The hottest outsourcing new business model brought

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Outsourcing: a new business model brought about by economic globalization

Thomas Friedman, an American, published a book in April 2005: "the world is flat - a brief history of the 21st century", which caused a sensation in the West and the whole world. Millions of people rushed to buy it in the United States. Bill Gates, President of Microsoft, recommended this book many times, pointing out that it is a book that all decision makers and enterprise employees must read. Friedman's "flat ball theory" has become a whirlwind in the world, and has been blown from the United States to China. Many well-known domestic entrepreneurs have introduced this book in various ways

in May this year, I saw the introduction of this book in a magazine, entitled "flat survival", which attracted my attention. After two months, I saw the author's speech at the Massachusetts Institute of Technology: "why is the world flat?", After carefully reading it for several times, I gradually realized that the whole world is changing silently: today's world is an outsourcing world, and China's paper packaging industry must run fast

Looking at today's "outsourcing" market

China's steel production is seriously surplus. Americans say, "the general steel we need to buy in China is much cheaper than our own steel production, and the production of steel is polluting." In this way, China's steel production has become the "outsourcing" of the United States, Japan and Europe

my friend called me when he arrived in the United States. I asked him how much it cost. He said 0.25 yuan (RMB) per minute. I was very surprised. Why is it cheaper than our city? Later, I read in a magazine that the original American long-distance software was not in the United States but in India. Another friend told me that he booked air tickets abroad. According to the contact designated by the airline, he asked the young lady: where are you? Answer at home. Airlines build software system facilities for booking tickets to serve customers at home, which are operated by retirees or housewives. The natural cost is much lower

the world-famous "Wal Mart" supermarket has a wide range of goods. Wal Mart's goods in Guangzhou are also available on the shelves of Wal Mart in Nanjing, but Wal Mart does not make anything, but its design improves the efficiency of the supply chain. What is the boss of Wal Mart busy with? He is only busy with one thing: in which country will Wal Mart be located, if the machine is in standby mode: when Wal Mart Supermarkets are opened in the region, the boss will go to see "Feng Shui" (environment, popularity), and after the decision, everything else will be outsourced

the globalization of economy has brought about modern horizontal management methods, and has also expanded the scope of enterprise operations infinitely. Therefore, we need to change our thinking, from vertical thinking to horizontal thinking, and develop the habit of parallel connection and cooperation with anyone

globalization of China's carton industry

the development of carton packaging is very representative in the paper packaging industry. In the 1970s, with the revival of the economy, the supply of goods increased, foreign trade exports developed, and packaging began to receive attention, but the focus was on the development of wooden box packaging. Although carton packaging has developed, they are simple cartons processed by single machine manual operation. By the 1980s, although some designated foreign trade export enterprises were also producing cartons to supply foreign trade exports, the number was still small, and cartons were only a supplement to wooden boxes. During this period, China's carton industry basically had no sense of globalization

from the early 1990s to the middle of the last century, the carton industry has developed rapidly in just a few years, mainly thanks to the vigorous development of foreign trade after the opening of the market. The "mobilization order" for the rise of cartons in this period came from commodity inspection. In order to ensure the quality of export cartons, national and local commodity inspection proposed that export cartons must have corrugated single machine units. Driven by this, the country set off a single-sided machine boom. China's cartons have entered semi mechanization in just a few years. This period was also the transition from the national planned economy to the market economy. The rising township enterprises, in the fierce competition with the carton enterprises left over from the planned economy period, basically controlled the carton Market and became the second generation of Chinese cartons. From this, the concept of globalization of Chinese cartons has emerged. Most enterprises use single-sided machines and semi machines to process export cartons, and often interact with foreign trade, commodity inspection and customs. Enterprises have participated in globalization

in the decade around the beginning of the new century, with the rapid and sustainable development of China's economy, the introduction of a large number of foreign capital has promoted the unprecedented prosperity of foreign trade. Chinese carton enterprises that see business opportunities have expanded and accelerated corrugated board production lines. There are more than 4000 corrugated lines across the country, more than twice the total number of the United States, Japan and Europe. China has become the world's second largest carton country. Since then, China's carton industry has entered globalization in an all-round way

the "outsourcing" world of cartons in China

I had no such awareness of today's outsourcing world, but recently I read reports in this regard, which reminded me that today's "outsourcing" of cartons is not far away, just around us

outsourcing of overseas production of equipment

in the past, I only heard that the carton printing equipment produced by this carton machinery factory integrated Korean technology, and users reported that the equipment was good and of high quality. During a recent visit, after listening to the introduction of the factory director, I made it clear that this is the equipment outsourcing of Korean enterprises abroad (China). The factory director took out a lot of equipment processing drawings and said: "This is their technology. We carry out fine processing according to these drawings. The technology and quality standards are supervised by them. The processed equipment can be sold by them and we can also sell it. Our exported equipment accounts for 70% and domestic sales 30%. The price of our exported equipment is not as high as theirs, because they have sales points abroad, and some of their sales prices are twice as high as ours. Such outsourcing is beneficial to both of us." The words of the factory director made me realize that this is what I see overseas production outsourcing. There are many carton machinery factories in China, and there are also cooperation with foreign countries, but is it not this outsourcing mode? Will there be more outsourcing in the future

