How to deal with rising raw material prices in packaging machinery manufacturing

Since the beginning of this year, the increase in raw material prices and various expenses has become a common topic in the packaging machinery manufacturing industry. With the further implementation of the "Labor Law" and other laws, the reform of the employment system, the rise in labor costs, coupled with the appreciation of the RMB, the monetary tightening, The economic factors that affect enterprises are constantly increasing. This is worse for packaging machinery manufacturing companies and paper products companies that are not profitable. Enterprises face many problems that need to be solved. Multiple pressures have caused companies to become increasingly profitable. How should companies go? The author conducted an investigation around this issue.

1. The main contradictions and problems existing in enterprises that are not adapting to changes in the situation

Enterprise managers should clearly understand and accurately grasp the problems and deficiencies in their work, keep a clear head and clearly define the direction of their efforts. At present, the main problems and prominent contradictions in packaging machinery manufacturing enterprises: First, some enterprises have three inadequate. That is: ideological concepts are not compatible with the development of the situation; the current status of the talent team is not compatible with the urgent needs of people for enterprise development; the understanding and use of people is incompatible with the laws of the market economy. Second, the technological innovation capability is weak, the process technology is progressing slowly, and the development of new products has not fundamentally got rid of the situation of imitation research and tracking. The third is the extensive economic growth mode, low profitability of products, and weak competitiveness. Economic growth and efficiency improvement are still mainly driven by scale. There is still a certain gap between the consumption of energy and labor resources and the advanced level. Fourth, the market awareness, competition awareness, and crisis awareness are not strong. The sense of servicing the market, serving customers, and the sense of urgency and responsibility for development are not strong. Human resources can not keep up with the demand for high-level and high-speed development of production. The reason for the shortage of talents in enterprises is that the development speed is too slow. Fifth, extensive management has not yet been achieved. Sixth, the managers of some enterprises do not rely on scientific management for development in the production and operation of the enterprise. They always have the luck of the luck and rely on the loopholes of policy to seek temporary survival.

2. Countermeasures to resolve contradictions and problems

In the face of unfavorable factors, how do companies face the reality to meet the challenges? Change the development concept, strengthen independent innovation, enhance market awareness, and effectively promote the development of enterprises.

1. Innovative business philosophy. The innovation of business philosophy, including technological innovation, service innovation, corporate culture innovation, leadership innovation, and incentive innovation, conforms to the development of the times, specifically starting from the following aspects:

One is technological innovation. Technological factors play an "unpredictable influence" in the survival and development of enterprises. Because technology has a very important position in the development of enterprises, striving for technological innovation is the fundamental way for modern enterprises to seek development.

The second is marketing innovation. The establishment and development of marketing concepts is the basis for enterprises to win the market. On the one hand, it uses modern information networks to grasp market information at the fastest speed and effectively process the information. On the other hand, modern network marketing provides enterprises with a new and effective marketing model, which not only reduces costs and reduces manpower investment, but also can find customers in a larger market and create more flexible operating space for enterprises.

The third is service innovation. In the era of knowledge economy, service as the "software" of product sales has increasingly highlighted its unparalleled importance. Traditional pre-sales, sales and after-sales services can no longer meet the increasingly rich and diverse requirements of customers, and will be replaced by a full range of service concepts. Full service refers to a service mode in which all services required by users can be satisfied smoothly. It includes providing users with all relevant information about enterprise products, and producing and transmitting products according to user expectations to maximize user satisfaction.


2. Promote refined management. Comprehensively carry out refined management activities centered on the "five transformations" to promote the improvement of the basic management level of enterprises. specific measure:

The first is to change from large plans to small accounts. In terms of cost management and control, enterprises have shifted from large plans to small accounting, based on standardized capital management, refined cost control management, improved procurement supervision mechanisms, and strengthened information construction.

The second is to change from incremental to quality. In terms of market development, the company has shifted from incremental to quality, and has further close relations with new and old customers at home and abroad. On the basis of consolidating the old market, it strives to develop new markets and wins good products with excellent product quality and sincere service market share.

The third is to change from low added value to high-tech content. In terms of product development, promote products from low added value to high-tech content. In the case of meeting the needs of ordinary users, it will develop towards high-end, high value-added and special user needs, leading the development of the industry.

The fourth is to change from extensive type to fine type. In terms of production management, it gradually changed from extensive to fine, and promoted the improvement of efficiency by improving process flow and technological innovation.

Fifth, the transformation from basic to civilized. In terms of cultural construction, companies have changed from basic to civilized, deepened performance evaluation, strengthened democratic management, promoted corporate culture, strengthened employees' centripetal force and cohesion, and provided a powerful driving force for the steady and healthy development of the company.

3. Strengthen independent innovation capabilities and promote new product development. Accelerate the establishment of a technological innovation system that is enterprise-oriented, market-oriented, and combines industry, education, and research to promote the transformation of scientific and technological achievements into modern productivity.

4. Promote cost management of all employees. For the company level, based on scientific market price and cost analysis, formulate practical cost reduction targets, and decompose the indicators according to the cost structure and department functions; for the department level, organize all staff to brainstorm and formulate corresponding effective measures and Plan and implement the responsible person; establish a cost management goal promotion department to supervise and inspect the whole process with feasibility review and assessment plan.

5. Establish a good corporate image with integrity. The market economy is a legal economy, a moral economy, and a credit economy. Corporate credit is not good and will be eliminated from the ruthless market competition. Enterprises engaged in marketing activities, not only sell products, but more importantly the enterprise itself. The easiest and most practical way is to emphasize integrity in marketing activities.

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