chapter 15
15 episodes
Andrew was so absurd he was about to get angry.
“refuse?”
150,000 units per month as guaranteed quantity on a one-year contract.
It was quite a big proposal, thanks to Ceron for filling the crisis, and pushing all of the increased volume thanks to advertisements in Europe to Ceron.
In addition, after acknowledging Ceron’s ability and signing the contract, I was planning to use Ceron as much as possible to produce the quantity separately from the guaranteed quantity.
“This is the first time this has happened since I lived and lived.”
The manufacturer is always B.
A thorough B, which accepts the quantity given by A and makes it.
In particular, in the case of footwear, it is not an industry that requires special technology, but because the competitiveness of manufacturers is almost the same.
An executive said with an angry expression.
“This is like mocking us! Besides, didn’t you openly proclaim it! I’m going to send suggestions to other manufacturers too! Should we at all be dragged into this small business?”
Several executives who sympathized with that statement also burst out in anger.
“After all, it’s a subcontractor who makes our products or substitutes, and you’re such an asshole….”
“Let’s just ignore it! To be honest, there was a surplus, but that’s not a huge amount!”
An executive, who was quietly silent at that time, said:
“you’re right. Considering the overall size of our Rocco, it’s not a huge amount. “The profit we made last month from selling 300,000 units at Ceron is about $500,000.”
About 600 million won in Korean won per month.
It was true that it was not a huge amount for Rocco, who had over 600 billion won in sales a year.
The dissenting executive nodded and said.
“you’re right. It’s a pity, but it’s bearable enough…”
Then another executive cut off the conversation and said:
“But think about it the other way around. Seron created 300,000 foot in 10 days using only the spare skeleton. That means 900,000 people in a month. So, if we get 900,000 sets from Ceron every month, arithmetic, that’s $1.5 million a month in savings, or $18 million a year. Do you think it will be less than this? Isn’t that the millions of dollars that inventory management can save you?”
At the very least, Rocco can save more than 20 billion won in a year due to Ceron.
“And what if a representative adds more skeletons or mobilizes all other skeletons in the factory to deliver all the 2 million pieces we need? That amount is over $40 million. Let me be honest. Do you remember what our operating profit was last year?”
Although Rocco boasts sales of 600 billion won, the reality of Rocco is that it is reinvesting in marketing more than the money it earns as a growing maker, and it is making a loss every year.
“Well, that’s….”
“We have been running deficits of over $10 million each year to grow so far. However, if you sign a contract with Ceron, you can turn this $10 million deficit into a surplus. You really don’t know what this means? It goes without saying that more aggressive marketing is possible with spare funds, and the stock price rises due to the surplus and the recruitment of investors. The benefits we can gain from trading with Ceron are endless.”
The executive looked at Andrew and said.
“CEO, in the first place, why is all our production plants located in Southeast Asia and China? It is because even that labor cost must be saved in order to survive in this fierce competition. However, it is too inefficient to lose opportunities to dramatically reduce labor costs and increase financial stability because of pride.”
Then an executive of the opposite opinion, who seemed to be pushed back, said:
“That doesn’t mean I can’t accept the terms of the contract! Then there is the issue of equity with the factory that we have contracted with, and once such precedent is established, it will affect other contracts in the future! I am against it!”
Executives who are divided into two opinions: those who want to take care of their self-esteem and those who need a seron when considering efficiency.
Andrew, who had listened to the debates of such executives with his eyes closed, said.
“…let’s get to this point today.”
Andrew could understand both views.
I’m honestly angry.
You took care of me, but I came back like this.
However, the existence of Seron, who can maximize the company’s profits as a representative who has no choice but to pay attention to shareholders and investors, is too attractive to give up because it hurts one’s pride.
“Anyway, the coup d’etat is over and things are back to normal, so it seems to be the right thing to deal with while watching the situation. We will put it on hold for now.”
That’s why, in the end, Andrew chose a temporary hold.
But it didn’t take long for that choice to waver.
*
“Please specify in the contract to increase production of the DP-10 model.”
Andrew said, holding back his anger.
“Didn’t I say it was too early?”
The DP-10, which caused a boom by word of mouth in Europe.
Last month, Ceron immediately increased production without saying a word, filling the shortage in an instant, but as soon as Ceron runs out, it starts to creak.
When the quantity produced by Ceron was exhausted, additional production was required, but the factory that requested the production said that the added production should be included in the contract for the reason of the line extension.
Of course, the position is understandable.
If you increase the line and the boom cools down and the production decreases, the line will be played as it is.
But it was the same for Rocco.
Even Rocco himself doesn’t know how long this boom will last, but he can write it down on the contract as he pleases, and when the boom cools down, he’ll have to spend all of it.
In other words, Rocco and the production company were putting off the burden of overproduction.
