Status: timber prices are fierce
With the frequent rush of global timber resources and the implementation of strict control policies in the producing countries, the contradiction between supply and demand in the market has gradually deepened, and the domestic timber production in the Xing'an Mountains forest area has been greatly reduced, and the freight rate has continued to rise, leading to the rise in timber prices. It is no longer the same as before. Shenzhen Yuanheng Furniture Co., Ltd. Huang said that the price of wood is now fluctuating, rising every month, even a price of 10 days. For example, he said that at the beginning of this year, the price of African huanghuali sawn timber that he bought has now increased by more than 20%, and it is estimated that it will increase by 30%-40% in July.
In addition to the rise in the price of African huanghuali, the main ingredient of Huang’s furniture products, other solid wood raw materials have also risen. According to the survey, in early May, the price of raw materials of ash has increased by 1,000 yuan / cubic meter compared with the same period last year. The price of sawn timber (furniture) has reached 3,900 yuan / cubic meter, and the ash wood wire is outrageous because of the high price. There is no market space at present. Most materials manufacturers have temporarily stopped the production of ash wood wire, downstream. The market can only rely on the previous inventory to support. The price of eucalyptus has also risen by more than 500 yuan / cubic meter, and is currently reported to 4,500 yuan / cubic meter, or even higher. It can be seen that the problem of rising raw material costs faced by furniture manufacturers, especially solid wood enterprises, is particularly serious. According to reports, the material cost of furniture products accounts for between 60% and 80% of the total cost. Therefore, it is important to control the material cost of the enterprise. Specifically, enterprises can effectively reduce the cost of materials by controlling the cost of raw materials procurement and controlling the production of materials.
Control raw material procurement costs
It is understood that in the cost of furniture products, the gross profit is about 30%, the manufacturing cost is about 60%, and the raw material procurement cost is about 50%. If the raw material procurement cost can be reduced by 5%, the profit can increase by 30%. Therefore, the control of raw material procurement costs is a very effective way to improve corporate profits.
At present, for most furniture companies, the following problems exist in the procurement of raw materials: First, the transparency of material procurement information is not high, the operation of black-box, the market is not standardized, and the disorderly vicious competition is fierce. In the interview process, the author also found that many business owners are not willing to announce their own raw material purchase prices, which is considered to be unfavorable to market competition. Second, the plan is inaccurate, resulting in a large backlog or insufficient supply, making the construction budget inaccurate. For the current shortage of raw materials, especially the scarcity of some precious woods, Yuan Heng Furniture Huang believes that it is related to the market's massive hoarding and speculation.
In view of the above problems, we can easily find that to control the cost of raw material procurement, first, we need to standardize the price supply system of raw materials to achieve price transparency. Second, enterprises should widely collect market information, expand the sources of information suppliers, and reduce intermediate circulation. The third is to establish a material supplier price evaluation system to achieve "shopping three." Fourth, it is possible to collectively purchase raw materials through the form of enterprise alliances and strengthen the bargaining power when negotiating with material suppliers.
Control of production materials
Reducing material consumption is the first effective way to reduce product costs. To this end, we must pay attention to the savings in material consumption and strictly control the use of materials.
(1) Strengthen the management of the material plan and control it beforehand. According to Wang Zuoqing, deputy general manager of Yuanheng Furniture Co., Ltd., in order to effectively improve the utilization rate of raw materials and avoid waste, the company has measured each product to achieve that each product is a fixed amount of materials, and employees use this material. To receive the production materials.
(2) Paying attention to the training of technicians and strengthening the ability of employees to select materials. For furniture production, material selection is extremely important. Because wood has some natural texture characteristics, it is necessary for the craftsmen to determine which part of the piece of furniture is suitable for each piece of furniture, so as to avoid unnecessary waste and to make full use of the wood characteristics to produce the right product. . Therefore, Yuan Heng attaches great importance to the cultivation of such technicians, and adopts the model of the teacher to bring apprentices to increase such skilled workers.
(3) Actively promote material recycling and reuse. The materials consumed in some productions do not constitute product entities, and many materials are not consumed once in production, so some materials can be recycled. At this time, if the enterprise material consumption management is good, it can be reused many times. Among them, the most important ones are recycling and recycling. This requires enterprises to establish and improve the recycling and repair of old outlets, and set up special (part-time) staff responsible for recycling and repairing the old work, doing regular and centralized recycling work.
(4) Strengthening standardization and mechanization operations. In this respect, Mubaomeijia, a Chinese-style furniture, has done a good job. The company's standardized assembly line operation mode has also been praised by Fang Hui, the secretary-general of the Dongguan Famous Furniture Club. She believes that this solves the problem that Chinese furniture cannot be mass-produced and is worth learning in the industry. According to reports, Yuanheng Furniture also invested a large amount of funds this year to introduce advanced production equipment for standardized production.
Of course, there are still many ways to effectively control the cost of raw materials for enterprises. In addition to good procurement and production, it is necessary to do a certain amount of material inventory management. Because the material inventory is done well, when the market changes, it can also ensure the normal production of the enterprise. At the same time, with a certain amount of inventory, you can also get the benefits of production and processing benefits.
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