Flooring company profit improvement strategy

Rising raw material prices and rising talent costs have caused rising production costs. The profits of flooring manufacturers are constantly being squeezed. This is a major problem facing many flooring companies. So, what can we do to ensure that the quality of the floor will be saved from low or even negative profits? Planned implementation of cost control.

The cost control of flooring companies needs to start with details. Cost control is related to corporate strategy. There is no such understanding is a touchstone to distinguish cost consciousness of a floor company. It is also the key to whether cost control can achieve results. In the management of flooring companies, there are many phenomenon of cart before the horse. The most prominent one is cost control. Many flooring companies have strict control on the issue of reimbursement, strictly to the point where there is no further increase! There have only been cases where employees are underreporting and companies are not paying more. The boss secretly proudly: I found a good steward! Some people resigned because of their indignation and revenge. After three days, they chopped the CFO's arm. Unfortunately, it is not cost to cut down, and the boss must pay high medical expenses and compensation for this.

Cost control will undoubtedly focus on details. What details should be noticed and what can be ignored? This question is very important. Otherwise, there will be a phenomenon of “smashing sesame seeds and losing watermelon”. The cost control must pay attention to small things that are inconspicuous, but also must focus on the major events of the company's development! This is not contradictory. Of course, it is not easy.

Cost control requires the participation of all the staff. When you participate, you must keep a close eye on the details and focus on trivial matters. Don't waste a piece of paper, don't waste a drop of oil, turn off the switch of light, electricity, and water, and remind you to use the old things you can use at any time. At any time, make suggestions to reduce expenditure and increase returns. Everyone eliminates waste. The proceeds.

The strategic cost control of the floor enterprises must have strategic vision, and we must always consider the maximization of returns. When the investment is doubled, the return is double or even ten-fold. Which kind of input is more cost-effective, and anyone who knows how to add, subtract, multiply, and divide can judge. Under the premise of huge market space, it is undoubtedly the best cost control to expand the scale. The larger the scale, the lower the cost. Everyone knows that scale purchasing is the most effective way to reduce costs. The person who manages, never looks at how much money an employee has spent, but rather how much money he makes. In general, inputs and outputs are proportional.

What I can't understand most is the tedious process of reimbursing some enterprise expenses. I would like to ask: Does the multiple review of a reimbursement document bring a penny to the company? As long as his supervisor confirms that the expenses are true and not excessive, the financial officer will reimburse him. What's wrong with this?

Cost control starts with the annual plan At present, if you go to the floor companies to understand the cost control that is the budget situation, you will find that many of our country's floor companies do not have a budget. It is only a coincidence that companies without budget can control costs. In fact, there is no company that does not have a budget, but it is only a rough calculation, or a difference in budget. Each floor company must formulate a full-year plan. The annual plan is the total budget. The key to the accuracy of the overall budget is not serious in the subordinate units and departments. The development path of the annual plan may be different, but the basic principles are the same. That is, the annual plan is not only the decomposition of the company's strategic goals, but also the improvement of the actual tasks completed in the previous year, together with the prediction of the internal and external environmental changes and its development trend this year.

The budget must involve all members, and it must not be fabricated and taken for granted by a few people. If the budget solicits opinions from the employees and forms an annual plan, it can be decomposed to the head of the people and it will be easy to implement. “The heavy burden is on the shoulders of everyone, and everyone has an indicator”. Only when it is implemented at the beginning of the year, can it be implemented at the end of the year.

Cost control begins with the preparation of plans at the beginning of the year and includes both business indicators and expense budgets such as purchase budgets, production budgets, and staff budgets.

Unplanned expenditures must be subject to special approval. Many companies formulate annual plans with only a few business indicators. They are highly concentrated, but they don't seem to be as eloquent and long as the speeches. As soon as the reality of the operation is reached, various requests for advice reports have come. After asking for money and asking for money, most requests are for money. For some of the money more than the floor business is good, as a boss or boss a stroke, give money on the line. In the face of an economic crisis or a shortage of funds, it is still not the boss. The root cause of this situation is still the boss himself. Why not make a detailed budget before the beginning of the year?

It turns out that the annual plan has only business indicators, only the goal of making money and no input indicators. The most fundamental purpose of business management is to minimize investment and maximize returns. No investment, how does the company operate? No cost, can anyone be an owner? Or can you really cut costs? If you don't have a floor company that does not have a budget for costs at the beginning of the year, you have to pay for it if it happens. Fulfilment of the examination and approval procedures is not allowed to play first. In fact, it is to make up a budget.

Well-planned and well-planned flooring companies do not have so much "extra expenses". First, the company has long anticipated this expenditure, and second, the company has set a good standard of "camera action" for staff at all levels for various uncertainty payments, or has set an expense quota control index in the rated range. Inside, as long as you can achieve business goals, how can you spend money! This is how much time and effort.

Without time control, cost control will eventually fail. We may wish to mention the issue of reimbursement audit. Do we have to spend time reviewing over and over again? Does our time cost count? Chinese people seem to have more time. Do not you see China will be more, more wrangling, for the trivial case of a trivial matter we have not heard less rare. Is time really worthless?

I would like to ask, what are the standards for calculating the wages of employees that are not linked to performance? According to attendance rates. How does the attendance rate come from? Is it according to days? Eight hours a day, how much is an hour? This is not the standard for calculating wages in most of our flooring companies? Why do we not include time costs in the scope of cost management? Knowing that time waste is the biggest waste!

Similarly, no matter how advanced our performance appraisal methods are, there is no time cost assessment and control, and more input will be lost.