Flexible packaging factory reduce the cost of seven pitfalls, poking the myth to home

In the flexible packaging market increasingly fierce, in order to get the appropriate profit, to reduce costs, resulting in part of the flexible packaging factory attend, too dependent on financial, not adhere to the quality, the phenomenon such as ignore the interests of the supplier, the pursuit of beauty, it will lower costs to myth, exactly what mistake? Myth: the cost advantage of one-sided thought is to reduce the cost of production. Most managers will understand the cost for the production cost, the cost reduction is limited in the process of the production activities. Actually in flexible packaging plant, production costs are only part of the total cost, accounting for about 50 & ndash; 70%, while a substantial proportion of the cost arising from technology research and development, marketing, customer service, and other fields, and they are often ignored in the cost analysis. In importance to reduce the production cost, therefore, at the same time, from the perspective of the whole supply chain to seek ways to lower costs. Otherwise, too limited production cost, not only the effect is not enough, sometimes too much. Erroneous zone 2: use of the strong position of buyer's market, the purchasing cost blindly demand, resulting in a decline in quality of raw materials. The entire value chain in the enterprise, there is dependence between each link, the next link of cost management must be established on the basis of the link cost management. Myth 3: cut the cost down as aggressively institutions, reduced the manpower, reduce welfare, as a sign of reform drive. Domestic flexible packaging plant is usually an extensive management, resource use efficiency is low, therefore, to strengthen the cost management is vital for corporate profits. However, the true meaning of cost reduction are improving by money value of input output, rather than to improve the input-output coefficient, also is not blindly compression cost. A little economic common sense should know: pay a fee for returns, the higher the cost is lower, pay a fee if you can't pay off, is a waste. Myth 4: cut costs as each link of the supply chain costs are the lowest. Supply chain is around the core enterprise, through the control of information flow, logistics, cash flow, starting from the procurement of raw materials, made of intermediate products and final composite film bag products, and finally by the sales network products to clients, some managers think that enterprise should pursue all link spending cost minimized. Supply chain is composed of a series of value-added activities are interdependent a system, each link cost influence each other, and sometimes the shift, therefore, should through the mutual coordination between the supply chain and optimization to bring cost reduction opportunities, the pursuit of total cost optimization. Myth 5: the lack of dynamic cost perspective, comprehensive analysis and planning. Flexible packaging factory in addition to analyzing cost behavior at some point, also must consider the absolute cost value activities and relative cost change over time. Some improvement measures in a certain time point for cost reduction effect is obvious, but over time, the effect of fast attenuation phenomena, such as some flexible packaging factory in order to increase the speed and the efficiency of production equipment more than design, resulting in the equipment degradation until scrap in advance. Ensure the durability of the cost advantage, to prevent competitors imitate, depends on the function of reduce the cost of a variety of factors, product scale, the advantages of systemic, proprietary technology, the cost is more persistent than the other cost drivers. Myth: cost reduction factors of conflicting, cross influence. Part of the soft bag factory in cost reduction, because of the lack of overall planning, advance planning, often results in conflicting ways to reduce the cost of different links. They are trying to increase market share and benefit from economies of scale, has produced a variety of specifications of the products, the result actually increased management costs, reduces the scale effect. Some soft package factory will factory is located in the close to the customer in order to save transportation cost, however because of the distributed production production costs increase instead. At the same time, because of the cost of the product differences tend to affect its ability to compete in the market sales, the enterprise may be of certain products or customer overpriced, price subsidies for other products or customers, inadvertently cross-subsidy tend to make the price of competing firms. Myth: ignore the composite bags of product development, technology research and development the important influence to the cost of a product design. Product design tend to take into account market competition, customer demand, production capacity, the influence of the cost of raw materials, etc, once the finished product to finalize the design, it is locked, 60% of the cost of the specific work only through input-output ratios to reduce costs, improve efficiency and effect is quite limited. Therefore, soft bag factory research and development costs should be as the primary part of supply chain cost reduction, from raw materials readily available, mature production technology, the stability of the production efficiency and the convenience of product distribution considering design cost, comprehensive consideration, the flexible packaging factory cost leading strategy to win on the starting line.