Shanghai Baoxie Paper Board, Chenhua Paper, and Minsheng Bank have established a centralized procurement platform for packaging paper. In the past three years, due to the disorderly increase in the price of packaging paper, paper packaging companies have faced low profits and even losses. How to deal with the rise in paper prices from the industry? In April and May 2010, Shanghai Baoxie Paper Board, Shanghai Chenhua Paper Co., Ltd., and China Minsheng Bank Shanghai Bund Subbranch jointly cooperated to discuss the establishment of a centralized procurement platform. The upstream and downstream companies of the sponsoring organizations are working closely to build a centralized procurement and sales platform. Chenhua Company is specifically responsible for centralized procurement and sales. Minsheng Bank provides financing financing for the platform and guarantees the source of centralized procurement funding. After many consultations reached an agreement, the principle of "resources integration, industry linkage, centralized procurement, and benefit sharing" was formed. On June 11, 2010, an industry conference was held by the Shanghai Baoxie Paper Board to announce the formal operation of the centralized procurement platform.
After a phase of work practice, the centralized procurement platform has brought into full play the advantages for paper packaging companies to reduce procurement costs and has achieved results, fully embodying the advantages of centralized procurement: First, the centralized purchasing platform has a large amount of purchases, sufficient funds, and large quantities of scheduled sources of supply. ,Funds. Paper mills are willing to provide the goods, the price is lower than the market price, so as to benefit the packaging companies and distributors, it is conducive to the mass production of paper mills, to solve the excess production capacity, the funds are operating normally, to achieve the purpose of benefit sharing in the upper and middle reaches; Second, centralized procurement The platform solved the problem that some large, medium, and small packaging companies could only purchase at high prices and increase production costs when the price of base paper rose sharply and the volume and funds did not meet the papermaking requirements. The centralized procurement platform can solve the problem of lowering procurement costs, especially the purchase costs of small and medium-sized packaging companies. Thirdly, the centralized procurement platform has the participation and support of banks. The banks support the funds in the centralized procurement platform and help the sales companies and paper packaging companies solve credit financing. Minsheng Bank provides closed-end capital operation amplification credits, and assesses and approves credit granting companies, which are used in the raw paper procurement platform to solve the capital operation problem of the centralized procurement platform. Fourth, the support, guidance, liaison, and coordination of industry associations is the key to achieving a centralized procurement platform. The important factor is also the important content that the association serves for paper packaging companies.
Targets of Centralized Purchasing during the Twelfth Five-Year Plan Shanghai Chenhua Paper Co., Ltd. put forward the following objectives during the “Twelfth Five-Year†development planning period: sales exceeded 4 billion yuan within two years, and sales exceeded 10 billion within five years. Take effective measures.
1. Energetically expand the centralized procurement channels for packaging paper, strengthen the communication and cooperation with the upstream papermaking enterprises, strengthen the friendly cooperation, develop multi-faceted procurement channels, and develop under the principle of “equality, mutual benefit, mutual support, benefit sharing, and common developmentâ€. Large, medium and small paper companies supply channels, develop multi-variety, multi-specification, multi-quantitative supply channels, and develop the supply channels for papermaking companies throughout the country and abroad.
2. Strengthen the market exchange with international counterparts, understand the price information of raw paper, and expand the channels of centralized procurement platform to the international market gradually, provided that the price of packaging paper cannot be higher than the market price of China.
3. Prepare a high-strength, low-weight corrugated base paper production base. Shanghai Chenhua Paper Co., Ltd. seizes the scarcity of corrugated paper, and with the support of banks and packaging companies, plans to spend two years to establish a high-strength, low-weight, paper-making company that produces corrugated base paper to solve the problem of the shortage of corrugated paper. It has been selected as a papermaking base approved by the state in Jiangsu Xiangshui Economic Development Zone. It plans to requisition 600 mu of land, basically complete the hydropower transportation facilities, and has a 20,000-ton deep-water terminal. The initial investment of the paper-making project is 500 million yuan and the annual output is 1.5 million tons. Corrugated paper, the total project is divided into three phases, the first phase of the project invested 100 million yuan to produce 210,000 tons per year, and strive to complete the trial production by the end of 2012.
