A Study On OEM Cost Control Of Product For Manufacturing Enterprises

With the gradual globalization of the economy, and China's reform and opening up more and more in-depth development, more and more foreign enterprises to go abroad to come to China to expand their business, coupled with the overall level of science and technology in China gradually increase, making China become the world largest OEM production market. The manufacturing process of the technical content is relatively small, making the OEM foundry industry is relatively low threshold, so more and more enterprises to participate in OEM production, making the competition between the OEM production of more and more intense with the modern OEM business development to a full range of challenges. Coupled with customer intends to select a certain number of suppliers in order to maintain the stability of its product supply and price advantages of the negotiations, as well as contract manufacturers balance customer and OEM relationships. How to enhance their competitiveness? How to achieve long-term healthy development of OEM enterprise? Every OEM enterprise should face the inevitable issue.OEM business is mainly based on customer requirements of production, the customer will be quoted depending on the supplier to adjust the quantity of foundry production, reduce costs to improve OEM advantage of competition. Faced with this situation, OEM business cost management is critical, and cost control is the core of enterprise cost management and, therefore, need to strengthen cost control. Cost control is not only to save the economy, it is not the same as lower costs, but should be to establish and maintain long-term competitive advantage of companies take a measure. With the constant improvement of the market economy, enterprises must improve their competitiveness, we also should change the cost of the old concept of the past, the emphasis on control of physical and material cost of the product to pay more attention to the reasonable control of intangible non-material as OEM product cost improvements and cost foundries management is an important direction.This article first FN OEM foundry current status of cost-control model presents a brief introduction, and then FN OEM companies control the cost of the production process to analyze the core, through the FN OEM cost analysis, analyze its reasons, and to recommend appropriate measures in order to provide OEM enterprise cost management and control capabilities to address the OEM business cost control problems.