Chapter 412: Learning in War

Han Songlin's gaze turned to Xu Lu, and his meaning was very clear; if they really wanted to build a whole industry chain for the food industry, from production, processing to sales, he hoped that Xu Lu could take up the responsibility.

There were really not many people he could use.

Xu Lu is an old hand who has been with Han Songlin since Yanghe, and has grown up with him along the way, and has always been trusted by him.

Xu Lu lightly raised an eyebrow. She was quite interested in this whole industry chain that Han Songlin was talking about!

But now, there is a problem!

"Boss, the whole industry chain system does sound very good. For us, it can minimise costs and maximise profits. But state-owned enterprises have also tried to be all-encompassing before, and the facts have proven that there are quite a few problems with this approach!'

Xu Lu almost said that the practice of state-owned enterprises in this regard had ended in failure.

Han Songlin's previous impression of state-owned enterprises was that they were constantly being reformed and strengthened.

State-owned enterprises have been struggling in the competitive market environment for more than 20 years, and they are no longer the defenceless enterprises they were back then.

Most state-owned enterprises in the 1990s were in a precarious situation.

Many enterprises were restructuring or even being sold directly.

'The all-encompassing nature of state-owned enterprises is not the same as the whole industry chain we want to develop!'

Han Songlin: 'The whole industry chain we want to develop is a whole industry chain with multiple enterprises collaborating. We don't necessarily have to do everything ourselves, but we must be able to control the process.'

'For example, let's grow grain. We can cooperate with farmers. We provide low-cost seeds, fertilizers and agricultural machinery and equipment to the farmers, and the farmers sell the grain they grow directly to us.'

Fule Wine Industry is qualified to purchase grain!

In the next ten years, the rural population will be massively drawn into the cities.

The reduction in the rural workforce will instead promote the development of agricultural mechanisation!

In terms of agricultural production, individual production is carried out on a household basis. Due to the lack of labour, the mode of production is beginning to shift from individual households to joint labour by several families.

In the 1990s, in order to improve agricultural efficiency, villages had already begun to swap work with each other.

Today, they work together on your farm, tomorrow they work together on my farm, and the day after tomorrow they work together on his farm.

Before Fuxing Industrial, Han Songlin remembers developing a small combine harvester.

'I think this model of enterprise plus farmer is quite good, allowing farmers to grow according to our requirements; we can offer farmers a higher price for their produce.'

By reducing the number of middlemen, the company can pass on the middlemen's profits to the farmers.

For the farmers, being able to earn hundreds or even thousands of dollars more a year is definitely a very good thing.

And cooperating with the company can actually reduce the risk for farmers in planting.

Many farmers, seeing that someone made money growing taro this year, will grow taro themselves next year; but next year the price of taro plummets, and they can't even sell it.

What happens then?

A large amount of taro is piled up at home, and even the pigs won't eat it. Well, do they still feed pigs in the countryside?

Everyone knows that low grain prices hurt farmers.

But high prices are also not good for farmers. It's good to maintain a long-term price stability.

'In addition, the biggest difference between us and state-owned enterprises is in management.'

Any failure can actually be attributed to management.

If it's attributed to management, it's actually, to a large extent, a failure of people.

The wrong people were chosen.

'In fact, what we are doing in Jiangzhong now actually has a very whole industry chain meaning! The ultimate goal of developing a whole industry chain is to enable the entire production and sales system to maintain stable, long-term and efficient operation. External problems will not affect the operation of the entire system.'

'We now directly source many parts and components locally in Jiangzhong. This is not only because local sourcing can reduce procurement costs, but also to support our own industry chain system.'

'In the next ten years, we want to achieve nationalisation of manufacturing. We want to establish an entire industrial chain system, so that even if we have to do without foreign parts, we can still keep our entire production system running.'

Han Songlin must have this sense of urgency, because the future has proven that for advanced technology companies in China, foreign countries will use every means possible to suppress them.

For example, cutting off supplies!

In particular, if your company is involved in someone else's core area, then all kinds of methods, both expected and unexpected, will be used to deal with you.

The Xinghai Group will inevitably enter the core areas of industry in the future, such as ultra-high precision machine tools, and it can also try its hand at chip manufacturing.

The chip sector is really too expensive, and there is no way to get involved in it yet.

But it's not like there aren't opportunities.

'Everyone here is family, and I'll be honest: imperialism will never give up on destroying us.'

'The reason I want to get involved in the entire food industry chain is because if we don't, the market will be taken over by foreign companies. Just think about it: in the future, we'll be eating things that foreign companies sell to us. Are you worried about that?'

Foreign grain and oil companies are producing genetically modified soybean oil and other products in China.

Genetically modified foods are a future trend, but they cannot be produced by foreign companies, nor by irresponsible companies.

Because the genetically modified foods they produce cannot guarantee absolute safety.

Not even relative safety.

For capitalists, making a profit is always the top priority.

Anything that conflicts with making a profit should be eliminated.

'Therefore, this whole food industry chain must be developed! President Xu, you are in charge of this matter. In the future, a food industry group will be established with Fule Wines as the mainstay.'

Fule Wines funded the acquisition of companies such as Tianyuan Muge and Hanshi Foods.

Hansonglin: 'Yao Ting, you can rest assured that you will be able to develop Fumanduo Nanfang Company in the future. You can focus on developing the logistics park, summarise the development experience, and promote it nationwide. I have great expectations for the development of the logistics park.'

Yao Ting was a little happy to hear this, as she had finally been relieved of a burden!

'Boss, there's one more thing!'

'If it's important, just say it!'

'I want to set up the headquarters of Fumanduo Southern Company in Shengcheng!'

Set up the headquarters in Shengcheng?

Han Songlin was a little puzzled: 'Why?'

'Because the Shengcheng market is so important to us at Fumanduo. We must capture the Shengcheng market.'

'What about Yangcheng and Shenchuan?'

Yao Ting: 'We have already set up flagship stores in Yangcheng and Shenchuan.'

'There is another reason why we want to set up the supermarket headquarters in Shanghai: we want to face off against foreign supermarket groups. We will learn from this war.'

Learn from this war?

Han Songlin looked at Yao Ting in surprise. This really wasn't something a girl would say.

Han Songlin looked at Yao Ting carefully, and the innocence had completely faded from her.

A powerful woman's fierceness had already blended perfectly into her without her realising it.

Han Songlin pondered for a moment: 'It is true that foreign supermarkets have been around for a lot longer than ours, but they are not that advanced compared to us!'

The Fumando supermarket chain had developed very smoothly in China.

Among these, some of the systems that Han Songlin participated in formulating have played a significant role.

After all, Han Songlin has been to supermarkets, both domestic and foreign, countless times.

'As long as we remain customer-centric and constantly improve our services, those foreign supermarkets simply will not be our match!'