Control costs should not degrade quality
Affected by some macroeconomic regulation such as the upward adjustment of the RMB exchange rate, many raw material prices have risen to varying degrees. Copper has risen, plastics have risen, and even manpower has risen. Under such circumstances, the impact of the lighting industry, which exists as a labor-intensive industry, is self-evident, and cost control is particularly important for manufacturers. Then, in the face of rising raw materials, where should enterprise cost control go?
Replacing material is equivalent to reducing quality
"Replacing materials is not a solution, and this does not solve the fundamental problem." Deng Mingchao, general manager of Jinchao Lighting Appliance Co., Ltd. has his own clear view on enterprise cost control. "The replacement of materials actually replaces the quality of the products. Nowhere." As a well-known lighting company with a certain right to speak in the industry, Deng Mingchao's words also represent the views of most lighting business owners.
Deng Mingchao told reporters that with the continuous increase of various raw materials, the operating costs of enterprises have been affected to some extent. In order to ensure the profitability of products, some companies have tried to replace lighting accessories to reduce costs. But the direct consequence of this is that the quality of the product also declines. “Some companies can control costs in this way,†said Deng Mingchao. “But for the 'present,' this situation will not happen, and we are always asking for quality.â€
Yudi Lighting Co., Ltd. is a large-scale lighting enterprise integrating development, production and sales. It is involved in medium and high-grade crystal lamps, copper lamps, chandeliers, wall lamps, table lamps, floor lamps, ceiling lamps, etc. Feeling. According to the manager Wei Yafeng, the raw materials have risen. Many companies that produce crystal lamps have changed their crystals from the original Egyptian crystals into domestic crystals. The original copper parts are now replaced with iron pieces. Then the original 24K, so the operating costs of the company is reduced, but the quality is naturally not guaranteed. "In the control of production costs of enterprises, in fact, it is more to test the positioning of a company." Wei Yafeng said, "Brand companies strive to ensure product quality, maintain brand image, and some companies pursue profit margins."
Scale management can control costs
When the reporter asked about the impact of rising raw materials on corporate cost control, He Rongbiao, general manager of Qiaosen Lighting, had another set of arguments. “We have fixed suppliers and long-term partners.†He Rongbiao told reporters, “Therefore, the rise in raw materials has little effect on the cost control costs of Jensen.â€
According to He Rongbiao, since its inception in 2001, Jonson and its suppliers have established a strategic partnership in long-term business cooperation. Therefore, compared with other companies, the price of raw materials has always had certain advantages. The rising cost of raw materials now has a great impact on some ordinary companies, and many requirements are placed on the control of their product costs. However, for Jonson, there is no such concern. "Our management has formed a certain scale, and all aspects have a strict system. For cost control, we naturally have our own advantages." He Rongbiao told reporters.
In this regard, Wei Yafeng of Udi Lighting also expressed the same point of view. Wei Yafeng explained that some small-scale enterprises in the production of some non-standard practices, it is easy to cause waste of raw materials, and if the company does not reach a certain scale of production, some raw materials can not be fully utilized. "If the company can achieve a certain scale, then the raw materials can be used to the maximum extent." Wei Yafeng said, "In this way, the effectiveness of enterprise cost control can be improved to a certain extent."
Technical advantage to make up for cost loss
For the cost control of products, Hualai Special Optoelectronics Co., Ltd., a professional LED manufacturer integrating R&D, production, sales and service, also has its own set. The company has already reached a cooperation with the Ministry of Electronics Industry and the 7th Research Institute of China Electronics Technology Group in the technical field, and naturally has its own set of methods for controlling the cost of products. "Our control on cost depends on our technological superiority." Fang Laihua, deputy general manager of Hua Laite told reporters.
