Customer overview
Gemdale Group is founded in 1988 in Shenzhen, China and listed on SSE in 2001 (600383.SH). After decades of exploration and practice, Gemdale has developed into a comprehensive listed company whose major business is real estate development, with all-round development of relevant multiple businesses. The scope of business covers real estate development, development and operation of commercial property and industrial town, property management, operation of the sports industry, decoration industry, agent construction industry and education industry. It provides services both at home and abroad, covering more than120 mega and medium-sized cities in China and 8 cities and regions on the West and East Coast of America. As at the end of 2019, the total assets of Gemdale Group reached about RMB334.8 billion, of which about RMB54.1 billion was the net asset of shareholders. It has been listed in Forbes’ Global 2000 and Fortune China 500 in successive years.
In the future, with the purpose of creating value and guided by the balanced development of efficiency and scale, Gemdale Group will move toward the grand vision, that is “to be the most valuable international corporation in China”.
Business Challenges
In recent years, the concentration of real estate has increased. With the policy of “three red lines”, the industrial competition has been fiercer and industrial profit has returned to the normal level. It has been the consensus of real estate corporations to have efficient operations management.
Solutions
Under the strategic guidance of “with the purpose of creating value and guided by the balanced development of efficiency and scale”, Gemdale Group has successfully innovated the business model and improved the core competitiveness through digital transformation. Sticking to the strategy of “integrated plan, implementation in steps; need-driven, major breakthroughs”, Gemdale has cooperated with Kingdee for ten-odd years in the field of financial management, procurement and bidding, cost control, collaboration with suppliers and operations control of projects, constantly pursuing the integration of finance and business and innovative management of refining cost control to bolster the increase in business efficiency.
1. Refined management, winning by cutting costs
Refining the estimation of costs, reducing the deviation rate
Based on the quick estimations of the costs database, the types of real estates are refined and buildings are linked for offline integration, convenience and efficiency.
The integration of target cost contracts: refinement of management is improved to support the business supervision.
The integration of target cost contract and business management closed loops based on lists are the cores of management innovation of cost control refinement. Smart estimations of the unit cost and automatic composition of contract plans can greatly improve the estimation efficiency of cost personnel; compilation and examination of contract plans are standardized to control the adjustment of the amount of inter-subject contract plans in an effective way.
Automatic data retrieval, multi-dimensional analysis and the benchmark of multiplexing business
Creating value with data, eight professional databases of cost indicators make the cost target more accurate and risks more controllable.
The layered control of group-region-project, eliminating the static status of the dynamic costs
As for the dynamic forecast of settlement cost in cost business links and dynamic solution to the cushion of contract plans, the layered management of contract plan (group-region-project) can effectively eliminate the “number game” brought by the trans-disciplinary and trans-contract adjustments. Together with the dynamic cost forecast and supervision, it can eliminate the phenomenon of dynamic costs’ keeping static to the greatest extent.
2. Procurement connection, ecological synergy
The introduction, selection, cultivation, assessment and retention of suppliers are standardized, building up a sound ecology and updating the information.
Grades of suppliers are set up: strategic, good, qualified, unqualified, forbidden. The information of suppliers can be obtained through Tianyancha, National Enterprise Credit Information Publicity System and qualifications of suppliers at any time and early warnings are issued automatically. For the annual appraisal of suppliers, the weighted average is calculated on the basis of all assessments within the year and the annual data is provided automatically to support the grading of suppliers. Through the grading and statistics of suppliers, the proportion of strategic suppliers is gradually increased.
The procurement management based on lists, smart examination of biddings
With the standardized requirements of procurement management, all kinds of standard lists (such as turnkey project, a batch fine decoration) are provided. The standardization of lists is implemented through the whole process of procurement and biddings to contracts, improving the quality and efficiency. The management of standardized lists in the bidding process lays the foundation for the list management in the process of signing contracts and indicators extraction.
Eight procurement modes that cover all business modules of the group
With layered control of procurement business, the advantage of each division’s functions is given full play. With amalgamation procurement, the advantage of the groups’ scale procurement is displayed, reducing the procurement cost. The biddings of business on specific scenes, such as bidding without plans and inter-period biddings, are controlled solely.
The online internal and external collaboration and online procurement business
As internal and external networks are connected, the group can be connected to suppliers seamlessly, realizing internal and external connection and high-efficiency collaboration. Via digital commercial platforms, the group can be connected to suppliers efficiently for convenient business operation and the integration of biddings, contracts and orders.
3. Delegating the management by planning, obtaining the business data
Management by planning is adjusted to regional operation with the group’s uniform standard from the independent regional operation.
The working standard is organized and the standardization of level one and two node input and output is given priority.
Working achievements are standardized and the business process is displayed by data.
Customer Value
Valuing long-term profits, Gemdale Group cooperates with Kingdee to build up the integrated, autonomous and controllable platform of cost control and procurement and bidding management, facilitating Gemdale Group’s ascent to the smart cost phase whose core is value creation and data-empowerment. The digital neural network of the corporation is built up, comprehensively bolstering the developmental strategy in terms of the integration of cost target contracts, cost databases, cost planning and data empowerment. The core value is displayed at the following aspects:
High-efficiency synergy: the online bidding synergy, online contract business synergy, online order business synergy and the integration of cost target contracts are realized.
Refined management: the appraisal of suppliers, grade management, the business closed loop based on lists and cost estimations based on buildings and the house types are more accurate.
Lower costs: the retrieval and estimation of cost databases support the decision to bid for lands; standardization of contracts props up the rapid expansion of the group; strategic procurement and joint procurement effectively ensure the supply safety with the strategic procurement rate of more than 80% and the direct commissioning of less than 10%; the mode of cost planning and cost control increase the premium of products; fine decorations, lists, big data empowerment and other supporting costs play leading roles.
As the excellent performer among the top 100 real estate developers in China, Gemdale Group adheres to creating a developmental mode whose kernels are digitalization and intelligence with scientific instruments and methods in the reforming process of its transformation into a smart real estate developer. It combines the innovative smart technology and business with years of experience, rapidly implements the combination, building up the standardized management system and the refined control mode, which makes it the paradigm of digital innovation of the real estate corporation valued at RMB100 billion.