111 Named "National High-tech Enterprise" by the Government
Smart retailing driven by advanced digital technology
Currently, 111's largest investment focus is to create a world-leading IT infrastructure, data analytics and business smart systems and is reflected in its continuing investment in R&D, as demonstrated by the Company's allocation of capital. 111 has an R&D team of over 300 people, which has developed proprietary applications, including client relationship management (CRM) systems, data analytics solutions, precision marketing, and supply chain management software, in order to bolster the Company's smart systems and operational capabilities.
111's Smart Sourcing System (SSS) is based on more than 30 proprietary smart systems, which include a procurement management system, warehouse management system, stock management system, transportation management system and price intelligence system. SSS thus serves as the backbone for 111's nationwide smart supply chain network, and is 111's most sophisticated, complex and widely used application. 111 has established 5 SSS-powered smart supply chain centers in Eastern, Northern, Central, Western, and
111 has also launched an intelligent pharmacopeia system to ensure safe and secure prescriptions in the drug purchasing process. If a patient orders a drug that is contraindicated for the patient's condition, the system will automatically flag and suspend the purchase. 111 has also developed the "HawkEye" System, an automated tool that uses data analytics to help the Company's business development team boost efficiency through the management of pharmacy customers and tasks.
Using smart technologies to reduce cost
111 uses smart technologies to reduce costs and improve operational efficiency. In the third quarter of 2019, 111's operating expense as of a percentage of its net revenue was 14.9%, down from 29.1% in the same period in 2018. Fulfillment costs as a percentage of its net revenue was 2.8%, down from 4.2% in the same period in 2018. In addition to cost reductions, technology has helped 111 increase its customer stickiness; in the third quarter of 2019, orders in the Company's B2B segment were up 45.1% compared to the second quarter, up to 280,000 orders, of which same-store growth contributed 24.6%.
Dr. Gang Yu, Co-founder and Executive Chairman of 111 commented, "The national high-tech enterprise designation reflects national recognition of our technology and innovations. Technology has accelerated our growth as a business. Going forward, we will continue to use our leading technologies to empower our partners in the healthcare ecosystem, and better serve pharmaceuticals, pharmacies, doctors and insurance providers in carrying out the government's Healthy China strategy."
About 111, Inc.
For more information on 111, please visit http://ir.111.cn.
For more information, please contact:
Ms. Monica Mu
Mr. Christian Arnell
Ms. Linda Bergkamp