According to Fang Yuhua, Hua Laite mainly controls the cost through two technical means: First, by improving the traditional manufacturing process, optimizing the production process and reducing the use of components without affecting the characteristics of the original product. Quantity, thus controlling costs. Second, in terms of the control system, the intermediate link is minimized, and one-step scanning is achieved through an interface, which also increases the life of the product to some extent. "Through these two technical methods of control, our products have advantages in cost, and at the same time have a good guarantee in product quality." Fang Yuhua told reporters that "quality and cost-effective natural can win a bigger market. â€
Appropriate price increases also apply
In order to ensure the quality of the products, and choose not to replace the accessories with the flow, and the rising raw materials actually compress the profit margin of the enterprise. Enterprises must survive, quality must be guaranteed, how should the dilemma enterprises behave themselves?
"If necessary, our products will also choose the appropriate price increase." Deng Mingchao said that the rise of raw materials is obvious to all. Under such circumstances, in order to obtain a larger living space, enterprises must ensure the quality of products. In the case of rising product costs, it is understandable to choose to raise prices. The most critical issue is whether a gain is reasonable. "If you want to raise prices today, the increase will definitely increase as the cost of the product rises." Deng Mingchao said, "It must be reasonable. You can't deceive dealers and consumers with the guise of rising raw materials."
Integrate internal resources to increase efficiency
In addition to working, technology and price, is there any other way to control the cost of the company? The answer is yes, that is: to integrate the various resources of the enterprise and optimize the various management systems.
"In the current situation, we must continue to work hard on management to further enhance the enthusiasm of the staff." Deng Mingchao said, "As long as the work and production efficiency can be maximized, the overall operating cost of the company can still be followed. It was flat before."
According to Wei Yafeng of Udi Lighting, Udy Lighting is currently integrating resources in specialty stores across the country. The reason for this is that, after the quantity and quality of the UDI store are guaranteed, the cost of the enterprise is also Can get very good control. Gao Lixin, chairman of Guangdong Linyuan Height Group Co., Ltd., which focuses on the manufacture of national lighting, shares the same view with Udi Lighting. Gao Lixin said that in order to present the best quality "Chinese style" lighting to the majority of dealers, it is essential to integrate internal resources in the current situation of rising raw materials. "We must use the requirements of 'dry towels can also screw out the water', to strictly demand every employee." Gao Lixin told reporters, "work hard from all work and production links, under the premise of ensuring quality, strict Control product costs."
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Affected by some macroeconomic regulation such as the upward adjustment of the RMB exchange rate, many raw material prices have risen to varying degrees. Copper has risen, plastics have risen, and even manpower has risen. Under such circumstances, the impact of the lighting industry, which exists as a labor-intensive industry, is self-evident, and cost control is particularly important for manufacturers. Then, in the face of rising raw materials, where should enterprise cost control go?
Replacing material is equivalent to reducing quality
"Replacing materials is not a solution, and this does not solve the fundamental problem." Deng Mingchao, general manager of Jinchao Lighting Appliance Co., Ltd. has his own clear view on enterprise cost control. "The replacement of materials actually replaces the quality of the products. Nowhere." As a well-known lighting company with a certain right to speak in the industry, Deng Mingchao's words also represent the views of most lighting business owners.
Deng Mingchao told reporters that with the continuous increase of various raw materials, the operating costs of enterprises have been affected to some extent. In order to ensure the profitability of products, some companies have tried to replace lighting accessories to reduce costs. But the direct consequence of this is that the quality of the product also declines. “Some companies can control costs in this way,†said Deng Mingchao. “But for the 'present,' this situation will not happen, and we are always asking for quality.â€
Yudi Lighting Co., Ltd. is a large-scale lighting enterprise integrating development, production and sales. It is involved in medium and high-grade crystal lamps, copper lamps, chandeliers, wall lamps, table lamps, floor lamps, ceiling lamps, etc. Feeling. According to the manager Wei Yafeng, the raw materials have risen. Many companies that produce crystal lamps have changed their crystals from the original Egyptian crystals into domestic crystals. The original copper parts are now replaced with iron pieces. Then the original 24K, so the operating costs of the company is reduced, but the quality is naturally not guaranteed. "In the control of production costs of enterprises, in fact, it is more to test the positioning of a company." Wei Yafeng said, "Brand companies strive to ensure product quality, maintain brand image, and some companies pursue profit margins."
