Challenges and countermeasures in the high-quality development of my country's chemical industry

Global Coatings Network News:

At present, the drastic changes in the domestic and international economic environment, especially the in-depth adjustment of the global petrochemical industry structure, have brought unprecedented challenges and opportunities to the development of my country's petroleum and chemical industries.

2.
Achieving high-quality development is a big battle for the transformation and upgrading of the entire industry

Facing the four major challenges of high-quality development of the entire industry, our entire industry must, on the basis of completing the "Implementation Plan for Structural Adjustment to Promote Transformation and Increase Benefits" in the first three years of the "13th Five-Year Plan," For the guidance, adopt new ideas and new methods to increase effective supply, high-end supply, and high-quality supply, and strive to explore new paths for the high-quality development of the industry.
This is a big and tough battle to overcome obstacles and overcome difficulties.
It is necessary to use the courage and energy to go uphill, stand on the forward-looking point of advanced strategy, and stand on the commanding heights of technological innovation.
At the forefront of industrial restructuring, with the courage to deepen reforms in an all-round way, solid and effective measures are used to produce a batch of high-level results with competitive advantages in many aspects such as strategy, technology, market, efficiency, management, and services.
At present, the high-quality development of our industry must focus on five key directions:

First, technological innovation must make breakthroughs on the commanding heights.
China's petroleum and chemical industries have leaped from a big country to a strong one.
The biggest shortcoming in high-quality development is weak innovation capabilities.
Analyzed from the overall level of industry development, and from the technical analysis of the commanding heights of industry development, we still have a large gap with the chemical industry powers and multinational companies, especially in terms of high-end and cutting-edge technologies.
There is a big distance.
We still have a big gap in the combination of basic research and applied research.
We still have many difficulties and problems in the management system and mechanism.
Only when China's petroleum and chemical industries have achieved leading breakthroughs in technology at the commanding heights, can our industry be able to achieve new improvements in high-quality development, and be able to obtain the initiative for development in the next 10 to 20 years.

Historical experience shows that the technological revolution can always profoundly change the development pattern of the global petrochemical industry.
The development of the industry is not innovative, nor is it always tracking and imitating innovation.
In the new stage of high-quality development, it is necessary to take a new path of independent innovation and original innovation, and to achieve original breakthroughs on the commanding heights.
Clarivate Analytics, an internationally renowned consulting firm, recently selected the top 100 global innovation companies for 2018-2019.
Among them, 15 chemical companies are companies in developed countries such as Japan, the United States, Germany, and France.
No company in my country has been selected.
Multinational companies such as BASF, DuPont, Dow and other multinational companies account for more than 3% of sales revenue, and some even exceed 5%.
However, the R&D investment of large-scale enterprises in my country is generally less than 1%, and the innovation gap is huge.
To promote supply-side structural reforms, technological innovation must be placed at the core of corporate strategy.
Concentrate on conquering a number of key core technologies and "stuck neck" technologies, and seize a number of strategic high grounds in science and technology related to the long-term and overall situation.
We must seize the major opportunities of the new round of scientific and technological revolution, aim at the frontiers of world science and technology, vigorously support original innovations from 0 to 1, overcome a number of world-class technical problems, obtain disruptive scientific and technological achievements, and strive to achieve leapfrog development in important areas and accelerate The shift from "following" to "parallel running" and even "leading".

The second is to extend the industrial structure at the high end of the industrial chain.
Traditional industries such as raw material mining and processing and basic chemical manufacturing account for a relatively large proportion of my country's petrochemical industry, while high-end chemical manufacturing and strategic emerging industries account for less than 10%.
The industry as a whole is still at the middle and low end of the industrial chain and value chain.
Speeding up the process of high-end industrial structure, promoting the extension of industrial structure on the high-end of the industrial chain, and cultivating strategic emerging industrial clusters are the urgent tasks for the entire industry to achieve high-quality development.

It is necessary to focus on limited goals and limited forces, and strive to develop new energy, new chemical materials, and high-end specialty chemicals industries with comparative advantages.
In particular, it is necessary to accelerate the development of new chemical materials such as high-end polyolefins, special resins, special engineering plastics, high-end membrane materials, functional materials, medical chemical materials, and high-end electronics, focusing on major engineering needs such as large aircraft, high-speed rail, automobile lightweight, and electronic information.
Special chemicals such as chemicals and special chemicals such as catalysts and special additives (additives) will strive to improve the high-end supply capacity of the industrial chain.

