Chapter 276 Willing to Give Up
After taking a few puffs of his cigarette, and with Jiang Guoxun and Liu Xinhong speaking up for Lao Liu, Huang Baogui's anger finally subsided.
"What do you think is going on with this Eighth Factory?" Huang Baogui suddenly remembered something and frowned.
"Director, what do you mean..." Jiang Guoxun and Liu Xinhong were confused and didn't understand what Huang Baogui meant.
"Let me ask you, do you all understand the scale and production capacity of Factory 8?" Huang Baogui asked.
"Of course!" The person who has the most say in this is naturally Liu Xinhong. After all, he is the deputy director in charge of production. As a brother unit in the same system, he knows the production situation of not only the Eighth Factory but also other factories clearly.
"Then let me ask you, with the capacity of Factory 8, it has been two and a half months since the product started selling well, can they support such a large quantity? Why can they still maintain such a large daily shipment volume until today? What's going on?" Huang Baogui asked with a frown.
When he said this, the two people who had never thought about this problem before were stunned at the same time and looked at each other subconsciously.
Yes! Huang Baogui's reminder was correct. What Factory 8 looks like, how big it is, and how much it produces every day can all be calculated. Although Factory 8's products were unsalable and there was a lot of inventory backlog, how much inventory is there? As a brother unit in the same industry, if we don't know 100%, we should at least know 90% of it.
According to the current sales status of Factory 8's products, neither the previous inventory nor the subsequent overtime production can be sustained for long. Just do the math and you will understand that Factory 8's production should not have kept up with sales a month ago, but until today, Factory 8's shipment volume is still maintained, which is very strange.
Could it be that the young military-turned-official director of the Eighth Factory is Monkey King? Can he make a product appear by plucking a hair and blowing on it?
Chinese patent medicines are not ordinary products. The production process and time are strictly restricted. Huang Baogui has been a factory director for more than 20 years. Doesn't he understand this?
Jiang Guoxun and Liu Xinhong were also unable to answer this question, and they did not understand how Factory No. 8 increased production to meet sales.
The three of them racked their brains for a long time but couldn't figure out the reason. They had no choice but to put the matter aside for the time being and discuss the various arrangements for the factory after the warm cup packaging arrived.
While Huang Baogui and his colleagues were discussing this, other factories were in a similar situation. Everyone was trying hard to snatch this piece of delicious fat meat from Factory Eight.
At this time in Factory 8, Lin Yuhang watched several large trucks loaded with hot cup packaging being unloaded at the warehouse door, and he couldn't help feeling a little emotional.
"Director, let's go back to the office and take a rest. The unloading will be completed soon." Old Lu from the Supply and Marketing Department accompanied Lin Yuhang outside the warehouse. After standing for a while, he spoke.
"No need, wait until everything is unloaded before leaving." Lin Yuhang stared at the busy loading and unloading workers. This was the last batch of packaging. After this batch of packaging was unloaded, the cooperation between Factory Eight and the factory in Tianjin would come to an end. At least in the short term, Factory Eight would no longer continue to purchase warm cup packaging.
"What a pity..." Old Lu also looked ahead and blurted out with some emotion.
Lin Yuhang glanced at him subconsciously and smiled: "Old Lu, you have to take a long-term view and be willing to give up. Only by giving up can you gain! It's just like boxing. Only by retracting your fist and then punching it out again can it be more powerful. Concessions now are for the sake of big strides forward in the future. What do you think?"
Old Lu nodded. These days he had been completely convinced by Lin Yuhang, the new factory director. When Lin Yuhang first came, the Supply and Marketing Department cooperated, but it was only superficial cooperation. Old Lu still felt a little uncomfortable with Lin Yuhang, who was much younger than himself.
But now it’s different. In just less than half a year, Factory 8 has undergone earth-shaking changes.
Relying on the two ordinary products, loquat paste and cough syrup, Factory No. 8 has completely survived. In the past three months, the sales of Factory No. 8 have continued to rise, and the sales profit has reached a huge amount of more than 7.5 million. In addition, with the last batch of products about to be shipped out, the final profit will surely exceed 8 million.
A profit of eight million was an extremely astonishing figure in that era. You should know that when Factory Eight was doing best, its annual profit was only over half a million. And now it has not even been half a year since Lin Yuhang took office at Factory Eight.
With the money, the welfare benefits of the factory employees were all improved. The monthly bonus was much higher than their salary income. As for the retirement wages and medical expenses of retired employees, not to mention, they were all solved at once.
Now, people in the factory go out with their heads held high, not to mention the finance chief. The finance chief, who used to worry about every penny and lose his hair in clumps, now walks with a breeze and speaks with a loud and confident voice.
Unfortunately, such good days are about to end, because Lin Yuhang decided to stop producing these products next week, and the cooperation with the Tianjin factory also came to an end.
