Stone blocks should not be hoarded blindly, and the inventory must be cleared in time.

Author:MoCo Marble Tiles-Stone Tile Manufacturer

In recent years, the term "clearing inventory" has been very popular in all walks of life, including the stone industry. However, due to the uncertainty of the market environment, many stone companies will still increase the inventory of blocks and large slabs to increase their resistance. At the same time, in some special cases, changing factors such as mine shutdown, ecological improvement, and logistics obstruction will still cause the price of stone varieties to soar. At this time, stone companies that hoard strange stones can make a fortune. But in most cases, the risk of hoarding a large number of stone raw materials always seems to be greater than the business opportunity. The stock of stone raw materials is always inseparable from the two major factors of block materials and block yards. So, what risks do we need to be wary of? Marble block yard 1. Safety risk In the past development history, there have been many desolate warehouse safety accidents in the industry.

Pile a large amount of stones in the block warehouse, which inherently has certain safety risks. In order to save space, some block yards pile up stones very high. If they fall down, the consequences will be unimaginable. Most of the accidents occur because the storage area is too narrow and the passage is too narrow, resulting in no safe distance. In some places, blocks were piled too high, and when operating gantry cranes and other equipment, operators did not delineate warning areas, causing workers to be squeezed by blocks and accidents occurred. And even if there are such safety hazards in the industry, and some safety accidents have actually occurred, there are still quite a few companies that have not included such safety risks.

From a rational point of view, this is not acceptable. In addition, in some cases, the accumulation of a large amount of blocks will often cause foundation subsidence and foundation depression due to excessive weight, which will bring great safety hazards to various operating links in future production operations. Once an accident occurs, the consequences will be unimaginable, so stone companies that have accumulated stones need to pay special attention.

2. Risk of depreciation Stone as a natural thing, if it is stacked for a long time without effective management, its performance may change due to the penetration of moisture or rain, changes in temperature difference and long-term exposure. Even, the place where the stone plate was originally weak will become weaker, and the risk of fracture and damage will be greatly increased. In addition, due to problems such as production and sales, frequent movement of stone blocks in stock is inevitable, and stones are easily damaged during movement.

These damages will have an irreversible impact on the stone itself. In the future use, it will also affect the yield rate of stone production. The open-air block yard will also increase the risk of weathering of the stone in stock. In addition to the depreciation of raw materials due to performance degradation, excessive time costs may also cause depreciation of raw materials. There are many varieties of stone materials. Generally speaking, it is difficult for a variety of popularity to last for many years. Once it is no longer popular and popular, the commercial value of raw materials will decrease accordingly.

In addition, over-exploitation, excessive hoarding, disorderly competition, etc. will also lead to oversupply, resulting in depreciation of the value of stone stocks. 3. Capital risk Without cash flow, a business cannot survive. Whoever has cash has a strong ability to resist risks.

To some extent, cash flow is the lifeline of a business. Whether a company has sufficient cash flow is actually related to its ability to pay dividends and repay debts, as well as the survival and development of the company. Therefore, for enterprises, the risk of funds is extremely in need of strengthening monitoring, and the only way for enterprises to hold a large amount of cash flow is the last word.

If the poor sales lead to a large accumulation of stone raw materials, the stone inventory will inevitably occupy a large amount of working capital of the enterprise. A large inventory of stone resources means that a large area of ​​storage space is required. For enterprises, it is also a huge expense to hire relevant management personnel, purchase and rent relevant warehouses, workshops, and supporting equipment, and pay attention to maintenance and operation. . If the inventory occupies a large proportion of the company's funds, it may even affect the development of other aspects of the company, resulting in insufficient stamina and shortage of funds. In severe cases, it will even cause the company's capital chain to break, thereby affecting the normal production of the company.

4. Credit risk In the past industry operations, some enterprises often advocated obtaining stone raw materials from stone suppliers through credit, or placing stone raw materials in other people's warehouses through credit due to problems such as capital shortage. , after the stone is sold, the payment will be made. It must be pointed out that doing so itself has great credit risks. If a large number of hoarded stone raw materials are not sold well, it will damage the interests of stone suppliers and warehouse operators, and further deteriorate the cooperative relationship, which will seriously affect the reputation of enterprises and individuals in society and in the industry.

As mentioned above, when stone companies are hoarding blocks, they must not blindly hoard them. They should always pay attention to the trend of the market, and properly carry out "clearing inventory" actions to prevent the adverse effects of unsalable goods on stone companies.


Porcelain Tile Manufacturer

Large Format Porcelain Tiles

Tile Trim Profiles

Porcelain Tiles Suppliers

Ceramic Tiles Manufacturers

wood look porcelain floor tiles

Marble Look Tiles

Just tell us your requirements, we can do more than you can imagine.
Send your inquiry

Send your inquiry

Choose a different language
Current language:English