Reform, innovation, exploration and try to find a new way for the paper packaging industry

Shanghai Baoxie Paper Co., Ltd., Shanghai Chenhua Paper Co., Ltd., and Minsheng Bank Shanghai Bund Sub-branch held the paper packaging industry conference in early June 2010 to establish a "central paper centralized procurement platform." This platform is actually a response to the development of the economic situation. In accordance with the economic work guidelines of Shanghai Baofa Association on “adjusting structure, transferring modes, and development”, it is a demand for industry resource integration, and also a need for industry linkage and cooperation, and it is a kind of healthy development. Active exploration and experimentation. From another point of view, under the severe economic situation, the price of base paper has soared, and the industry is in the process of unprofessional and loss-making measures for industrial production and self-rescue. This platform has also been "forced to get a new lease of life". In order to survive, seek reform, and seek innovation, it is also an attempt by industrial associations to reform and innovate in distress, to explore new ways and to serve enterprises in economic development. The principle of “resources integration, industry linkage, centralized procurement, and benefit sharing” is realized. The key to this principle is integration, linkage, and sharing. Trade associations, traders, and banks will give full play to their respective advantages. The bank provides financing services to the platform. The paper committee and Chenhua Paper focus on strengthening cooperation with paper mills to find sources of goods, expand purchases, provide users with benefits, and provide raw paper price information, strengthen industry self-discipline, and grasp the ability to resist risks. . The three parties made joint efforts to work together to “make the centralized paper procurement platform a good, strong, and large-scale implementation.” The key to measuring the success of centralized procurement platforms is whether users, paper mills, traders, and banks are satisfied. Whether to achieve a win-win situation? On the first anniversary of the establishment of the centralized paper procurement platform, it is necessary to verify the success of the platform with the above criteria.

Central paper centralized procurement is the result of the crisis of paper packaging companies. After 2009, under the influence of the international financial crisis, the price of domestic base paper continued to rise dramatically, and the production costs of paper packaging companies increased substantially. The increase in raw paper prices was about 40%. Under the premise of an increase in other accessories, fuel, employee salaries, and social security expenses, the cost of production of paper packaging companies increased by more than 50%. Enterprises cannot survive in distress and are in a state of no profit or loss. Some enterprises are forced to close down, transfer, suspend production, and change production. In April and May of 2010, the Shanghai Paper Association Paper Association and Chenhua Paper and Minsheng Bank jointly discussed and established a centralized procurement platform for the industry. After full exploration, a series of principles such as the settlement of capital, purchase of raw paper and preferential prices were proposed. Problems and specific operational plans. On June 11, 2010, a meeting of some key industry enterprises was held to announce the formal establishment of a centralized paper procurement platform.

Over the past year, the platform has done a lot of work to help companies with difficult fund operations to finance Minsheng Bank. The company proposed a request for financing from the bank, provided credit information and real estate mortgages, and the financing funds were settled with commercial acceptance bills, which resolved the capital circulation of the company's original paper procurement. The association and Chenhua Paper jointly visited papermaking companies to discuss the purchasing intent of all parties. Has visited more than 20 papermaking enterprises in Shanghai, Shandong, Zhejiang, Jiangsu, Hebei and other provinces. After friendly consultations, the establishment of a cooperative relationship of mutual benefit and benefit-sharing and the expansion of supply of goods are welcomed and supported by large, medium, and small papermaking companies. However, during the visit, it was rejected by some large papermaking groups. In order to establish a good supply relationship, the platform has formulated the rules of the game and formed a system of trustworthy consultations and friendly cooperation based on mutual maintenance and benefit sharing. Through a series of work, the sources of goods are continuously expanding, business is continuously increasing, and social influence is expanding. This year, some large-scale papermaking groups took the initiative to request suppliers to establish supply cooperation relationships with the platform, and major brands of large-scale papermaking companies were supplying the platform.

With the support and recommendation of the Association, the company has rapidly developed the base paper for the user procurement platform of downstream paper packaging companies and given appropriate price concessions. In particular, the second-tier factory that supplies cardboard with a corrugated board production line has established a cooperative procurement relationship with Chenhua Paper. They are characterized by large volumes, rapid turnover, and good capital. They offer greater discounts based on payment time, and there are paper mills that deliver directly to the factory. There are also some third-level small factories in the industry. They are characterized by small quantities, special specifications, and urgent shipments. Chenhua Paper Company has established a new paper cutting process, which can be customized and delivered on time. Small enterprises with financial difficulties have Chenhua Company guaranteeing to provide a small amount of financing, which is welcomed by the third-tier plants.

At present, Chenhua Company has more than 300 purchasing companies. Large and medium-sized enterprises account for about 20%. In 2010, sales revenue doubled from 2009 to 600 million yuan. In 2011, sales revenue is expected to double again than in 2010, reaching a target of 1.2 billion yuan.

