On July 21, yum China Holdings Limited (hereinafter referred to as”the company” or”Yum China”, NYSE Code:yumc; HKEx Code:9987) announced the official commencement of the supply chain management center project and settled in Jiading District, Shanghai. Yum China supply chain management center is the largest self built project of the company’s supply chain center, with an investment of 600million yuan and a construction area of about 61000 square meters. It will serve as the headquarters of Yum China supply chain operation, and is expected to be completed and put into use in 2024. The project is one of the key projects of the”Chaoyong Pujiang” investment in Shanghai global sharing season and one of the start-up activities of the”Jiyue Yicheng” investment in Jiading key project series.
Ms. Qu Cuirong, CEO of Yum China, said:”Yum! China has world-class supply chain management capabilities, which is the cornerstone of our business development and also allows us to reduce the adverse impact of supply disruptions caused by the COVID-19. As part of our r.g.m strategic framework, we will continue to invest in supply chain infrastructure to broaden the strategic moat and strengthen the flexibility and resilience of our business. As our supply chain capabilities become stronger, we believe we can better support more Stores, more channels and more products help drive long-term growth.”
Yum China supply chain operation management center includes normal temperature storage area, low temperature cold chain area, office buildings and supporting facilities. It adopts automation and three-dimensional storage technology to improve land efficiency, and relies on Internet technology to build a smart supply chain management platform. It will also reduce carbon emissions by laying photovoltaic and wind power generation equipment. The center can not only fully meet the supply chain service needs of Yum Brands in East China, but also become an important cold chain integration fulcrum radiating from East China to the whole country.
In the past 35 years, yum China has invested a lot of resources and introduced world-class management experience to establish a world-leading supply chain management system, including supplier and upstream management, logistics and distribution management, and restaurant management. As of the first quarter of 2022, yum China has 32 logistics centers, serving more than 12000 restaurants, covering more than 1700 cities and towns across the country. The company announced at the 2021 investor day event that it plans to expand its logistics centers to 45-50 within five years.
In recent years, yum China has continuously strengthened the construction of logistics digital intelligence ecosystem, and has successively built storage management systems and transportation management systems to achieve industry-leading business solutions such as Supplier Logistics Center Restaurant product batch electronic traceability, whole network route intelligent planning and app mobile terminal digital transportation execution. Relying on IOT cold chain monitoring platform and other sets of logistics systems to realize intelligent operation and ensure the management of food safety. Through the smart IOT platform of the logistics center, the company can not only monitor the path and time of food materials from the supplier to the logistics center and then to the restaurant at any time, but also track the product and ambient temperature in the cold chain vehicles in transit, and the ambient temperature of storage freezers and refrigerators, so as to realize the timely warning of potential risks of food safety.
Yum China also uses the storage and transportation resources of the supply chain to provide one-stop supply chain logistics services for third parties. The company established Chuansheng supply chain in 2020, focusing on high-quality professional supply chain services engaged in cold chain logistics and related value-added services, and formed a complete set of logistics product system focusing on cold chain warehousing, trunk transportation and urban distribution, providing cold chain logistics services integrating warehousing, transportation and distribution for third parties.