Reduce costs by 10, how to reduce hidden costs and win on the road

Mondo Finance Updated on 2024-01-31

Enterprises will always encounter bottlenecks in the development process, and the core work related to management can be summarized by the words "fast, precise and reduced", which requires operating expenses to be reduced by "more than 10%", which I personally believe is the minimum requirement, in terms of market situation and basic data, we should perhaps reduce 20-30%. Today, I will mainly focus on "falling" to express my personal views.

"Reduction" mainly refers to the reduction of "operating costs", some of which we know, such as "sales expenses", "management expenses", "financial expenses", etc., but some of them occur every day but it is difficult to find the cost, we call it "** cost". This is like a hidden disease in the living body, which will not be cured for a long time and will not go away.

If you can find these "best costs", it is undoubtedly like finding a "pathogen", then the next step of "prescribing the right medicine" must be the time to take off again. Now the ten kinds of "** cost" are summarized as follows, and managers and purchasing managers can conduct a self-inspection by comparison

1. Conference costs.

A meeting is a collective activity for enterprises to solve problems and issue instructions, but it is also a high-cost business activity. Because this activity is often a collective activity in which many leaders participate, every minute that passes means that the total number of minutes and salary costs of the participants are lost, and many managers have not mastered the skills of the meeting, and there is a phenomenon of six nos

There is no preparation before the meeting, there is no theme during the meeting, there is no decision-making after the meeting, there is no standard for implementation, there is no time control, and there is no assessment of the results";

In addition, individual management cadres "will do one thing at the meeting and the next thing" and still follow their own paceAnd then there is "no time for meetings", what does it mean that there is no time for meetings?Either the quality of the meeting is low and you don't want to participate, or you are always busy fighting fires and can't find time to participate.

Second, the cost of procurement.

And this phenomenon actually exists in many enterprises. The blind pursuit of reducing the direct cost of procurement and ignoring the simultaneous coexistence of "** cost". Of course, there is no conflict between reducing the direct cost of procurement and this article, here, we want to say that the procurement department should stand in the perspective of the overall operation of the comprehensive weighing of various indicators, the pursuit of real "cost-effective" materials, to find the real "love and agreement" of the strategic business, in order to truly control the cost of procurement.

For procurement costs, using strategic thinking to consider the "optimal total cost" to do things, usually achieve better results.

Third, the cost of communication.

In most enterprises, you will find that in the process of communication with colleagues, there will be serious distortion and "ditch but not through, through but fruitless" phenomenon, or the words do not reach the meaning, or the answer is not the question, or hundreds of people understand, or the leader never draws conclusions......

There will be ...... such as "unclear customer needs of the order", "change in the production process", "increase in process", "increase in expenses", and "actual loss of profit in the budget".This phenomenon, to put it mildly, makes a lot of communication ineffective, or loses a lot of important opportunities. If it is too big, it may bring serious hidden dangers to the company.

Fourth, the cost of overtime.

Some people believe that "overtime" is a kind of dedication. But there can be a high cost implied in this so-called "dedication". There are three reasons for this

First, the reason for overtime is not necessarily because the work task is too heavy, overtime means "low skills" or "low efficiency". As everyone knows, many of them are "making up for yesterday's lessons" rather than "preparing for tomorrow". Including us managers, what are we busy with, and how much are we busy with "tomorrow's business"?

Second, overtime consumes more energy and physical strength from employees. Serious overdraft health, in the long run, will make some "important employees" can not play their effectiveness for a long time, fast employees have to "accompany" slow employees, and there are hidden dangers for the company, such as some mechanical operators, because of long hours of overtime and fatigue, resulting in accidents, and the company has to pay a heavy price for this.

Third, overtime is not necessarily a "good job". Some employees in the after-work, called overtime, in fact, use the company's resources, engaged in other things, but also received the company's overtime pay, many of the company's important losses occur in off-duty time, and overtime has become the company's "dirt" dead end, "handyman" and "overtime pay" become the "root of all evil" of the increase in manufacturing costs.

Fifth, the cost of talent flow.

It must be said that the departure of an employee is a cost to the company, because the company has to bear the initial investment in the training fee of the employee, and also bear the upfront cost of recruiting the new employee in the position, and also bear the risk of whether the new employee is suitable for the position, and the employee's departure is largely caused by the relationship between "superiors and subordinates", either "empty promises are not fulfilled", or "superiors cannot be treated equally", or "the distribution of a big pot of rice can not reflect its value", and the result is "the weak eliminate the strong".

And after he leaves, he is likely to enter his own competitor's company. Therefore, the loss of employees, especially old employees, will undoubtedly bring expenses several times higher than the company's income.

Sixth, the cost of post dislocation.

Hear a conversation among their employees that every time a major customer comes to clean up the site, all their staff have to "clean all day or half a day". From the workshop director to the ordinary staff, they have all become "porters", and I can't help but sigh that we spend such a high salary to hire professional "cleaners".

In fact, this reflects the psychology of managers, who think that these employees are recruited to be used, as long as they have the manpower to do it, they don't need to spend more money to do it. But we found that they paid a high price for it.

There are also "too many thinkers in the company", individual cadres always have "different thoughts" about the decisions that have been communicated by superiors, and do not know that they are actually more of an "executor", as a manager, we must know that "an organization has only one thinker", we only need to "implement in place".

7. Process costs.

Most of the chaos in the company is because of the process. This is a common problem in enterprises, where the development of enterprises is slow, its process must be chaotic or unreasonable. They bear a high cost for this. Process is the industrial chain of enterprise operation, just like the assembly line, there is no scientific and reasonable process, many jobs are abandoned halfway, and there is still a lot of work that needs to be reworked.

This can become a mess that wraps the company's forward feet. An example: according to the job responsibilities is the team leader's business, it is enough to ask the workshop director, but the vice president of production needs to nod, which is also a typical process cost, the key is not here, the cost of "after the dislocation" is higher, everything has to be instructed, messed up, slowed down.

8. The cost of stagnant resources.

Stagnant resources can be said to be the most widespread "** cost" in the enterprise. For example, the process waiting, the press operation rate is less than 70%, the backlog of inventory is 3 million, payable 90 days, the payment is 120 days, and the business is shelved, although they may not continue to consume the company's investment, but they are part of the company's assets, and the company will bear the cost of interest and so on. Therefore, in a company, the number of stagnant resources reflects the level of the company's resource utilization.

9. The cost of corporate culture.

Some people say that corporate culture is like the soul of an enterprise, which will be reflected in the spiritual outlook of each of its members. Therefore, some people say that corporate culture is leadership culture. We will find that the employees of some enterprises are mentally depressed and extremely inefficient, and no matter how good the employees are, as long as they enter, they will either leave or become like that soon, and we cannot but say that this is an "environmental" problem. And this "environment" is the corporate culture of this enterprise.

10. Cost of credit.

Integrity management is like being an honest person. We found that many companies are accustomed to defaulting on business payments, arrears of employees' salaries, and deductions from others, etc., believing that this can reduce the pressure on corporate liquidity.

In fact, this will become a serious cost of business operation, first of all, the company will definitely calculate the cost of time in its first place, and the company will not be able to purchase the lowest raw materials or services.

Secondly, if an employee is in arrears of wages, violates labor laws and regulations, and deducts others, it will greatly reduce his creditworthiness, and when the company encounters difficulties one day, it will be embattled. Undoubtedly, companies will pay a heavy price for this.

*: Network).

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