Stick to faith, practice internal skills hard and prepare for long-term economic winter

2021 is destined to be an unusual year. Affected by the repeated global epidemic, the rise of commodity prices, the tension of international shipping and other factors, the overall pace of global economic recovery slows down, coupled with a series of problems, such as shrinking orders, sharp rise in labor costs and high production costs, which will undoubtedly make it worse for manufacturing enterprises.
We should have a clear understanding of the current economic situation. The future trend may be more difficult than now. No one can predict how long this round of economic winter will last.
Under this severe situation, the operation of the company is greatly affected by the international and domestic environment. Internationally, with the spread of the epidemic in the world, many countries have adopted policies such as restricting the movement of people, canceling flights and closing customs. Although the epidemic situation in various countries has basically slowed down, the impact will continue for quite a long time. The shipping supply chain still cannot be solved in the short term. There is an imbalance between container supply and demand, the efficiency of port operation has decreased, it is difficult to book space, and the price remains high. At the same time, the appreciation of the RMB has increased financial risks, which has a great impact on our export price sensitive and low value-added commodities. The resulting exchange rate changes have also deterred many foreign buyers from taking a wait-and-see attitude.
At home, the real estate industry is expected to be poor, sales continue to decline, and HD events continue to ferment, which has a great impact on downstream home building materials enterprises, affect market sentiment, and cast a shadow on the expansion of Engineering channels. From a macro perspective, shouguang sino source is a link in the industrial chain and is in the middle of the industrial chain. Generally speaking, upstream industries need to pay attention to commodity pricing, while downstream industries need to pay attention to consumer demand. The rise and fall of upstream raw material prices and downstream demand in midstream industries will lead to great changes in enterprise gross profit margin.



In the face of both international and domestic difficulties, we must change our traditional strategy and make long-term preparations for the "cold winter" of the economy. If the external environment is bad, it depends on who has solid internal skills and strong adaptability. What we can do is to gather energy, consolidate management, improve product added value and services, enhance the core competitiveness of enterprises, and prepare for the arrival of "spring".



First, return to customers and focus on products and services.



During the economic downturn, enterprises should take customer value as the core to carry out operation and management, and customers are the source of the company's profits. To return to customer value and respond quickly to customer needs is not only the business department's business, but also the employees of all departments need to work together to do a series of work of "responding quickly to customer needs"; Pay close attention to the most basic indicators such as quality, cost and delivery time, strive to achieve the best of products and services, make customers willing to buy, obtain internal survival motivation by relying on high-quality products and services, and overcome this difficulty by relying on differentiation strategy; Give full play to the platform advantages of the Innovation Research Institute, constantly use new technologies, new processes, new materials and new equipment, improve product grade and added value, and enhance profitability.



Second, we should stabilize income and maintain cash flow.



Cash flow is an important indicator that enterprises should pay attention to. Cash is king. Only by maintaining sufficient and disposable cash flow can enterprises maintain normal operation. Income is the premise of maintaining cash flow. To maintain cash flow, first of all, keep the sales revenue, look for opportunities, tap better resources, seek a breakthrough in the market, increase market development and incentive policies, and let all employees contribute to marketing in their own posts, so as to ensure that the growth of sales revenue does not decline; The second is to strengthen the recovery and management of accounts receivable, eliminate or reduce credit sales, reduce transaction risk, and control accounts receivable, which is the optimal solution to maintain cash flow; Third, reduce inventory and sluggishness, accelerate capital flow and increase working capital; Fourth, develop and establish long-term strategic partnership with suppliers, try to increase the accounts payable cycle and alleviate the financial pressure.



Third, reduce costs and improve benefits.



Under the current circumstances, it is difficult to open source, so we should make great efforts to reduce expenditure. All units shall formulate cost reduction and efficiency increase measures to reduce costs from procurement, planning, production, process, packaging, transportation and other links. The purchasing end shall formulate scientific and reasonable centralized purchase and procurement strategies, and reduce the procurement cost through price comparison and negotiation and prolonging the payment cycle; The process end shall actively seek alternative schemes for raw materials through process improvement to deal with the price increase of raw materials; At the planning end, enhance the rationality of planned production scheduling and reduce the error rate of each link; The production end shall improve the utilization rate of raw materials, such as paper output rate, plate utilization rate, PVC film utilization rate, standardize the standardized operation and reduce the generation of waste and defective products; The equipment end shall improve the operation rate of the machine, save energy consumption such as electricity, gas and oil, reduce the equipment failure rate and reduce the maintenance cost.



Fourth, control expenses and reduce expenses.



Management expenses and sales expenses account for a large proportion of enterprise expenses. It is necessary to strictly control office and sales expenses such as meetings, reception, travel, express delivery and vehicles. For example, the express fee of the company is 50000 or 60000 per month, and there is a lot of room to improve the express fee in the future; Vehicle travel can reduce the cost of vehicle repair, maintenance and fuel consumption and greatly reduce the expenditure by piloting car appointment and enterprise didi; For the transportation cost in the sales cost, reduce the transportation cost by reducing the loading and unloading times and strictly controlling the road consumption; Business entertainment expenses and travel expenses can also be controlled by controlling the budget.



Fifth, we should streamline our troops and simplify administration and reduce human costs.



Nowadays, the employment cost of enterprises is increasing, and the performance profit space is shrinking. Only with streamlined institutions and capable personnel can enterprises maintain permanent vitality. By combing the organizational structure and department functions, optimize the staff structure, streamline the administration, reduce redundant personnel, and eliminate the fittest, so as to increase efficiency for the enterprise. Through fine and intensive management to make efficient use of human resources, improve the utilization rate of human cost and greatly improve labor efficiency. The human resources department should fix the posts and staffing of the company, sort out the qualifications of various posts, make reasonable allocation of personnel, make the best use of them, minimize the idleness of personnel and work unsaturation, eliminate all links that do not create value, and strive to exchange the minimum human cost for the most effective work efficiency.



Sixth, delay investment and shrink the front.



At the central economic work conference just held, it was pointed out that "next year's economic work should be stable and seek progress while maintaining stability". In the current economic uncertainty, investment needs to be scientific and cautious, resolutely stop the impulse of investment, do not invest blindly, continue to expand, and do not follow the trend and follow others. We should cut off unprofitable businesses, shrink the front, clench our fists, and refine our core businesses. Gradually eliminate and withdraw loss making businesses, cut off the "long tail" business and streamline the product portfolio. At this time, we should boldly subtract, take the initiative to subtract, and create greater value with limited resources.



In the current economic winter, strengthening one's own physique is the best "anti cold clothes", and cultivating strong internal skills is the only way for enterprises. Facing the severe external economic environment and various uncertain factors in the future, each of us should have a sense of crisis, establish the idea of "living a tight life" and prepare for the long-term economic winter. As the saying goes, "only closed enterprises, no closed industries". I believe that as long as all our employees unite as one and unite as one, we will be able to tide over the difficulties, break out against the trend and usher in "spring flowers".