The Super Rich: Start from when the family business is about to go bankrupt!

Chapter 405 NotFound 404: Full-link self-operated supply chain? More willing to support the direct line! Another idiot?

After An Wuyang instructed Tang Wenshu to increase the price of finished white peony by another 10%, he hung up the phone.

Tang Wenshu simply lacks the ability to make subjective decisions, or perhaps Tang Wenshu has a more smooth personality and is unwilling to take responsibility for such a key decision.

After An Wuyang made the decision, there was no problem handing it over to Tang Wenshu to handle.

When the little foreigner saw An Wuyang hang up the phone, she asked curiously, "Are you going to reduce the production of Shuxin Pills?"

An Wuyang did not avoid the little foreigner when he was communicating with Tang Wenshu.

In addition, the foreign girl Xia speaks Chinese very well. Although her accent is not very standard sometimes, she may be better than many other Chinese people in terms of word choice and sentence structure.

An Wuyang naturally would not hide it from the little foreigner. He answered affirmatively, "There was a small accident in the raw material supply chain of Shuxin Pills. The quality of the latest batch of Shuxin Pills is not good. We, Wugengtian, and the pharmaceutical factory that outsources to us, are conducting self-inspections."

"It is estimated that the production of the next batch of Shuxin Pills will be greatly reduced." An Wuyang explained.

The little foreigner was puzzled, "Is someone cheating?"

The little foreigner also understands the situation of this feature!

An Wuyang shook his head. "This time, our corporate standards at Wugengtian were much higher than the mandatory standards, which led to this misunderstanding."

The "Xia Guo Pharmacopoeia" stipulates that the sulfur dioxide residue in white peony should not exceed 400 mg per kilogram.

However, for the raw materials of Shuxin Pills, the standard set by Wugengtian Pharmaceutical Group is that the residual sulfur dioxide content should not exceed 5 mg per kilogram.

Such standards are far higher than the mandatory standards!
According to the standards of Wugengtian Pharmaceutical Group, most suppliers' white peony root are substandard.

Of course there are qualified ones!
The quality of white peony on the market is actually uneven, some are good and some are bad.

In general, the white peony processed by new factories is generally of higher quality. After all, new factories are more likely to use new technologies such as microwave drying and air flow drying.

After Anna heard this, she asked worriedly, "Will this situation affect your subsequent production at Wugengtian?"

An Wuyang shook his head again, "In the short term, it will definitely have a certain impact on us, but in the long run, the impact on us will be minimal."

"I have already thought of the corresponding solution." An Wuyang added.

"Mr. An is amazing!" the little foreigner said in admiration.

"So what is Mr. An's solution?" the young foreigner asked curiously.

An Wuyang responded, "Two solutions!"

"The first one is what I just said on the phone, further increasing the purchase price." An Wuyang explained.

"We do have higher quality requirements for white peony. Currently, only a few processing companies on the market can meet our standards," An Wuyang recounted.

"Once we further increase the purchase price, those processing companies will naturally improve their production processes or update their equipment in order to get our orders, so as to process white peony that meets our requirements," An Wuyang explained.

The solution is: lure them with benefits!
For example, a certain overseas mobile phone company, although they have very high requirements on the quality of accessories, the prices they offer are profitable, so a large number of mobile phone accessories manufacturers want to supply them.

"The second solution is for us to personally support midstream and upstream suppliers. This includes making certain investments in the upstream peony farmers and midstream peony processing companies," An Wuyang explained.

"For example, we can support peony processing companies to update their production equipment and provide them with low-interest loans, or provide corporate loans, which will then be repaid by the other party's processing business, etc." An Wuyang added.

"In this way, we can even support Wu Gengtian's direct lineage and thus ensure our supply of white peony." An Wuyang concluded.

Anna asked in confusion, "Why don't you Wugengtian set up your own peony processing company?"

"This should be a better choice, right?" Anna expressed her incomprehension.

"If you build your own peony processing enterprise in Wugengtian, you can not only make more money, but also control the standards yourself." Anna expressed her opinion.

An Wuyang did not refute Anna's opinion, and even agreed, saying, "You are right."

"So why don't you do this?" Anna asked curiously.

"Do you make money selling Shuxin Pills?" An Wuyang asked back.

Anna nodded without hesitation, "Very profitable!"

"You guys give us the factory price of $60 at Wugengtian, and we take it back and sell it for more than $200, so it's very profitable." Anna explained in detail.

