Build the world's largest cloud factory alliance with industrial Internet as the carrier and industrial efficiency improvement as the basis
On July 18, 2020, at the "Industry Gathering for the Future: 2020 Cloud Printing Packaging Industry Alliance Summit" hosted by Cloud Printing Technology, Dr. Sun Xiaomin, Chairman and CEO of Cloud Printing Technology, made a wonderful sharing of "China Packaging, Who Will Win in the Future" around the future development of the packaging industry. Xiaoyin students organized the on-site speech and now share the wonderful content of the speech to everyone.
1. Three decades of agitation: the current situation of China's packaging industry after reform and opening up
From the production and consumption data of China's paper and paperboard from 1949 to 2019, we can see that the demand for packaging paper in China has been increasing rapidly from 1989 to 1999, and the growth rate of demand is far higher than the growth rate of output, which means that the seller's market. At this stage, the growth rate of the entire packaging industry output cannot keep up with the growth rate of consumption. The only thing that enterprises need to worry about is that they cannot make orders.
During this decade, the production and sales growth of paper and paperboard in China remained at about 9%. However, after 1999, China's packaging industry ushered in a watershed, with the growth rate of output gradually catching up with the growth rate of consumption, and officially surpassing in 2009. In the new decade after 2009, the average growth rate of the entire paper and paperboard industry began to decline, and finally dropped to about 3%.
Globally, the packaging industry in the United States, Europe, Japan and other developed countries and regions has maintained a 2% growth rate for nearly 20 years. After the rapid growth of the past 30 years, China's packaging industry has officially entered the era of supply exceeding demand.
China's packaging industry is meeting new challenges!
2. Stock market, efficiency is king: new challenges after 30 years
After 30 years of development, the scale of China's packaging industry has been greatly expanded, with huge scale and perfect system. However, there is still a big gap between China's packaging industry and developed countries. The core point is efficiency.
In 2020, Yunyin investigated and ranked the operating rate of more than 1000 corrugated production lines across the country. At present, Guangdong has the highest operating rate of 68%, Fujian ranks second, followed by Shanghai with 66%. Zhejiang and Jiangsu in East China are 57% and 56% respectively, with an average of less than 60%.
For packaging plants, the biggest input is equipment. The efficiency of equipment is the main indicator of our efficiency. The average operating rate of tile lines in China is less than 60%. Compared with the United States, Japan and Western Europe, they have entered the stock age of 2% growth for more than 20 years, but what is their efficiency? The operating rate in the United States reached 96%. 95% in Japan and 94% in Western Europe.
Why is there such a big gap? Is the equipment in China very poor? Obviously not. As representatives of outstanding packaging enterprises in Jiangsu, Zhejiang and Shanghai, the equipment level of entrepreneurs present here can be said to be industry-leading, but even the average operating rate of everyone on site is about 10% higher than the industry average. Here comes the second question. Everyone is in the age of stock. Why is the efficiency gap so large?
My two personal views are that the more the stock market is, the more efficient it is. Only efficiency is the long-term capacity that can be accumulated. Efficiency is always there, and it has long-term sustainability. Even if it is reduced by only one cent, this advantage can be maintained for a long time. We can compare this with the Japanese market. The aging of equipment in the Japanese packaging industry is serious, but depending on the fine management of production, the efficiency is more than half higher than that in China.
Another point of view comes from the inspiration of the group war of the integration of international head packaging enterprises. If a single factory wants to be more efficient, it must be more professional. However, when facing more and more complex customers, a single factory cannot fully meet the needs of customers. This has led to the emergence of multiple professional and efficient factory collaboration, which is an inevitable trend.
To sum up the above views, I believe that in the stock age, the packaging industry should focus on efficiency. On the one hand, it should continuously specialize the single factory capacity to improve the factory efficiency; On the one hand, build a multi factory collaborative labor division system to improve the overall efficiency and service capacity of the industry.
3. Final question: Who will win in the future in China Packaging?
Let's go back to the current situation of China's packaging industry. What should China's packaging industry do in the future?
Many entrepreneurs are conducting relevant exploration, and each can have different approaches. For a single factory, it has a variety of path choices, some are horizontal large-scale, some are expanding to upstream papermaking, some have taken the path of specialization, and so on. For some large domestic groups, it is nothing more than self building factories, building a large number of factories in various regions, or conducting enterprise mergers and acquisitions, a large number of mergers and acquisitions, and expanding to various regional markets.
However, there is another problem here: where do talents come from? I always think that the core resource of packaging enterprises is not equipment, not production capacity, not customers, but talents, who are the soul of enterprises. If the company leaves people, all that remains is a pile of equipment and a pile of empty capacity. The same equipment, different people, there is a big gap in efficiency. If it is a self built factory, how many such talents should we re cultivate? If there is no talent, how can we not only maintain the self driving force of the single factory, but also achieve cooperation?
Therefore, "China's packaging, who will win in the future", Yunyin's point of view is that the ultimate solution to the future direction of China's packaging development is to combine Chinese packaging enterprises in the form of packaging industry alliance, promote excellent experience, improve industry efficiency, and then cooperate with these high-quality production capacity to improve the production efficiency of multiple factories.
4. The growth core of the cloud printing packaging industry alliance: 10000 people as teachers
How to promote excellent experience? How to build an industrial alliance?
The first is Internet tools. Through the Internet, we connect high-quality resources in the industry and learn from excellent experience. Yun Yin advocates learning from every excellent entrepreneur and applying it to more factories, which has derived the demand for the use of the Internet.
At the core of the cloud printing industry alliance, the logic of all product growth is based on learning excellent experience. No matter how to learn and absorb, or how to communicate and promote in other factories, they can't do without Internet tools. Through the digital tools of the Internet, the excellent experience is summarized and refined into the standard language commonly used in the industry, and the Internet tools are promoted to the alliance for common use, so that the overall efficiency can be improved together with the improved high-quality production capacity.
It is our core to improve efficiency through learning, understanding, absorption, data and promotion in the enterprise.
The second core is called collaborative high-quality production capacity and multi factory collaboration. When our factory starts to have its own efficiency, we will have the opportunity to do long-term cooperation. There are many points of cooperation among enterprises. We can negotiate with the paper mill on centralized purchase of raw paper. We can agree with the paper mill on waste paper recycling, stabilizing paper prices, as well as cooperation in design capacity and capacity allocation. There are many points of cooperation for such high-quality capacity.
Of course, these things are not cloud printing's own capabilities. Cloud printing is through the connection of high-quality industry resources, through the digital tools of the Internet, through learning and sharing, rather than creating capabilities out of thin air. There may be many points in this, such as how the sales management matches the market strategy of making small orders, which requires the digital signage tools of cloud printing and the special sales management tools to release the sales energy on some daily chores as much as possible.
Finally, in three sentences, Cloud Printing will build the world's largest cloud factory alliance with the industrial Internet as the carrier and the improvement of industrial efficiency as the basis.