1988: Back to the human world for a few years

Chapter 111: Xiang Zhuang's Sword Dance (2)

Although the words "embedded supply chain collaboration" sound very high-sounding, they are actually just a scare tactic, just like the Internet jargon of later generations.

To put it simply, this means that the supplier grows/raises specified varieties of raw materials in accordance with Party A's requirements, adopts specified processes and technologies to carry out planting and breeding management, and then supplies sufficient raw materials that meet the required standards to Party A... Of course, this may also include screening, grading, primary processing, first-ring logistics distribution and other links. Which step is achieved depends entirely on the agreement reached by both parties.

Although this cooperation model seems simple in theory, the actual operation, especially in this era, involves so many difficulties that it makes people's scalp numb... Let alone how to make the supplier completely listen to your opinions, breed and raise crops in accordance with your standards, and deliver sufficient goods, is a big problem that cannot be avoided.

Indeed, the drilling company is a central enterprise, and its administrative level and weight are obviously more important than the nearly 20 local state-owned enterprises. But after all, it is not a superior unit in the same system. If they are willing to listen to you, they will listen to you. If they really don’t want to listen to you, you really have no choice.

In later times, if the suppliers of such long-term purchases of raw materials for breeding and farming are farmers, the companies will often sign long-term purchase agreements with farmers through village collectives or township collectives, and then integrate their own social resources to provide these farmers with technical guidance, seeds, fertilizers and other agricultural materials, using a "strong supervision model" that everyone knows well to ensure the quality control of raw materials... If they reach the purchase stage, they will also strictly follow the provisions of the contract and will not accept any products that do not meet the standards;
If the supplier of the purchasing company is other companies, they will often establish a new company through a joint venture, and then adopt direct trade to ensure the rights and interests of both parties. The purchasing company will inject a very considerable amount of capital into this subsidiary, and the supplier will often invest in fixed assets and technology, and actually mainly provide personnel and social relationships to ensure the smooth progress of the project.

But the problem is...

This is not the future. In this era when the shareholding system is still a false pretense, if you dare to copy the future practices for cooperation between state-owned enterprises like this, you can just prepare to cry - if a contract really has such a strong binding force, do you think there would still be so many triangular debts in the 1970s and 1980s?
Therefore, Yang Mo did not intend to completely copy the later practices...or rather, he mixed some of the later practices and threw them out.

In fact, the idea is not complicated:
The drilling company regarded these state-owned enterprises as "individual farmers" and did not cooperate with them directly. Instead, it used the Agricultural Bureau and the supply and marketing system of Linyi County as intermediaries to sign cooperation agreements with them. At that time, these two units were responsible for supervision and unified collection, while the drilling company was responsible for inspection and payment.
Su Yu's uncle works in the Agricultural Bureau, and his mother works in the supply and marketing system. With this relationship, and the fact that the petrochemical system has a lot of weight in the local authorities, these two county-level units are naturally willing to cooperate with the drilling company... As for both the Agricultural Bureau and the supply and marketing system, there is no need to say much about the technical resources, human resources and social resources in the field of agriculture and animal husbandry.

The most interesting thing is that, strictly speaking, the Agricultural Bureau is the superior unit of many state-owned enterprises present, and the supply and marketing system is the last lifeline for many units present. However, these two units are not the direct purchasers of these raw materials. With this causal relationship, it is not so easy to deal with some things by arguing.

Of course, given that everyone is in difficulty now, the drilling company certainly cannot proceed with the 1.0 version of the "Raw Material Breeding Center Construction Plan" according to normal procedures.

You know, even if there is a breeding process plan from the beginning, it will take at least half a year for each raw material from seed selection to planting and then to harvesting/marketing;
Although these units already have a relatively sound hardware foundation, the initial investment will still not be a small amount if the project is to run smoothly... These units are already half-dead, where do they get the money for your initial investment?

So this involves the issue of blood transfusion.

As mentioned before, unless it is a merger and reorganization, it would undoubtedly be a joke for the drilling company to invest in establishing a new subsidiary with these units... It is currently impossible for the company to pay so much money to Yang Mo to carry out the merger, and Yang Mo does not want to experience the endless wrangling in person.

Therefore, the "futures hedging" model that is familiar to people in later generations appeared.

