Deciphering how the LED lighting industry can break through the "breaking grain" dilemma?

As the saying goes: The soldiers and horses have not moved, the grain and grass are the first, and the marching snoring, the importance of grain and grass is self-evident. The business market, the importance of product supply is no less than the supply of grain in the march, if the manufacturer can not ensure the timely delivery of LED lighting products, then for the business, it is tantamount to breaking the grain. Difficulties, we say good goods? Mr. Xia, a lighting distributor in Sanming City, Fujian Province, is mainly engaged in engineering channels. In the past few years, he represented a well-known brand A. Recently, his local government had to purchase a batch of lamps for a large-scale project. Mr. Xia saw a rare opportunity, and it took a lot of trouble to get through all the major links. Finally, the person in charge of the project promised to use the A brand represented by Mr. Xia. Seeing that everything has been finalized, Mr. Xia has placed an order with the A brand manufacturer one month in advance, and communicates from time to time. I hope that the manufacturer can deliver the product to Sanming City on time. In the first 10 days of delivery, A brand manufacturers also vowed to promise that the products can be delivered on time, but, until the project entered the lighting installation, Mr. Xia still did not wait for the product. What is furious is that during this period, the factory never disclosed a message that the product could not arrive on time, which led Mr. Xia to be unprepared and lost a large number of engineering orders. Mr. Xia’s integrity in the local market and The influence is also deeply affected. It is said that the goods arrive at the beginning of the month, and they are all at the end of the month. The products have not been sent to me, and some of the brands I represent are not in a timely manner. How do we make our business live? I feel that the biggest problem in the current operation is that the manufacturers can't deliver the large lighting to the media in time. The lighting channels launched by the media this year are where the small teams go, the manufacturers are out of stock, out of stock, and not in supply. Timely complaints, vomiting, and complaints are always heard. Indeed, the inability to deliver in time is probably one of the most unwilling businesses to accept at this stage. As Wang Rui, general manager of Chengdu Linrui Lighting Appliances Co., said: If the factory is out of stock or the supply is not timely, it will bring a very big loss to the dealer, because in addition to increasing the delay in delivery costs and additional transportation costs, Directly leading to a decline in customer satisfaction, lost the word of mouth established over the years, and is likely to create resistance to the next sale. In addition, if the engineering channel is out of stock, it will bring a certain degree of economic loss to the dealers. In serious cases, the project will not be received, resulting in the loss of customers and even legal disputes. High default damages, etc. We say good goods? A sigh and a sigh. Manufacturers have a difficult way to understand the truth. The company is out of stock and out of stock as a phenomenon that is common in the lighting industry at the present stage, which not only brings the extremely bad influence to the business. It has also stimulated the contradiction of manufacturers to a certain extent, which is not conducive to the sound development of the lighting industry. Then, why can't lighting and lighting companies supply in time? A company's positioning is unclear, and the products are more greedy. At this stage, many companies produce a large number of products in order to seize more market share. As the so-called greed is not bad, for small and medium-sized lighting enterprises that are not prominent in terms of financial strength and enterprise scale, if the product line is too long, it is impossible to effectively focus the company's funds and employees' energy. In the peak season, or when there are large orders, it is difficult to ensure the stability of the delivery of the products, resulting in the inability to supply in time. In the first two years, our product line is relatively long, and it is difficult to effectively guarantee the delivery of products. Since 2014, we have promoted the superior products and concentrated most of the resources of the enterprises on the superior products, so as to expand the market. Advantages and main push products either reduce production, or find companies to process. After a period of time, the delivery of the product has been greatly improved, and the business and our cooperation are more confident. Therefore, I believe that companies must have a precise positioning and understand what their advantages are, which is very important for the development of the company. Cao Liufang, the vice chairman of Southeast Lighting, said the importance of accurate positioning. B prices continue to decline, and companies are avoiding inventory. According to the joint research data of Grand Media and CSAResearch, in recent years, the price of LED lighting products has continued to decline due to technological upgrading and increased competition. In the second quarter of 2014, the price of LED lighting products in the physical channel decreased by 