Cost control analysis of high profit carton factory
The gross profit rate of carton factories varies from 10 to 30%. The cost ratio varies greatly among carton factories due to the differences in raw material procurement, equipment technology, personnel structure, etc., which affects the product gross profit rate.So how do high-margin carton factories control costs?
1. Importance of purchasing cost control
Carton factory material cost accounts for the majority of the total cost of the proportion, high accounted for 70% ~ 80%, low also close to 40% ~ 50%, it can be said that the focus and source of enterprise cost control is from the procurement cost.
Studies have shown that a 1% reduction in procurement costs can increase profits by 10% or more.
The greater the ratio of purchasing cost to total cost, the greater the contribution of reducing purchasing cost to profit.
Therefore, in the eyes of experienced managers, the procurement department is not only the department of cost generation, but also the center of enterprise profit source. It is of great significance for enterprises to control procurement cost.
2. Organizational structure of purchasing department
Procurement departments generally have three organizational structures: decentralized, centralized and hybrid. Different enterprises choose different organizational structures for different types, properties and delivery times of goods purchased.
Generally speaking, carton factories are more suitable for the organization form of centralized procurement. The material requirements of each department are centralized to the procurement center, and each buyer is responsible for the procurement of their own kinds of raw materials and equipment, without overlapping with each other.A centralized procurement organization is conducive to the establishment of a comprehensive material system and to better procurement conditions from suppliers, including price, service, quality, etc.
3. Procurement method
In terms of carton factory procurement, there are many ways to reduce the cost, which can be summarized as follows:
1. Analysis and value engineering
Commonly known as VA and VE method: applicable to new products: to study the functions of products or services, and to achieve the purpose of reducing costs through elimination, simplification, change, substitution and other methods at the lowest life cycle cost.Value engineering is the systematic research and analysis of functions and costs of existing products. Now value analysis and value engineering have been regarded as the same concept.
2. Inquiry and negotiation
Negotiation is a process in which the buyer and the seller reach mutual agreement for their respective goals.Negotiations are not limited to price, but also to specific needs.Negotiating is usually expected to reduce the purchase price by about 3 to 5 percent.
3. Early supplier participation in ESI
In the early stages of product design, partners are selected to participate in the new product development team.Through the early participation of suppliers, the new product development team can adjust the strategy according to the requirements of performance specifications proposed by suppliers, and utilize the expertise of suppliers to reduce the cost.
4. Leverage procurement
Avoid purchasing separately, resulting in different units within the organization purchasing the same parts from the same supplier at different prices without knowing about each other, thus losing the opportunity to save procurement costs.The focus should be on expanding the volume of purchases, thus increasing the means of bargaining space.
5. Designed to facilitate procurement, DFP - the strategy of homemade and outsourcing
In the product design stage, the use of the standards and technology of the co-organizer, as well as the use of industrial standard parts, to facilitate the availability of raw materials.This can greatly reduce the need for technical support, while also reducing production costs.
6. Price and cost analysis
This is the basic tool of professional procurement, and it is very important for the purchaser to understand the basic elements of the cost structure.If the purchase does not understand the cost structure of the purchase, it cannot be regarded as knowing whether the purchase is a fair and reasonable price, and it will lose many opportunities to reduce the purchase cost.
4. Procurement process
In the procurement process, almost every link is directly related to the procurement cost, among which there are four important links:
Firstly, it is necessary to compare the inventory when making the order list. Under the situation of existing inventory in the warehouse, repeated procurement will inevitably increase the capital occupation and the natural consumption of materials.
Secondly, it is necessary to establish a reasonable target cost of material procurement so that the actual cost and target cost will not deviate too much.
Then is the inquiry price comparison, in the case of comprehensive consideration of material quality and delivery time, shop around to choose the lowest price suppliers;
Finally, the quality inspection at the time of arrival can avoid the expenditure of repair, scrap, claim for breach of contract and other potential costs caused by the quality of materials.
5. Supplier management
Supplier choice access system.It is important for enterprises to formulate reasonable procurement policies, strategies and targets, and to select ideal suppliers to open up good material supply channels to ensure normal production, reduce material consumption and improve economic benefits.
It is very important to choose the ideal supplier of raw materials, auxiliary materials and equipment.If the choice is not appropriate, it will not only affect the supplier's own interests, but also affect the product quality, cycle, reputation and economic benefits.
So the selection of suppliers must be in the product contract before the other side of the necessary reputation survey.
One is the size of the enterprise, whether the nature of the enterprise is consistent with the business administration registration and business license business scope;
Second, whether it has the corresponding qualification certificate and production and operation license;
The third is the performance capability, whether the guarantee of technology and quality can meet the requirements of product quality and progress, as well as the technical capability of after-sales service.After the investigation of qualified suppliers, access to sign the purchase contract.
6. Performance appraisal of purchasing department
Performance appraisal of purchasing department.The enterprise performance department can construct an internal bidding mechanism. The procurement task of the procurement department can be assigned to two independent procurement personnel at the same time. They can independently complete the bidding, inquiry, price comparison and other work to obtain the bidding plan.
Then the person in charge of the purchasing department compares the plans of the two people, and finally obtains the optimal purchasing plan, and calculates the saved purchasing cost, so as to save 5% ~ 10% of the difference to reward the purchasing personnel, and fully mobilize the enthusiasm of the purchasing personnel.