Although this decision was opposed by some comrades at the factory meeting, according to their objections, since the product was selling so well, why not continue to sell it, but instead stop when the supply exceeds the demand? This was something they could not understand.
In this regard, Lin Yuhang did not give too much explanation, and directly used his position as factory director and secretary to forcibly decide the matter. Although these comrades had some objections to this, in the face of the reality that the two deputy factory directors, the supply and marketing section chief, and the finance section chief stood with Lin Yuhang, the decision was finally passed.
Unlike ordinary staff cadres, Lao Lu, the head of the supply and marketing section, knows the situation.
There are two main reasons why Lin Yuhang made such a decision. The first reason is that he learned from external information that other factories are about to launch similar products. If there are no accidents, it will take at most half a month. From this point of view, it means that as soon as Factory 8 withdraws, other factories will follow suit with similar products.
Compared with other factories, the foundation of Factory 8 is still insufficient. Once the products of these factories are put on the market, it will inevitably bring a huge impact on the sales of Factory 8. Lin Yuhang did this to avoid the sharp edge. Instead of fighting on these two types of products, it is better to withdraw voluntarily.
What's more, Factory No. 8 has been eating a lot of meat these days, and no matter how big the market potential is, it is limited. With Factory No. 8's crazy sales these days, the Supply and Marketing Department has already felt the sluggishness of market sales, so from this point of view, Lin Yuhang's decision is not a problem.
As for the second point, it is the problem of the product itself. The scale of the Eighth Factory is not large. Due to the serious shortage of raw materials and production output, the production and sales of the Eighth Factory have long reached a bottleneck. If Lin Yuhang had not taken a shortcut more than a month ago and adopted the method of directly purchasing similar products from the foreign market and then transporting them back to the Eighth Factory for remodeling and processing, then the Eighth Factory would have been unable to meet the demand long ago.
Lin Yuhang's move was totally unexpected. When Lin Yuhang called a meeting with two deputy factory directors and Lao Lu and proposed this idea, everyone stared at Lin Yuhang as if he were a monster. They simply couldn't imagine how Lin Yuhang came up with this idea.
No one had ever thought of this method before, but when Lin Yuhang proposed it, everyone's eyes lit up and they applauded, thinking that this was an absolutely reliable and good idea.
As cadres of a traditional Chinese medicine factory, everyone is naturally very familiar with the industry.
Is the hot sales of the products of Factory 8 a problem of the products themselves? Of course not! What are the products? They are nothing more than ordinary loquat paste and cough syrup. The formulas of these two products are not secret. Almost all Chinese medicine factories across the country use the same formulas. Although the production processes are slightly different, the changes are not big, so the products are basically the same.
To put it bluntly, if you compare the products of other factories with those of Factory Eight, unless you are a veteran who has worked on the front line for decades, you can't tell the difference between them at all. Even if there is a difference, it is very slight and not a problem for ordinary patients and ordinary people.
What's more, there are no counterfeit or shoddy products in this era, especially Chinese patent medicines, which are imported to treat diseases. The raw materials used are all very solid.
From this point of view, there is not much difference between products. The hot sales of Factory 8's products are not because of the products themselves, but because of the packaging outside the products, that is, the warm cup.
This is the reason why people are saying that something is not what it seems. As long as there is no problem with the product and the packaging is in their own hands, why can't they use this method to operate it?
Moreover, after changing the packaging, most of the profits of the product have been transferred from the product itself to the packaging, which is negligible compared to the value of the product itself. From these aspects, Lin Yuhang's approach is completely desirable.
The supply and marketing department immediately took action. Lao Lu led his people to various places. Some went to the border areas, and the rest went to the south and various places in the Central Plains. Taking advantage of the time difference between the new packaging in Yanjing and the arrival of the new packaging in just a few days, they negotiated cooperation with the local Chinese medicine factory, directly paid cash to buy all of their unsalable similar products, and then loaded them and sent them back to the eighth factory.
With the support of these products, the production capacity of Factory 8 is no longer a problem. This is also the real reason why Factory 8 continues to maintain large-scale shipments despite insufficient production capacity and raw materials.
However, this secret was well kept, and except for a very small number of people, most people were unaware of it, not to mention other factories in Yanjing. So until today, although the other factories had some doubts, they still did not understand the real reason why Factory Eight was able to maintain sales despite limited production.
This method may sound a bit dishonorable, but it is the only way for Factory 8 to gain the most profit in a short period of time. And the facts also prove this point. Although Factory 8 did not make much profit on the product itself due to the shipping cost, it still maintained a high profit on the packaging.
Finally, all the goods were unloaded, and the inventory was counted and the numbers were verified to be correct. The work at the warehouse was finally done.
With a slight nod, Lin Yuhang greeted Lao Lu, then turned and walked towards the office. As the previous product was about to be completed, Factory 8 had more important work to do next.
