The increase pricing of paper packaging
The increase pricing of paper packaging
As a manufacturing power, China's manufacturing industry is facing an industry crisis in recent years as labor costs rise and economic growth slows. Due to the lack of innovative ability, the weakness of ecological circle, the insufficient market research and the lack of perfect supply chain, etc. , most of the manufacturing enterprises can only be reduced to hardware and price-driven Assembly workshop or OEM. In 2016, a manufacturing industry-wide supply chain price increases and shortages hit the storm, China's manufacturing industry is also facing tremendous pressure. How to deal with this industrial crisis and realize the industrial upgrading of manufacturing industry? "This year, the entire purchasing community is suffering from anxiety, one is that suppliers are raising prices, the other is not getting the goods. " Generally speaking, the industry believes that purchasing is party a and should be the most comfortable, it's been a tough year for buyers. In 2016, the first key word in the purchasing industry was "rising prices" .
For Large Enterprises, the previous annual KPI assessment of company procurement is costdown. But no one has cut costs this year, and suppliers are raising prices almost every month, or even every ten days. The deep reason behind the industry-wide price increases and shortages the first key word for procurement in 2016 is "price increases. ". Zhuochuang information analyst Tang Zhongzheng said that there are many reasons for the rise in carton prices. First, in many areas of the north, the operating rate has dropped and the supply of raw paper for packaging has become tight. Second, due to the impact of the weather, the amount of waste paper recovered from bulk raw materials has dropped, and the price of waste paper has remained high. Third, factors such as the increase in the price of coal and the increase in freight costs are still being digested The fourth is October to November downstream demand, e-commerce and other industries to help packaging paper demand explosion. To sum up, that is, rising costs, supply and demand imbalance exaggerated, and raw paper enterprises to ensure customer orders to purchase a large price increase of waste paper, resulting in a continuous rise in the price of waste paper, the price of raw paper in the packaging. In addition to the rising cost of raw materials, another is the rise in freight costs. The Transportation Department has already imposed strict restrictions on heavy cargo vehicles.
Logistics costs have increased by nearly 35% . The increase in transportation costs will also have an impact on procurement costs. "The price of PVC has increased by 60 percent, glass by 40 percent, plastic by 30 percent, aluminum by 30 percent, iron by 30 percent, cardboard by 30 percent, stainless steel by 40 percent, and freight by 35 percent. " The sharp rise in the price of raw materials is matched by an increase in the depreciation of the Renminbi, which has also intensified, the cost of buying in dollars for manufacturers is also rising. "Some experts predict that the RMB exchange rate should break seven this year and further depreciation next year. " In October, when the RMB officially joined the international or IMF's SDR Special drawing rights, and the RMB depreciates rapidly, domestic commodity futures prices were strongly supported by inflation, rising prices and continued market expectations of depreciation. In addition, the property market as a result of the policy crackdown, so that speculative money into futures markets such as commodities, manipulation drove up the price of bulk materials. The second key word for purchasing in 2016 is "out of stock. ". Spring Festival production suspension repair further aggravates the downstream supply contradiction. In November, paper-making and packaging enterprises, represented by nine dragons paper, announced a series of production suspension plans for the Spring Festival, further exacerbating the supply conflict in the industry. The market rallied three times in September and four times in October. November is even more chaotic, every day a different paper mill announced price increases, has been unable to collect statistics on the frequency of price increases. From the rise, from the previous single 50-150 Yuan/ton to 300-700 Yuan/ton in November, the rise is more and more amazing. The implementation of price increases and downstream carton factory attitude in the second stage has changed significantly. In the market price frequently out of the same time, the paper factory limit orders more and more, paper supply on the market. In addition, the process of rising raw material prices will further lead to shortages, due to the existence of speculative hoarding of goods, making the market more tight supply. How does procurement respond? "eight-character policy" since the depreciation of the RMB and the trend of raw material costs in a short time can not be changed.
In order to meet the challenges of the future, procurement should be done "in line with the trend, select good and supply" this eight-character approach. In the past, there were several KPI's for purchasing, including reducing cost and meeting delivery date. But this year, the most important task of procurement is to ensure supply and meet the delivery date. Someone once said, as long as the price is in place, there will be no shortage of goods. Even if the market is very out of stock, you can also get the goods at a higher price. "This time does not need to worry about the price excessively, may exchange the quantity by the price. " Regarding the purchase, the most important is guarantees the supply, most importantly is meets the delivery time. So it's a price-for-volume proposition. Even when very out of stock, with a higher price can also get goods. So there's no need to get too hung up on price at this point. In addition to price for volume, the purchase should also be made on the future price of materials forecast.
If you can successfully predict the future price increases of materials, exchange rate, then should be low-cost materials in the case of strategic reserves, or even in the case of shortage of materials, to achieve volume for price. In addition, due to the high season and the low season of the company's marketing needs have a great change, so the purchase should balance the low season and the high season under the procurement needs. When the market is good, place a lot of orders.
Don't place orders when the market's down. For suppliers, it's going to increase their risk. Guiping said, there is also a situation is due to material prices rise too fast, not sell products but more profitable. At this time, the company's Marketing Department should take the initiative to reduce demand, make strategic adjustments, reduce production and sales. "The supplier who still supports us in the most difficult time is the true friend. " The so-called "good-for-nothing" is actually "a friend in need" . Suppliers and manufacturers in the face of industry-wide crisis, can understand each other, group heating.
