Chapter 154 Unified Procurement

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At the beginning of the conference, Du Wenqiang, president of Oriental Games, delivered an enthusiastic speech, and sincerely hoped that all partners could cooperate sincerely with Oriental Games to achieve greater glory in 1981.

After that, Han Peng, the president of Dongfang Electronics, also briefly said a few words of vision, and when he was about to finish, he gave Li Xuan a look. Li Xuan shook his head, he was not interested in this kind of limelight.

After that, the meeting became a lively exchange meeting. Because all the interests have been negotiated before, everyone present is in a more relaxed and comfortable mood today.

"Mr. Han, can you talk about Dongfang Electronics' excellent experience in procurement and inventory management, let us also learn from it!" said a boss sitting below, which immediately attracted an echo.

"Since everyone is interested in the internal management process of Dongfang Electronics, which is not something that cannot be kept secret, I will ask Director Kwong to share with you some of our experience. He is specifically in charge of procurement and inventory, and knows the specific situation better than me!" Han Peng pointed to Kuang Jingrong and said.

Kwong Jingrong nodded to everyone, he has been in charge of procurement since he first joined Dongfang Electronics, and most of these suppliers present were discussed by him.

"As Mr. Han said, there is nothing special about the operation of Dongfang Electronics, and the logistics procurement uses the supply chain procurement model commonly used by European and American enterprises! Compared with the conventional procurement model, the supply chain procurement emphasizes that the manufacturer and the supplier are a good partnership.

We hope to establish a long-term win-win relationship with you. So when it comes to choosing a supplier, it's like picking a wife. We will be very cautious and hope to find a partner who will grow old together!"

Kwong Jingrong's witty speech caused everyone to chuckle.

He continued: "Since the supplier is the wife of Dongfang Electronics. After we have chosen, we will naturally give full trust. Of course, if some lucky people use this trust to be shoddy and seek some unreasonable profits, then we can only choose to divorce!

Another feature of supply chain procurement is information sharing. Our procurement method is never a one-time large batch, but a small batch, continuous. Among the CEOs here, those who have cooperated with Dongfang Electronics before must know that Dongfang Electronics usually places an order in five days or a week.

Dongfang Electronics is not able to achieve zero inventory management for the time being, but we will minimize the inventory time of raw materials. So as to improve the efficiency of capital turnover and reduce operating costs. Suppliers can also know the recent production plan of Dongfang Electronics in real time, so as to adjust their supply rhythm!"

Having said that, Dongfang Electronics' quality sampling inspection is actually very strict. Once the quality of the samples does not meet the specified standards, Dongfang Electronics will re-inspect the entire batch of the supplier's supply. If the problem is not significant, then the supplier will be warned for rectification. If the quality problem is really strict, the contract will be cancelled immediately and the loss will be recovered.

Last year, Dongfang Electronics took three suppliers to court. Although the amount recovered is not even enough to cover the cost of legal fees. But it's a huge deterrent to other vendors who are left to chance.

"Nowadays, the people of the world are not ancient, and many people just do a hammer deal, and they can cheat one by one! The samples provided when negotiating the contract are of good quality. When the tanuki was actually supplied, I changed the prince for the prince, and I suffered such a loss once.

Last time, I entrusted a trading company to import a batch of cables, but the other party cheated on it. I know that during production, it was found that each coil of cable had copper wires except for two ends. In the middle, it was indiscriminately filled with iron wire. So much so that now every time the goods are purchased, they have to send someone to check them again and again before they dare to pay!" One boss shook his head with a wry smile.

He just finished speaking. Lu Qintian stood up and smiled at everyone. Then he said: "Xiao Li Sheng, Mr. Han, Mr. Du, I want to make a request, I don't know if it's too presumptuous! You also know that my Lu's Electronics Company is mainly responsible for the production of display screens and monitors for Oriental Games and Aikang Computers.

But you may not know that they also went to Sony and RCA to purchase the same CRT picture tube, and their quotation to Dongfang Electronics was 5% to 10% lower than that of our Lu's Electronics. So I have always had an idea, I hope that Dongfang Electronics can let our cooperative manufacturers also join your procurement system and act together. After all, Dongfang Electronics, as a large company, is more confident than us in price negotiations!"

As soon as Lu Qintian said this, several other bosses who had similar experiences also expressed the same request. Li Xuan and Han Peng looked at each other and smiled, Mr. Lu Qintian did a good job.

Such important components as CRT are purchased directly from the original manufacturer by Dongfang Electronics itself. In addition to undertaking a large number of orders from Dongfang Electronics Company, Lu's Electronics Company also produces some TVs for export.

However, Lu's Electronics' purchase volume is obviously not as large as Dongfang Electronics, and the discounts received when purchasing will be much less. Lin Qingtian raised this issue a few days ago, hoping to further reduce the production cost of the enterprise.

But Li Xuan thought more far-reaching, what he fancied was the control of the entire system. If Dongfang Electronics can unify all procurement actions in the entire supply chain, it can not only greatly enhance its influence on all enterprises in the system, but also undoubtedly have more confidence in external price negotiations.

