Cost Control Is To Spend The Money Just Right

< p > traditional cost management is based on whether enterprises save or not, and unilaterally starts with reducing costs and even trying to avoid certain expenses, emphasizing saving and saving.

However, the international companies believe that the enterprises that control the basic idea of cost saving are only local enterprises. They have nothing to do with exploiting workers and reducing raw materials.

Therefore, we need to learn the cost control strategies and methods that modern enterprises should have.

If enterprises want long-term benefits, they can only carry out cost control from a strategic perspective.

In other words, it is not to cut costs, but to increase productivity, shorten production cycles, increase output and ensure product quality.

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< p > simply cut costs and reduce costs as the sole goal can not be approved by visionary entrepreneurs.

In simple pursuit of cost reduction, generally simple measures will consider lowering the purchase price or grade of raw materials, or reducing material input (stealing material) of a single product, or considering reducing the labor cost of the process, so as to achieve the purpose of cost reduction.

This is very dangerous, it will lead to a decline in product quality, the loss of labor resources, and even loss of the market already owned.

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< p > the right direction is half the success and the cost control is the same.

The purpose of cost control is to continuously reduce costs and gain greater profits.

Therefore, when making the target cost, we must first consider the profit target of the enterprise, and also consider the competitive selling price.

Because the cost is formed in the whole process of production, the cost takes place in every link, everything and activity. Therefore, the target cost should be decomposed to all departments and even individuals.

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< p > < strong > 1. enterprises < a href= "//www.sjfzxm.com/news/index_c.asp > > item analysis < /a > /strong > /p >

< p > each department aims to carry out annual work with marketing goal orientation, lists all kinds of projects needed to achieve the goal, decomposes the tasks at the same time, analyzes the links of time, cost and performance, and compares costs and benefits.

For example, how many marketing and promotional projects need to be completed in the market department next year to achieve the established goals, and after each item is decomposed into tasks, the cost of each task will be reasonably budgeted and the revenue generated will be estimated.

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< p > < strong > 2., the industry < /strong > a href= "//www.sjfzxm.com/news/index_c.asp" > strong > value chain < /strong > /a > strong > analysis < /strong > < > >

< p > industry value chain: the enterprise exists in a certain industry value chain point, including the connection point with upstream, downstream and channel enterprises, such as the packaging of supplier products can reduce the enterprise's < a href= "//www.sjfzxm.com/news/index_c.asp" > pportation cost < /a >, the vertical connection of improving value can also make the enterprise and its upstream, downstream and channel enterprises reduce the cost together and improve the overall competitive advantage.

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< p > > strong > 3., competitor's value chain analysis < /strong > < /p >

< p > the value chain and the value chain of our competitors are in the parallel position in the industry value chain. By analyzing the value chain of competitors, we can calculate the cost of competitors.

Then, compared with their own enterprises, they find out the difference between their competitors and their activities, and foster strengths and circumvent weaknesses and strive for cost advantages.

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