Scale management can control costs
When the reporter asked about the impact of rising raw materials on corporate cost control, He Rongbiao, general manager of Qiaosen Lighting, had another set of arguments. “We have fixed suppliers and long-term partners.†He Rongbiao told reporters, “Therefore, the rise in raw materials has little effect on the cost control costs of Jensen.â€
According to He Rongbiao, since its inception in 2001, Jonson and its suppliers have established a strategic partnership in long-term business cooperation. Therefore, compared with other companies, the price of raw materials has always had certain advantages. The rising cost of raw materials now has a great impact on some ordinary companies, and many requirements are placed on the control of their product costs. However, for Jonson, there is no such concern. "Our management has formed a certain scale, and all aspects have a strict system. For cost control, we naturally have our own advantages." He Rongbiao told reporters.
In this regard, Wei Yafeng of Udi Lighting also expressed the same point of view. Wei Yafeng explained that some small-scale enterprises in the production of some non-standard practices, it is easy to cause waste of raw materials, and if the company does not reach a certain scale of production, some raw materials can not be fully utilized. "If the company can achieve a certain scale, then the raw materials can be used to the maximum extent." Wei Yafeng said, "In this way, the effectiveness of enterprise cost control can be improved to a certain extent."
Technical advantage to make up for cost loss
For the cost control of products, Hualai Special Optoelectronics Co., Ltd., a professional LED manufacturer integrating R&D, production, sales and service, also has its own set. The company has already reached a cooperation with the Ministry of Electronics Industry and the 7th Research Institute of China Electronics Technology Group in the technical field, and naturally has its own set of methods for controlling the cost of products. "Our control on cost depends on our technological superiority." Fang Laihua, deputy general manager of Hua Laite told reporters.
According to Fang Yuhua, Hua Laite mainly controls the cost through two technical means: First, by improving the traditional manufacturing process, optimizing the production process and reducing the use of components without affecting the characteristics of the original product. Quantity, thus controlling costs. Second, in terms of the control system, the intermediate link is minimized, and one-step scanning is achieved through an interface, which also increases the life of the product to some extent. "Through these two technical methods of control, our products have advantages in cost, and at the same time have a good guarantee in product quality." Fang Yuhua told reporters that "quality and cost-effective natural can win a bigger market. â€
Appropriate price increases also apply
In order to ensure the quality of the products, and choose not to replace the accessories with the flow, and the rising raw materials actually compress the profit margin of the enterprise. Enterprises must survive, quality must be guaranteed, how should the dilemma enterprises behave themselves?
"If necessary, our products will also choose the appropriate price increase." Deng Mingchao said that the rise of raw materials is obvious to all. Under such circumstances, in order to obtain a larger living space, enterprises must ensure the quality of products. In the case of rising product costs, it is understandable to choose to raise prices. The most critical issue is whether a gain is reasonable. "If you want to raise prices today, the increase will definitely increase as the cost of the product rises." Deng Mingchao said, "It must be reasonable. You can't deceive dealers and consumers with the guise of rising raw materials."
Integrate internal resources to increase efficiency
In addition to working, technology and price, is there any other way to control the cost of the company? The answer is yes, that is: to integrate the various resources of the enterprise and optimize the various management systems.
"In the current situation, we must continue to work hard on management to further enhance the enthusiasm of the staff." Deng Mingchao said, "As long as the work and production efficiency can be maximized, the overall operating cost of the company can still be followed. It was flat before."
According to Wei Yafeng of Udi Lighting, Udy Lighting is currently integrating resources in specialty stores across the country. The reason for this is that, after the quantity and quality of the UDI store are guaranteed, the cost of the enterprise is also Can get very good control. Gao Lixin, chairman of Guangdong Linyuan Height Group Co., Ltd., which focuses on the manufacture of national lighting, shares the same view with Udi Lighting. Gao Lixin said that in order to present the best quality "Chinese style" lighting to the majority of dealers, it is essential to integrate internal resources in the current situation of rising raw materials. "We must use the requirements of 'dry towels can also screw out the water', to strictly demand every employee." Gao Lixin told reporters, "work hard from all work and production links, under the premise of ensuring quality, strict Control product costs."
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