Andrew said with anger.
“The delivery price is so expensive, what kind of person makes so many demands?!”
There are many things that are more expensive than Seron.
“If it were Seron, I would have already started working on it… Damn it!”
After suspending the contract with Ceron, I keep comparing Ceron with other manufacturers.
Of course, Andrew knows.
That the manufacturer is normal and Ceron is abnormal.
Because tug-of-war with the manufacturer was something he had always done.
However, once I taste the convenience, I can’t seem to get enough of other manufacturers.
Before working with Seron, everything that I thought should have been done was unreasonable.
Then another officer rushed in and said,
“CEO! They say that something in the Junker factory in China is defective and needs to be remanufactured!”
The Junker plant is one of the Chinese factories that have an OEM contract with Rocco.
“reproduction!?”
“It is fortunate that the quantity is not large, but the delivery date will be delayed instead.”
Of course, this is all stated in the contract.
Reproduction or improvement of defects due to defects is carried out by B free of charge.
Therefore, there is no financial loss for Rocco.
The problem is the amount of inventory that will become scarce while the delivery is delayed.
Andrew said, biting his lip.
“Fuck.”
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Most of the items written in the contract are about what Eul should handle in the event of an accident.
But the best thing from a maker’s point of view is that accidents don’t happen.
If this is the case, wouldn’t it be better to just ask Ceron to print like a machine instead of buying it?
The thought that it would be more stable to just accept Seron’s request and sign a contract keeps lingering in Andrew’s mind.
“Seron……….”
The existing relationship between a manufacturer and a maker is that of the employee and the president.
If an employee does what the boss tells them to do, the boss pays the employee money.
Then, if an employee has an accident, they will be disciplined.
That’s why Andrew and some executives were angry.
From their point of view, they liked an intern with good skills, so they offered a full-time job, but they wrote an employment contract on their own terms, and they were fooling around saying that they shouldn’t do this.
But thinking differently, the contract requested by Seron is a kind of transaction.
“deal. It’s just a transaction where you pay money and get things.”
rather neat.
There is no need to tug-of-war about the production volume and the line, and when Rocco orders, Ceron just makes it.
Isn’t it simple?
Andrew said to the reporting officer.
“What is Seron doing?”
“Uh… they say they are making suggestions to manufacturers. In fact, some manufacturers showed interest and requested samples.”
It deserves it.
Unlike before, when there was no performance, Locora makes products from a mid-tier maker cheap and decent, and it also makes them quickly, and even skeletons make them.
It’s true that you can’t go if you’re not interested.
In that way, you try a sample, order a small amount, and then get drunk on the taste and increase the order little by little.
It was the same path that Rocco followed first.
“ah.”
One thing that crossed my mind at that time.
“We make the first company we contract with our top priority.”
“Yes?”
“If you contract late, you mean that production priority is pushed back that much, right?”
One of the strengths of Seron is that it releases emergency skeletons and processes orders in a short period of time with a crazy quantity offensive.
But what if the volume of supplies increases, and the emergency skeleton gradually runs to full capacity and the ability of CEO Han Ji-hyeok is limited?
Orders from companies that have been pushed back from priorities are likely to be processed late.
“The more late the contract, the more we lose.”
At first, he simply calculated the damage Rocco would incur if he did not make a deal with Ceron.
But now that I think about it, what if Rocco’s competitor accepts the offer?
The difference in competitiveness resulting from the difference was not simply convertible into money.
“If you fall behind in competitiveness, you will be eliminated.”
That’s why shoe makers have moved and moved to countries with low labor costs in order to somehow save money and gain competitiveness.
In that sense, Seron is a kind of terminal station.
Because there can never be a factory that is more efficient and cheaper than Ceron.
It’s just that the way to get to the last station is a little different from the stations you’ve been through.
However, there may be a limit on the number of people entering the terminal station, and even preferential tickets are given to those who enter first.
Andrew said, having made up his mind.
“Proceed with the contract with Seron.”
“Yes? I’m sure you’re on hold…”
“Go ahead. Right now, before other makers sign first.”
*
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My contract with Rocco failed, but I was relaxed.
Because Rocco did the verification that Ceron lacked.
Based on that verification, Seron indiscriminately distributed proposals to other manufacturers.
It was a proposal that tripled the unit price of 500 won for a limited time trial period and raised it to a level similar to that of a typical OEM factory, but Ceron’s price competitiveness was still there, so it was enough to arouse the interest of manufacturers.
Thanks to this, sample requests pouring in from various manufacturers who received proposals.
I entrusted all of the sample work to Kim Deok-bae and the programmers.
“A little higher!”
At the words of Kim Deok-bae, who is in charge of inspecting the samples, a new programmer sweats profusely and operates the skeleton console.
