew to Harbin to negotiate with him, because one-third of the service providers Second, the retail sales come from wood-clad aluminum windows; in addition to the sales manager, other employees in the sales department of Senying are also opposed, because everyone's bonus will be greatly affected. 2011 was the first year that Senying entered the listing counseling period, and the participating securities companies and accounting firms did not understand, "Why don't you make money?" And this may make the financial statements look ugly and ultimately affect the listing.

"The main reason for giving up is that the energy consumption is too high, which is not in line with the mission of Senying; If we want to make this aluminum window product with low energy consumption, the investment is too high, and the price of the product is much higher than that of wooden windows." Bian Shuping considered the issue of sustainable development in terms of energy consumption and cost performance. In 2010, Senying set an ultimate mission for itself, that is, "limit consumption reduction, extremely beautiful life", but the Italian-style wood-clad aluminum windows are actually aluminum windows, and the process from bauxite soil to aluminum window profiles consumes energy. It is 20 times that of wooden window profiles. Bian Shu said plainly: "At that time, we produced both real wooden windows and fake wooden windows; both a gentleman and a hypocrite."

In persuading the management team, he said: "We are the number one in China for two things. , or to be a world number one? To win the National Games gold medal or the Olympic gold medal?" To his relief, the management team understood the move of giving up very well, "Everyone feels that the business is too scattered and they can't do it well. You can see the benefits of focusing”; and, from the data point of view, the profit margin of aluminum clad wood windows is higher than that of wood clad aluminum windows. For service providers, Bian Shuping wrote an open letter explaining their ideas, inviting them to Harbin for free training, repeatedly explaining the hazards of wood-clad aluminum windows and the reasons for the company's focus; and during the transition period, he expanded the preferential policies for service providers. For employees whose income was affected, Bian Shuping raised their basic wages.

In July 2011, Senying began to reject orders for wood-clad aluminum windows. Bian Shuping prepared for the worst. It was really painful to see the declining profits on the books every day. But the pain lasted only a few months. In 2011, the sales of Senying increased by 50%. The sales of aluminum-clad wooden windows soared from 90,000 square meters in 2010 to nearly 200,000 square meters in 2011. Some service providers that were lost in the past have also returned.

“This year, we have further focused on taking German aluminum-clad wood windows as the core category, and we have not made other American, Spanish, Australian and other aluminum-clad wood windows.” Bian Shuping expects that by next year, Sen The sales volume of Eagle's aluminum-clad wooden windows can reach 400,000 square meters, with an output value of 700 million yuan.

"In the process of realizing this mission, we have actually gained a lot." Bian Shuping said, "In terms of operation, we have become more relaxed, more able to study specific issues, and pay attention to every detail. Everyone, gather all the energy into one point, and everyone's heart is more peaceful and clearer, just how to do it better, how to reduce the cost, and how to ensure the quality. Just like a laser, although only a few watts of energy, but It can penetrate diamonds." Moreover, since 2001, Senying has implemented an employee stock ownership system. "Now the aluminum-clad wooden window is everyone's life. If you don't do it well, it will collapse."

More importantly, in Bian Shuping's view, it is the Senying brand that has been brought into focus. What is Eagle? After focusing, customers have a clearer understanding of us. Senying is the energy-saving window, the founder and leader of aluminum-clad wooden windows. Customers think that we are experts, more professional, and more willing to buy our products , even if our price is more than 20% higher than that of our peers.”

Let sales become the initiator of the entire production and sales chain

The smooth transformation of Senying in 2011 actually benefited from Bian Shuping’s efforts in 2007 and 2008 A drastic reform. Usually companies have deputy general managers in charge of marketing, production, and administration, etc., but now Bian Shuping has only two deputy general managers, one in charge of government relations and investor relations, and only two subordinates; The other is in charge of production and sales, and is also a sales manager. Bian Shuping said that the purpose of this setting is to "use a plan to tightly link sales and production to one team".

