Carton packaging base paper purchase points

In recent years, with the disappearance of various barriers, the realization of an internationalized market, and increasingly fierce competition and regularization between industry and peers, companies have resorted to the use of cheaper guns in the battlefield where there is no smoke. Seize the market. This has led more and more domestic companies to experience the importance of reducing costs and improving their competitiveness. At the same time, we will find that regardless of whether or not they are pressured by market price cuts, the world’s top 500 companies have all taken the initiative and forward-looking cost reduction work as the top priorities of their daily operations. They are very clear that before the price reduction The operating results bring direct profits, and the business results after price reduction directly translate into the market competitiveness of the company.

The cost of industrial enterprises is mainly in the procurement of raw materials. The procurement cost of raw materials accounts for 50-70% of the product cost, which means that the procurement process saves 1%, and the profit of the company will increase by 5-10%. This is the amplification effect of the reduction of material costs. . The scientific management of procurement activities can significantly reduce procurement costs and increase the competitive position of products in the market. Therefore, improving the level of procurement management and the status of procurement in the company has become a secret weapon against the competitors. Professional management of procurement has also become one of the company's core capabilities.

The base paper is the main raw material of the carton packaging enterprises, and it is also the main part of the cost of the purchased cartons. Therefore, whether the carton factory has the proper methods and techniques for the procurement of the base paper is the key to directly affecting the efficiency of the carton factory.

As the saying goes, "If you can't make a profit, you can't sell it for profit." This sentence is directly applicable to commerce. What's more, it pays attention to the difference between entry and exit. It will be bought: this also applies to production-oriented enterprises if the materials purchased by production companies are used. Subsidiary prices are so high that production costs are too high and companies have no benefit. Especially in the carton industry, the cost of cartons is 70 to 80% of the original paper. At present, the carton industry is experiencing an extremely rapid development trend, with fierce market competition and price wars everywhere. According to relevant data analysis report, at present, there has been an excess of domestic carton production. Three years ago, the development of the Pearl River Delta was too fast and the competition was extremely fierce. In the past two years, the price war in the Jiangsu and Zhejiang regions has become intense. There were only about 30 production lines in Changzhou, Jiangsu Province in 2002, and another 30 in 2003. many lines. Even though the development of light industry in Changzhou is relatively strong, through conversations with the carton plant operators, all of them are complaining that the operating efficiency is far worse than before. Due to the mutual competition, the profits are very thin. The production of cardboard and the processing of the subsequent stages have been subdivided into two industries. In addition, Suzhou, Kunshan, Shanghai and other regions Taiwan-funded, joint venture companies. How to reduce costs has become a top priority for the carton industry, so the purchase of raw materials becomes increasingly important. So, how can we do a good job of purchasing raw materials for packaging plants in this highly competitive process? Let's talk about this issue in several points.

● The first thing to do is to conduct market research to fully understand the supply market's market conditions and development trends and trends. Enterprises and suppliers themselves have a process of mutual comparison and mutual selection. Both parties have their bargaining advantages. If they have a thorough understanding of the supplier's industry, supplier business strategy, operation mode, competitive advantage, stable long-term operation status, etc. And understanding can help the company itself find opportunities and find a balance in win-win cooperation. At the same time, we must understand the variety, grade, structure, and user needs of the products in the sales market, and use strategic vision to implement strategic procurement. The strategic procurement process is not simply a negotiating process between rivals. It should be a process of business negotiation. The purpose of the negotiation is not to blindly push prices down, but rather to gain a full understanding of the market and win-win communication of the company's own long-term planning. In this process, it is necessary to provide powerful facts and data information for negotiation through the analysis of total cost, third-party service provider assessment, and market research, so as to help enterprises understand their bargaining advantages and master the entire negotiation process and initiative. The advantage of strategic procurement is to fully balance the internal and external advantages of the company, with the aim of reducing the overall cost, covering the entire procurement process and achieving the full management from demand description to payment.

● Have a clear procurement plan. The company's purchasing department should strengthen communication and connection with the sales department and warehouse management department. For the analysis of procurement requirements, we must formulate the most basic procurement plan based on the development trend of sales business. At the same time, we must strengthen the necessary connection with the warehouse management department, and according to a reasonable inventory, distinguish the priorities of the required procurement materials and formulate a clear procurement plan. For example, in the procurement of base paper, it is necessary to have an overview of the overall development of sales business, what level of product positioning, how much is the quantity, what are the quality requirements of these products, and what are the key technical requirements indicators, in order to meet these requirements in the base paper The procurement should pay attention to what physical indicators of the paper and how much is purchased, the definition of normal inventory limits, and so on.

