16.5% Behind The Cost Of Shoe Enterprises In Wenzhou, The Cost Of Life And Death

In the 1-6 month of this year, the export of Wenzhou shoes to the European Union increased by only 14.4%, a sharp decline compared with the same period last year, and the growth rate in August continued to drop to 9%.

According to data released by AOKANG group, 45% shoe companies in Wenzhou have been closed or shut down.

At the meeting in October 8th, participants generally agreed that if the final result was good, it would mean a 16.5% buffer on the cost.

Production costs have risen by 20%. The other side of the continued decline in exports is the continued rise in costs.

Zhou Jinmiao, vice president of Kangnai group, said that for a very simple example, a meeting was held in International Trade Building or Cetra Building before, and the parking fee was five yuan, but now it has risen to ten yuan.

"They must understand that apart from China, there is no better alternative country to pave the way."

Zhou Jinmiao said that recently, manufacturers have been afraid to sign large orders with customers because the exchange rate of the US dollar has been falling, leading to many domestic manufacturers changing prices.

On the other hand, we have no problem of dumping. You see, our prices are rising. On this point, Guangdong manufacturers may be more aware than Zhejiang.

According to a production cost calculation made by AOKANG group, the production cost of shoes has risen nearly 20% this year than last year.

"This means that because of the price increase, the cost of the shoe company will cost more than 100 million yuan."

Fan Manru, general manager of AOKANG shoe manufacturing company, said.

Even in the hottest summer, fan's office air conditioning is strictly controlled at 26 C this year, because AOKANG introduced a series of energy-saving control cost measures this year.

"When people leave the office, they turn off the air conditioner, even if they leave for a little while.

And the company stipulates that the minimum air conditioning can only reach 26 degrees Celsius. "

With the increase of raw material prices, labor costs and RMB appreciation, many Wenzhou shoe companies are like AOKANG. The production cost has been greatly improved, resulting in a decline in the company's profit index.

Fan fan said, for example, the PU glue, which is used as an auxiliary material for soles, has increased oil prices, driving up chemical raw materials. The PU glue has risen from 19 yuan / kg to 21 yuan / kg at the beginning of the year. According to the output of AOKANG, the price of light PU adhesive will be more than fifty thousand or sixty thousand yuan per quarter. It is estimated that the PU adhesive may go up next year, while PU gum is only a small part of the raw and auxiliary materials for shoes production.

Starting from February this year, the shoe company set up a new organization such as "cost office". It summed up seven wastes: waiting for waste, carrying waste, waste of defective rate, waste of processing, waste of action, waste of inventory, waste of manufacturing, etc.

Starting from solving the "seven wastes", we will refine each item to produce raw and auxiliary materials, and mobilize employees to carry out the training of cost control skills, and do everything possible to control production costs and reduce unnecessary losses.

In the production process, because each worker's operation method is different, the resulting raw materials consumption is also not the same.

For example, glued PU glue brush on the soles of the shoes, each worker is different in the way of brushing glue, the difference between each pair of shoes is a few grams of glue, even though it is only a few cents.

However, such a few cents, the company is also very "real", "cost office" staff repeated testing, standardized operation, the development of each pair of shoes brush must be controlled at 20 grams of -25 grams of standard quantity.

If a worker exceeds this standard, he must pay the bill himself.

Fan fan said: "after the introduction of the standard, the amount of brush from the original 30 grams of each pair of shoes dropped to about 20 grams -25 grams now, saving more than 20%."

She said that although such a few grams of gum can not save much money, but the production standards such as them have made a lot of, and a large number of small amounts of money is not a small number.

According to her estimate, after standardized production, the average cost of a pair of shoes is about 1%, which can save about 3000000 yuan in one year.

The profit increased by only 5%. In purchasing raw materials, AOKANG adopted a new mode called "futures purchase".

If mid July, when the leather manufacturer quotes, the company can predict the leather price through the manufacturer and the collected information. Next, the price of the leather material may go up, so we purchase 50 thousand feet of leather material in advance to reserve.

Sure enough, there has been a period of time when there are four kinds of leather materials prices rising. This advance purchase and reserve will save tens of thousands of dollars for the company.

Fan fan said, in such a "cold winter" season, the profit of enterprises is very small. If the company wants to make profits, it can not do without "cost control consciousness". Employees should take the initiative to control costs from product development design, production process, raw material supply and every detail.

Once a financial officer sent her a total of four sheets of paper, she pointed out that the row spacing and font size of the report could be reduced. Nowadays, only two sheets of paper are sent by financial personnel.

Under the control of the above measures, although the company's profit has not increased significantly as expected this year, it has increased by 5% over the same period last year through a series of cost control measures.

At the same time, AOKANG's nearly 3000 stores nationwide have also increased their cost awareness and launched cost saving activities.

For example, the Hubei branch has launched the "two territories" in the management of exclusive stores.

"A" soil "is that we ask store managers to use fans and use air conditioners as much as possible.

Turn on the air conditioner at the peak hours of customers and adjust to the appropriate temperature, which is cool and comfortable and avoids unnecessary waste.

Try to use the fan in the less time to turn off the air conditioner.

The second "soil" is equipped with a bicycle in each store. When the size of the customer needs the shop, the shop assistant can deploy the nearest AOKANG store with the fastest time and the least cost.

Xu Xuliang, general manager of AOKANG Hubei branch, said.

"Although this method 'soil' is more practical, the cost of saving the single store has played a good effect on the current rise in the rent of the store, so the branches of the other provinces of AOKANG have emulated it."