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With the rapid spread of the new crown epidemic abroad, textile foreign trade companies are facing a new round of work pressure. Because of the overseas epidemic, many foreign trade export orders have been delayed or cancelled. This is the first time that China's foreign trade factories are suffering the new crown epidemic Two waves of pressure. So how can textile foreign trade enterprises deal with this "war epidemic" in order to reduce the damage to a large extent?
Due to measures:
I. Proper adjustment of domestic and foreign trade ratios
Many cloth bosses have stated that the proportion of domestic and foreign trade will be appropriately adjusted in the future to mitigate the impact of the epidemic.
A person in charge of a company that mainly made orders in Italy and South Korea said: "Although we have not received notice of cancellation of orders for the time being this year, the volume in the first quarter has been significantly reduced compared to last year. Next we will develop domestic trade. Now the domestic epidemic It's basically under control, and it is a good opportunity to be alive. "Similarly, a boss who exports fabrics made of silk fabrics also revealed:" The unit volume has been reduced by 20% compared with last year, and the current order can reach the end of April. Next, we will consider a little bit more domestic trade, but domestic trade also has disadvantages. The customer's repayment is longer than foreign trade, most of which are 3 months or more, so domestic trade is not easy to do. This year ’s situation is really bad. It's difficult. "
It is true that it is a good policy to shift the focus of the business to the domestic situation when the epidemic situation in foreign countries has not been effectively controlled, but the boss of the cloth also needs to understand that the domestic market is already less abundant and the industry competition is very fierce. The more the boss pays attention to his product quality, this way he has enough strength to win in the competition.
2. Commencement of construction, shifting from two shifts to three shifts
Guarantee sufficient cash flow
It is said that cash flow is the "life and death line" of an enterprise. When new orders are difficult to sustain, many cloth owners think that for the company, there is no order, that is, no account is received, but the labor and rent costs are difficult to offload. If you have a loan, you have to repay the loan and interest every month. Therefore, it is necessary to reduce expenditures next.
"Next, we may reduce production appropriately to ease the pressure on capital and inventory." A factory director doing imitation memory is helpless. "Now the raw materials have fallen very badly. We have not received new orders. We can only produce some conventional varieties, but we use raw materials that were previously stocked at high prices. Therefore, we choose to stop half of the machines next month and inventory production. Too much can't be sold, but it takes up our liquidity (the raw materials are all traded in cash). "
Another person in charge of the dyeing factory also revealed that the working hours of employees may be adjusted appropriately from two shifts to three shifts. Reduced worker time and wages can reduce labor costs.
Judging from the current market situation, the startup rate of various factories is slowly recovering, but destocking is slow, and new orders are not smoothly delivered. Next, the market will have an overcapacity situation, and low-price competition is imminent. Therefore, when the market is uncertain, it is wise to choose strategies such as reducing production or adjusting the working hours of workers to reduce expenses.
When the market is in a downturn, many manufacturers will consider reducing production and vacations. In July and August of last year, many weaving and dyeing factories took high-temperature vacations, but this year is likely to be ahead of schedule. In the case of unsustainable orders, many manufacturers will consider reducing production or even holiday. In the short-term, it is recommended that varieties with larger stocks go along with the market, and the transaction can be appropriately profitable; prices of lower-stock varieties can be temporarily stabilized, and the principle of production according to order, use-and-use, and strict inventory control is adhered to.
Xuzhou Heping Chemical Fiber Co., Ltd. is a professional manufacturer and supplier of polypropylene products such as polypropylene high-strength yarn, polypropylene industrial yarn, polypropylene high-strength yarn, high-strength polypropylene network yarn, and split film industrial yarn, which are welcomed by the market.
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