Out of confidence in the Momo Baizha and Momo Baichao projects, Yang Mo was bullish on the future demand for dozens of raw materials, including chicken, and was very sure that the prices of some raw materials would continue to rise, so he directly threw out a super large order for a period of ten years;

This list specifies the types of raw materials, supply quantities, purchase standards, and purchase prices for each month in the next ten years... These prices are locked, but for certain considerations, the annual supply price is allowed to fluctuate within a certain range so that the partners have enough motivation to complete the orders.

In order to enable these cooperative units to smoothly launch targeted breeding plans, Qingfeng Food is willing to advance 3 months of procurement funds for the initial investment of these enterprises;
That’s a lot of money. A lot!
According to the preliminary budget, it was about 670 million... In 1989, if managed properly, this money could even directly acquire four or five small and medium-sized local state-owned enterprises.

Of course, this money will definitely not be given directly to those cooperative units, but will be paid directly to the supply and marketing system with a bottom-line guarantee in the form of an advance payment, and then the supply and marketing system will distribute it to each unit according to the order requirements - this is very important.

In this way...

Yang Mo got what he wanted;
Vice President Feng and Zhang Wenshun got what they wanted;
The county agricultural bureau and the supply and marketing system got what they wanted;

If these units are selected, they will basically get what they expected.

If we ignore the little tricks of some cooperating units, it should be considered a best-in-all solution for the time being.

Of course, as a brand new model in this era, Yang Mo's plan is bound to be questioned by some people...

………………

"Team Leader Yang, I'd like to ask, is the 670 million... paid by Qingfeng Food or your company?"

A middle-aged woman who looked like a leader asked in an inquiring tone, but with a hint of suspicion in her eyes.

At first glance, it doesn't sound like there's much difference whether the money is paid by Qingfeng Food or the drilling company... but in fact, there is a huge difference.

If the money was paid by Qingfeng Food, a township enterprise registered under the name of the drilling company, it means that this is a business operation that cannot be more legal. Then there is no need to say anything and just follow Yang Mo's rules... For this kind of tertiary industry project led by a mixed-ownership township enterprise, you can say that it is within the scope of state-owned enterprises, but you can also say that it is not within the scope of state-owned enterprises. Given the special attributes of this main enterprise, some of the rules of the game of state-owned enterprises are naturally not convenient to apply to it.

But if the money is paid by the drilling company, there will be more reasons to cry poor.

You are the big brother of the central enterprise. Since you have money and demand, I lack money but have production capacity, and we have cooperated before, why does this money have to go through the county agricultural bureau and the supply and marketing system? Are you wary of us little brothers? ... We are all from the state-owned enterprise lineage. Let’s not talk about whether your position is wrong by doing this, the key is that it hurts the hearts of us little brothers!
Also, you said it was a strategic cooperation, so from now on, you are my boss. Since you are willing to spend so much money to support us in upgrading facilities and increasing production capacity, can you support me a little more in the early stage? ... Anyway, your oil unit is famous for not being short of money, so what's wrong with supporting your little brother who is cheering for you? At most, I can write an IOU and pay it back slowly in the future!
And so on, blah blah...

Yang Mo naturally knew the ins and outs of this, and he just replied lightly: "This 670 million advance payment was paid by Qingfeng Food alone... Momo Baizha and Momo Baichao are pilot projects, and they have independent management decision-making power!"

When everyone heard this, their faces changed immediately.

Some were disappointed, some were horrified.

Such a short sentence extinguished the thoughts of a lot of people, and even the way to save the country in a roundabout way was mostly blocked.

The middle-aged woman looked a little out of control: "How is this possible! This is 670 million! Not 67... How can Qingfeng Food have that much money on its books!?"

This question expressed the thoughts of everyone.

They have been watching the situation of the silent bombing and silent speculation projects from beginning to end.

Anyone with a discerning eye could see that in the past two months, Mo Mo Bai Zha had not made any money at all. Even though Team Leader Yang was very resourceful and had made the project extremely popular in just half a month after his comeback, in the final analysis, the project had only started to make money in the past half a month.
Although they have no way of knowing how much money the chicken steak and Chinese fast food projects can make, they know with their butts that in just half a month, after deducting various expenses from the 64 stores, at most they can make a profit of a few million... Although this number is scary enough, it is still far from 670 million!
Upon hearing this, Yang Mo first motioned the female leader to sit down and calm down, and then said slowly: "Indeed, after deducting various expenses, Qingfeng Foods does not have that much money on its books now, but... have the leaders forgotten two things?"

