Research On Material Cost Control Improvement Of Xi Feng Company

Manufacturing is our country's traditional advantage industry,contributing to the economic development of the national economy.And now,with the trend of economic globalization,the status of china's rising labor costs,the manufacturing advantages of China have gradually shifted to Southeast Asian countries;At the same time,some of our country's high-end manufacturing has returned to the developed countries,investment advantages are disappearing and China's manufacturing sector is facing a certain challenge.In our country's manufacturing industry,especially traditional manufacturing companies have low added-value product,in many companies,raw materials cost about two-thirds of the sales.So the cost of materials as an important part of company has greatly influenced corporate profits.Especially small and medium enterprises,because of less capital,low level of management,and so on,the small and medium enterprises is more easily threatened by the cost of materials.As a medium-sized manufacturing company,Xi Feng company's raw materials account for 70 to 80 percent of total costs,plus the company is a labor intensive,its main business is a traditional manufacturing business,and the company's margins are lower.And because of its lack of technical content,the industry has stepped up its entry threshold further and further exacerbated its competition.Faced with intense competition,the company's ability to focus on internal costs is also particularly important,while companies are expanding their operating performance.This thesis introduces the problem of the cost control process of Xi Feng company and raises the solution to increase profits for the company's shareholders,provide better treatment for employees,and provide better protection for the company's survival.The author put the perspective on several parts of the process from raw materials throughout the production process.There remains a potential part of the cost control,from procurement,depot management,manufacturing and so on.Cost control factors are more comprehensive,cost controls are more manageable,and companies get better benefits.Moreover,improvements in the cost control of companies and methods can improve management of the company,so the allocation of resources within their companies is better.The overall benefits of society can also be improved indirectly,making the resources of society more and more accessible.