Carton raw material procurement skills

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As a buyer of a carton company or as the head of the purchasing department, the price of raw materials should be very sensitive and valued. There are some differences between carton enterprises in various regions from south to north. In East China, the purchase of raw materials for carton enterprises accounts for 70%-75% of the total purchase volume, and some are even higher, which is more intense than the competition in South China.
Therefore, reducing the procurement cost of raw materials has become the top priority of the company. The procurement department is the first to bear the brunt, and it is important to reduce the procurement cost.


Seasonal procurement strategy
The whole carton industry has a situation of “warm winter and cool summer”. That is to say, the winter business of carton companies is more prosperous than in summer, so this phenomenon also exists in the supply and use of raw materials. As soon as summer and autumn, the price of raw materials will fall, and the price will fall, especially for high-grade base paper, such as A-class box board and high-strength corrugated board. In winter and spring, the price of raw materials will rise.
Therefore, carton companies should generally estimate the amount of raw materials used before the arrival of winter, and purchase the amount of raw materials used for three to four months at a time, and prepare for full preparation.
The advantage of adopting seasonal strategy procurement is that the price of raw material procurement is relatively low, and there is a clear advantage in competition with peer companies, but the key is that procurement personnel should be able to grasp the business changes of the enterprise well.

Cooperate with suppliers to develop new varieties of base paper
Suppliers will improve the physical properties of their base paper before delivery. We can customize the base paper according to the physical performance indicators and usage feedback provided by the supplier (see Table 1).

Table 1 Physical properties of raw materials supplied by suppliers

Our company has a relatively successful case in this regard. In the purchase of whiteboard paper, not only meets the customer's requirements, but also the unit price of the purchase has dropped by 400 yuan / ton, saving the company a million yuan in procurement costs.
Our experience is: the physical properties of the proposed product are generally not produced by the customer before. If the customer produces according to the physical performance index proposed by us, it is bound to adjust his raw material formula. Similarly, the price of base paper will also drop significantly.
The advantage of this kind of raw material procurement method is that the purchase price of raw materials has dropped greatly, increasing the competitiveness of enterprises, helping suppliers develop a new variety of base paper, and carton enterprises are also using this kind of base paper to walk in the front of the industry. To guide the development of the use of raw materials in the industry, the key is to grasp the performance of the carton.

Grasp the law of price changes
Changes in raw material prices have changed from the South to the North
In general, changes in raw material prices began in southern China, then extended to East China, and finally to North China and Northeast China. If the procurement department has mastered this law, it will be able to do a good job in the procurement process, always pay attention to the price of raw materials in South China, to control and grasp the purchase price and the quantity of purchase.
The price of high-grade A-class box board and high-strength corrugated board is relatively large.
The price of high-grade A-class boxboard and high-strength corrugated board is also sensitive to market reactions. The price fluctuations of C-grade and above (including C-grade) boxboards and low-grade corrugated cardboard are relatively small.
Being able to be very familiar with this law is very helpful to the purchasing staff. The biggest advantage is that it can produce immediate purchasing results.
Other rules of changes in raw material prices
In addition to the impact of supply and demand, the price changes of raw materials are also affected by fluctuations in the price of waste paper in the international market. Once the price of US waste paper has risen, the price of domestic paper will rise accordingly.

Pay close attention to raw material development
Today's carton companies have abandoned the original "low quantitative, high-intensity" misconceptions, but adopted the "low quantitative, appropriate strength" approach. Raw material manufacturers have been working to reduce the quantification of raw materials when developing raw materials. Most of the carton enterprises in South China and East China use 105g/m2 corrugated cardboard, and enterprises using 90g/m2 corrugated cardboard are also everywhere. The procurement of low-quantity raw materials not only needs to adapt to market development, but also should be backed by a strong technical foundation.

Participate in the raw materials fair
Many raw material manufacturers have habitually turned their trade fairs into their own new product launches, borrowing the manpower, material resources and great opportunities of the trade fairs to promote their new products. The head of the purchasing department should go to this kind of exhibition, it will give people a refreshing feeling, but also give you the opportunity to discuss the skills of raw material use and procurement with your peers.
I understand the carton industry in the southeast coast, so the situation mentioned in this article is mostly regional. For each carton company, their situation is different, so I hope that my work experience and skills can give the purchasing staff a little reference.


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