Alternative discussion on cost control of the hott

2022-08-21
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Alternative discussion on enterprise cost control

when it comes to cost control, many people first think of the material cost and labor cost of products, but there are many factors that actually affect the cost of enterprises. From the rise and fall of countless companies, some other aspects of the impact is even more fatal

there are many theories of enterprise cost control, such as reducing costs through improving product manufacturing processes, reducing costs through product quality management, and improving their own cost advantages by applying for standards and patents that others cannot bypass. This paper will analyze the important factors that affect the long-term operating costs of enterprises from other perspectives

enterprise system and cultural cost

now most companies with a little scale will have a relatively perfect enterprise system, form their own enterprise culture, and strive to seek the recognition and compliance of all employees in the enterprise. However, it is difficult to say whether the system and culture of the enterprise are very effective and conducive to the long-term development of the enterprise

the author worked in a well-known listed company several years ago. In the early 1990s, when the annual sales of other similar enterprises were only tens of millions of yuan, the annual sales of the company had reached hundreds of millions. Now that the annual sales of other competitors have reached nearly 100 billion, the company has been acquired because it is difficult to maintain its business. The root of such a big contrast lies in the company's system and culture. Various management systems of the company are loose, which can be done or not done; Various processes are trapped in formalization; Although the company has a theme, it is only a slogan; Although high-level leaders have high expectations, they do not have correct corporate culture and scientific talent view. This kind of situation makes the people in the whole company floating and scattered. There were nearly 200 passionate graduates who joined the company with me at that time. At the beginning, everyone was eager to work hard, but in less than a year, three quarters of them left one after another because of disappointment with the prospects of the enterprise. Unfortunately, an enterprise with annual sales of hundreds of millions was destroyed in this way, effectively avoiding the discharge of fluorine and chlorine toxic gases and slag when refining with flux in its own enterprise system and culture. It can be seen that before an enterprise has formed a good system and culture, it should pay attention to appropriate investment in this regard. If you don't give up this seemingly unnecessary cost in the short term, in the long run, with the development of the enterprise, you will pay a greater price

process cost

when an enterprise develops to a certain scale, it will form some fixed workflow, which can enable the enterprise to enter the formal operation and improve efficiency. But we should also clearly understand the cost of the process itself, and sometimes abiding by the process is not entirely a good thing. There is a story that happened to me: one day, the purchasing supervisor suddenly sent an email to tell me that the equipment I applied for was back, but I haven't applied for purchasing equipment recently. After reading the purchase requisition, I really couldn't laugh or cry. It turned out that a project I was responsible for a year ago needed to buy a server. At that time, I submitted the budget and application form. After several months, I urged many times that the equipment was not purchased, so I had to borrow one through other ways. Later, I gradually forgot about it. But no one bought the equipment until he thought that the operation of the project was over. In fact, it was not that the server could not be bought at the beginning. It was all because the United States had to make a breakthrough in automotive Aluminization, comply with the company's procurement process, the efficiency of all links was not high, and there were many restrictions on brands, suppliers, etc., which finally led to the purchase of this equipment for a year. Another small thing: my office computer needs to add memory. Because memory can be bought in any computer market, so I communicated with the purchasing director and bought it first after submitting the budget and then reimbursed. Instead of following a unified purchasing process, the purchasing director said no. After another long wait, the memory was released half a year later. Just think, this procurement process is standardized, but what is the loss? The progress of the project and the efficiency of product research and development need to be discounted. These are huge hidden costs. If the process makes people become robots, the process will be eclipsed

