Profit Management Of Flour Enterprises The New Era in China Flour Market

FLOUR FACTORY PROFITS/FLOUR TECHNOLOGY/FLOUR MACHINE/FLOUR MARKET TREND/FLOUR FACTORY MANAGEMENT

Profit Management Of Flour Enterprises The New Era?in China Flour Market

Author：Chief Engineering of Flour mill： Zhou Wei

English Edition: Amina ZHu

Date: 10th ?Sep 2023

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1. Status quo of flour enterprises: Difficulty is the main theme of flour enterprises, and the primary task of small and medium-sized flour enterprises is to solve the problem of survival. Small

If flour enterprises want to survive and develop, they must return to the mentality of the early stage of the enterprise: quality for survival, management for efficiency.

While the quality is stable, we must not forget to innovate and differentiate, and we must see the reality clearly:

The difficulties are long-term and will get worse.

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2. The current situation of the flour industry, in 2023 and 2024, COFCO, Wudeli and Yihai are still carrying out new factories

Expansion plans:

Capacity under construction (about 33,000 tons)

Planned production capacity (about 15,800 tons)

From the data, large enterprises have slowed down the pace of expansion, indicating that the market layout of large enterprises has been completed, and the layout of production lines has been basically completed.

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3. Flour industry trend: the market capacity has not increased, the expansion of large enterprises, but the survival space of small and medium-sized flour enterprises has been compressed, and more than half of the flour enterprises have been eliminated, and now those who can survive are the elites in the industry.

Since 2019, food prices have entered a new "price system", I believe everyone has a deep experience, especially this year. The new price system is not friendly to small and medium-sized flour enterprises, but it is more conducive to large groups encircling and suppressing small and medium-sized enterprises.

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Flour market sales

Based on statistics from the National Bureau of Statistics

Data: It is estimated that the national flour production in 2023 will be 84.000 million tons, which is expected to be 5.26 million tons less than in 2022

A decrease of 5.90%, according to industry statistics, population reports, economic analysis, the total consumption of edible flour will decline in the future.

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Industrialization trends in the flour market

China's special flour production, by?In 2015, 11.83 million tons, a rapid increase?25.91 million tons by 2022, 2022

The production is 2.44 times that of 2015.

Special flour in 2022, accounting for 29.02% of the overall flour production. Due to the increasing demand for specialty flours, the production of specialty flours is expected to grow at a higher rate than the overall industry.

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The overall sales volume of industrial flour?in China has grown steadily. Feed industry, etc., will be affected by the overall international food price, and domestic macro-control, there will be certain fluctuations, but sales are definitely gradually increasing.

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Enterprises should follow their market trends and do 4 basic tasks:

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Products must adapt to the high-end, specialized and industrialized market.

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Do a good job in their own production, storage and transportation, and the products must adapt to the high rui, specialization and industrialization of the market. Optimization of financial costs to meet market price demand.

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Strengthen the development of market segments, do a good job in the research and development of segmented products, and subdivided products are the source of profit.

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Do a good job in controlling the cost, quality and stability of the supply side to avoid supply gaps.

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1. The future industry environment, flour enterprises zero-sum game 3 elements

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Today, flour companies are at zero-sum Bo

Game, positive sum game is you have me excellent, zero-sum game is you die and I live, the early stage benefited from the dividends of economic growth, created a series of corporate myths, achieved a batch

Bosses and entrepreneurs, but later it is too difficult

Finish.

1. Cost

Cost reduction is all industries, all businesses

A management goal that cannot be bypassed.

2. Products

Product positioning is determined by the enterprise?bit, the grade of the product directly reflects all levels of the enterprise.

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3. Market

The market is for businesses to survive

The environment, the nature of the market occupied by the enterprise, basically determines the future of the enterprise.

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Business philosophy

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? Small profits and quick sales are the previous concepts of flour companies, in fact, it is a false proposition. Small profits are based on cost, and the wrong point of full profit in every industry is the progress of colonizer technology, which will continue to sink.

? Enterprises should keep sinking the anchor point of cost until the market does not understand and the competitors do not understand.

? Cost is a very general concept, thousands of prices are closely related, but not benevolent in the absolute relationship.

? At the same time, cost and output are inseparable, and the level of cost cannot be generalized.

