In addition to routine planned consumption, Red Star also has a set of products called "the most central competitiveness", that is, the ICT (information and communication technology) system developed by Red Star for the task of circulation management. This system was praised by Masahiro Sakane, chairman of the Red Star Manufacturing Co., Ltd., as "a system with '21st century technical power'". The design of this system takes into account the linkage between the ICT system of the representative store and the ICT system of Red Star, so that Red Star can control the situation of the hottest line of business in time. For example, if the information such as "30-ton hydraulic excavators are currently in a hot-selling condition" is correctly controlled through this system, the factory can be immediately organized to reduce production, so that even if the inventory is zero, it can be To a great extent, prevent the occurrence of "out of stock", "lost business opportunities" and other situations. In fact, this "housekeeping treasure" of Red Star is no longer a secret in the industry.
In fact, regarding the problem of excess production capacity in the construction machinery industry, as early as 2004, the "price war headed by loaders" event emerged. In order to seek product sales and market share, various loader companies lowered prices from each other, and the price of one was 300,000 yuan. Yuan's loader, the final profit is only a few thousand yuan. In the past two years, the homogenization of loader products has been significant, and the product development skills in small and medium tonnage products are absolutely mature. Even in order to blindly seek sales, some companies even risk zero profit, zero down payment, zero return and other risks to do things. Such a conscious expansion of the market will inevitably lead to excess production capacity.
Born in China, the "zero inventory in circulation", people who are familiar with Red Star know that Red Star has developed very maturely in terms of products and trading networks. When domestic construction machinery production companies are doing conscious production every year and taking the risk of overstocking warehouses with excess capacity, what is Red Star doing?
However, the advantage of Red Star is that on the issue of "excessive production capacity", it can invent problems and deal with problems in a timely manner from the level of innovation and even technology, rather than allowing the dangerous tide of the market to strike.
Through the construction machinery production enterprises in Hongxinghai, we should actually reflect on a problem, that is, whether we are occupying the market or upgrading our skills, we should not just make a fuss about the product itself, we are greedy, but the market has space for you to carry "greed". It is limited, so the ability to stand at a height wider than others' sight is expected to become the leader of the industry in the future.