How can refractory enterprises turn crisis into opportunity in the post epidemic period?

At the beginning of 2020, the COVID-19 epidemic swept across the country. The people of the country overcame the difficulties and the epidemic was quickly controlled. On February 25, the National Development and Reform Commission said that the return to work rate of industrial enterprises above designated size nationwide has gradually increased, with the return to work rate in Zhejiang exceeding 90%, and in Jiangsu, Shandong, Fujian, Liaoning, Guangdong and Jiangxi exceeding 70%. From the perspective of key industries, the resumption rate of iron and steel enterprises is 67.4%, and that of non-ferrous metal enterprises is 86.3%. According to the survey of Window of Refractory Materials, the operating rate of refractory enterprises is about 90%.

Although enterprises have returned to work and production on a large scale, the impact of the epidemic on enterprises has become a fact. In the post epidemic period, enterprises will inevitably face problems such as difficulties in business communication, low efficiency, insufficient production workers, and increased logistics costs. How to reduce costs, improve efficiency, expand the market, and turn the crisis into an opportunity?

Promote automation and digitalization

In recent years, the shortage of labor force and the continuous rise of labor cost have become the problems that refractory enterprises urgently need to solve. The impact of the epidemic situation will make it more prominent. Enterprises should take this opportunity to resolve to accelerate the automatic and intelligent production transformation and reduce the impact of labor on costs and product quality. At the same time, we will accelerate the digital construction of enterprises, realize the information management of procurement, sales, logistics, finance, and administrative approval through the ERP system, improve the remote office efficiency of enterprises, and reduce management costs.

Strengthen e-commerce and expand online channels

In 2018, the online transaction volume of China's B2B e-commerce reached 22.5 trillion yuan, up 9.7% year on year, maintaining a rapid growth. The number of enterprises using e-commerce in China has exceeded 30 million; The e-commerce process of refractory enterprises is relatively lagging behind. In the post epidemic period, enterprises may be unable to travel effectively and visit face to face. Maintaining existing sales customers and channels through e-commerce platforms, expanding a wider range of target industry customers, releasing real-time supply and demand information, realizing online transactions, and using cross-border e-commerce platforms to carry out international trade business are the current best choices for refractory enterprises, and strengthen understanding of policies and financial support on e-commerce with the local government's industry and commerce departments.

Strengthen supply chain management and reduce procurement cost and logistics cost

The short-term impact of the epidemic will not change the general trend of steady growth of high-temperature industries such as steel, building materials, nonferrous metals, and the fundamentals of demand for refractory materials will not change. In addition to improving the technical added value of products and improving the level of on-site management, enterprises should pay more attention to reducing raw material procurement costs and logistics costs to ensure corporate profits. This link of cost reduction brings pure profits to enterprises, even doubling the impact. In the post epidemic period, under the background of environmental protection and mine management, it is suggested to select the best raw material suppliers for refractory materials, optimize the purchase price, improve the payment conditions, accelerate the capital turnover, focus on the logistics link, and reduce the financial costs related to freight and invoices.

The sudden epidemic has caused enterprises to suffer losses and get into trouble, but there are no lack of new development opportunities in the crisis. I believe that the tenacious refractory workers will find the direction to continue to move forward!

In 2003, "SARS" made consumer goods e-commerce a success!

In 2020, "COVID-19" may bring about great development of digitalization and e-commerce of traditional enterprises, and enterprises will enter a new era of industrial Internet and industrial Internet!