EARLY BIRD PROMOTION: Register for the Masterclass by May 31 to secure lifetime(!) access. (Only 7 spots remaining)

More info.

Rendanheyi & Tianbao

Joost Minnaar
Written by Joost Minnaar December 25, 2021
4478 1140x0

This is an excerpt from our book titled 'Start-up Factory'

Shangdong Tianbao Group

Close to the Asian roots of Rendanheyi lies the transformation of the Shangdong Tianbao Group. Founded in 1996 by Zhang Chuanfa, the group is also located in Qingdao. The company, with some 200 employees, trades mainly in iron and steel products. Tianbao is the link between raw-material producers such as steel and iron mills and SMEs that create the products. It must satisfy both sides of this relationship.

But the interests of the raw material suppliers and the many small vendors are misaligned. The production process is flawed: volumes are high, the quality of products often low. Innovation is negligible, with slow response to the needs of manufacturers. These smaller organisations have little say, or bargaining power, in how the raw material is delivered. By championing simple transactions, the relationship between supply and user sides will improve.

Chuanfa believed that the “ecosystem thinking” of the Rendanheyi model can potentially solve this. He was right. With the help of experts from Haier’s Model Institute (HMI), he has built an interconnected system between Tianbao, suppliers, and manufacturers. Tianbao created its own digital platform, Kuaigang Cloud, directly connecting the upstream with the downstream.

It was a success. Within six months, 100 suppliers and 10,000 vendors from warehousing, manufacturing, logistics, finance, and delivery sectors were connected to the Kuaigang Cloud. The platform was specifically designed to empower vendors. The purchasing of small amounts of raw material would run into problems because of the scale of the order. In the new situation, the Kuaigang Cloud takes over the process. It collects vendor demands and makes the purchasing request directly to the steel mills. The platform even takes care of financial transactions to speed-up the order. Six months after the introduction of the Kuaigang Cloud, Tianbao saw its annual sales nearly triple in the first two quarters of 2021.

Tianbao started to encourage employees to come up with better ways to organise themselves and work more efficiently. Next steps included the introduction of bidding mechanisms, EMC contracts, and market-driven reward mechanisms. Employees become Haier-style entrepreneurs, motivated to chase external market opportunities. Chuanfa encouraged employees to visit Qingdao and the institute to have in-depth conversations with Haier’s entrepreneurs.

Tianbao has shown that to implement Rendanheyi, businesses should choose to adopt only the parts that will work for each specific situation. In the case of Tianbao, that was ecosystem thinking, the starting point to implement a more comprehensive Rendanheyi philosophy. Other companies have started by restructuring the organisation (as in Fujitsu’s case) or the reward mechanisms (as at Sanyo).

Want to learn more?

Haier is just one of the case studies contained in the extensive and immersive 6-week course from our Corporate Rebels Academy. Click here to learn more about what you will learn from the course and view answers to some frequently asked questions.

Written by Joost Minnaar
Joost Minnaar
Co-founder Corporate Rebels. My daily focus is on research, writing, and anything else related to making work more fun.
Read more
Mar 17, 2024
Rebel Cells - A Global Network of Pioneering Organizations
Pim de Morree Written by Pim de Morree
Making work more fun. That's what Corporate Rebels is here to do. Our activities continuously evolve, but our purpose is as clear as it was…
Read more about Rebel Cells - A Global Network of Pioneering Organizations
Jun 03, 2023
Anarchic Solidarity: Indigenous Societies and Buurtzorg's Success
Joost Minnaar Written by Joost Minnaar
If you’re a frequent reader of our blog, you’re (probably) aware that I'm currently writing a new book about large flat companies. Last…
Read more about Anarchic Solidarity: Indigenous Societies and Buurtzorg's Success
May 27, 2023
Highly Egalitarian Organizations: The Principles of Sociocracy
Joost Minnaar Written by Joost Minnaar
As many of you know from reading this blog, last month, I immersed myself in the story of Kazuo Inamori and his Amoeba Management as part…
Read more about Highly Egalitarian Organizations: The Principles of Sociocracy
May 13, 2023
Weekly Rebelliousness In a 2-Minute Read, Absolutely Free
Pim de Morree Written by Pim de Morree
The moment is nearly upon us. In just a few short hours, we'll be unveiling the first edition of our completely revamped Corporate Rebels…
Read more about Weekly Rebelliousness In a 2-Minute Read, Absolutely Free
Apr 08, 2023
New Ways Of Working: Stop Reinventing The Wheel!
Joost Minnaar Written by Joost Minnaar
So, last month, we were interviewed by Erica Primal of the Italian magazine Confindustria Como. Recently, they published the interview in…
Read more about New Ways Of Working: Stop Reinventing The Wheel!
Feb 04, 2023
The Corporate Rebels Handbook Series: Purpose and Values
Pim de Morree Written by Pim de Morree
This post is part of an ongoing series that gives you an insider’s look at the Corporate Rebels company handbook. If you’re new to this…
Read more about The Corporate Rebels Handbook Series: Purpose and Values
Read all articles

Download: Free Guide

Unlock our in-depth guide on trends, tools, and best practices from over 150 pioneering organizations.

Subscribe below and receive it directly in your inbox.

    We respect your privacy. Unsubscribe at any time.