So Li Xuan asked Lu Qintian to bring it up at today's supplier conference, and as expected, several other bosses also had similar views.

"The CRT CRT picture tube mentioned by Boss Lu just now, now Dongfang Electronics places orders with Sony and RCA companies every month more than 50,000, which is much more than the purchase volume of Lu's Electronics Company.

At the same time, we also have a contract with Sony for the purchase of LCD screens, and we have a lot of cooperation with RCA in the semiconductor business, so compared to Lu's, our overall price negotiation ability is stronger!" Han Peng explained.

He glanced around everyone in the room. Cai continued to smile and said: "As Director Kuang said before, Dongfang Electronics and everyone here are partners. Since they are good partners. It is also appropriate to coordinate with each other to help. If you think that in the procurement process, borrowing the tiger skin of Dongfang Electronics can reduce costs. We will fully cooperate.

I don't think it's better to do this, just set up a procurement coordination committee by our Dongfang Electronics, and enterprises in need can join as members, so that everyone can realize resource exchange and information sharing!"

"That's a good idea, we're the first to join Lu's Electronics!" Lin Qingtian said with a smile.

"Even if we count the quota of our advanced electronics, Lao Lu is only 10% worse, and we have a few goods that are more than 20% higher than Dongfang Electronics!" Qiu Yonghao, the boss of the advanced electronics company sitting in the left corner, waved his hand and scolded with a smile.

After that, more and more people began to echo it, and some company leaders who had not thought about it originally thought about it also felt that there were advantages and disadvantages after thinking about it. Therefore, they simply joined this procurement coordination committee.

"Since everyone has this will, this matter has been decided for the time being! Let's find a special time to sit together and discuss the details of the charter of this procurement coordination committee! My point of view is that either we don't do it, and since we do it, we can't let the association become a mere formality, and we need to effectively serve every company that joins, so that everyone can get tangible benefits from it!" Han Peng said in a decisive tone.

After the meeting, Dongfang Electronics specially prepared a sumptuous wine banquet, and the wine table culture has always been an important way for Chinese people to deepen their feelings.

Li Xuan sat at the main table, and the one sitting on his left was Lu Qintian. can sit next to Li Xuan, the big boss of Oriental Electronics. Lu Qintian still feels very honored, which also reflects the close relationship between Dongfang Electronics and Lu's enterprise from one side.

"Lu Sheng, have you ever considered building a picture tube factory by yourself?" After three rounds of drinking, Li Xuan suddenly asked Lu Qintian.

Lu Qintian put down his chopsticks. His face was thoughtful: "Xiao Li Sheng, I think I must have thought about it, but our Lu clan has neither so much nor funds." I don't have the technology and the way to do it!"

This month, the board of directors of RCA in the United States, Peter Charleson, accepted the invitation of Dongfang Electronics to visit Hong Kong! Dongfang Electronics plans to cooperate with RCA to build a new CRT factory in Asia. Lu Sheng can also participate if he is interested!" Li Xuan said to Lu Qintian, who was surprised.

CRTs are the most central component of televisions and computer monitors, as well as arcade displays. Dongfang Electronics' arcade sales and computer sales are rising rapidly, and the purchase of display screens is also increasing.

RCA is the largest television manufacturer in the United States. In the past few years, life has become more and more difficult, under the impact of Japanese manufacturers, RCA has lost almost all overseas markets except the American market.

Even in the United States, RCA, under the continuous pressure of the guild, has simply closed its three factories in New Jersey and Indiana since last year, and gradually shifted production capacity to Mexico, where production costs are lower.

Many say that it is not fiercely competing foreign corporations that kill American industry, but powerful guilds in the United States. Especially in an election year like last year's, the guild, which holds a large number of votes, is undoubtedly the target of political figures from all sides vying for it. And the series of political promises they made to the guild leaders betrayed the interests of the factory owners.

Dongfang Electronics recently purchased a large chip assembly and test plant in California from RCA. RCA seems to have a lot of illusions about the Asian market, especially the Chinese market, which has just been thawed from the United States, so the two sides began to come together.

Li Xuan briefly revealed a few words to Lu Qintian, causing the other party to be full of joy. At this time, the owners of the other wine tables came over with wine glasses to toast. Although they all let Li Xuan do it at will, they toast themselves. But Li Xuan can't help but give face, and he doesn't drink alcohol at all, which will undoubtedly hurt other people's face.

Seven or eight people came down, and Li Xuan also drank several glasses of wine together, and when he saw that there was still a steady stream of people coming up to toast, he said hello to Han Peng and the others, and urinated in advance. (The novel "Rebirth Electronic Empire" will have more fresh content on the official WeChat platform, and there will be a 100% lottery gift for everyone!Open WeChat now, click on the "+" sign in the upper right corner "Add Friends", search for the official account "qdread" and follow, hurry up!) (To be continued......)