In recent years, China's furniture industry is facing a lot of pressure from inflation. Materials rise, artificial rise, and rent increase, but the price is forced to decline. The era of rich profits may have gone forever.
However, the furniture industry still has to survive. How to "screw water from dry towels" has been pushed to the face of every boss.
Financially, the price—cost = profit
The higher the price, the higher the profit, the higher the profit, the way to increase the price, such as improving the design, increasing the added value of the product, building the brand, making the higher-priced products, not the low-end products..., for us For many factories, this trick seems to be a day.
Then hit the idea on cost, cost = circulation cost + operation management cost + labor cost + raw material cost + other solid costs
Labor costs are currently difficult to save, only the momentum of rising; there is no room for the cost of raw materials to fall, it is fortunate to stop not rising; there is no room for reduction in solid costs, and rents are also rising, then only the cost of circulation and Operating costs.
First, in the circulation link, some manufacturers are making some useful attempts.
The first method is: if it can be disassembled, it should not be assembled. The disassembly and assembly will reduce the transportation volume and the transportation cost will be reduced. However, the difficulty of the factory operation will be strengthened, and the packaging time of the disassembled product may increase. The process requirements of the product are higher. Otherwise, the customer's home will be unable to fit a little bit of the hole. Unlike the packaged product, the hole position is not accurate. It can be found at the factory and immediately corrected. This means that management needs to be strengthened and factories need more training and education.
The second method is: If the information between the manufacturer and the dealer is well communicated, when the customer places an order, the manufacturer directly delivers the goods to the final customer's home, thus eliminating the need for many intermediate transport links. The current process is that the customer places an order with the store, and the specialty store places an order with the factory. After the factory is finished, the store will pull the goods out of the store, the distant truck will come to the factory, and then the factory workers will pick up the goods. Transportation to the warehouse of the store, the workers release the goods, and then, the store then arranges the loading and delivery of the house, the delivery, and the unloading and installation at the guest's home. Among them, there are many links that can be improved. First, the same piece of goods has to go through the train several times and it is a waste of manpower and material resources. These costs will eventually increase to the product, thus pushing up the selling price.
Second, multiple loading and unloading operations of the same cargo cause damage to the product. Whether the damaged product is digested by the store or digested by the manufacturer, these costs will eventually be added to the product, thus pushing up the price. .
The author's suggestion is that if you can improve the management ability and trust of the store and the manufacturer, when loading from the factory, you can directly unload the goods to the terminal guest house along the way, although this method is difficult to operate. But the end result is that the vehicle is used less overall, and the overall handling is used less, the overall delivery time is greatly reduced, and the overall loss is reduced. In the industrial chain, no matter which side of the cost, ultimately all will increase the price to the product, if the cost of the entire industrial chain can be compressed, then the price of the product can be compressed, or the profit can be improved, but who will integrate problem.
Third, most of the current furniture factories only have competition and no cooperation. For example, there are two furniture factories in Dongguan, A and B. At the same time, they have to send one order of goods to Wuhu, Anhui, but the A manufacturer has a system from the factory to the specialty store. , Wuhu's store thinks, or drags the guests, waits to accumulate a little more orders, and then sends them together, or, the guests have to be anxious, or the customers have to increase the price, or the store does not need to pay for it, or there is no demand, but In order to fill the car, you can also order some unneeded goods and send a piece of goods to Wuhu. B manufacturers are also facing the same dilemma. The possible result is that originally, Dongguan A and B factories only need to send a car to Wuhu, then the customer receives the goods in time, satisfied, and A and B The sales system of the factory only needs to share one-half of the freight, and does not need to increase the inventory, and increase the capital occupation. It is more than enough. If so, the profit will be squeezed out. If it is not the two factories of A and B. But the five factories A, B, C, D, and E have greater benefits. If it is so long, the country is so, the benefits are immeasurable. However, the current universal integration may have too many difficulties. But if it is a brother manufacturer, or a friend manufacturer, you can consider such cooperation.
Second, let's talk about operating costs.
At present, the general format of furniture factories is: piece-rate wages, high inventory, large workshops and large warehouses, and less emphasis on management improvement. What are the cost burdens of these situations that have not been discovered? Now analyze one by one.
Piece-rate wages: For workers, the piece count is the maximum number of products produced per unit hour. This is the biggest indicator of wages, which means that workers intentionally or unintentionally disregard market demand and produce which products are good. Just do a good job of paying wages; which product will do one hundred pieces, preferably one thousand pieces, so that you can waste the conversion time. Some factories have requirements, but the situation I see is, or is not required, or the requirements are not in place, or the above requirements, the following is completely self-made, long-term past such mutual sawing, the raw tube is often çOne eye closed and one eye could not help but live.
High inventory: With the above production management methods and the current high wage situation, many factories want to make full use of the workers' time. Even if the market demand is limited, they can't let the workers idle, so a large number of products continue to flow. The flow out, high inventory is the result of course. High inventory will generate another chain reaction. First, high stocks will have large venues, and large venues will have large factory rents, so the cost will rise. Second, high inventory requires multi-person management, and ERP is required, so the cost rises again. Third, high inventory will cause more product damage, crushing and deterioration or style elimination, and the cost will rise again. Fourth, the cost of capital, even if you have the ability to borrow, it also costs, and the cost is pushed up again. If you can't borrow the funds, the capital chain is tight, and the general manager's call for no money is certainly greater.
Finally, let's talk about management improvement. At present, the processing time of a certain process in the electronics industry has been accurate to the accuracy of seconds. Many factories of some scales must have industrial engineering departments to continuously research and improve the production process in order to make the data more reasonable. The profit of the industry is often only 5%. In exchange for the furniture industry, it has long been impossible. At present, the profit rate of the furniture industry is getting lower and lower, but compared with the foundry industry, it is no longer fat. Fat meat.
Many furniture factories do not have standard working hours at all. Even if there are working hours, they are based on days. In order to find a template, they will find an hour or two. This is a waste of time. Second, workers are more reluctant to change models. A small amount of variety, resulting in the pile of mountains, can not get out of the goods, the market has no time to do. How many furniture factories, a good big workshop, they must spend a lot of money, make a lot of partition walls, hinder the logistics, the division department and the process flow, it is comfortable; obviously from the first floor to the second floor to the third floor Very smooth and coherently arranged production lines, they must be arranged into a spider network logistics route is a pleasure.
The author does management consulting and deals with these people all the year round. The difficulty of implementing simple, smooth and obvious methods is only known to me.
In summary, the furniture industry still has a lot of profits to explore the space, but the factory that is willing to improve and excavate can survive, rather than improve, just wait for a good opportunity to the factory, it is possible that this life will not wait for this. Opportunity.
Hair Brush,Curl Sponge,Round Hair Brush,Curling Brush
Ningbo DSS Intelligent Technology Co., Ltd , https://www.dsscosmetics.com