We must continue to increase efforts to eliminate outdated production capacity that does not meet safety and environmental protection standards, accelerate the clearing of outdated production capacity, and promote the survival of the fittest.
To strictly control new low-end production capacity, it is necessary to use a combination of “de-capacity” and “make up for shortcomings” to continuously improve the competitive advantage of traditional industries, and be alert to and restrain the urge to duplicate construction, especially high-level duplicate construction.
It is necessary to focus on strengthening the capacity monitoring of oil refining, fertilizers, chlor-alkali and some key chemicals, and do a good job in the early warning of overcapacity.
In-depth and meticulously do a good job in the relocation and transformation of hazardous chemical production enterprises, promote the relocation of hazardous chemical companies into the park, earnestly solve various problems in the process of enterprise relocation, and promote the scientific layout of the chemical park.
Guide the circular development of enterprises in the park, dislocation and coupling development between the parks, form a scale and intensive effect in the park, and form a new model of characteristic development and cluster development.

The third is that the development mode must be developed in green chemistry.
Green chemistry is another new realm in the development of the chemical industry.
It includes research on new chemical reaction processes, green energy-saving transformation of traditional chemical processes, clean utilization of traditional energy technologies, and green biochemical technologies for renewable and comprehensive utilization of resources.
Green development is not only an important part of the optimization and upgrading of the industrial structure, but also an important means to promote high-quality development, and it is also a major change in the development mode of the industry.
Promoting green development will inevitably promote the transformation of the industry from extensive development with high investment, high emissions, and low efficiency to a two-wheel drive mode of innovative development and green development.
The chemical industry has the ability to change the properties of materials from the molecular structure, and green development must be at the forefront of the entire industrial sector.
The whole industry must further enhance the sense of urgency, mission and responsibility, work hard to do a good job in green development, and realize the harmonious and inclusive development of the industry and society.

It is necessary to accelerate the cyclical transformation of chemical parks, implement a batch of clean production demonstration projects, cultivate a batch of clean production demonstration enterprises, create a batch of green development demonstration parks, and accelerate the establishment of a circular full-life cycle green industrial chain to achieve resource efficiency and recycling Utilization and "zero discharge" of waste will improve the green development level of the park.
It is necessary to effectively strengthen the professional level of safety management in chemical parks, strengthen daily supervision, improve emergency response capabilities, and raise the intrinsic safety management of chemical parks to a new level in the course of high-quality development.

It is necessary to further promote responsible care, extend the corporate social responsibility from within the corporate fence to outside the corporate fence, continuously improve the level of process safety, occupational health, product safety supervision, storage and transportation safety, and pollution prevention, and create a batch of green products and green factories , Green development demonstration park, fundamentally improve and enhance the development image of the petrochemical industry in an all-round way.

Fourth, the allocation of resources should be optimized in the global market.
The indicator of whether a company is strong depends not only on the scale of domestic assets and sales revenue, but also on whether it truly has the ability to allocate resources globally.
To accelerate the high-quality development of the industry and continuously improve the core competitiveness of enterprises, it is necessary to achieve the optimization of global resource allocation through global resource allocation, business process reengineering, industrial chain integration, capital market operation, etc.
, and cultivate a group of internationally influential transnational corporations.
Enterprises and corporate groups.

It is necessary to actively "go global" to carry out capacity cooperation, select key industries, and focus on the development direction of the enterprise, and pragmatically promote the construction of overseas clusters and the implementation of projects.
In particular, it is necessary to strengthen cooperation with countries along the “Belt and Road”, give full play to their respective resource advantages, capital advantages, technical advantages, market advantages, talent advantages and management advantages, and set up purchasing centers, manufacturing centers, R&D centers, and R&D centers at the most suitable locations.
The financial settlement center and marketing service center optimize global supply chain management by integrating the global value chain, deeply embedded in the global production and marketing network, and realize the efficient global allocation of resources and the orderly flow of production factors.
In today's global economic integration, any successful company cannot do without global trade and the sharing and flow of global resources.
Our petroleum and chemical companies are no exception.

Fifth, economic efficiency must lead the international benchmarking.
As an enterprise as a main body of market competition, the focus of competition is concentrated on the efficiency of the enterprise.
The advantage of enterprise efficiency competition is the result of the combined effect of the technological innovation advantage, management innovation advantage and business model innovation advantage of an enterprise, and it is the ultimate reflection of the overall competitiveness of an enterprise.
At present, there is still a big gap between our industry efficiency and corporate efficiency compared with developed countries and multinational companies.
Companies in the industry should look to the world, do a good job of benchmarking important indicators, continuously enhance their own strategic management and strategic decision-making capabilities, and further enhance their core competitiveness.