Two things?
Everyone looked at each other in confusion and found that everyone was confused.

Yang Mo scraped the lid of the cup gently like an old leader, then took a sip: "First, today is just a negotiation meeting. It will take at least the middle of next month for the cooperation list to be confirmed and the subsequent projects to be officially launched;"

"Secondly, Qingfeng Foods really can't come up with the 670 million right now. If it only relies on the profits of existing franchise stores, I can tell you responsibly that by the middle of next month, it still won't be able to come up with the 670 million!"

At this point, Yang Mo smiled and looked around at everyone: "But, leaders, have you forgotten what I said before... Next month, we will officially open up franchise rights to the outside world... We can't come up with so much money just relying on the existing revenue, but if we add the franchise fee, I think it shouldn't be difficult to get 670 million?"

When everyone heard this, they were suddenly enlightened.

Yup!

How could I forget about this?

Considering how popular Momo Baizha is now, if they open up the franchise rights to the public, it wouldn't be too much to charge a franchise fee of 20,000 to 30,000 yuan per store, right?

Judging from the current environment, as long as the news gets out, there will definitely be a lot of people from the 500 faction who are begging for franchise with money in hand... Not to mention half a month, I estimate that within a week, the franchise qualifications will be snapped up.

500 companies! Oh my god, that means at least 1000 million will be deposited into the account.
Feeling a little dizzy from the long string of zeros in their heads, everyone looked at Yang Mo with complicated eyes.

A fifty-year-old old man suddenly stood up and said loudly: "Team Leader Yang, as a central enterprise, the drilling company should set an example... Although the silent bombing is a tertiary industry project of the drilling company, it also needs to pay attention to the impact!"

"Under the pretext of opening up franchise rights, you are collecting protection fees from the 670 faction that sucked the blood and sweat of the people and state-owned enterprises? I don't think this is appropriate... Let me say something that I shouldn't say. Even if you have the million in your hands, I'm afraid we won't dare to take it... The country is now vigorously rectifying private enterprises, and this money is hot!"

With a sigh of concern for the country and the people, the old man put on an earnest advice: "Team Leader Yang, I think it is better to go slow than fast. Instead of taking shortcuts in pursuit of results, it is better to take steady steps... I think that according to the previous cooperation model, we can produce by ourselves and then supply directly to your company, which is also a win-win solution... At worst, your company can send us the purchase standards, and we can hold a meeting after returning to strictly control the quality!"

As soon as this statement was made, it was echoed by many people. It was as if a group of elders were dissuading a younger generation who was about to go astray.

Seeing this, Yang Mo couldn't help but reveal a hint of sarcasm.

He knew exactly what these people were thinking.

Is this money hot?
Are you afraid of being implicated in this vigorous crackdown on private enterprises?

Oh, you know the actual situation of your company and you have no confidence in completing the order on time, with the right quality and quantity, but you don’t want to miss out on this piece of fat meat right in front of you, right? ?

Although Yang Mo was filled with deep contempt, he showed a trace of compassion on his face: "This old leader is right. As a central enterprise, we must stand upright... If it is not necessary, we are not willing to take on this responsibility!"

Everyone was stunned when they heard this.

Is it unavoidable?

what's the situation?
The old man looked at Yang Mo with a puzzled look on his face: "Is it necessary? Team Leader Yang, is there something wrong with the project? If you encounter difficulties, just tell me. We are all state-owned enterprises. With everyone's collective efforts, maybe there is a solution."

As if he didn't hear the gloating behind the old man's empty talk, Yang Mo shook his head and said, "To be honest, our management and guidance team didn't intend to move forward in a big way at the beginning... After all, the Momo Baizha and Momo Baichao projects are already on the right track. Even if we want to play it safe and open directly-operated stores, we can open 500 stores within three years... And this will be more conducive to management and solving the employment problems of the company's family members."

"but……"

At this point, Yang Mo sighed: "But our drilling company is a central enterprise after all. While enjoying various preferential treatments, we also have to bear various responsibilities and obligations... We are all state-owned enterprises, so I think you should understand, right?"

