Twenty years of cold chain

Chapter 11 Bad Money Drives Out Good Money

"Back then, Tianheng wanted to lead the trend and become a first-class cold chain enterprise. We wanted to establish our position from the very beginning and be at the forefront of the cold chain industry." Yu Dajun took a sip of wine, his words generous and seemingly reflecting his mindset at the time.

"Boss Yan was wealthy and, with a wave of his hand, imported fifty fully equipped refrigerated trucks and advanced imported equipment. At that time, Tianheng received a lot of support and signed cooperation agreements with top food companies in Mingjiang Province. However, it was all just a flash in the pan."

"Is it because of the refrigerated truck?" Hu Shutong asked.

Yu Dajun nodded. "When Tianheng was founded, it was actually at the tail end of the refrigerated truck market's boom. Tianheng only saw the superficial appearance. Around 1997, the refrigerated truck market was hit by a massive shock, and many companies went bankrupt. A semi-trailer with a container frame, a used shipping container, and a used refrigeration unit—these three components combined were enough for refrigerated transport, or even without a refrigeration unit, just a cold storage plate. The cost of one was less than 40,000 yuan, while a fully equipped refrigerated truck would easily cost tens or hundreds of thousands of yuan. If you were in that situation, which would you choose?"

As he spoke, Yu Dajun lit a cigarette, the swirling smoke adding to his loneliness. "Nowadays, second-hand shipping containers occupy more than 95% of the market. They have low costs, low maintenance fees, and of course, even lower freight rates. Tianheng has top-notch equipment, but ironically, it's the least competitive company."

Hu Shutong fell silent. This must be a true example of "bad money driving out good money."

"Tianheng's real powerlessness lies in the lack of standardization. There are no standards in this industry. Everyone uses their own packaging and their own regulations. You use your standards, and I use mine. You can raise your standards, but that will only increase costs. From 97 to now, Tianheng has lost its ideals in order to survive."

"So, the dumpling issue is really nothing."

"Turning on the refrigeration unit 15 minutes before arriving at the destination is a rule that drivers must follow. Anything that reduces costs is a good thing. If this dumpling incident is used as a public criticism, and I'm scolded and used as a negative example, what will other drivers think? To avoid accidents and penalties, I might as well keep the refrigeration unit on the whole time. In the long run, it's not worth losing a customer."

These words have already overturned Hu Shutong's understanding. He was determined to continue down the wrong path and that his efforts to correct his mistakes would only lead to his own downfall. What a vicious cycle this was!

The huge investment and long wait for results have always been the crux of this industry. It was only after hearing Yu Dajun's words that Hu Shutong realized that standards and regulations were the biggest obstacles in the entire industry.

Customers only see the moment the goods arrive, but behind that moment there are many tricks involved. The simplest is to time it perfectly and keep track of the distance, not letting the goods cool down until the time is right.

It's like a game, each with its own rules. If you want to win, you don't have to care about the bottom line.

……

Tianheng's pay cut directly led to the departure of some employees.

Hu Shutong, who had never held a real position, began working in the equipment room, monitoring the operation of the equipment every day. In some large cold storage facilities in China, the refrigeration compressor room and the equipment room are operated separately, but Tianheng combines the two, and the water pump room is also located in the equipment room.

Hu Shutong is very familiar with machines such as refrigeration compressors, coolers, and regulating stations. Condensers, ammonia storage tanks, separators, ammonia pumps, etc. in equipment rooms are also essential subjects for him.

Hu Shutong was constantly busy, checking equipment and recording data in the equipment room, and making an equipment log every day. This equipment room could be said to be a microcosm of Tianheng's current situation, exuding a sense of despondency. The posted rules and regulations were extremely incomplete, the operating procedures were also full of omissions, and there was no emergency response plan to be seen. There was no equipment operation logbook, and no gas masks.

Hu Shutong did a lot of work on this, drawing simplified diagrams of equipment operation and making several additions to the operating procedures. He also wrote a "Compressor Operation Procedure Manual" specifically to address potential frost-related accidents and the most easily overlooked aspects of compressor operation.

Yan Baoming noticed Hu Shutong's efforts and gave him special praise at an employee meeting.

Hu Shutong was eager to do something to help Tianheng overcome its predicament, and he believed that the standardized operation of the equipment was an important part of that.

But he could never have imagined the biggest upheaval Tianheng had ever experienced since its founding—

It's already quietly brewing.

On this day, Hu Shutong received a call from Lei Xiaoxi.

According to Lei Xiaoxi, the main structure of Luan's cold storage facility has been completed, and Hu Shutong's cold storage plan has also been implemented. Significant progress has also been made in the renovation of Qujiaying, with the purchase of differential pressure refrigeration units and improvements to the entire environment.

In addition, to recognize Hu Shutong's contributions, the county awarded him the title of "Young Technical Expert" and has sent a letter of commendation and a list of his achievements to the University of Minnesota. This is undoubtedly a great boost to Hu Shutong's resume.

This was some rare good news for Hu Shutong in the past six months. In her letter, Lei Xiaoxi specifically praised Hu Shutong's ability to combine professional knowledge with practical experience, which is a great benefit to people's livelihoods. The School of Food Science and Technology at Mingda University also attached great importance to this, and the class advisor called the factory the following day.

Hu Shutong was an excellent student, receiving scholarships multiple times during his time at school, and his class teacher had high expectations for him. During the phone call, the class teacher first spoke on behalf of the college about the county government's letter of commendation, and then revealed an important piece of information to Hu Shutong.

The "Food Science Laboratory," which had been rumored for over a year, was finally taking shape. Next March, Professor Pang would personally come to the University of Minnesota to oversee the establishment of the Food Science Laboratory, much to Hu Shutong's delight.

According to previous rumors, the food science laboratory will conduct specialized research in multiple fields, including food microbiology, food chemistry and nutrition, and food biotechnology, combining industry, academia, and research to achieve the transformation of scientific and technological achievements. Professor Pang is highly renowned in the industry. As the honorary president of Mingjiang University, a provincial academic and technical leader, and an expert with outstanding contributions, attending one of Professor Pang's lectures would be a great gain.

……