Hubei: Textile Enterprises Gradually Resume "Order By Sales" To Alleviate Risks

It is understood that due to the late resumption of work in Hubei, it has gradually returned to normal since May, resulting in serious loss of orders from some textile enterprises. The head of a trade enterprise in Hubei said that most of the local textile enterprises bought high price lint for production years ago. Due to the epidemic situation, cotton prices dropped sharply and orders decreased, and some enterprises were facing great business pressure. Since the resumption of production in April, the enterprise has been operating well. Although the trade in Hubei has been greatly affected, due to its small proportion, the overall impact of the enterprise is small.

The person in charge of the enterprise said that during the off-season period of the industry, the operation of the enterprise was better than expected, mainly due to the following three reasons: first, the cotton price this year has been relatively stable since April; after the textile enterprises resume production, the impact on cotton trade is small, and the sales are even better than that of the same period last year; second, the difference between domestic and foreign cotton prices is small, and textile enterprises give priority to domestic cotton in raw material procurement. It is understood that the current price of lint in China is about 12000 yuan / ton, and the price of Indian cotton transported to Hubei Province is 11800 yuan / ton (without ticket). Compared with domestic cotton with similar quality, the price advantage of imported cotton is not obvious. Thirdly, some enterprises affected by the epidemic situation have difficulties in financing, so the storage of cotton effectively alleviates the financial pressure of enterprises in production, and the blockade and control in Xinjiang region lead to Xinjiang Cotton transportation is hindered, but also to speed up the mainland warehouse cotton sales.

It is understood that the enterprise's raw material procurement mainly adopts the "sales order" mode, fixed-point procurement, fixed-point sales, select some cotton in line with the enterprise customer group indicators, reduce the enterprise procurement risk from the source. At the same time, the enterprise from the source of procurement to later sales, the implementation of staff responsibility system, greatly reducing the business risk of the enterprise, so as to ensure the normal operation of the enterprise.