? The essence of profit is: the difference in technology between enterprises, and in the new market environment, all enterprises must return to the mentality of the early stage of entrepreneurship: quality for survival, management for efficiency.

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2. To achieve what others can't do is profit?

The internal strength of flour enterprises is the 3 points to be observed by enterprises and Bo rate: cost, product, and market. For these 3 points, let's divide the chapter into a card: to do what others can't do, in order to achieve our profit management goals?

Business philosophy

Some concepts of business management and market perception have changed from the past.

Cost composition

Costs include: raw materials, manpower, energy consumption, lean production, finance, management and so on.

Product outlets

Product outlets include:

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Product structure, product development, product positioning.

Market selection

We must choose the market and improve the market, and we cannot be selected and abandoned by the market.

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2.2. Cost composition

The cost of enterprises consists of raw materials, manpower, energy consumption, lean production, finance, management and so on. All actions must be

"Tomorrow" profit service.

Here is the main analysis of internal production cost optimization:

2.2.1 The impact of production on cost

2.2.2, the impact of flour?yield on cost

2.2.3 The impact of production rate on cost

2.2.4 The impact of automation and data management on costs

2.2.1 The impact of output on costs

From the rapidly expanding production capacity of today's large enterprises, we can see how loud the output is to the cost, and the benefits of the economy are undoubted.

The output we are talking about here also needs to strive for the maximum unit output and operating rate in the design, because the production most involves many factors such as unit support, labor, and efficiency, which can directly increase or reduce production costs.

The output needs to be fine-tuned with the process, combined with raw materials, climate, quality, etc. to adjust, if the production efficiency is increased by more than 10%, then the production cost can be reduced by 9%. According to the production cost of 120 yuan / ton of wheat, the production cost can be reduced by 10.8 yuan / ton of wheat.

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2.2.2. The impact of flour?yield on cost

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Through table comparison, it can be seen that the flour yield affects the production cost of 86.00 yuan/ton of wheat.

2.2.3 The impact of production rate on cost

The production rate is managed by the enterprise

A "hard indicator" is very large for the cost.

Back to the production line to improve the production rate, you can pass the classification,

The resulting benefits are not the same and affect the total flour?yield.

2. Organic heterogeneous bran treatment.

The output rate of a normal production line is 102%, and here we can increase it to more than 103% through Dad, then our raw material cost will be directly reduced

1.01%, according to the small table 3: 1 yuan / kg, equivalent to your per kilogram of wheat, 0.03131 yuan cheaper than others, the production rate affects the production cost: 31.31 yuan / ton of wheat

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2.2.4 The impact of automation and data management on costs

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This mainly depends on the input, rectification of the optimization of the production process, business

Optimization of system, optimization of process level, etc.

Under normal circumstances, more than 10 yuan / ton of wheat can be optimized.

Taken together, four items can optimize costs

There is 138.11 yuan / ton of wheat, of course, it is not excluded that most of our enterprises have achieved their goals.

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2.3. Product outlets

Enterprises obtain profits with products, and the grade, structure and price of products directly determine the profit margin of enterprises.

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1. The way out of product development.

2. The adjustment of product structure brings about profit changes.

3. The principle of product development.

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2.3.1 The way out of product development

?There are roughly two ways for enterprises to achieve product development:

?1. Independent R&D and innovation;

Second, imitate innovation, introduce, digest, absorb and redevelop to achieve secondary innovation.

。 From the existing conditions of flour enterprises in the country, the main way should be to introduce and innovate. The innovation that has emerged in some private enterprises in China in recent years is also a good trend. This form is based on the original product, through continuous optimization and iteration, starting from obtaining market information and selecting products, completing the product iteration process, and transforming it into real economic advantages. For example: ramen flour, thread flour, Japanese bread flour, quick-frozen?flour, wrap flour, etc.

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2.3.2、Changes in profits brought about by the adjustment of product structure.

。 First, by fine-tuning the formula and redefining the use of the product, you can completely define the specificity of flour from the selection of flour?tubes, the addition of auxiliary materials, and the adjustment of improvers. For example: compound flour (whole wheat, nutrition, etc.), fritters flour, shaqima, pancake flour, finger cake, etc.

These are previously low-value flours, and the value has been greatly increased through the adjustment of the program.