● Pay attention to dealing with long-term suppliers and developing suppliers. Purchasing should not only focus on negotiation, parity, and price reduction, but also must shift from focusing on negotiations to establishing strategic partnerships. It should shift from blindly pricing to the establishment of a win-win mechanism and strengthen the training of suppliers. Procurement is not a "one-time" transaction. One-handedly handed over the money to hand delivery, the purchase price of the two clear each leave, this procurement is like a splurge, it is difficult to become a regular army. The consequence is that after-sales service is not guaranteed. Once a problem is found, the contact cannot be found and it is difficult to handle. If the market fluctuates and the sources of goods are tight, there will be money to buy the right materials. For example, in 1985 and 1995, there was a serious shortage in the paperboard purchasing market. Packaging plants in Guangdong, Fujian, and other places flocked to the northern regions in batches and bought them with coins. For a long time, win-win concepts are rarely used in procurement. More corporate managers prefer single wins. They like to always use our company as a tool for the procurement process. Others are fish. In fact, the pursuit of a single win in the market economy conditions, just want to make yourself fit, in the long run, not only to destroy their own reputation, and find a way for partners is also becoming narrower. A win-win situation is a "universal and universal" truth. It is also an indispensable factor in strategic procurement. Many companies that have a good momentum of development and have started earlier have generally established a supplier evaluation and incentive mechanism. The suppliers' long-term and stable cooperation established a win-win cooperation benchmark and achieved very good results. Under the modern economic conditions, the market alone cannot rely on one or two enterprises. We must emphasize the model of “service, cooperation, and win-win” to support each other and grow together.

● The centralized procurement of group companies reflects the maximization of overall benefits. Through the concentration of purchases to increase bargaining power and reduce unit procurement costs, this is a basic approach to strategic procurement. In some large enterprise groups, unified purchasing is carried out by the full-time procurement department, relying on the price and after-sales advantages brought by the huge purchase volume, fully embodying the maximization of overall interests. However, with the growth of corporate groups, some groups have started to organize their own procurement. In the group companies that have implemented comprehensive business accounting, it is very common for subsidiaries to be dissatisfied with unified procurement and purchase themselves. Some managers think that it is a good thing to control each other. However, in reality, the price and after-sales advantages brought by purchasing volume are dispersed, and the maximization of the overall interest is ignored. The essence of its appearance is the company's internal power struggle. If the managers of enterprises are severely stopped at the beginning, the consequences are not only waste of resources and increase of labor costs, but also adversely affect the corporate culture. The former emphasizes that the element is the "lowest total cost" while the latter emphasizes that the element is "the single lowest purchase price." Such as the national famous brand "Master Kong" packaging, take the group purchase, sub-regional supply approach, give full play and show the advantages of the group's purchase and the overall interests of the maximization.

● Companies must have effective tools and information platforms for procurement tracking, evaluation, analysis, and scientific decision-making. What kind of procurement is in line with the interests of the enterprise, and how much the purchase price is reasonable, how to implement effective supervision and inspection in the prevailing environment of shadow procurement, how can we control beforehand rather than make up for it? These problems are daily. Confused about managers. The underlying reason is that no effective tool has been found to track, evaluate, analyze, and make scientific decisions for procurement. Such as "Master" group's packaging plant, scattered in seven or eight provinces and cities across the country, a few kilometers away from the distance, relying on modern technology information platform, the information at each branch at any time to achieve, achieved "strategic strategy, winning a thousand miles Outside the "good state."

●Unification of products and services. At the time of procurement, full consideration was given to the operational costs of future storage, product replacement, and other aspects, and efforts were made to improve the degree of unification of products and services and reduce the subsequent costs of variability. This is a strategic procurement with a higher technological content and is a full expression of the overall procurement optimization. The intangible costs of purchasing product differentiation are often overlooked by companies. This requires the strategic planning of business decision makers and the consistency of execution by the purchasing department.

This kind of strategic procurement is the development direction and inevitable trend of corporate procurement. At the beginning of a business venture, the advantages of strategic procurement are not obvious due to the restrictions on the amount and types of purchases, but the advantage will become increasingly apparent in the process of higher-level and larger-scale development of the company. Therefore, foresighted companies should begin their organization with a strategic procurement framework.

(author/ Zhou Changfu)

"Export Goods Packaging"