In Senying, the core of sales is not to sign contracts and sell products, but to plan, logistics, prepare materials, and make products. That is to say, the design, planning, and materials of the product are all supplied by the sales department. Once the production is completed, the installation of the product is also classified as the sales department. Good quality and good management of workers will also avoid the situation of fighting between departments that could not deliver goods in the past.

"With planning as the center, informatization as a means, and logistics, this method enables Senying to produce several thousand square meters of wooden windows every day, but there are no piles of materials on site, and no semi-finished products can be seen." Compared with aluminum windows and plastic windows, the production process of wooden windows is complicated, with many production processes and many manual operations. Moreover, the orders are both engineering and retail, and each order has different materials, different specifications, and a wide variety of products, which is easy to make mistakes. Bian Shuping said that the production used to be "fake prosperity". With 300 square meters of production per day, he felt that the workshop was very full. At one stage of production, it would stop from time to time. Either there was a lack of drawings or materials, and the entire site was full of semi-finished products. Everyone Busy.

"It turns out that Senying has a vice president of marketing and a vice president of production. It's like the separation of the head and the body. The production heard that the sales were talking about a big order and began to prepare the materials. When the yard is full, no car can drive in." Now, anyone who wants to pile up materials in the yard in advance will be hit with a board. Bian Shuping said that there is basically no material pile up in the yard now, and everyone has to set the time and use it tomorrow. Come on in today. Because Senying has built an industrial chain integrating sales and production internally. In this chain, the production department is the largest customer of the sales department. The sales department must make a plan clearly. Without a plan, the production department does nothing. Once the plan is obtained, the entire production chain will be started step by step, and finally, the result will be multiplied with less effort.

Bian Shuping said that such a business model has three elements: people, systems and means. The information system allows workers to clearly understand today's plans when they turn on their computers, and they can immediately find the problem if there is a delay. Moreover, Senying has set an attractive incentive mechanism for the product's quasi-delivery rate. This allows everyone to automatically repair all aspects of the process and ensure the continuous supply of the industry chain. At present, the local delivery period of Senying in Harbin is 15 days, and the delivery period in Sanya is 30 days, while the previous period is as long as 60 days and 90 days.

“Sales and production are a game of chess, producing 1,000 square meters per day, and workers feel that there is no work to do.” Senying’s current factory area is only 50 mu, and the annual output value has reached hundreds of millions, which makes German wooden window experts also Say "impossible". The output of its peers is only one-fifth or even one-tenth of Senying's, and the production plant is much larger than it.

In addition, Bian Shuping has implemented a service provider management system since 2008, which has changed the previous direct sales model. Before Senying set up dozens of offices in the country, there are more than 170 overseas sales managers. Now, Senying adopts a direct sales model in Harbin, retains 4 sales managers, and has commissions for sales, but there is no hard target for sales. The remaining staff are less than 20 overseas, and four service stations are set up to only be responsible for after-sales. Bian Shuping outsourced the installation and design to service providers. In terms of after-sales, the after-sales service of retail orders is done by the service providers themselves. If the after-sales of engineering orders are managed by the service providers during the warranty period, Senying will do the after-sales services outside the warranty period. "I always think that Senying is equal to a service provider plus a manufacturer." Bian Shuping believes that it is difficult to manage when employees are dispatched outside, while service providers are more responsible to customers when they are located locally. He said that this model has been implemented for five years, and the effect is very good.

The green mission drives forward

In the interview, the word "mission" appeared in Bian Shuping's words from time to time. In 1998, at the beginning of the establishment of Senying, it set the three principles of "no plastic steel windows, no aluminum alloy windows, and no doors". Because the heat transfer coefficient of aluminum windows is high, and the energy consumption in the process from bauxite soil to aluminum window profiles ranks first, which is 20 times that of wooden window profiles; More energy efficient, but the process from petroleum to plastic window profiles consumes 8 times more energy than wooden window profiles. In contrast, wooden windows have obvious advantages in energy saving and environmental protection, and their inherent heat transfer coefficient is low, and from material to processing to use, the entire product life cycle can be green. However, according to incomplete statistics, in 2011, at least 500 million square meters of window products were produced in China, of which the production of wooden windows was 1.5 million square meters, with a share of no more than 0.3%.

