Chapter 381 Development of Suppliers

Author: Bai Lian Zi Ren

Chapter 381 Development of Suppliers

The Xiangjiang Branch collected information about Bai Zirui in great detail. President Wang knew that he was from mainland China. Although he could not get too close to him due to his status, he still had no problem talking to him in public.

In Bai Zirui's report, his company's upstream supply chain system has gathered a large number of manufacturers. For example, Lu Qintian, who was standing next to him and talking eloquently, was one of the first Xiangjiang bosses to rush to the mainland for cooperation. President Wang was very concerned about his information.

The information is also very clear. At this year's Guangdong Fair, Lu Qintian reached a cooperation agreement with Yuezhou Nanyue Machinery Factory to produce Rainbow brand TVs with incoming materials.

The two parties argued for a long time about the proportion of export products, and finally decided on a monthly output of 10,000 units, two-thirds of which would be sent to Xiangjiang for sale by Lu Qintian's company, and the remaining one-third would be distributed to various friendship stores in the mainland.

Sale.

In Sino-foreign cooperation projects, the most difficult issue for both parties to reach agreement is often the issue of the proportion of products exported. Foreign businessmen hope to be able to sell locally and make money from the Chinese people, while the mainland side hopes to sell all exports in exchange for more valuable foreign exchange.

For this reason, various local governments provide various subsidies to local companies to expand exports.

With the help of the SAR government, Lu Qintian reached a joint venture agreement with Factory 771 in Guizhou Province. Factory 771 is responsible for providing manpower, and Lu's Electronics Company is responsible for providing funds and equipment. The two parties cooperate to produce computer monitors, and all products are exported.

Lu Qintian didn't care about the proportion of domestic sales. He just asked the mainland to create all conditions for the factory to put into production as soon as possible. He repeatedly emphasized that workers must be experienced and skilled workers. After the products are produced, the quality inspection of the products will be very strict.

Wang Kuang naturally knew the reason, and it was Bai Zirui who was standing next to Lu Qintian. Lu's Electronics Company was already overwhelmed with export orders, so it didn't care about the domestic sales ratio.

Lu's Electronics Company's previous agreement with Nanyue Machinery Factory has been modified to produce all computer monitors. However, their company's quality requirements for computer monitors are indeed very strict, and the slightest flaw will be regarded as

Disposal of defective products.

For this reason, the technicians of Nanyue Machinery Factory were very resentful and almost fell out with the quality inspectors sent by Xiangjiang several times. Lu Qintian went directly to the leaders of Guangdong Province to complain, and finally the province sent a leader to come

After mediating the conflicts between the two parties, a unified opinion was reached.

The quality standards of products are subject to the judgment of Xiangjiang quality inspectors. Any products that are judged to be unqualified will be put back on the production line to replace some components, and the computer monitors will be reworked into TV monitors for domestic sales.

The main reason why Nanyue Machinery Factory is willing to accept this result is that the production of computer monitors is more profitable than the original production of TV monitors. Moreover, Xiangjiang never defaults on payment and will transfer foreign exchange to the account of Bank of China Xiangjiang as soon as possible.

superior.

After some investigation, Wang Kuang found out that the testing standards for monitors were not set by Lu's Electronics Company itself, but by Bai Zirui's Dingtian Company.

Although the Xiangjiang inspectors sent by Lu's Electronics Company to Nanyue Machinery Factory were nominally employees of Lu's Electronics Company, in fact all skills training was undertaken by Dingtian Company.

Qiannuo Electronics Company, which invested in building a new factory in Shekou Industrial Zone, is in the same situation. Qiannuo Company did not make various unreasonable demands like other Hong Kong businessmen who came to inspect. The only request was that the Shekou Industrial Zone should be accelerated

The speed of new factory construction.

Before the factory was built, Qiannuo Electronics had already completed the recruitment process with the cooperation of the Industrial Zone Management Committee and sent professional technicians to start basic skills training for the workers.

These two distinctive Xiangjiang companies have one thing in common, that is, they both belong to the supplier system chain of Dingtian Company, and most of the orders supporting their expansion come from Dingtian Company. As the saying goes, you can tell when you see the slightest thing.

Even without looking at the specific survey report data, Kuang could guess the approximate size of Dingtian Company.

However, the reports in various newspapers in Hong Kong are much more exaggerated. You must know that Hong Kong is such a small place, with as many as 55 newspapers. The fierce competition makes each newspaper use all possible means to chase news.

Some time ago, when the wealth myth of Bai Zirui and Dingtian Company was being hyped, all reporters were unable to obtain sales data from Dingtian Company’s operations department. Several reporters found Dingtian Company’s customs declaration list from the customs office and wanted to

I tried my best to find out the export prices of various products of Dingtian Company from various channels.

As a result, a detailed and accurate sales list about Dingtian Company was presented to all Xiangjiang citizens. It included arcade games, handheld game consoles, and personal computers. All sales data were added up, and Dingtian Company’s monthly sales were

The amount is as high as 500 million Hong Kong dollars, which makes the citizens of Hong Kong a little stunned.

Wang Kuang extended his hand to Bai Zirui enthusiastically and said, "Hello, Bai Sheng! I am Wang Kuang from Xinhua News Agency in Xiangjiang."

Bai Zirui knew that although the president of Xinhua News Agency did not appear in newspapers very often, he was still a figure who attracted much attention from all parties.

Bai Zirui smiled, held President Wang's hand with both hands, and said, "Hello, President Wang! We are fellow villagers. When we meet fellow villagers, we burst into tears!"

Wang Kuang heard his voiceover and said with admiration: "Bai Sheng, you are the pride of mainlanders. Your Dingtian Company has a bright future. What's your secret? Let all major domestic factories learn from it."

!”

Bai Zirui said: "President Wang, the industries our company is involved in are all emerging industries, the market is maturing rapidly, and the competition in the industry is not fierce. And we happened to develop a few best-selling products, so we can barely achieve relatively good results.

!”

Wang Kuang couldn't help but feel a little ashamed after hearing Bai Zirui's words. Dingtian Company's monthly sales are 500 million, which is 6 billion Hong Kong dollars a year, equivalent to 1.2 billion U.S. dollars. As of the end of last year, the entire China's foreign exchange reserves were only 2.7 billion.

US dollars, which is only slightly twice the annual sales of Dingtian Company, which in other people’s eyes is barely good.

The bosses of domestic export companies think that they are very arrogant if they can earn one million US dollars in foreign exchange a year. Then look at the young people in front of them who speak plainly and have no trace of arrogance. They are afraid of comparison in everything, and it is only through comparison that it becomes clear.

The gap with others, like Bai Zirui, who is not shocked by honor or disgrace, is the magnanimity of a truly great entrepreneur.

After China established diplomatic relations with the beautiful country, Western countries' blockade on China was slightly relaxed. China purchased a large amount of advanced equipment from abroad, resulting in a very large trade deficit and the need to sell off part of its gold reserves to balance the foreign exchange deficit.

At this year's Guangdong Fair, among the products that China can export to earn foreign exchange, except for oil and industrial and mining rare metals, other commodities are not very competitive in the international arena. They can only rely on the government to lower export prices to attract foreign businessmen to place orders.

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Chapter completed!