Chagee's sucessful supply chain

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Chagee Ji is a relatively popular tea brand. It was born in 2017. It mainly focuses on original leaf fresh milk tea. It combines oriental culture with tea inheritance and innovation to create a new oriental tea shop. In the domestic market, Chagee Ji has been launched in all tier cities and opened stores in Malaysia, Thailand and Singapore. The number of stores worldwide has exceeded 1,100.

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In addition to its excellent cultural genes and successful marketing, this popular tea drink brand’s advanced supply chain management plays a key role in supporting its 1,100 stores around the world.

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1. Localized procurement: Chagee Ji’s raw material procurement is localized, which can shorten the length of the supply chain, reduce transportation time and costs, and also ensure the freshness and quality of the raw materials.

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2. Central kitchen: Chageeji adopts the central kitchen model to purchase, process and distribute raw materials in a unified manner. This can ensure the consistency of product quality and taste, and also improve the efficiency and flexibility of the supply chain.

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3. Digital management: Bawangchaji adopts digital management and uses information technology to monitor and manage the supply chain in real time. This can improve the transparency and traceability of the supply chain, and can also quickly respond to market demands and changes.

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4. Partnership: Chageeji has established long-term and stable partnerships with suppliers, which can ensure a stable supply of raw materials and reliable quality. It can also jointly develop new products and technologies to improve the innovation capabilities of the supply chain.

5. Diversified channels: Chagee Ji adopts a diversified channel strategy, including directly-operated stores, franchised stores, online channels, etc., which can expand the sales network and improve market coverage, and can also be flexible according to the needs of different channels. Blending.

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As consumers' demand for tea consumption becomes increasingly healthy, Chagee Ji has launched a "product ID card" function in the mini program, disclosing the ingredients of more than 30 products. The "Low Burden Sugar Control Zone" is launched online. In addition, Chagee Ji also launched a “calorie calculator” to facilitate consumers to understand the calories of milk tea with different sweetness and different capacities.

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These initiatives show that under the guidance of demand-driven supply chain theory, Bawangchaji actively responds to user needs and continuously improves and optimizes products to improve user experience and satisfaction. At the same time, these innovations also help Chageeji maintain its leading position in the highly competitive tea market.

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Bawangchaji has the following examples in supply chain management:

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- Sign purchase contracts based on the production seasons of raw materials: Chagee Ji will sign purchase contracts based on the production seasons of raw materials to ensure the supply and quality of raw materials. For example, in terms of tea procurement, Chagee Ji will sign purchase contracts based on the quality and quality of tea leaves in different seasons. Production volume to determine purchasing plan.

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- Conduct strategic purchasing: Chagee Ji will conduct strategic purchasing to ensure the quality and stability of raw materials, while also reducing purchasing costs. For example, in terms of tea procurement, Chagee Ji will establish long-term cooperative relationships with some high-quality tea suppliers to obtain more favorable prices and more stable supply.

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-Digital management: Bawangchaji adopts digital management to monitor and manage the supply chain in real time to improve the efficiency and transparency of the supply chain. For example, Chagee Ji will use information technology to manage and analyze the inventory, logistics and sales of raw materials in order to adjust procurement and sales strategies in a timely manner.

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- Tea planting plan: Chagee Ji analyzed 4 years of product sales data and found that 3-4 products accounted for 70% of all sales, which means that a cup of milk tea only needs three supply chains of tea, milk and packaging materials. And Chageeji only needs to focus on the tea supply chain. In the next 10 years, the most important thing for Chageeji is to implement the "tea planting plan" to integrate the industry chain.

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- New Material Technology Company: In November 2023, Cha Baidao and Chageeji jointly established a new material technology company, which is considered to be a strong alliance at the supply chain level.

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These cases show that Chageeji focuses on tea cultivation and material innovation in supply chain management, improves industrial efficiency by optimizing the supply chain, and provides consumers with better products and services.

#Tea #China #supply_chain_management #sourcing #procurement