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In recent time, Chairman Lijun Wang and President Chenyang Zhang from Panjiang Logistics Company visited Yongkang City in Zhejiang Province, which is known as the “capital of hardware”, accompanied by the Eastern region's Vice President of Medilink, Heng Li, and Deputy Manager of Panjiang Industrial, Xiaodong Zhao. They were also invited to the 21st China Hardware Exhibition held in Yongkang when doing a research on the city’s hardware industry.
According to sources, under the situation where there is a global and domestic economic slowdown, Yongkang city still grows steadily under the support of its manufacturing, retail, and ecological-economic industries. In 2015, Yongkang achieved a GDP of 48.35 Billion, with a growth rate of 8.0%, ranked as the 41st across top 100 counties in economic development. Manufacturing, the staple industry of the city, increased its product by 27.17 Billion with a growth rate of 6.7%, which accounts for 50.7% increase in GDP growth. Among the industry's product and the city's tax payment, the hardware industry accounts for around 90% both. Now there are over 10,000 hardware enterprises of scaling, covering hardware for machinery, decoration, daily use, construction, tool, and small electrical appliances. Their products are classified as top-3 quality around the globe along the other two producers, namely Germany and Japan; the product of security door has a domestic market share of 70%; 90% of scooters and gas cookers are from here. The hardware industry, the staple industry of the city, induces the legend of Yongkang's economic development.
In this visit, Panjiang research group realized that the hardware industry is becoming influential not within Zhejiang Province, but also in the world. However, since most are small enterprises of low production scale, the purchasing, transporting, and storing costs will not be controllable. A number of these small companies have low productivity and production due to their outdated processing machineries. Though the manufacturing industry in Yongkang shows great potential of its sales in the market, it is still at a stage that business, logistics, information, and finance flows are not integrated into one in production. The Panjiang research group reached a consensus that the hardware industry in Yongkang should become more advanced and of higher quality. In a meeting between the research group and the deputy mayor of Yongkang, Chong Dai, and his colleagues, Chairman Lijun Wang stated that Panjiang Industrial Limited, a subsidiary of Panjiang Logistics, would make use of its resources and advantages to provide supply chain service to these small enterprises in Yongkang and thus to upgrade and modernize the traditionally strong hardware industry in Yongkang.This proposal was highly praised by mayor Dai and his colleagues representing Yongkang government.
The research group visited the exhibition of Industrial Park at Longshan county and listened to the report about the program after the meeting. In order to better serve local enterprises, Panjiang Industrial Limited decided to locate its steel processing and storing base within the Industrial Park. On one hand, the company will be close to the demand and supply of market and thus will be able to provide purchasing service simultaneously to many small enterprises. On the basis of its state ownership, Panjiang Logistics could be the underwriter and thus promote cooperation with big domestic steel factories.At the Same time, a professional risk management team will be controlling Panjiang Industrial Limited’s credit, market, and operation risks through building up a series of mechanisms and solutions to manage the company’s risk and reduce the probability of risk, making sure the supply chain is under healthy operation in order. Under this condition, Panjiang Industrial will reduce those small enterprises’ capital pressure by being their underwriter. In other words, with the help of Panjiang Industrial, those small enterprises will be able to enter the production stage in advance by getting the raw materials beforehand by paying less than 50% of the price.
On the other hand, Panjiang Industrial will forge a processing base for providing a series of services to local enterprises, including storing, transporting, and processing. Panjiang Industrial will spend a lot on purchasing advanced processing equipment to promote the production. A large-scale and high-quality mechanized operation will not only increase those local firms’ productivity but also the quality of the product. Panjiang Industrial stated that as long as it is permitted under the market condition, they would introduce advanced technology such as transfer and complex plastics, which currently are not widely used due to their strict requirements on application. By doing this, Panjiang Industrial will increase the profitability of the local enterprises through increasing the visual sense and product quality of secure doors made in Yongkang. Besides, Panjiang Industrial will so provide the local enterprises with financial services through supply chain management in terms of reducing their production cost and increasing capital utilization, improving their financial health.
Currently, Panjiang Industrial Development (Shanghai) has a mature and developed supply chain management system. Due to its advanced development idea and good service, the company maintains a solid strategic cooperation with well-known companies including Xiduo Group, Suofu Group, and Wangli Group, and serves clients like Midea and Gree in the downstream industry.With the help of a diversified development of the group, Panjiang Industrial’s parent firm, Medilink International Logistics and its subsidiary Chenbang Logistics will offer export transport solutions to enterprises in Yongkang, reducing their transportation cost, providing them a door-to-door transportation service, and ensuring them with a safe and on time delivery of products.