How can enterprises effectively control costs?

Lead: Cost is an important economic indicator of an enterprise. Strengthening the cost management of enterprises can not only increase their own profits and the interests of employees, but also improve their competitiveness.

How can enterprises effectively control costs? First, the significance of strengthening cost management

(A) strengthening cost management can expand production and operation.

The reduction of cost means the saving of materialized labor consumption and activity consumption. With the reduction of production cost and product cost, enterprises can also reduce the occupation of working capital. In this way, the saved material, human and financial resources can be used to expand the production scale of enterprises and increase output, thus accelerating the development of socialist construction.

(2) Strengthening cost management can improve economic benefits.

The cost level largely reflects the economic effect of the enterprise's production and operation activities. Through the inspection and assessment of the implementation of the cost plan of the enterprise and each unit within the enterprise, as well as the inspection and analysis of the reasons for the cost fluctuation, we can reveal the situation of practicing economy in various production and business activities of the enterprise, sum up the advanced experience of reducing costs, and solve the problems existing in all aspects of production and business activities. This can promote enterprises to organize production more economically and effectively, improve management in an all-round way and improve economic benefits.

(3) Strengthening cost management can lay a solid foundation for the country to accumulate funds.

China's modernization needs a lot of money, mainly relying on the profits provided. The profit depends on the completion of the production and operation plan and the cost. Other things being equal, the lower the cost, the more profits the enterprise will make and the more funds it will provide for national construction.

Second, the problems existing in enterprise cost management

(A) the problems existing in the cost management of procurement links

(1) The procurement cost is high.

Procurement cost is not only to reduce the price of materials, but also to include the quality and inventory cost of purchased materials. Some enterprises can't get the preferential purchase price for large enterprises from suppliers because of their small product scale and few product varieties, and they don't have the purchase price advantage of large enterprises. Secondly, if you want low-priced raw materials, it is difficult to ensure that the quality is no problem. When purchasing, the purchasing staff did not choose carefully, which led to the waste of raw materials and the increase of product cost.

(2) the purchase quantity is unreasonable

The quantity of purchased materials directly affects the storage cost. The price of materials purchased sporadically varies greatly, while the price of materials purchased in large quantities is often favorable. Therefore, in order to control the purchasing cost, the purchasing department of an enterprise hopes to purchase a large amount of inventory.

However, excessive inventory takes up a lot of funds of enterprises, which affects capital turnover and directly leads to the increase of storage costs of enterprises. Every time an enterprise purchases too much, the storage cost will be higher, resulting in high inventory cost and serious material backlog, which seriously affects the profit of the enterprise.

(B) Problems in cost management of sales links

(1) The sales expenses are high.

At present, with the development of economy, the competition among enterprises is becoming more and more fierce. In order to emphasize the role of market management, increase profits and expand product sales. Therefore, we attach great importance to the packaging, promotion and after-sales service of enterprise products. Therefore, enterprises increase the expenses of sales organizations, but high sales expenses will increase cash outflow, reduce profits and weaken the competitiveness of enterprises.

The main reason for the increase or decrease of the expenses of the sales organization of the enterprise is that the management of the enterprise thinks of adopting various promotion methods under the bad competition conditions, but does not fully consider the cost problem, but offsets the increase of profits.

(2) The transportation cost is high.

In order to attract more families, enterprises provide more convenient and fast transportation routes for families while selling products, without accurately and reasonably considering the influencing factors of cost, such as whether to arrive at the destination on time, mileage, cargo weight, inventory cost and so on. In order to increase sales and profits, enterprises sell goods at all costs. Even in the period of severe economic crisis, the order volume of enterprises has not increased significantly, but has a downward trend, which has seriously affected the economic benefits of enterprises.

Third, improve enterprise cost management countermeasures

(A) improve the cost management in the procurement process

(1) Optimize the procurement structure

Establish supplier files, manage supplier files entering the company, and keep abreast of the reputation and credit status of each supplier. Establish a price file. The purchasing department of the company should establish a price file for all purchased materials, and compare the quotation of each batch of purchased materials with the price data archived at the beginning of the period to analyze the reasons for the price difference.

Purchases are made in strict accordance with the budget price determined at the beginning of the year, and a budget incentive system is established through budget assessment, so that purchasers can control their own behaviors, motivate employees to work hard, and reduce the cost of material procurement. To study the whole market, buyers should pay attention to the law of price change and grasp the purchasing opportunity. Reduce costs by comparing prices, purchasing and bidding. Through the inquiry and price comparison of suppliers, the supplier with the best cost performance can be finally obtained.

(2) Establish a reasonable procurement system

Market research plays a vital role in the rational procurement of enterprises, and can understand the company's prospects and existing problems. Through market research, we can get data and understand the general demand of the market, so as to adjust the purchase quantity of enterprises.

Making a reasonable purchase lot size is the purchase quantity with the lowest inventory-related total cost in a certain period, that is to say, the sum of ordering cost, warehousing cost and out-of-stock cost reaches the minimum order quantity. Enterprises should seek the best purchasing quantity, make the best ordering time and make the appropriate ordering strategy and proportion.

In order to reduce the storage cost, enterprises need to determine an optimal economic order quantity between the purchasing department and the storage department. By establishing the optimal purchasing model, it is easy to find the optimal purchasing time and batch size. However, the material purchase batch of enterprises is often random and the purchase quantity is too large, and the importance of the close relationship between reasonable purchase batch and storage cost is often ignored.

(B) the improvement of cost management in sales links

(1) Adopt scientific sales concept.

The packaging of products can be similar, that is, the packaging of all products of an enterprise adopts a unified form in terms of patterns and colors. This way can reduce the cost of packaging, expand the influence of enterprises, especially when new products are launched, and make use of the reputation of enterprises to let customers identify the products from the packaging first and open the market quickly. As for the means of advertising promotion, terminal interactive communication can be used to effectively promote advertisements and avoid neglecting to stimulate consumers' interest in buying. Shopping guides can be displayed through interactive games.

(2) Reduce transportation costs

Transportation management includes five aspects: transportation time, transportation cost, transportation route, transportation tools and transportation links, which are interrelated, logically related and independent. To reduce the cost in transportation management, we need to start with the details and minimize the unfavorable factors affecting transportation costs from all aspects of management. A reasonable transportation plan can be made.

Reasonable design of transportation route is the basis of reducing transportation cost. Optimize transportation routes, minimize repeated transportation, round-trip transportation, circuitous transportation and other invalid transportation, minimize transportation mileage, maximize direct transportation, and reduce the variable cost of vehicles on the premise of meeting customer requirements.