horizontal outsourcing of cartons

there is a carton factory, which was originally a village collective enterprise, but after restructuring, it was a private enterprise. The business operator wanted to expand the small factory, so he went to the large line and built a large factory. After moving to the Development Zone, he outsourced the enterprise to others, and there was always friction between the spring boards. He was the general manager, fully responsible for the business of the carton factory, and he was engaged in the development of real estate. A few years later, double happiness came: the outsourcing carton factory was launched, and the real estate was also doing well. As the investor, the enterprise operator has operated the second outsourcing, and continues to hire the first "outsourcer" to build a new plant, outsourcing all the market research, equipment selection, personnel composition, etc. After the original factory changed its name, it changed hands and outsourced to another person. Only these have not been completely outsourced, and then the logistics of the two outsourcing enterprises - the procurement and supply of raw and auxiliary materials and the delivery and transportation of finished cartons are outsourced

carton second-hand equipment outsourcing

a carton factory employee, as a laid-off person, applied to run a company. In recent years, his carton second-hand equipment outsourcing business has become larger and larger. He first outsourced the second-hand equipment of the small carton factory. Some small carton factories close and need to transfer equipment. When you find him or he knows it, you will first come to see the equipment and then make an evaluation. After negotiation, he will carry out all inclusive export sales. Because the price is cheap, the transaction is fast. Some small factories need equipment, but they can't afford it at once. What should we do? He adopts outsourcing leasing, and pays the rent monthly. After two years of leasing, the equipment belongs to the user, and the rent can be refunded at will within two years. After the experience of second-hand equipment outsourcing in small carton factory, we have developed the second-hand equipment outsourcing of corrugated board production line. After determining the home and the next home, organize a one-stop whole process service: expert evaluation and quality assurance - loading and unloading team disassembly and installation of equipment - professional transportation - installation and commissioning (training personnel), and produce qualified products. The whole process outsourcing of second-hand production lines has been successful in serving a number of users in Jiangsu, Anhui and Shandong, and has been satisfied by all outsourcing parties

find a way out in the severe situation

although China's carton packaging industry is still developing in the north, West and Central South regions, it will reach saturation in the next two to three years, and then enter a surplus state. In the Pearl River Delta and Yangtze River Delta in the south, the surplus of cartons is very serious, and the whole industry survives in difficulties. There are insurmountable problems, mainly three more, two lower and one worse. More than three: (production) more lines, factories and people. Second, low startup rate and low profit. One bad: bad mess. In the Pearl River Delta and Yangtze River Delta, there are more than 2000 production lines, more than the total of the United States, Japan and Europe. I think there are at least more than 1000 lines in excess, and these "excess" lines are the lifelines of enterprises. It is easy to get up and difficult to get down. The disasters brought by excess can only be endured, starved and looked forward to. There are many manufacturers of production lines, and there are more three-level carton factories, among which the proportion in the Yangtze River Delta is the highest. Redundant large and small factories are also factories of life. Large factories have great difficulties, small factories have small lives, and they endure hardship. As for the number of people, how to compare? Compared with Japan, China's carton output has surpassed Japan as the world's second largest carton country. I investigated cartons in Japan and learned that there are 100 Japanese carton enterprises, with an annual output value of 200million and a per capita output value of 2million. In the Yangtze River Delta and Pearl River Delta, the per capita output value of carton enterprises is less than 200000, with a drop of more than 10 times

in view of this, I think carton enterprises in the Yangtze River Delta and the Pearl River Delta should think strategically about large-scale transfer and operate in various forms. "Outsourcing" has given us enlightenment. How to adapt to the form of economic "borderless" and industrial "full instrument spheroidization based on the experience of the national construction engineering quality supervision, inspection and testing center in the inspection of reinforcement joints over the years"? Entrepreneurs also need to think carefully

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outsourcing is a strategic management model, and business processes are transferred to another company. Outsourcing can be divided into two types according to the geographical distribution of suppliers: domestic outsourcing and offshore outsourcing. Domestic outsourcing refers to that the outsourcer and its outsourcing supplier come from the same country, so the outsourcing work is completed in China. Offshore outsourcing means that the outsourcers and their suppliers come from different countries, and the outsourcing work is completed transnational. Domestic outsourcing puts more emphasis on core business strategy, technology and expertise, shifting from fixed costs to variable costs, economies of scale, value-added rather than cost reduction; Offshore outsourcing mainly emphasizes cost saving and the availability of skilled labor, and uses lower production costs to offset higher transaction costs

reprinted from: Shanghai packaging

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