← Rebirth 2013: Super Technology Empire

Chapter 057: An irresistible condition

 Into mid-to-late June.

 After Lu An set the general direction, he has focused his energy on technological development, focusing on improving the follow-up technology of armed humanoid robots. The military will most likely come over within the next two or three months.

 The company has completed structural adjustment and ended the chaotic management situation, and all matters are being steadily advanced one by one.

 Wednesday the 18th, around 10 a.m.

· In a small conference room at the headquarters of Yuanjie Intelligent Control Company, there are currently people in charge sent by a number of upstream supply chain manufacturers.

 Those present include MOONSHI Electric, which has been established for 18 years and manufactures motor component products for Metaverse Intelligent Control; Inovance Technology, established in 2003, manufactures linear actuators and rotary actuator components for Metaverse Intelligent Control.

At this time, the person in charge of Inovance Technology said: "Mr. Yu, new orders must come to Jianing City to build a factory?" We only need friends to build factories in Jianing City for production and supply. I know that I can understand your concerns, but it is really too much." Yu Changle is very young, just 29 years old this year, and everyone present is older than him.

  This is his first time to be the CEO of a company, but he has no stage fright at this moment and behaves quite calmly and confidently.

 The person in charge of another OEM suddenly looked embarrassed and said: "I'm afraid this may be a bit difficult..."

 Yu Changle said with a smile: "I believe that as long as the profit is high enough, you will find a way to overcome any difficulty, no matter how big it is."

As soon as these words came out, all the OEMs present became interested.

  The person in charge of negotiations sent by MOONS Electric immediately said: "How do you say this?"

  Yu Changle said methodically: "As long as you are willing to come to Jianing to build a factory and supply goods, you can accept our order and the unit price profit margin will be increased from the original 8.75%. I will directly double the profit margin for you, which is 17.5%, and sign a 5-year long-term supply contract, with an annual OEM order volume of no less than 2 million robotic arms. "

This decision was not made by Yu Changle himself, but directly by Lu An.

· Metaverse Intelligent Control’s products have extremely high profit margins. A bionic prosthesis priced at 20,000 yuan in China has a profit margin of 70%. Even if the OEM profit margin is doubled for supply chain manufacturers, Metaverse Intelligent Control can still maintain high profit margins.

 This is the profit rate based on domestic sales alone, and the profit rate for products sold in overseas markets is even more exaggerated.

  A robotic arm priced at 20,000 yuan domestically is the exact same product and has the same functions. The export price has soared to 250,000 yuan, and the profit margin has soared 20 times.

 Including profits from overseas sales, Metaverse Intelligent Control's total profit margin is not 70%, but a profit rate of over 340%.

 Yu Changle's words shocked everyone, and he then added: "In addition, the account settlement period will be shortened from the original 60 days to 45 days for you."

 Everyone present was shocked when they heard this.

 This is definitely an offer that is hard to refuse, it is too attractive.

Metaverse Intelligent Control’s OEM profits were far higher than those of other companies before. Now they have doubled the OEM profit margin to 17.5%. Currently, there is really no other company that can be so generous.

For example, Apple’s profit margin for many supply chain companies is only 3 reaching 10%, the rest are below 10%, and most are below 5%.

 The person in charge of Inovance Company said without hesitation on the spot: "Mr. Yu, when will we sign the contract?"

 Other OEMs were stunned for a moment, but they all responded quickly and said without hesitation that they would sign the contract today.

  Don't delay, if word of this spreads, other colleagues will definitely come after hearing the news.

 There are many domestic manufacturing companies that can do OEM work. Every OEM manufacturer present can be replaced, and they know this very well.

  The original foundry profit was not low, so it was doubled on this basis.

Let other companies know that there are definitely manufacturers who are willing to take the initiative to lower their profit margins to 15% or even 12% to obtain orders and contracts.

 These OEMs present were afraid that Metaverse Intelligent Control would regret it, so they all proposed without hesitation and urgency to sign the contract today.

  They are not worried that Yuanjie Intelligent Control has been established too soon, because they already know that this company has obtained a huge loan of 30 billion from Shunli Bank, and Jianing City has provided a guarantee.

  It is impossible for ordinary start-up companies to do this, and conversely, this company is anything but ordinary.

 The next thing will be smoother and simpler.

 Yuanjie Intelligent Control gave them a price they couldn't refuse, and naturally they couldn't refuse the conditions.

  I am afraid that I will lose the order if I cannot meet the requirements of Party A’s father.

 Yuanjie Intelligent Control is willing to give money, but its requirements are also strict. For the upstream supply chain companies that come to set up factories in Jianing City, they have put forward strict compliance standards, supply chain control capabilities, technology adaptability, and cost control capabilities.

  Coveres labor rights, environmental responsibility, production transparency, rapid response mechanism, etc.

 These are all written into the new contract. If there is a breach of contract, huge liquidated damages will be paid.

Metaverse Intelligent Control requires suppliers not to use dispatched labor, but to recruit workers directly from the factory. Forced labor, child labor and discrimination are prohibited, and workers are ensured to be employed voluntarily and must not violate labor laws.

 Suppliers must comply with Metaverse Intelligent Control's high environmental standards, including hazardous substance control, waste disposal, etc.

 It is necessary to establish an emergency plan, an occupational safety protection system, and equip fire-fighting facilities and medical support.

Suppliers need to open the "white box" model and disclose the entire process information of components. Metaverse uses a factory-based team to supervise the elements of "people, machines, materials, laws and environment", uses standardized templates to manage data, and compulsorily certifies EHS factory standards.

Require suppliers to have emergency delivery capabilities and adapt to Metaverse Intelligent Control’s strategy, such as reserving 30% of flexible production capacity.

 In fact, most of the requirements put forward by Metaverse Intelligent Control are not outrageous, but are very normal regulations. For example, the labor law must not be violated, which should be the minimum requirement.

 It can only be said that it is only through the support of other companies that Yuanjie Intelligent Control has strict requirements and high standards.

 …

  The heads of the upstream supply chain companies read the agreement and contract drawn up by Metaverse Intelligent Control, and they signed the contract more eagerly than Metaverse Intelligent Control.

   I didn’t want to delay, so I called the headquarters one after another.

 The call from the headquarters had the same meaning, asking for the contract to be signed as soon as possible to avoid other colleagues finding out and coming to intercept.

When they saw some of the requirements of the contract agreement drawn up by Metaverse, the suppliers present were also quite surprised. They thought it was a bit too strict, but the profits offered by Metaverse were generous enough.

  So, there is nothing to say.

  Party A’s father has received the money, and he doesn’t have much objection to it.

· Yuanjie Intelligent Control is willing to offer such huge profits so that major supply chain companies have no bargaining power. If you have any objections, I will directly change suppliers. You are not irreplaceable, so you are not eligible for a premium here.