In-depth analysis of several misunderstandings in reducing costs in the silicone products industry!silicone baby bib set sales

　　In every industry, reducing the cost of a product is one of the core elements of running an enterprise, and an industry trying to reduce industry standard costs to make profits is self-inflicted. At present, for entering the current Chinese manufacturing industry, the more Blind competition is blind panic, but it brings bigger problems, so if an enterprise wants to lower the industry standard, it still needs to pay attention to a lot of details!

　　Blindly lowering the price of procurement costs leads to a decrease in the quality of raw materials. In the silicone product industry, the source materials are related to the degree of after-sales evaluation at the time of consumption. The price competition in the raw material procurement process is likely to lead to the purchased raw materials being cheap and of inferior quality. In terms of procurement, cost optimization has indeed been achieved, but because of poor quality raw materials, the cost of production has increased, the cost of sales has increased, and customer satisfaction has decreased. Costs are increasing. What's more, due to the drop in purchase price, the raw materials are shoddy, causing quality accidents, resulting in damage to the company's brand, which is more than the loss.

　　In the silicone rubber product industry, the most worrying thing about dealing with raw materials is to purchase cheap raw materials, and the cost reduction is regarded as the lowest cost in each link of the supply chain, which lowers the status and price of the entire industry. Silicone product manufacturers focus on customers. Price battle, examine customer price view through the advantages of information, capital, scale and so on. Let customers recognize that you can reduce prices in a way that makes consumers feel reasonable. Supply chain is a rule of interdependence in an industry, and costs between each link have mutual influences. Mutual coordination and optimization bring opportunities for cost reduction and pursue total cost optimization.

　　One-sided view of cost advantage as simply reducing production cost. Most managers will naturally understand cost as production cost, and limit cost reduction to the process of production activities and have nothing else to do. In fact, in the traditional manufacturing industry, the production cost is only a part of the total cost, accounting for about 50-70%, and a considerable part of the cost is generated in the fields of technology research and development, marketing, consumer services, etc., but they are not in the cost analysis. Often received little attention.

　　Chinese enterprise management is usually relatively extensive, and the efficiency of resource use is low. Therefore, strengthening cost management is very important for enterprise profitability. However, the true meaning of cost reduction is to increase the input-output ratio measured in monetary terms, not to blindly increase the input-output coefficient, nor to blindly reduce costs. But it is a pity that many enterprises have entered a misunderstanding of cost management, especially in the aspect of human cost management. The result can only be reverse elimination, bad money drives out good money, and becomes a talent training base for peers.

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