The three parties of the association, Chenhua and the Bank jointly put the principle of “resources integration, industry linkage, centralized procurement, and benefit sharing” into full play, giving full play to their complementary advantages, user advantages, and purchasing and sales advantages, ie, capital advantages.

User advantage: There are more paper packaging member enterprises under the association, all of which are paper users. The Association took the lead to participate in the centralized paper procurement platform, giving users a reasonable price concessions, and was well received by the enterprises. Especially for small-scale enterprises of the third grade, the procurement volume was small, the paper mills were not supported, the prices were high, and cash was not paid for delivery. . In the past year, the association has recommended companies to participate in the platform, which has enabled Chenhua Paper to continuously expand its sales volume, and has enabled the procurement platform to achieve greater development. The association has done a real good thing for member companies and is also an important part of the service for member companies. In the past year, Chenhua Paper and the Association have made joint efforts to attract 40 member companies.

Procurement Advantages: Chenhua Paper establishes friendly cooperative relations with the upstream papermaking companies and adheres to the principle of “fairness, fairness, mutual benefit, and mutual benefit”. What is important is the guarantee of Chenhua's procurement funds, which facilitates the circulation of capital by paper-making companies, gives full play to the production capacity, and reduces inventory. On the purchase price: Chenhua Paper purchases large quantities, thousands of tons of raw paper, and the funds are paid. The paper mills are willing to give moderate preferential prices and reduce sales costs, which is conducive to the expansion of the capacity and rapid sales of paper mills. The return of funds will help the production of paper mills.

Capital Advantages: Because of Chenhua Paper's centralized procurement of large quantities and good credit, Minsheng Bank relies on Chenhua Company to provide sufficient centralized procurement financing funds. Chenhua Company provides user guarantees and asset collateral, which allows the bank to rest assured that people have lived for more than a year. The bank has invested approximately RMB 200 million in financing funds to Chenhua Company to provide capital guarantee for large-scale centralized procurement of base paper.

The centralized procurement platform operation has established a close cooperative partnership between paper mills, traders, users, banks, and associations, which is conducive to the common development of all parties involved and plays a certain role in the stability of the price of base paper.

It has been one year since the centralized paper purchasing platform established a deeper level of development of the centralized paper procurement platform, and has gained a lot of experience and achievements. However, as the reforms and innovations in the economic development of the industry, the active exploration and trials in the distress of the industry will inevitably run into such and such problems. It must be difficult to know what is going on and what is difficult and difficult to advance. Development ability develops to a deeper level.

Vigorously expand the centralized purchasing and supply channels of raw paper, strengthen communication and exchanges with the upstream papermaking companies, expand the development of multi-faceted procurement cooperation channels, and develop large, medium, and large-scale enterprises on the premise of fairness, justice, mutual benefit, mutual support, benefit sharing, and common development. Small papermaking companies supply channels, focusing on the development of high-capacity, good quality, fast delivery brands of large-scale papermaking group, and gradually eliminate low-production, low-quality, poor equipment, delivery of small paper companies. To a high level.

Centralized procurement should develop multi-variety, multi-specification, multi-quantitative sources of supply to meet the needs of users in all aspects, and also meet the needs of users in terms of quantity and quality, and gradually develop procurement channels across the country to make the platform a good, big, and effective platform. Strong.

Strengthen the market exchanges with international counterparts, understand the price information of foreign paper base markets, expand the channels of centralized procurement platforms to the international market gradually under conditions, and plan to organize a delegation to South Korea to investigate the situation of the base paper market, but must control the use of packaging paper. The price cannot be higher than the domestic market. Shanghai Chenhua Real Estate Investment Co., Ltd. was established to take Chenhua as the main investor and absorb the participation of enterprises in the industry. Shares of companies to provide priority to provide platform paper, the price favorably, according to the full amount of equity to implement the year-end bonus. Shanghai Chenhua Real Estate Co., Ltd. has been approved by the Administration for Industry and Commerce to be established in the near future.

Build an excellent service team and establish a good corporate image. In recent years, with the establishment of a centralized paper procurement platform, as the volume of purchases has increased and the number of users has increased, the existing service team and staff have been unable to keep up with the development of the company. Therefore, it is necessary to expand the ranks of employees. To improve the service consciousness and enterprise management level of the enterprise service team, we must first make great efforts to strengthen the training of teams and employees, improve service awareness and service quality, strengthen the post responsibility system, clear division of labor, and service in place. The special person is responsible for inspection of job responsibilities, with clear penalties. Strengthen enterprise management, focusing on financial, warehouse management ERP computerized system management and warehouse security management, warehouse inspection and other job inspection system, to promote a team to serve the user with a new service concept.
Liyang Paper Products Co., ltd is a factory and trade company located in Dongguan, China. Specialized in producing gift paper packaging, such as gift box,paper box, paper bag, book printing, notebook, folder, jewelry boxes, paper tags, jewelry tags,sticker,envelope, etc.
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