Before that, I was in a hurry, so I took the initiative to solve everything myself, but now programmers have to adapt.
That way I won’t completely let go of my work.
Then a programmer stands out.
“Wow!”
He controls the console with a loud cheering sound, but the hand that controls the lever on the console moves slowly, almost in nano units.
That person is Baek Sang-ho, who was the first programmer to join Ceron and showed great creativity and surplus by making airplanes without making the golems to make in the game Golem Fight.
At the same time, he was a talented person who showed off his outstanding skills among programmers.
“I heard that the sample work was finished in half a day.”
While it takes more than a day for other programmers to tune a line for making sample shoes, Baek Sang-ho showed the power to finish the line work in half a day.
He was a very satisfactory person.
When there are more talented people like that, I will be more comfortable in the future.
“I need to raise my salary. You get a promotion.”
So Baek Sang-ho made the decision to get a promotion and raise his salary without even knowing it.
Then I get a call from the manager of Rocco Korea on my cell phone.
“Yes. This is Han Ji-hyuk.”
-CEO! Headquarters has contacted you! I will accept all the conditions you mentioned!
I said with a smirk.
“okay?”
Then yes.
Remember because you don’t eat?
it’s like that originally
So please feel free to adapt.
If you don’t touch me, I’ll take you as a customer comfortably.
-By the way, the head office asked me what number of contracts it was…
He’s quite a mid-level maker executive, so he should have that kind of insight.
“It’s still the first.”
-Is that so?
“Instead, the delivery price has changed a bit. At the time, I was just trying to provide a cheap service, but things are a little different now. We will triple the margin.”
-Uh… First, let’s talk to the head office.
“I’ll have to do it quickly, because there aren’t just one or two companies taking sample shoes right now.”
After the call, I said with a smirk.
“You will accept it.”
Because there is no way to replace it.
And people call the eul, which has no alternative, super eul.
“ruler. It seems that the fish that left the house are back, shall we keep going?”
*
Once the samples were received, the reactions of the manufacturers were the same.
A manufacturer that has already delivered hundreds of thousands of Rocco’s shoes at high speed.
Even the skeleton makes shoes and the delivery price is unprecedented, so this is deceiving and ordering even in small quantities.
And satisfied with the speed and cost-effectiveness, he gradually increases his orders.
Kim Deok-bae said with a moved expression.
“This month’s maker orders alone exceeded 1 million units.”
It was achieved just one month after Rocco returned from the house after turning the proposal exactly.
“nice.”
The Rocco factory, which was closed due to a coup d’état, succeeded in winning orders for 1 million units, exceeding the monthly production of 500,000.
If you add the existing cheap shoes to that, the sales this month alone will exceed 20 billion won.
If you subtract all of the labor costs and other expenses, your net profit will drop by less than 10%, which means that you have earned a little less than 2 billion won.
Of course, it’s not a lot of money compared to the hard work, and the income is still lower than that of the transportable skeleton, but the potential for development is rather limitless here.
Now that the makers are also triggered, literally, if you increase the skeleton, the money will be automatically copied.
When I was drenched in the sweet dream of earning so much money and retiring, the office worker knocked and said:
“CEO?”
“Yes.”
“I got a call from Doula…….”
The two of them are the makers who have recently received samples and placed orders for 30,000 sets as a test this month alone, and they were a bigger global brand than Rocco.
“I wonder if the skeletons can make clothes too.”
“dress?”
If you think about it, Rocco was a newcomer, so they focused on shoes, but when it comes to global brands, they handle everything from shoes to clothes to hats.
I said looking at Kim Deok-bae.
“Do you know anything?”
“I barely know.”
“Can you make it out of a skeleton? no.”
This is not the point of the question.
“Is that also a labor cost fight?”
Kim Deok-bae, who has now fully adapted, said with a confident expression.
“It’s more than a shoe.”
I looked at the staff and said.
“Tell me to wait, because I will take over the clothing factory.”
“Oh, I see!”
I just want to make money.
It doesn’t matter what kind of shoes or clothes it is, regardless of loco or anything else.
“CEO Kim, let’s not just be a shoe factory, but a general manufacturer. We make anything you order, just place an order, like this.”
Shoes, clothes, decorations, at least accessories, or anything else that competes in labor costs, is all about jumping into it.
So, could you retire sooner than you originally planned?
“what do you think?”
Kim Deok-bae nodded at my words and said.
“It seems to be. To be honest, I also made shoes, but nothing else. Besides, it’s not anyone else, but CEO Han Ji-hyuk, what can I do?”
Will this be before? Or it’s basically like this. After that, Kim Deok-bae is now talking quite a bit.
I said with a smirk.
“like. Let’s try it.”
The world’s factory in China?
not now
The factory of the world is now me.