Supplier Shortens Account Contract, Jinjiang Footwear Industry Is Subject To Postgraduate Entrance Examination.

Affected by the overall market environment, the pressure on upstream suppliers of shoes and clothing enterprises is also increasing.

In order to resist market risks and ensure the recovery of goods, in recent years, many shoe and clothing suppliers in Jinjiang have made great efforts to shorten their accounts, strengthen the control and management of money back, and even some suppliers have explicitly proposed the way of cash collection.

This one

It not only changes the original trading mode of the upstream and downstream supply chain of the footwear industry in Jinjiang, but also touches the development of the whole shoe and clothing industry chain, and directly attacks the phenomenon of "human debt account" and "credit business" that exist in the industry.

The industry believes that for the footwear industry in Jinjiang, this move is no less than a "scrape and heal", although it will cause pain, but to enhance the health of the entire industry has a positive effect.

"Lin, can you see that you can ship the goods first, and the time of the accounts will be delayed for another two days?" recently, a local shoe material enterprise general manager's office had another owner of a finished shoe enterprise who came to the tea shop to negotiate the account period, but was denied by Lin.

As a matter of fact, as early as the beginning of this year, the shoe materials enterprises reassessed the existing cooperative customers. In order to avoid human relations, the shoe material enterprise boss hired a professional team of professional managers to take charge of the company's operation, eliminating the paction of human feelings and reducing the smell of family management.

According to Lin, at present, their company has cut off nearly 1/4 of the old customers, most of them are original "relationship households". The accounts of these customers are generally six months, and the customers who are now retaining can basically achieve regular quarterly accounts receivable.

Coincidentally, Longfeng textile early this year also made a credit rating system for all the old customers, and formulated an evaluation questionnaire, which was jointly surveyed by the finance department and the sales department, and comprehensively evaluated the credit status of the customers from several aspects such as the nature of the enterprise, the total quantity, the period of refund, the current management status and the future strategy.

"Pass through"

We cut off about 20% of our old customers, mainly scattered customers.

The main reason for cutting these customers is that the long-term repayment is not ideal.

Through evaluation, we find that these customers' payment cycles have been gradually delayed from two or three months to five or six months or even a year, and this year customers can no longer cooperate.

Longfeng Textile Marketing Director Mei Kebing told reporters.

In terms of new customers, Longfeng textile adopts two paction modes.

One is cash cash, that is, according to the "3-6-1" payment mode, that is, the payment of 30% of the goods at the time of delivery, delivery of 60% of the goods at the time of delivery, the quality of the goods have no problem, in a month to pay the remaining 10% of the money.

This kind of paction is mainly aimed at foreign trade customers.

Aiming at new domestic sales customers, Longfeng textile will cooperate with 30%~40% after making preliminary credit evaluation. The deposit must be paid within three months.

"In order to prevent bad debts, this year, we require the salesmen and sales directors of each branch to shoulder the task of comprehensive credit rating for clients. If there are problems, we will start to investigate responsibilities from the salesmen."

Mei Kebing introduced.

It is understood that Longfeng textile new development this year, JEANSWEST, YISHION, La Natsu Bell and other new customers, account period is less than three months.

Conducive to healthy and healthy development of the industry

"From the end of last year to the first half of this year, we had some bad debts on some of the lists. Now we are prosecuting through legal counsel to recover some money.

Over the past two years, the market economy has been sluggish. Even if there is no bad debt, enterprises must strengthen their own capital risk control.

Mei Kebing's remarks show the idea of shortening the account period of local shoe and clothing suppliers.

according to

The shoe and clothing industry in Jinjiang was developed. At the beginning of development, many enterprises grew up with mutual support from "familiar customers" or "relationship families".

It is precisely because of the "familiar customers" and "related households", the accounts between each other are very vague, as time passes, they form the year-end closing accounts of the industry habit, credit phenomenon is also a long-term existence.

"Although we all know that this risk is high, but because of fierce competition, and this is the industry's" hidden rules ", we can only do business like this.

Many suppliers admit that such a situation is not a big problem when the industry is good, but the risk will break out when the industry is in recession.

In fact, credit trading is the most traditional and popular way of trading in the early stage of Jinjiang business, and it is also a helpless choice for the local shoe and clothing industry.

Qu Dongdong, deputy general manager of Quanzhou star shoes and garment materials Co., Ltd. admitted that to some extent, the longer account period really provided room for shoes and clothing enterprises to continue to develop.

But with the weakening of the peripheral economy, the downstream suppliers are unable to bear the pressure of slow flow of funds, and can only take corresponding measures.

"In fact, the problem of triangle debts is always a headache for local shoe and clothing suppliers. If it can shorten the account period, it will certainly be a good thing for the suppliers. Not only that, it can also promote the healthy development of the footwear industry."

Li Jinming, general manager of Jinjiang Mingren shoe material Co., Ltd. admitted.

Qu Dongdong also believes that shortening the cycle of refund will greatly benefit the healthy development of the supply chain of shoes and clothing.

He said that if every part of the supply chain returns to capital quickly, it will lead to a virtuous circle of capital, promote more research and development of innovative products, and bring considerable profits to enterprises.

