by Author: Gao Hongjie Problem 1: Difficulty in Payment Collection According to data statistics, the average payment cycle per project for component factories in 2019 was 191 days, but by 2022, this number had become 293 days.
At the same time, quarterly material payments had to be disbursed, making financial issues the biggest problem for component factories.
Many small and medium-sized component enterprises fell into the pit of payment collection.
Many enterprises have come up with many ways to solve this problem, such as controlling the number of orders, cutting off supply and payment reminders, holding onto their thighs, and defaulting on supplier debts…
However, it seems that the effect is not ideal.
Controlling orders results in factories not having enough to eat; Discontinuation of payments and reminders, resulting in customer loss; Holding your thighs, you also need to open a factory yourself; If you default on the supplier’s debt, they will also repay you for all the things you have done…
What should we do? Before discussing what to do, we need to first identify the root cause of the debt and what caused it.
On the surface, there are many reasons: poor overall economic environment, bad habits in the construction industry, lagging product supply and demand, non-standard industry management, low product unit prices…
However, these are only superficial, and when we uncover the surface, we can see the root cause.
In fact, the real reason lies in the contradiction and conflict between industrial management and project management in the construction industry.
Here are some exemplary successful cases that are well-known in the industry.
One is a residential group in a certain area, and the other is a construction group in a certain city.
Their approach is very simple, collecting “little brothers” and assigning them to projects.
Even in the later stage, the little brothers lead the project, directly transforming the horizontal management of the factory into project management, and assigning “projects” to projects – the problem is solved.
Of course, using words to express oneself is very simple, but there are still many ways to follow, otherwise everyone would have done it.
But no matter what, there is still a way, just whether you have found it or not.
In summary, to solve the problem of difficult payment collection, the following measures are mainly taken: 1.
Establish a model that matches the project system, establish a pyramid structure, and “big feet and small heads” are very important.
Moreover, the pyramid structure is not just a system model, but also includes the distribution of benefits and responsibilities.
It places power and responsibility on the ground, which means the relationship between the old contractor and the general contractor.
By doing this correctly, the foundation for safety is laid.
2.
To make good use of industrial finance, there are tasks and indicators for industrial finance in every place.
It is important to introduce long-term low interest funds, make good financial investments, and “roll” the money.
Factories that simply hope to survive by rolling business orders will inevitably end up with a dead end
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