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Oct 29, 2008

Tire companies need to establish strategic procurement ideas

Chinese tire industry led to the rapid expansion of domestic tire factory in recent years of very rapid expansion of production capacity, with the rapid expansion of the tire industry, tire plants in the present and future profits will continue to be compressed in the face of increasingly difficult operating environment, raw materials procurement The slightly careless, it is highly possible that only eat up the profits of enterprises. Natural rubber, Synthetic, carbon black, tire cord, the rapid development of Chinese enterprises in the future will inevitably face a growing need for raw material supply bottlenecks, how to set up a scientific and rational, security procurement system for businesses in the future appears to be a growing competition The more important. To natural rubber, for example, many enterprises the number of annual consumption of natural rubber from the tens of thousands of tons to 100,000 tons more than the expansion, many companies are on consumption of thousands of tons, in the face of the world's natural rubber supply is becoming increasingly clear that the bottleneck of resources, In the face of natural rubber price fluctuations in the path of uncertainty, business aspects of procurement risk is growing.

Natural rubber procurement strategy has become an important part of business

For large-scale domestic tire plants, natural rubber on the assumption that the use of 7,000 tons, the rubber price fluctuations in every 1,000 yuan / ton, the impact on business aspects of procurement for the amount of profits 7,000,000. From the traditional mode of procurement, the corporate response to the risk of price fluctuations by virtue of more decision-making and procurement departments of the market's understanding and experience of pure cash through the channel inventory adjustment to avoid. Here involved in funding the cost of warehousing and domestic enterprises of the current financing environment has gradually show a contradiction, if the business two months of inventory accumulation, or on the use of 7,000 tons of plant, if 13000 / Tons of natural rubber prices, the need to occupy the capital of 182 million, take up such a fund to lock in the risk of fluctuations in the prices of raw materials, is very unscientific.

From the Hainan Land Reclamation of natural rubber price trend of history, the price remained at 10,000 to 15,000 yuan / ton range, price fluctuations are frequent fluctuations in the past two years under the tracks on the move, to raise the price range of 11,500 to 14,500 , From the early 2005's point of view, natural rubber producing areas face a more uncertain environment, weather, the international market price fluctuations more intense, with Dong Jingjiao, for example, has given way to price fluctuations in the market can not afford to feel that, fortunately, Dong Jingjiao is the only representative of the price of RSS3, 20 S, 1 GB are such a price, the companies on how to deal with? Even though they are sufficient funds can be locked part of the inventory levels, but if the price continues to rise, after the procurement of raw materials, a month, two months after? To the situation in the country this year, for example, it should be said that some domestic enterprises still a very good grasp of the law of the rubber price volatility, the end of last year in the build-up low-priced stocks, and part of the business in May in 13,000 yuan / ton following the procurement of inventory, To allow enterprises to avoid the risk of price volatility in the near future. However, some businesses are less fortunate, and the recent emergence of the domestic part of the business inventory shortages, the business has brought great difficulties faced in the procurement environment, the passive situation is clear, there is no more of the procurement strategy Model in which enterprise can avoid these risks, enterprises need to seriously consider the issue.

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