Harsh Environmental Policy, How Importers Choose Suppliers?
Today, China is vigorously promoting the implementation of the most stringent environmental protection policy in history. Most of the small and medium-sized factories that do not meet the standards are facing closure or merger, the increase in industry concentration and shortage of raw materials, which directly affect the price of paper products in the market, and the trend of increasing paper costs has begun. After the price rise crisis, there may be a shortage notice shortly. With such a big industry reform, importers are also facing the same dilemma. It is not necessary to carry out paper mill audit on cooperating Chinese paper suppliers. Of course, the answer is needed!
At present, the current situation of the industry is that all small and medium-sized manufacturers are in a precarious position. Although some small and medium-sized manufacturers can persist under such pressure, there are often uncertainties and intangible risks, such as stock instability caused by shortage of supply and untimely delivery. In order to further grasp the current situation of these Chinese manufacturers, most international paper importers employ a third-party inspection agency to conduct a new round of paper mill audit , for purpose of finding problems early and response in time to avoid losses as much as possible.
At the same time, we know that because the increase of industry concentration will cause different suppliers in China to choose the same manufacturer, how can importers choose suppliers with higher prices in China under such circumstances, or can they directly find suitable factories to avoid suppliers from arbitrarily raising their selling prices? This is another problem to be faced. In addition, a few factories may produce substandard products in order to reduce costs, use inferior raw materials, hire low-quality non-professional staff and cut corners. Therefore, when the two sides of the trade cooperate, they can hire an outsourced third party to inspect, carry out paper mill audit, supervise and audit the factory, and avoid cheating and losses.
China’s environmental protection policy not only has such a huge impact on the domestic paper industry itself, but these small and medium-sized paper mills must have a sound recycling system, combine the method of recycling raw materials, minimize costs and maintain the demand downstream, so as to survive while complying with the new environmental protection policy.
For international importers, the same is true. In addition to the corresponding increase in costs, both sides of the trade need to take first aid measures to prevent their own supply chains from breaking, including the timely implementation of a new paper mill audit. Time has also become an important cost facts. You can check CQI’s quick factory audit .
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