An Wuyang smiled and said, "If we go to Beixiong Country to sell Shuxin Pills in person at 150: AM, and sell them at a price of US dollars, do you think we can sell them?"

"Of course you can sell it!" Anna responded.

"Then why don't we go at five o'clock in the morning?" An Wuyang asked again.

"Your Beixiong country has several large pharmaceutical companies. If we bypass their channels and sell medicines in Beixiong country, we will become their competitors." An Wuyang added.

Anna suddenly realized!

An Wuyang added another hypothesis, "If we at Wugengtian are in trouble now and need your CLC Group's help, will your CLC Group help?"

Anna affirmed, "Of course!"

"After all, our CLC Group still wants to rely on you to continue making money at Wugengtian." Anna added.

Previously, Wu Gengtian asked CLC Group to help test experiments related to vitality recovery factors. Even though such tests obviously had some risks, did CLC Group refuse?

"The situation is the same now." An Wuyang responded.

"We can indeed intervene in the mid- and upper-stream industrial chains, and even form a self-operated supply chain from top to bottom, but such a situation is actually not a good thing for us at Wugengtian," An Wuyang added.

Perhaps some companies need to build a full-link self-operated supply chain, such as a chain milk tea brand, or a large chain fruit brand, etc.

After forming a full-link self-operated supply chain [origin, transportation, processing, and sales], they will have the ability to control costs at a lower level and thus combat market risks.

But Wugengtian is different from them!
They need to establish a full-link self-operated supply chain to control costs because their profits are too low.

The profits from Wugengtian can be very high.

If, when the profits are very high, you still want to operate a full-link self-operated supply chain, thereby swallowing up the profits from the middle and upper reaches, isn't that too greedy?
An Wuyang would rather give up part of the profits in the middle and upper reaches, or even take out some low-interest loans to support the supply chain system, so as to establish the direct line of Wugengtian Pharmaceutical Group, rather than taking all the profits into the arms of Wugengtian.

There is no end to making money!

Especially when it is not the home court, if you make too much money, how can the locals be happy?

Suppose a situation where Wu Gengtian established a super-large peony garden somewhere in Nanhe and set up a supporting processing enterprise, even if Wu Gengtian was willing to hire local planting workers.

But isn’t more of the profit taken away by Wugengtian?
Will the local bosses be happy?
Although Wu Gengtian can suppress these local bullies, some costs will be hidden like a compressed spring.

As the saying goes: A thousand-mile long dam can be breached by a single ant hole!
If Wugengtian is like Taotie, trying to monopolize all the benefits and forcefully suppressing problems when encountering them, then one day he will suffer a complete backlash.

Look at Lao Xu?

When you were in your glory days, what problems couldn't be suppressed?

But when things are bad, any small problem will be magnified countless times. Sharing interests, binding common interest groups, and forming interest alliances are the usual methods used by An Wuyang after he took control of Wugengtian!
With the help of this trick, Wu Gengtian's actual status improved very quickly.

As for the loss of some profits.
Is it possible that these so-called 'lost profits' should not actually be taken?
Some people just don’t understand an old saying: You have life to make money, but you don’t have life to spend it!
"It seems that we can't participate in the white peony processing industry." Anna said with a sigh.

"Are you interested too?" An Wuyang asked back.

Anna nodded, "We did think about investing in Xia Country and participating in your Wugengtian industry chain."

An Wuyang refused and said, "The corresponding industrial chain will basically only be shared with two types of partners."

An Wuyang did not wait for Anna to ask, and continued to explain, "The first type of partners are local relevant personnel, including peony farmers, local herbal medicine processing companies, etc."

"If this type of partner passes Wugengtian's inspection, we will most likely provide certain funds and procurement contracts to support their growth." An Wuyang explained.

"The second type of partners are those with strong resource attributes. For example, the other party has very strong decision-making capabilities in Nanhe Province, or provides strong support to Wugengtian." An Wuyang did not say it directly, but he felt that the foreigner could understand it.

This type of collaborator, for example, Zhan Chunfeng?

He is Gu Mingyue's cousin, has a very strong family background, and is only involved in the peony processing link, thus becoming a supplier of Wu Gengtian.

Thinking of Zhan Chunfeng, An Wuyang prepared to ask about Zhan Chunfeng's progress.

Isn’t this guy going to join the peony processing link?
"I'll make another call." An Wuyang said to the young foreigner, and then contacted Zhan Chunfeng.

