Du Yuzhou: Three Factors Affect Supply Chain

From July 22 to 23, the Fourth Global Textile and Clothing Supply Chain Conference was held in Keqiao. Du Yuzhou, president of the China Textile Industry Association, delivered a speech on the contents of the supply chain.

Supply chain is a historical category. Since there was a commodity economy, there has been a supply chain, which is an inevitable way of socialized production. Production and consumption, consumer choice and production, the right to speak is in the hands of consumers, which constitutes a choice from the downstream to the upstream - that is, the supplier is selected as the object, and the production is constantly changing due to changes in consumer demand. Conversely, production also chooses consumption, the so-called production, the so-called market segmentation, the so-called market segmentation principle to create, which constitutes the choice from the upstream to the downstream - that is, the supplier as the subject of choice, the right to speak, often performance Develop innovations for producers, create new consumption, create new consumption objects and consumption patterns, and belong to the guide consumption. This choice is dominated by suppliers, producers, and this is often expressed in terms of price.

Production creates the object of consumption and consumption, while consumption creates the intrinsic object of production. Production, distribution, exchange, and consumption are continuous cycles. This industry chain is alternating positively and negatively and cyclically to create historical conditions. The so-called supply chain is a historical category. The so-called buyers, retailers, service providers, are not isolated, not a kind of business people we often say. He has both the right to choose and the risk of being selected. Therefore, the supply chain is not an oriented chain, but a two-way, interactive chain. There are many external factors that affect the composition of the supply chain. There are three things that cannot be ignored.

Technological progress is the basic technology that constitutes the supply chain. It is the way people live. The technological revolution not only changes the mode of production, but also changes the way of consumption. Therefore, it can be said that technology constantly changes the way people live. The concept of the space and time for people to survive changes with the technological revolution. The creation of labor data not only reflects the measurement of the development of human labor, but he is also the knowledge of the social relations of human labor. Under modern technology conditions, the supply chain can be extended to the world, and can also be shortened to consumers to complete their own. Therefore, technological advancements form the basis of modern supply chains.

An important factor in enhancing the comparative advantage of the supply chain in the context of globalization is the globalization factor. Globalization has transformed the earth into a "global village," and information networks have become a contemporary way of life and a major feature of the times. The globalization of production and the globalization of consumption have made multicultural symbiosis, and a multicultural production chain can be adapted to the needs of different regions. Globalization has created a variety of options for the creation of supply chains. It also represents multiple risks. This is the biggest case of modern economic and social risks, but it is also the most favorable condition for overcoming risks.

It is precisely at this historical stage that China's textile industry undertakes the transfer of global textiles and continues to realize its own advantages. We are from the processing trade to OEM, ODM, to the brand's own brand competition. Opportunity costs are not static and comparative advantages are not static. As the standard of living improves, our comparison sometimes fades out. This concept has now affected many of our departments in the exercise of economic policies. In fact, in the economy of US$40,000 per person, the US$3 economy, printing, dyeing, textile and apparel still create high added value.

As the largest textile producing country, some high-grade fabrics also need to be imported from developed countries. At the international exhibition, a large number of fabric manufacturers from Japan, Italy, France, Spain, and the United States participated. We are very interested in the fact that at the height of the financial crisis, the manufacturers from developed countries—the century-old family companies—have experienced two world wars and two of the world’s biggest financial crises, and their survival status is very good. This is because of their comparative advantage strategy: They use advanced technology and their high creativity, resulting in an increase in comparative advantage. Therefore, in the era of globalization, in the era of technological advancement and technological revolution, our chance lies in the improvement of comparative advantages rather than in the processing of simple labor.

The core substance of mastering the cultural factors constitutes the third external factor in the supply chain is culture. In the era of the new technological revolution and globalization, the development of culture is clearly and constantly changing. And this cultural change has a direct impact on the composition of supply chains and the management of supply chains. The essence of culture is the value system of people’s ideas in different times. People’s new expectation for a better life is not just a material enjoyment but a follow-up to values. This kind of values ​​is more about sustainability. The so-called sustainability is first reflected in the harmonious coexistence between man and nature. People belong to nature and nature also belongs to people. The so-called idea of ​​return is actually a reflection of man's relationship with nature. This brings us to the principle that our cleanliness and safety become a link in the supply chain. Protecting the ecology and returning to nature have become a cultural value of modern people. The second sustainable performance, from the natural ecology to the ecology of the industry. People pay more attention to the sustainability of the industrial structure. This is a road of new industrialization with Chinese characteristics proposed by our “Twelfth Five-Year Plan”. In order to adapt to new changes in the market and progress in science and technology, we must adapt to people’s new expectations for a better life, and adapt to the new position in international competition. We should regard changing the mode of development as the main line. To achieve structural optimization, advanced technology, clean and safe, high added value, and strong employability, such a new road to industrialization. This is both the development path of our industry and the value of our current culture. Then, social responsibility has become an important condition for the sustainable development of the industry. Therefore, the brand culture has changed from the pursuit of maximizing the profit of the enterprise to the creation of the brand value of “four qualities” of “quality”, “innovation”, “rapid response” and “social responsibility”.

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