7.19% from the previous quarter. According to the survey data, 47% of the merchants reported that the price of lighting products in a single quarter fell by more than 10%. From the perspective of various categories, the panel lamp price reduction rate reached 15% in a single quarter, and the engineering products and light source category price cuts exceeded 12% in the second quarter. However, after the fierce price competition, the commercial products entered the stable period. . Guangming Ming, general manager of Guangdong Zhaoxin Lighting Marketing, said in an interview that the LED lighting industry is still in a period of rapid development. The cost of materials is rapidly changing with the development of technology and applications. The market price of many products is falling too frequently. In order to ensure the smooth flow of funds, enterprises reduce risks as much as possible, and generally do not want to reserve too much product inventory, and many categories only do a certain amount of stocking. Xiao Nan, deputy general manager of Jinling Lighting Marketing, also believes that an important reason for the inability of enterprises to supply is that the inventory competition mode of the traditional lighting market has changed in the LED era, and the voice of the production enterprises has shifted, and the risk of large inventory operations has been increased. Bigger. The C product is updated quickly and the production cycle is shortened. Compared with the traditional lighting era, the LED lighting era has accelerated the speed of its technology. In the process of replacing the light source, the penetration rate of LED products has been continuously improved, and the application range of the products has been continuously expanded. Under this circumstance, enterprises only continue to produce. In order to maintain competitiveness in products that are more suitable for the market, in the case that the production team cannot be expanded in time and the production equipment is increased, the production cycle of the product is continuously compressed, resulting in failure to supply in time. Xiao Nan, deputy general manager of Zhongshan Jinling Lighting Marketing, spoke in an interview. He said that at this stage, due to the continuous decline in the price of parts and components of LED light source raw materials, most manufacturers will only stock a certain amount of common color temperature when purchasing raw materials. However, sometimes the same order has the same color temperature requirements for the same category of products. In order to get the order as much as possible, the company must shorten the production cycle. However, in the case that the labor force cannot be expanded in time, the delivery time of the product is continuously extended, resulting in unstable delivery. D market is not sure, production control is not strict. At this stage, due to the lack of rational analysis of the market, many enterprises have not controlled the various links of the supply chain, and there is a serious information asymmetry between the production department and the sales department. Therefore, many companies' production departments have not developed production plans that are suitable for the company's development status, but rely solely on orders from the sales department to produce. However, many companies' sales departments have blindly received orders, and they have ignored the production capacity of the production department, which directly leads to chaotic production and loopholes. Sometimes, the production department did draw up the production plan. However, in the actual operation process, the production plan was frequently changed due to various reasons, resulting in a temporary temporary production schedule. The result was that the production management staff was overwhelmed and the production staff exhausted. If the market is not in control, or if there is no perfect production plan, it will easily lead to unreasonable scheduling of production processes and form a semi-finished warehouse. However, because the production process is disrupted, it is easy to become emotionally violent because of overworked work. If you do not concentrate on producing products, it will lead to high product rework rate and ultimately affect product delivery. Zou Hui, director of the marketing department of Xinteli, said. In addition, the increase in labor costs, the high mobility of personnel, and the vicious competition caused by the expansion of production capacity have indirectly caused the enterprises to fail to supply in time. However, whether it is subjective or objective, the delivery is unstable, and the supply is not timely, it is not the wish of the enterprise. In the face of the unpredictable terminal market of the LED era, in the face of increasingly aggressive businesses, sometimes the enterprise is also very Wronged, helpless. Business market risks are difficult to control frequently out of stock, out of stock, companies need to bear the main responsibility, businesses can not be old and innocent. According to the survey, the unwillingness of merchants to prepare stocks is one of the main reasons for the inability to effectively alleviate the stock market dilemma. So why are merchants afraid to prepare product inventory? A market environment impact, business is getting harder and harder. Due to the unstable procurement cost and the large market