? Third, through the subdivision of the most structure, suitable flour?tube, through fine-tuning process, the production of suitable products, such as: about 3% yield of top snowflake flour, about 5% yield of granular flour, etc., these can increase the sales price without increasing any cost, and at the same time help the overall image of the enterprise to improve.

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Third, reduce the productivity of general flour?and ensure the market share of the grade.

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2.3.3 Product development principles.

Large enterprises have occupied the advantage of economies of scale, and small and medium-sized enterprises need to enter the "secondary entrepreneurship" or

? Determination to start a business again" stage. Therefore, the development of new products is one of the keys, and the development principle has the following points:

?1. Benchmark the company's resources (wheat, capital, technology, technology, processing conditions), and match the company's resources to meet the needs of product development.

?2. Select the developed products and market demand according to market demand

Deciding on the action of R&D, as the R&D department, is to achieve the market requirements.

?3. Optimize the company's production environment and improve to standardized management.

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?。 To identify the varieties to be completed in product development, it is necessary to establish an effective promotion plan to ensure timely and stable market satisfaction

Supply, build market confidence in enterprises.

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Adjustment of product margins

Since the cost and income of adjusting the product are different, it is basically a situation for an enterprise, and there is no profit data analysis here, which is basically more than 80-200 yuan / ton of wheat.

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2.4. Market Selection

We must choose the market and improve the market, and we cannot be selected and abandoned by the market.

We can first understand what is market consumer surplus:

When consumers buy something, the difference between the money they are prepared to spend and the money they actually spend is consumer surplus.

In fact, it is a kind of psychological Xi, he can check the sales that affect the product, everyone psychology has a price, for example, many people will take the price of the leading goods, as the anchor of the surplus value of street consumers, as long as your price is reasonable, even if yours

Broadfall is slightly lower (provided that it must be stable), and consumer surplus is also high.

Only when small and medium-sized enterprises practice their internal skills can they have the right to choose the market, and the basic principles of choosing the market are as follows:

1. The local market has no choice and must be occupied.

2. Factory special flour?market, choose to occupy.

3. The catering flour?market is given priority to occupy.

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2.4.1、The local market has no choice and must be occupied

1, an enterprise in the local market, has a non-negligible influence, after years of development, can be said?It is a household name and has a very clear brand influence.?After-sales service and transportation costs also have advantages.

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2. The current market price system?Chaos, we need to be proactive?Sortie to expand well upgrades?In the local market, in the face of competition, offense is the best?Defense, the local market, can guarantee the survival of our one, production of about 500 tons / day of the enterprise.

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3. At the same time, seize the local supermarket, small packaging market, marketing

The team must guarantee 60%, The above market share, for the situation of foreign brands?Now it's time to have the details?Solution, this time to take the initiative?Attack, targeted promotion policy.

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4 In the local market with advantages in transportation, service and popularity, if the quality and price cannot occupy a favorable position, enterprises should find the reasons from themselves and check the business and management system.

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2.4.2, factory special flour?market, choose to occupy

1. The first feature of factory special flour: the internal index of flour must meet the technical documents provided by the factory.

2. The second feature of factory special flour: the production environment of the flour?supply enterprise must meet the factory inspection conditions.

3, The third feature of factory special flour: although the price is slightly higher, there will be a certain account period.

4, enterprises need to fully assess whether the resources of the white body match, and can selectively occupy the market.

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Enterprises need excellent research and development, process and technology, management and relatively stable wheat supply. Although the threshold for people entering the market is relatively low, the production threshold is high.

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Four points of message:

1, any enterprise can go to the end, must rely on products, good products come from, the technical department does not choose spare efforts, internal need to let everyone have no pressure, in order to devote itself to technological innovation.

2, ideas come from the land of freedom, innovation needs free soil, free soil needs open thinking, Ren Zhengfei?Huawei's R&D policy is proposed: first shoot, let the bullet?Fly, there are birds to fire?again, to put it bluntly, this shot is fired indiscriminately

3, technically let everyone do it, do not limit, first?Messing around, innovation is not guided, but let go of thousands of hours of inspiration, prosperity comes from the free market, innovation often comes from small and medium-sized flour enterprises, and overarching innovation is their own natural occurrence, never planned

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4, The future flour market, is zero-sum game, innovation is particularly important, imitation has become difficult. In the future market environment, enterprises must achieve what others cannot do is profit.