4. Create Shanghai Chenhua Real Estate Investment Co., Ltd., taking Chenhua as the main investment, Zhonglong Paper as the technical support, absorbing the participation of Shanghai large and medium-sized paper packaging companies, and jointly developing papermaking projects. Participating share-holding companies will provide corrugated paper preferentially according to plans. According to the manufacturing cost to give price concessions, to achieve mutual benefits, mutual support and benefit sharing. During the preparation of the project, the feasibility study of the project will be further strengthened, and relevant experts will be invited to implement the demonstration planning, design, technical guidance, equipment purchase, and related policy issues to ensure that the papermaking project is completed smoothly and on time, and strive to be in the shortest possible time. Completed the project to provide high-quality, low-weight corrugated base paper and other packaging paper for Shanghai packaging manufacturers.
After a phase of work practice, the centralized procurement platform has brought into full play the advantages for paper packaging companies to reduce procurement costs and has achieved results, fully embodying the advantages of centralized procurement: First, the centralized purchasing platform has a large amount of purchases, sufficient funds, and large quantities of scheduled sources of supply. ,Funds. Paper mills are willing to provide the goods, the price is lower than the market price, so as to benefit the packaging companies and distributors, it is conducive to the mass production of paper mills, to solve the excess production capacity, the funds are operating normally, to achieve the purpose of benefit sharing in the upper and middle reaches; Second, centralized procurement The platform solved the problem that some large, medium, and small packaging companies could only purchase at high prices and increase production costs when the price of base paper rose sharply and the volume and funds did not meet the papermaking requirements. The centralized procurement platform can solve the problem of lowering procurement costs, especially the purchase costs of small and medium-sized packaging companies. Thirdly, the centralized procurement platform has the participation and support of banks. The banks support the funds in the centralized procurement platform and help the sales companies and paper packaging companies solve credit financing. Minsheng Bank provides closed-end capital operation amplification credits, and assesses and approves credit granting companies, which are used in the raw paper procurement platform to solve the capital operation problem of the centralized procurement platform. Fourth, the support, guidance, liaison, and coordination of industry associations is the key to achieving a centralized procurement platform. The important factor is also the important content that the association serves for paper packaging companies.
Targets of Centralized Purchasing during the Twelfth Five-Year Plan Shanghai Chenhua Paper Co., Ltd. put forward the following objectives during the “Twelfth Five-Year†development planning period: sales exceeded 4 billion yuan within two years, and sales exceeded 10 billion within five years. Take effective measures.
1. Energetically expand the centralized procurement channels for packaging paper, strengthen the communication and cooperation with the upstream papermaking enterprises, strengthen the friendly cooperation, develop multi-faceted procurement channels, and develop under the principle of “equality, mutual benefit, mutual support, benefit sharing, and common developmentâ€. Large, medium and small paper companies supply channels, develop multi-variety, multi-specification, multi-quantitative supply channels, and develop the supply channels for papermaking companies throughout the country and abroad.
2. Strengthen the market exchange with international counterparts, understand the price information of raw paper, and expand the channels of centralized procurement platform to the international market gradually, provided that the price of packaging paper cannot be higher than the market price of China.
3. Prepare a high-strength, low-weight corrugated base paper production base. Shanghai Chenhua Paper Co., Ltd. seizes the scarcity of corrugated paper, and with the support of banks and packaging companies, plans to spend two years to establish a high-strength, low-weight, paper-making company that produces corrugated base paper to solve the problem of the shortage of corrugated paper. It has been selected as a papermaking base approved by the state in Jiangsu Xiangshui Economic Development Zone. It plans to requisition 600 mu of land, basically complete the hydropower transportation facilities, and has a 20,000-ton deep-water terminal. The initial investment of the paper-making project is 500 million yuan and the annual output is 1.5 million tons. Corrugated paper, the total project is divided into three phases, the first phase of the project invested 100 million yuan to produce 210,000 tons per year, and strive to complete the trial production by the end of 2012.
4. Create Shanghai Chenhua Real Estate Investment Co., Ltd., taking Chenhua as the main investment, Zhonglong Paper as the technical support, absorbing the participation of Shanghai large and medium-sized paper packaging companies, and jointly developing papermaking projects. Participating share-holding companies will provide corrugated paper preferentially according to plans. According to the manufacturing cost to give price concessions, to achieve mutual benefits, mutual support and benefit sharing. During the preparation of the project, the feasibility study of the project will be further strengthened, and relevant experts will be invited to implement the demonstration planning, design, technical guidance, equipment purchase, and related policy issues to ensure that the papermaking project is completed smoothly and on time, and strive to be in the shortest possible time. Completed the project to provide high-quality, low-weight corrugated base paper and other packaging paper for Shanghai packaging manufacturers.
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