The old man nodded, his expression becoming more puzzled: "Team Leader Yang, we understand what you said, but...what happened to the project?"

Looking at the many pairs of anxious eyes in the field, Yang Mo shook his head: "In fact, there is nothing wrong with the project. Or, it is because Mo Mo Bai Zha has been so popular recently that it has attracted some unexpected attention."

Yang Mo hesitated for a while before looking around at everyone. "The country has taken action and ordered the banking systems in various provinces to start sorting out the triangular debt problems in various places. Everyone should know about this, right?"

Triangular debt?
Everyone was startled, then nodded slowly.

Triangular debts were a pain in the hearts of all state-owned enterprises in the 1970s and 1980s. The reason why many state-owned enterprises eventually went bankrupt and restructured was because of triangular debts. Last month, the country began to make up its mind to sort out the triangular debt problems in various places. How could they not know?

only,
Ideals are beautiful, but reality...

Thinking of this, everyone's heart started beating wildly, and they all stared at Yang Mo, with green light almost coming out of their eyes.

Seeing this, Yang Mo laughed inwardly, but his expression became more resolute: "Yes, I'm sure everyone has guessed it. Just half a month ago, the Bank found our company's Vice President Feng who is in charge of the relationship between workers and farmers, hoping that the company can assume the responsibilities that a central enterprise should bear and help them sort out and solve the remaining problems of triangular debts between some state-owned enterprises in Linyi area;"

He sighed softly, "As we all know, triangular debts are a long-standing problem. I'm sure all the leaders are deeply touched by the complexity of it... Let alone the drilling company, which is just a lower-level production unit, even the Dongying Command would probably shake their heads after hearing about it."

At this point, Yang Mo turned his head and shifted his gaze to Vice President Feng, who was still as thin as a clay sculpture. Then he said in an almost worshipful tone: "But when Vice President Feng heard the request of whether to deposit the money in the bank, he agreed without hesitation... To borrow a phrase from Vice President Feng..."

"We are a socialist country. The relationship between workers and peasants is the cornerstone of the cornerstone and is above all else. Helping state-owned enterprises get rid of difficulties and work together is a vital link in the relationship between workers and peasants... As an old party member, since the country needs it, no matter how arduous or difficult it is, I will do everything I can to help my brother units solve the historical legacy of triangular debts!"

After repeating the above words in the other person's tone, Yang Mo glanced at Vice President Feng, whose face was a little red, and then turned his gaze back: "Because of Vice President Feng's insistence, our business guidance team has been repeatedly deducing for a week... This is why we have today's negotiation meeting... This is why we have the innovative futures hedging model... This is why we have the franchise rights opened to the public in advance, which is not understood by everyone!"

"In short, please believe that the company risked so much to raise 670 million by opening up franchise rights to the outside world, not for selfish reasons... Whether it is the cooperation in the embedded supply chain link or the futures hedging model, it is not as simple as everyone thinks;"

"In other words, this is part of a huge plan proposed by Vice President Feng to help brother companies solve the triangular debt problem... and without sufficient start-up funds, this plan will not be implemented!"

"Of course, I'm sorry, but only the selected partners can know the follow-up content of this plan... Therefore, please forgive us for not being able to continue today... You just need to know that this 670 million was obtained by Vice President Feng against all odds and at great risk for you!"

Regardless of whether they really believed it or not, after listening to Yang Mo's moving words, everyone looked at Vice President Feng as if they had seen a savior.

Be nice!

670 million is just the beginning?
Is there a huge plan behind this?

It looks like...

Is this Vice President Feng serious about this?

………………

Being stared at by those pairs of eyes that were either eager, shocked, or admiring, Vice President Feng felt his body light.

He enjoyed the admiring gaze of thousands of people;
But what I enjoy more is the feeling of finally being able to stand in the "sunlight" openly.

………………

Unlike Vice President Feng, the other two section chiefs on the podium lowered their heads slightly, with a look of horror on their faces.

what's the situation! ?

Wasn’t it Vice President Tang who was going to challenge Wang Yinuo?

How do you see this situation...

Vice President Feng is also going to take the stage?
And...he showed up with a trump card in hand?
………………

Sensitively aware of the change in the atmosphere, Yang Mo and Zhang Wenshun glanced at each other calmly, with a hint of smile in the corners of their eyes that outsiders could not understand...

(End of this chapter)