And these funds will also be used more in product development, technological innovation and increasing equipment, thereby promoting a virtuous circle of industrial chain and promoting industrial pformation and upgrading.

"Before some old customers, if we make a single contract, we must get a contract to sign with him. The other party will not be happy. Now it is different. Many customers can understand and accept this kind of practice, because now the environment is not good, the whole industry chain is being adjusted and changed."

Mei Kebing told reporters.

In the view of meke soldiers, after the large-scale and big adjustment of accounts, the supply chain of shoes and clothing in Jinjiang will face a deep shuffle. Some enterprises will be out in this "knockout" competition, and stubborn survival will usher in better development opportunities.

Upstream and downstream is more important.

For the footwear industry in Jinjiang, which is in the pition period, the upstream suppliers' shortening account period is the most effective operation for the whole industry.

The industry believes that relying only on shortening the accounts period can not solve the current development dilemma of the whole shoe and clothing supply chain, and more importantly, we need to link up upstream and downstream, and work together to pass the severe market test and promote the healthy development of the industrial chain.

"On the one hand, if some suppliers suddenly require the finished enterprises to change the way of repayment, it is very likely to cause huge financial pressure on them, so that they will be on the verge of collapse, leading to the volatility of the whole industry."

Qu Dongdong said, "on the other hand, if the economy is in good condition, if the enterprises are not in a timely delivery, as long as a lot of enterprise alliances do not cooperate with such enterprises, the healthy industrial chain can develop rapidly.

But under the bad economic situation, it is very difficult to form such a healthy industrial chain.

Li Jinming also told reporters that in the face of the weakening of the environment, some suppliers still prefer to take the risk of being "down" and choose unhealthy payment methods to cooperate with downstream customers.

Because no order, no workers, or downtime required to face the pressure of employees, such as high cost, but also enterprises can not accept.

For all these reasons, people in the industry generally believe that only by producing products with high added value and high technology will "qualification" negotiate with the big guys in the payment cycle.

Huang Qingfa, deputy general manager of Quanzhou Tianyu chemical fiber weaving industry Co., Ltd. believes that suppliers must have bargaining power if they want to enjoy the advantage of payment. That is to say, their products must be irreplaceable.

Bargaining power depends on market supply and demand. If an enterprise can provide products that the market is hard to achieve, it can occupy an advantage in fierce market competition.

In fact, over the past two or three years, the whole shoe and clothing industry has suffered from a cold current, fierce competition and declining sales. The local shoe and clothing enterprises have been hard to adjust under the double blow of massive inventory and closing stores. A large number of regional small and medium-sized shoe and clothing enterprises have gone bankrupt. The overall single volume reduction is directly reflected on the traditional shoes and clothing suppliers, that is, the amount of orders and purchases within and outside the export market is relatively reduced.

In this situation, upstream shoe material and fabric supplier enterprises have been looking for high-quality shoes and garment enterprises cooperation. Downstream shoes and clothing enterprises are also looking for matching high-quality supplier cooperation. Every year, both sides match and match each other in their respective selection and elimination, and create their own supply chain system. Once the supply chain system has problems, it will have an impact on the upstream and downstream businesses.

Therefore, the above insiders believe that whether suppliers shorten their accounts or adjust accounts for downstream customers, we should work together to solve the problems that may arise in the supply chain system based on the principle of communication. Accounts are only part of them, and effective communication between quality and delivery dates should be maintained.

Su Zhong, the industry insider, admitted that suppliers should take a firm foothold in a depressed market environment, not only seeking cash as king, but simply cutting orders and reducing scale production. In fact, in order to survive, they need to pform and upgrade, and adjust the internal and external problems of enterprises to cope with the current market situation.

In fact, for the downstream products and footwear enterprises, the small scale wants to expand the scale, and the construction of the ecological chain is imminent. To a certain extent, shoes and clothing enterprises have built up a huge supply chain system around themselves, and implemented them quickly and effectively, or the final realization of agile supply depends on their positive interaction with the partners in the ecological chain.

"At home, because of its excessive traditional business mode and paying much attention to the profits of enterprises, it takes up a lot of working capital, which often leads to turnover problems. Instead, it can release more cash from the enterprise by shortening the accounts in the upstream and calmly examining the management mode of its working capital.

If we want to be truly healthy, we should start with the account period and reorganize a series of standardized internal supplier management systems, which is essential for the healthy development of enterprises themselves.

Ding Shucong, general manager of Shu Hui shoes materials Co., Ltd.

[editor's note]

To shorten accounts or cash pactions is not a particularly big event in other regions or industries, but the effect of Jinjiang shoes and clothing industry accustomed to doing "credit" business is no less than a big earthquake.

In the course of the development of footwear industry in Jinjiang, long account period or "credit" business is a very obvious label.

The formation of this label has a unique historical origin, for example, the two sides of the initial business contact with each other. Under such circumstances, it is very difficult for both sides to have a very clear account period.

Therefore, the finished shoes and clothing enterprises owe the suppliers' money first, and the suppliers owe the upstream money.

The business of "credit" came into being.

It is undeniable that this approach has played a certain role in the growth and development of Jinjiang footwear enterprises, especially in the rapid expansion of the industry.