In less than fifteen seconds, Zhan Chunfeng answered the phone and greeted him attentively, "Brother Wuyang, good afternoon!"

"Good afternoon." An Wuyang responded.

"Didn't you say you wanted to start a business? How's your white peony processing factory going?" An Wuyang asked.

Zhan Chunfeng hesitated slightly. An Wuyang still cares about such a small matter?
"It's being processed." Zhan Chunfeng responded.

"How far have you gone?" An Wuyang asked again.

"Well, we're still looking for a place to build a factory." Zhan Chunfeng was a little embarrassed.

"."An Wuyang was speechless.

After all this time it still hasn’t started?
You’ve just started sharpening your pencils for a 2,000-word essay, right?

Isn’t this Zhan Chunfeng too unreliable?

"Why do you want to build your own factory?" An Wuyang asked.

"My suggestion is to directly acquire a white peony processing company." An Wuyang made the proposal.

"You need to get this done as soon as possible." An Wuyang reminded.

Zhan Chunfeng responded, "Okay, I'll take care of it myself right away."

"I'll send you a contact number. The other party is the vice president of our Wugengtian. You can exchange information about white peony with him. We at Wugengtian have raised the purchase price of white peony." An Wuyang reminded.

"The sooner you join, the sooner you can make money." An Wuyang added.

"I understand. Thank you Brother Wuyang for the reminder." Zhan Chunfeng responded.

"That's it, I'm hanging up first!" An Wuyang said, and hung up the phone.

Zhan Chunfeng immediately contacted Gu Mingyue. After waiting for the call to be connected, he quickly explained the communication with An Wuyang, and then added, "Cousin, what should I do about this?"

"Didn't he tell you what to do?" Gu Mingyue complained.

"But I don't know where to buy the peony processing factory." Zhan Chunfeng responded.

"."Gu Mingyue was a little speechless. She really wanted Zhan Chunfeng to go back and live off his parents instead of coming out to hurt others.

But Zhan Chunfeng was her cousin after all, so she could only respond patiently, "You need to learn how to be safe and sound in this matter!"

"What do you mean?" Zhan Chunfeng asked.

"You" Gu Mingyue is going crazy!

"If you don't understand these professional matters, just find a professional partner, share some of the profits with him, and let him be responsible for the operation. Do you understand?" Gu Mingyue explained in detail.

"Oh oh!" Zhan Chunfeng responded.

"How much of the profits should I give out?" Zhan Chunfeng asked.

Gu Mingyue gritted her teeth. If her mother wasn’t Zhan Chunfeng’s aunt, she would have hung up the phone!

"I will take care of this matter. You just need to prepare the money. How much start-up capital do you have?" Gu Mingyue asked again.

"I have 20 million." Zhan Chunfeng responded.

"."Gu Mingyue felt numb.

"I'll go to your house for dinner tonight. You can tell your parents, and then we can discuss this matter." Gu Mingyue said gritting her teeth.

You really have to feed the food into your mouth, right?

"Okay, cousin, I'll go back and tell you what you want to eat tonight?" Zhan Chunfeng asked.

Gu Mingyue sighed silently. This cousin at least had a kind heart. Wasn't that a little comforting?

……

In Shanghai, inside the big private room of Peijie Hotpot Restaurant.

The foreigner fluently used chopsticks to pick up the goose intestines and blanched them in the boiling hot pot, then put them into the safe seasoning bowl.

An Wuyang had just hung up the phone, and he picked up the goose intestines and started eating without hesitation.

After An Wuyang finished eating the goose intestines, the foreigner handed him another napkin and asked, "How many Shuxin pills can be produced in the third batch?"

An Wuyang responded negatively, "There is no specific data."

"According to the data feedback from the two OEM pharmaceutical factories, the qualified rate of white peony root is less than 50 percent," An Wuyang added.

In fact, the initial inspection pass rate of Jingxing Pharmaceutical was only 45%, and the situation was even worse for Fair Balance, with an initial inspection pass rate of less than 30%.

In addition, although An Wuyang has instructed Tang Wenshu to purchase white peony root that meets the corporate standards of Wugengtian Pharmaceutical Group at a 10% premium, it is still unknown how much he can actually purchase.

Therefore, An Wuyang had no idea about the specific production volume of the third batch of Shuxin Pills.

But he was sure of one thing, the total output of the third batch of Shuxin Pills would definitely be lower than the 800 million bottles of the first batch and the 960 million bottles of the second batch.

Perhaps the final output may even be cut to the lowest level?
(End of this chapter)