At present, Senying's share in the domestic wooden window market ranks first in the industry, but it also makes Bian Shuping feel his mission more strongly. In his opinion, it is a small mission for wooden windows to make the interior comfortable, and it is a big mission to make the outdoor fresh. The report of the World Business Council for Sustainable Development found that the energy consumption of building exterior windows accounts for 20% of the total energy consumption of the whole society. Among the 44 billion square meters of existing buildings in China, 11 billion square meters of high-energy-consuming windows are in urgent need of renovation. In addition, the annual consumption of 2 billion square meters of new building exterior windows is 500 million square meters. to more than 60% of the world. "If they are all high-energy-consuming windows, it will not only waste resources, but also damage the environment." Bian Shuping said.

But the reality is that China's energy-saving standards are too low. There are millions of window factories across the country, but most of them are small enterprises. market. The heat transfer coefficient Uw value, which measures the thermal insulation performance of exterior windows, is 2.0, 2.5, 3.5 and 4.7 in Harbin, Beijing, Shanghai and Shenzhen respectively. 0.7. In fact, Beijing's current standards are equivalent to Germany's 1984 standards.

"That is, in the past five or six years, as I got older, my heart gradually sank. I led the team to work together, gradually walked out of a path, and gradually saw the light." Bian Shuyuan first felt that the wooden window was a A very painful industry, it is very difficult to collect payment, the manufacturing is very complicated, and the environment for transportation and installation is harsh, but now, "the benefits of the enterprise have come up, the income of employees has increased, the brand has gradually been established, and everyone's understanding of windows has become more and more more profound." Bian Shuping said that the mission of Senying was all about home and comfort before, but by 2010, the new mission will come naturally, and the vision is to become a "global leader in aluminum-clad wooden windows".

At present, in terms of output, Senying's annual output of wooden windows has reached 400,000 square meters, far exceeding the largest similar enterprises in Europe. But Bian Shuping is very clear that the number one output is not necessarily the leader. However, being a leader in China can be a world leader, because in China, the complexity of windows, the complexity of transportation, and the complexity of installation are all over the rest of the world. There are too many intractable problems in the technical ancestors Germany doesn't exist, and German experts shake their heads and say no, but they appear in China. "Focus on German craftsmanship, equipment and technology, and then combine with China's practice to innovate." At present, Senying has applied for 221 patents, and this year, it plans to apply for ten European patents.

In July 2012, Senying invested 40 million to purchase equipment and mass-produced Passive120 for passive houses was officially launched. Its heat transfer coefficient Uw value was lower than 0.8, reaching the world's top level, becoming the only company in Asia It is also the first wooden window enterprise in China that has obtained the technical certification of the German Passive House Research Institute. A lot of money was spent on the development of new products, but the production line established for new products also benefited Senying's standard wooden windows. At present, the heat transfer coefficient Uw value of Senying wooden windows is lower than 1.4, which is higher than that of Harbin, which is the highest standard in the country. is even higher. "The annual sales volume of our standard products is three or four times that of the No. 2 in the industry, which greatly reduces our management costs and improves product quality. The profit margins of our products are very good, and companies are more willing to spend money on research and development of new products. This technology has been repeatedly studied and discussed in Europe." While researching and developing super energy-saving wooden windows, Senying also plans to build the factory buildings and office buildings of the new factory into passive buildings with low energy consumption. At present, there is no real passive building in China. "In fact, the investment has only increased by less than 50%, which is far lower than our previous estimate, but the annual use cost can be saved a lot, which is equivalent to making a profit." Bian Shuping said that his "green reform" is proceeding in an orderly manner. .