We must pay attention to the excellent organization of the enterprise and the optimal combination of products.
It is necessary to attach great importance to the organic growth of the enterprise's internal business, significantly simplify the organizational structure and business processes, optimize the product portfolio, give full play to the efficient operation of the value chain in the integration, and achieve a highly centralized management, high efficiency, high efficiency, and high level of operation.
Cultivate a group of industry leaders.

Pay attention to the profitability and return of capital of the enterprise.
The profitability and capital return level of an enterprise is not only a concentrated expression of the overall competitive advantage of an enterprise, but also an important foundation for the sustainable development of an enterprise.
It is necessary to pay close attention to the profit margin of the company's sales income and the turnover rate of working capital.
The main economic efficiency indicators such as total labor productivity and total factor productivity will focus on the gap between the indicators of developed countries and multinational enterprises, consolidate the foundation for enterprise development, and enhance the profitability of enterprises.

Pay attention to the supply chain management of the enterprise.
Through unremitting efforts, my country's petrochemical industry's supply chain construction has made certain progress.
One is the continuous improvement of the supply chain management level of petrochemical enterprises.
A new pattern of integration of "upstream and downstream, production, supply and marketing, domestic and foreign trade" has initially taken shape, and a number of companies with outstanding supply chain management such as Sinopec, Wanhua Chemical, and Jiangsu Linggu have emerged.
Second, a large number of service providers and suppliers have grown rapidly, making important contributions to the upgrading and optimization of the petrochemical industry's supply chain.
A large number of supporting service providers and suppliers in the petrochemical field represented by China Tianchen, China Huanqiu, Sinopec Refining and Chemical Engineering, Wison Engineering, and Shengu Group, Wolong Group, Sinochem International, China Railway Tielong, etc.
Innovation and management innovation, supporting capabilities have been continuously enhanced, and a close cooperative relationship has been established with petrochemical companies.
It has played an active role in engineering design, equipment manufacturing, warehousing logistics, information services, etc.
, and has become an important highlight in the petrochemical industry supply chain.
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We must clearly realize that promoting the high-quality development of the industry is an overall strategy, a systematic project, and the overall action of our industry.
We must take an overall strategic vision, pragmatic concrete measures, and coordinated reform methods to promote the high-quality development of the entire industry steadily.

3.
Actively explore the reform, innovation, transformation and upgrading of strategic procurement and modern supply chain management

This year, the Central Economic Work Conference pointed out, "We must strengthen the vitality of micro-subjects, give play to the subjective initiative of enterprises and entrepreneurs, establish fair and open and transparent market rules and a legal business environment, promote positive incentives and the survival of the fittest, and develop more high-quality enterprises.
"There are a large number of petrochemical companies in my country, but not many companies with strong international competitiveness.
Not long ago, Brand Finance, a British brand evaluation agency, released the “Top 10 Most Valuable Chemical Brands in the World in 2019”.
BASF of Germany, Dow of the United States and Saudi Basic Industries ranked the top three, followed by LG Chem of South Korea, DuPont of the United States, Lyondell Basel of the United States, Air Liquide of France, Mitsubishi Chemical of Japan, Praxair of the United States and Japan Asahi Kasei, no Chinese chemical brand is on the list.
Brand is the embodiment of core competitiveness.
This shows that our company's strength is not enough, and there is still a gap in core competitiveness.
Therefore, enhancing the vitality of the micro entities of the enterprise, enhancing the core competitiveness of the enterprise, and cultivating a group of leading enterprises with international competitiveness have become important goals for promoting the high-quality development of the industry.

The vitality and competitiveness of micro-subjects are directly related to the quality and level of industry development.
In the process of leapfrogging to a powerful country, the lack of vitality and competitiveness of enterprises has always been a key shortcoming in the development of the industry.
Taking 2017 data as an example, the average sales profit rate of our industry is only 6.
14%, the industry's per capita profit is only 132,000 yuan, and the annual turnover of liquidity is only 2.
61 times.
The economic benefits and economic efficiency indicators of large enterprises are compared with those of multinational companies.
The gap is even greater.

In the gap between industry operating efficiency and operating efficiency, we clearly see the huge potential of our industry's supply chain management, not only with potential, but also with clarity.
At present, the procurement and supply chain management of most companies in our industry are basically traditional thinking, traditional methods, and traditional models.
As long as we boldly innovate in supply chain management systems, mechanisms and methods, our entire industry can get it.
A number of considerable economic benefits.
Mr.
Wang Yongqing once said: "The management of Formosa Plastics is to wring out three drops of water on a dry towel.
" The supply chain management of many of our companies is a wet towel.
As long as you pinch it with your hand, you can squeeze 30 drops of water.
Innovation and reform of our industry's supply chain is imperative.
In the process of high-quality development of the entire industry, supply chain management and innovation must be placed in the first chain.
Strategic procurement and modern supply chain management have extremely profound changes and significant differences from traditional procurement and supply chain management.