environmental protection cost

with the continuous improvement of people's awareness of environmental protection, more and more products put forward higher environmental protection requirements, which will continue to increase in the future. This requires enterprises to do their homework in environmental protection when engaging in production experience activities. In the second half of 2006, the EU enforced the requirement of lead-free products, which made countless enterprises pay a great price. Enterprises have to look for new materials and devices, improved processes, and some direct costs have increased by 20%. Many enterprises lost huge market opportunities between 2006 and 2007 because they could not complete the lead-free transformation of products in the short term, or the production capacity of lead-free products did not go up. In the future, enterprises should pay more attention to the environmental protection indicators of products, whether from the perspective of their own development or from the perspective of society, so as to be more conducive to their own long-term interests. If an enterprise ignores the environmental protection indicators of the product itself and its production and processing process, it will eventually encounter big trouble. In recent years, many enterprises in China have been shut down due to excessive environmental pollution. Plastic and rubber industries are also one of the high pollution industries. Generally, the industry uses electronic universal testing machines. Insiders also need to continue to work to continuously improve product environmental protection indicators and reduce pollution

cost of corporate brand image

in addition to making excellent product brands, enterprises also need to have a good image. Today, when all kinds of products are very rich, product differences are becoming smaller and smaller, and products are becoming more and more homogeneous. Many times, it is difficult for people to choose and buy goods only through the characteristics of products. At this time, the brand image of the enterprise plays a very important role. With the same level of price and performance, people will certainly tend to choose products with good brand image. Corporate brand image is not only the product advertisement that is easy to attract eyeballs. Through careful planning and packaging, enterprises should strive to transform the internal essence of the enterprise, such as its business philosophy, culture and values, society, team quality, product characteristics and advantages, into a perfect corporate brand image widely recognized by people

on the other hand, enterprises should always pay close attention to various factors detrimental to brand image and correct them in time, otherwise they will suffer huge losses. Take Bausch & Lomb, an American contact lens manufacturer, as an example. On May 15, 2006, the company announced that because its "Runming" hydrogel care solution may increase the risk of users contracting fungal keratitis, it decided to permanently recycle the care solution product in the global market. In this recall, the company spent a total of $25million in recall fees and $19million in discounts, which were sold by kilogram, causing the profit of fiscal year 2006 to decline by 22%. The biggest mistake of Bausch & Lomb in dealing with this incident was the delay of time - the trouble began in July, 2005, but Bausch & Lomb delayed to take action and didn't spend the money when it was time to spend. Therefore, later had to pay a greater price for maintaining the corporate brand image

nowadays, the network is very developed, and the transmission of information is very fast. The so-called "good things don't go out, bad things spread thousands of miles". For example, unpopular policies within the company, violations of the company's commitments to customers, acts that harm the interests of consumers, disregard for society, and so on. Any negative event will damage the corporate brand image. Maybe it's a small matter, which will also form a huge lethality through the amplification of the collaterals. In the "South China Tiger Photo" incident in 2007, there was no direct interest relationship with the public, but due to the fraud of the relevant departments, they lost their integrity to the public, resulting in the condemnation of the people all over the country. Just think, if this is not a government department, but an enterprise, I'm afraid this enterprise will face a huge crisis whether it can continue to operate

labor cost

labor cost is well-known for its first performance as the salary of enterprise employees. In addition, it is also reflected in "the value of the relationship between employees and enterprises". The experience accumulated by employees in the process of enterprise growth, good internal and external working relationships, interpersonal relationships, and team atmosphere are all crucial to the rapid and healthy development of the enterprise, and they are valuable intangible assets of the enterprise. Recruiting an employee is very simple, but it is not so easy to form a stable relationship between employees and enterprises. The loss caused by the resignation of an excellent employee to the enterprise can reach several times of his salary, even tens of times or hundreds of times if it is a backbone staff. Especially for small and medium-sized technology-based enterprises, many enterprises are in trouble due to the resignation of key personnel. Employees will choose to develop with the enterprise because of many factors, and also choose to leave the enterprise because of a certain factor. Therefore, in addition to paying employees' wages on time, enterprises must make more efforts on how to maintain the relationship between employees and enterprises, and be willing to spend a small amount of money to avoid losing a lot of money in the future

to reduce costs, enterprises should not blindly "spend less and do more". Where money should be spent, they should be willing to spend it. Sometimes they have to spend it quickly! If the money that should be spent is not spent, or not spent when it should be spent, it is bound to pay a higher price in other aspects. (end)

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