environment and high selling price, the LED market is difficult to control. In the case that the LED product sales prospects are not clear, the dealers are difficult to grasp the inventory, which naturally reduces. Stock reserve. On the other hand, a considerable portion of the physical channels are sold for engineering and have lower inventory requirements. According to a joint study by Big Lighting and CSAResearch, the average inventory ratio of physical market channel stores is 39.25%, and the average inventory turnover rate is about 2.6. Among them, the first-line market channel has the highest inventory ratio, and the second- and third-line market channels have lower inventory. The number of B brands has increased dramatically and competition has escalated. According to the large-scale lighting media and CSAResearch joint research data, the number of LED lighting brands participating in the domestic market physical channel competition in the first half of 2014 was 16% higher than that in 2013. Among them, the brand growth with commercial lighting as the main market is the most significant, which means More manufacturers enter the market segment and participate in channel competition. Refraction into the end market, as more capital and brands flood into the market, the competition between brands and brands, businesses and businesses is getting worse, and the market risks faced by businesses are becoming more and more difficult to control. C products have sharply cut prices, and merchants have avoided risks. Xu Zhenfeng, general manager of Guoxing Optoelectronics Lighting Department, said in an interview: After nearly two or three years of rapid development, LED lighting has experienced a sharp drop in price caused by rapid development. Dealers can talk about inventory changes at this stage. Some merchants have reported that the stock is 1 million yuan, and in just 23 months, the price may be reduced by 20% or even more. Therefore, some strong merchants are not willing to be suppressed by a large amount of inventory, unless it is mandatory by the enterprise, will be careful to prepare a little inventory, more businesses would rather choose to transfer goods to the enterprise when there is an order. To a certain extent, this can easily lead to failure to deliver to customers on time, and it is also one of the reasons why it is difficult to stop the goods. With such a response, the manufacturers are more comfortable and unable to guarantee timely delivery, which has indeed brought irreparable losses to the merchants, and to a certain extent caused the manufacturer's relationship to be unharmonious. For enterprises, the most important thing at the moment is to solve problems one by one according to the company's own situation and ease the contradictions of manufacturers. First, focus on optimizing the product line, standing stocks of best sellers. Enterprises should clarify their own advantages, and combine their own actual conditions, classify best-selling products, flat-selling products, slow-moving products, etc., and rank products according to product categories, series, specifications, standards, etc., and sell large-scale products. The inventory can be increased according to a certain proportion and sales cycle. Xu Zhenfeng, general manager of Guoxing Optoelectronics Lighting Division, said that Guoxing Optoelectronics has concentrated on promoting three major categories of ceiling lamps, downlights and T5 brackets by optimizing its product line. In the aspects of material procurement, production line control, inventory management, etc., we will achieve scale procurement, optimize production lines, and reduce inventory pressure. Delta's luminaires are divided into planned regular products, planned unconventional products, and unplanned products. The regular products in the plan are available at any time (even if the goods are not replenished within a few days); the unconventional products in the plan are not stocked, and the shipment is guaranteed within a few days; the unplanned products are not ready for stock. If enterprises want to develop steadily, they must clearly define their own position. They often say that they are greedy and greedy. If the strength of the enterprise is not strong enough, they want to produce everything. In the end, they will only lose the end of watermelon and sesame seeds. Second, work closely with suppliers to shorten the supply cycle of raw materials. As an important part of supply chain management, the role of suppliers can often lead to the whole body. Therefore, for enterprises, close cooperation with suppliers can not only shorten the raw material supply cycle, but also ensure the delivery of products, and achieve the coordination of enterprises and suppliers, the goal is consistent, and the interests are shared. It also has a good promotion effect. According to Xiangyang, the general manager of Guangmingyuan brand marketing and LED lighting business unit, in order to better communicate and cooperate with suppliers, Guangmingyuan Lighting often organizes supplier associations to strengthen market information exchange and cooperation with suppliers. Emotional communication allows suppliers to keep abreast of the company's development planning goals and market dynamics information, and establish a model that closely cooperates with suppliers and develops.

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