First, we must completely change the current traditional thinking of procurement and supply chain management, and establish a new concept of strategic procurement and modern supply chain.
In traditional corporate management, corporate strategic decisions are basically made around the technology, production and financial departments, and most purchasing departments are outside the scope of strategic decision-making.
With the development of the market economy and changes in the scale of enterprises, procurement and supply chain management have risen to become strategic departments, and many companies have not realized this.
Institutional research has shown that the sales input of the chemical industry in developed countries has accounted for more than 60% of the total input of the industry, and procurement has become an important source of sustainable competitiveness of enterprises, whether in the short-term competition of enterprises or in the long-term competition of enterprises.
Corporate procurement plays an important strategic role in establishing and maintaining competitive advantages.
If today's business leaders fail to realize this, the backwardness of the business is inevitable.

Second, it is necessary to establish an efficient and stable strategic procurement and modern supply chain network to achieve a major transformation from procurement cost to procurement value management.
Traditional procurement and supply chain management are mainly concentrated on cost management, while modern procurement and supply chain management are mainly concentrated on value management.
The core of value management is the management of supplier relations and establishing a high-quality and reliable supplier management system.
This is an important sign of the maturity of strategic procurement and modern supply chain management.
Establishing an efficient and stable supplier management system, constructing a competitive supplier management framework, improving the scientific method of supplier change adjustment, and implementing a dynamic supplier service evaluation system are another embodiment of strategic procurement and modern supply chain management.
.

Third, information technology has completely changed the operation mode of procurement and supply chain.
Globalization has increasingly higher requirements for efficient operation and risk prevention and control of procurement and supply chain.
The rapid development of electronic information technology is rapidly changing the operation mode of corporate procurement and supply chain, especially with the deepening of globalization, the transfer of manufacturing to "low-cost countries", and the advancement of the container transportation revolution, global procurement Has become an irreversible trend.
While the "center of gravity" of the supply chain is shifting, the requirements for efficiency, flexibility, and risk prevention and control are becoming higher and higher.
The procurement and supply chain are becoming more and more dependent on information technology, and the challenge of preventing supply chain management loopholes is also increasing.
With the increasing size, the quality of the personnel of corporate strategic procurement and supply chain management teams must quickly adapt to and catch up with this trend of changes.
Fourth, facing the future of high-quality development and sustainable development, we must make every effort to explore the innovation of strategic procurement and modern supply chain management under the trend of globalization.
In order to achieve sustainable procurement and supply chain management in the future, in 2000, UN Secretary-General Annan invited business leaders to jointly launch an international initiative-proposing 10 principles of the "global contract", which requires that future sustainable development must be focused The “triple bottom line” of economy, society, and environmental protection means that the management of future procurement and supply chain must focus on strategic decision-making methods, contract standard operations, supplier relationship management, procurement methods and methods, as well as quality, efficiency, safety, cost, etc.
Continue to innovate in this respect.
Only by continuously exploring the innovation of strategic procurement and modern supply chain management under the trend of globalization can Chinese petroleum and chemical companies achieve their future competitive advantages and sustainable development.
Practice tells us: Without knowing the future, there can be no future!

In this meeting, I will talk to you about procurement and supply chain management, hoping that everyone can get rid of the traditional procurement and supply chain management thinking, fully understand the status and role of procurement and supply chain management in high-quality development, and inspire Everyone has some in-depth thinking and bold innovations on strategic procurement and modern supply chain management.

2019 is a turning point for the transformation and development of China's petroleum and chemical industries into a new stage, and the beginning of the high-quality development of the entire industry.
Continuously improving the modern supply chain system and institutional construction of my country's petroleum and chemical industry, and further improving the overall efficiency and benefit level of the enterprise supply chain are the prerequisites and prerequisites for achieving the high-quality development of my country's petroleum and chemical industry and achieving the leap from a major petroleum and chemical country to a powerful one.
Important link.
Let us seize the current rare period of strategic opportunities, emancipate our minds, innovate boldly, and comprehensively improve the supply chain management level of my country's petroleum and chemical enterprises, in order to achieve high-quality development of the entire industry, and to achieve the leap from a major petrochemical country to a powerful country.
Make new and greater contributions.

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