Textile Foreign Trade Orders Are Delayed Or Cancelled. Enterprises Should Derogate From Risk.

With the rapid spread of the new crown epidemic in foreign countries, textile foreign trade companies are facing a new round of work pressure. Many foreign trade export orders have been delayed or cancelled because of the epidemic situation overseas. This is the second wave force that China's foreign trade factories are facing since the outbreak of the new crown. How can textile foreign trade enterprises cope with this "war epidemic" in order to minimize the loss?

Because of the measures:

1. Appropriately adjusting the ratio of domestic and foreign trade.

Many cloth owners have said that they will appropriately adjust the proportion of domestic and foreign trade to slow down the impact of the epidemic.

A chief executive of a Italy and Korea order company said: "although we haven't received the notice of cancelling the order this year, the volume in the first quarter has been reduced a lot. Then we will develop the domestic trade well. Now the domestic epidemic is basically under control, and it may be a good opportunity." Similarly, a boss who made the export of nylon fabric also revealed: "single volume is reduced by 20% compared with last year. At present, the order can be achieved at the end of April. Next, the proportion of domestic trade will be considered more. But domestic trade also has disadvantages. Customers' repayment is longer than foreign trade, most of them are in 3 months or even longer. Therefore, domestic trade is not easy to do. This year's situation is really difficult."

It is true that in the absence of effective control of foreign epidemic situation, it is a good policy to shift the focus of business to the domestic market. But the boss also needs to understand that nowadays the domestic market is already lacking in competition and the competition is fierce. The more the time is, the more the cloth boss should pay attention to the quality of his products, so that he can have enough strength to win in the competition.

Two, down start, shift two shifts to three shifts.

Ensure adequate cash flow

It is said that cash flow is the "life and death line" of an enterprise. In the case of new single unsustainable situation, many cloth owners think that for the company, there is no order, that is, no income, but the cost of manpower and rent is difficult to be unloaded. If there is a loan, it will repay the loan and interest every month. Therefore, it is very necessary to reduce expenditure next.

"Next we may reduce production appropriately to ease the pressure on capital and inventory." A factory director who made imitation memory was helpless. "Now the raw material has fallen very badly, and we have not received the new order. We can only produce some conventional varieties, but we use all the raw materials we used to store when the price was high. So we choose to stop half the machine next month. We can't sell too much inventory, instead, we will occupy our liquidity (raw materials are cash transactions)."

Another person in charge of dyeing works also revealed that the working hours of staff could be adjusted appropriately, from two shifts to three shifts. Shorter worker hours and lower wages can reduce labor costs.

Judging from the current market situation, the start-up rate of various factories is slowly rising, but the inventory is slow and the new ones are not smooth. Next, the capacity of the market will be in excess again, and the low price competition is imminent. Therefore, when the market is uncertain, it is advisable to choose appropriate production cuts or adjust workers' working hours to reduce expenditure.

In the market downturn, many manufacturers will consider reducing production and holiday. In last year 7 and August, many factories and dyeing factories set up high temperature leave, but this year this situation is likely to be ahead of schedule. If the next order is difficult to continue, many manufacturers will consider reducing production or even having a holiday. In the short term, it is suggested that the larger stocks should be allowed to go on the market, and the transaction can be allowed to make profits; the lower inventory prices can be temporarily stable, and insist on the principle of production according to single production, along with production and strict control of stock.