Central Grain Reserves Shen Qiu Depot Business Model

The State Council entrusts China Grain Reserves Corporation (Sinograin) and the subordinate storehouse with responsibility, which may be summarized as "two guarantees"-- namely, guaranteeing the central grain reserves quantity and quality, and guaranteeing the country to use it when needed. To realize the two guarantees there are two methods: one is to strengthen the daily management of the grain reserves, and the other is to make the central grain reserves take turns at the right moment. Relatively speaking, the daily management of grain reserves is static, while taking turns is dynamic. Taking turns is greatly influenced by the market quotation, the supply and demand contradiction, and the fund risk and so on. The difficulty and complexity of cooking oil reserve is unimaginable. As a large-scale state-owned enterprise, which grows out of administrative section and is engaged in the traditional industry, Sinograin has a lot of problems in the management ideas, the policy-making quality, the resources use as well as the management pattern. Moreover, there is few other enterprises' managerial experience to learn from. Facing the cooking oil market which gradually opens up and becomes more and more competitive, how can Sinograin achieve annual great task of turn-taking and promote the optimization of cocking oil reserve quality, variety and layout, and how can it enhance country macroeconomic regulation and control ability, and display positive role in the domestic cooking oil steady market under the condition of the fixed expense and subsidy? This has become a most urgent question for the corporation. At the same time, under the premise of guaranteeing reserve cooking oil security and company management and operation benefit, whether it can complete annual turn-taking of cooking oil not only relates the goal realization of the country food security, steady market and the macroeconomic regulation and control, also has decided its own growth and destiny including Sinograin and several hundred subordinate enterprise's entire reserve cooking oil vertical management system. Therefore, as a actual performer taking the duty of the central reserve cooking oil turn-taking, a direct participant of market and a actual undertaker of risk, whether Sinograin's each subordinate storehouse can regard cooking oil turn-taking as the center, innovate the management idea and pattern, explore positively and establish a set of effective turn-taking risk control mechanism appears essential and urgent. Under such big background, the central grain reserves Shenqiu subordinate storehouse jumped out the pure unprocessed food buying and selling service after several years' exploration, through the extending of the chain linked both sides industry manages. Through the processing industry longitudinal integrated direction develops of grain production, warehousing, physical distribution, it turns the risk and difficult onto the upstream and downstream industry chain, integrates the national policy task and the promotion enterprise organically, and has explored a new industrial management pathway of the central cooking oil reserve.