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What are the ways for enterprises to reduce costs?
Ten ways for enterprises to reduce costs;

First of all, the change of material purchasing method and payment method reduces the cost.

At present, the company's procurement volume is small and there are many kinds of materials, so it is necessary to implement large-scale procurement. By signing an annual purchase agreement, negotiating the purchase price according to the annual purchase quantity, and defining the annual purchase quantity, the preferential purchase price can be obtained, but there is a risk of purchase price change. When selecting suppliers, we should consider the factor of capital cost, and expand the proportion of suppliers' 2-4 months payment period to the total amount of goods payable, so as to reduce the company's own costs. By using suppliers' funds, we can reduce the capital risk of delayed payment by dealers and the cost of our inventory backlog, thus embodying the benefits of capital management in general.

Second, material standardization and material generalization reduce costs.

In the research and development stage, it is necessary to establish a material standardization library for the materials of products, which is convenient for R&D personnel to reduce the risks of selecting new material suppliers, trying out new materials and unstable quality. Through material standardization, we can save R&D time, reduce the types of new materials, and urge new R&D personnel to cut into new product research and development more quickly. When planning between different series of products, try to use the same materials or substitute materials, R&D personnel and purchasing personnel should try to find materials with low substitute prices, and need to provide incentives for the use of substitute materials for old products, so as to realize economies of scale in material procurement.

Third, the process cost and technology cost are reduced.

On-site technicians in the production workshop should put forward methods to reduce costs by adopting new technologies from the perspective of reducing costs, and the company can encourage the adoption of new technologies to reduce the cost of existing products; At the same time, R&D personnel can also adopt new technologies to improve existing products, thus reducing product costs without reducing functions and performance. The company may set up a technological innovation award fund to encourage technical personnel to carry out technological innovation; At the same time, it is also necessary to increase investment in importing new equipment to reduce costs, reduce quality loss, and then reduce the hidden cost of products.

Fourth, the organizational structure has been slimmed down and the number of employees has increased.

At present, the ratio of production personnel to management personnel in our company is about 3: 2, and the ideal ratio should be 7: 3. Obviously, the existing personnel structure is unreasonable and there are many managers, which leads to overstaffing. The overall operating efficiency of the company has not improved and the internal management level has not improved. On the contrary, due to the large number of managers, the overall salary cost is relatively high. Therefore, it is necessary to cancel the departmental establishment, gradually reduce the establishment from the supervisor, compress the grass-roots management personnel and improve the recruitment success rate.

Fifth, optimize the workflow and reduce non-value-added links.

Some internal operation processes of our company should be simplified. Under the condition of realizing internal control and having a certain management foundation, it is necessary to optimize the existing operation process, evaluate the existing power and responsibility system, and understand whether the existing process can be optimized from the perspective of internal control. Through process optimization, the cost of internal operation, communication and monitoring is reduced, so as to achieve the purpose of reducing costs.

6. Control inventory and strengthen supervision over investment in fixed assets.

Reduce the existing inventory scale, refine the existing management process, strengthen the monitoring of monthly sluggish materials and safety inventory, improve inventory turnover rate, change inventory management ideas, and prevent capital precipitation; To strengthen the monitoring of fixed assets investment and large-scale projects, it is required to prepare the feasibility analysis report of fixed assets projects and check at all levels to prevent idle fixed assets investment and inefficient investment utilization.

Strengthen the internal training management of personnel and improve the efficiency of daily work and operation.

Untrained employees are the biggest cost. By improving the quality of internal training and implementing the "mentoring system" method, internal knowledge sharing can be realized. The department must organize knowledge transfer by itself, and the department manager becomes the department's knowledge coach, responsible for organizing monthly internal training, so that the company's employees can grow in learning; You can also encourage employees to obtain professional titles through external training to improve the skill level and operational efficiency of departmental employees, thus generating direct benefits and indirectly reducing the company's operating costs; Production employees need to receive regular training in product production to improve their practical ability and corresponding theoretical level, thus reducing the number of product quality problems.

8. Optimize the supplier's supply structure to maximize the value of the supply chain.

In supplier selection, we can't simply take the low material price as the only choice. We should establish a supplier evaluation system, and make multi-dimensional evaluation by evaluating suppliers' timeliness, price, material quality, willingness to cooperate and service attitude, so as to achieve a moderate balance between material price and quality, that is, through evaluation, select suppliers with moderate price and quality as qualified suppliers of our company. Through the gradual elimination and introduction of the annual selection, the supplier structure of our company is reasonable, the purchase price and material quality of our company can be moderately optimized in the source material procurement and production and sales, and the value of our supply chain can be maximized; At the same time, because there is a certain degree of contradiction between multiple suppliers and purchasing price reduction, we should adjust the supplier's supply structure according to factors such as strong willingness to cooperate, development potential, price, controllability and purchasing risk, and gradually implement the strategy of "exclusive supply, two suppliers and multiple suppliers" to realize the strategy of "overall cost leadership" as a whole.

9. Management is standardized, standardized, digital, accountable, tabular and humanized.

At present, some things of our company, including most private enterprises, are in the "three-regardless zone", such as safety and quality. When there are problems to be solved, because the division of responsibilities is not detailed enough, it is easy to produce those "three no-care areas" or management gaps, and the speed of solving problems is slow, which affects the operational efficiency of the whole company.

The management mode that our future enterprises should do is: standardization, standardization, digitalization, accountability, tabulation and humanization. In the company, the leading party and the cooperating party know everything like the palm of their hand, and each position has a detailed and clear scope of work and job description (details are attached), which should be visualized. Therefore, it is necessary to keep the workflow smooth and the responsibilities clear. When problems occur, they can be solved quickly and effectively.

Encourage employees to tap their potential.

The research results of some psychology professors abroad show that employees who are paid on time can keep their jobs as long as they play 20%-30% of their abilities, while fully motivated employees can play 80%-90% of their abilities, and their efficiency is improved by 3-4 times. Because employees are not effectively motivated, enterprises cannot give full play to this potential. By establishing an effective incentive mechanism, we can fully mobilize the enthusiasm, initiative and creativity of employees and fully tap the potential of reducing costs.

There is a young man who works in an American oil company. His job is to check and confirm whether the fuel tank cover is welded automatically. When the oil tank is moved to the turntable on the conveyor belt, the solder will automatically fall and rotate around the cover. This welding process consumes a lot of flux, and the company has always wanted to reform it, but it is too difficult. I tried a few times and forgot. The young man doesn't think there is really no way to improve. He observes the rotation of the jar every day and thinks about ways to improve it.