How can foreign trade enterprises effectively control costs?

Editor's Note In today's fierce competition in the market economy, every entrepreneur knows very well that cost control is a very important link in the process of wealth creation and wealth accumulation. In today's fierce competition in the market economy, every entrepreneur knows very well that cost control is a very important link in the process of wealth creation and accumulation. But not every entrepreneur can successfully control the cost in the lowest and most reasonable range. Therefore, we introduce some effective methods to control costs here. According to the law of capital movement, we know that the value composition of goods is C+V+M, C is constant capital, V is variable capital, and M is value-added part, which can be called profit. According to the concept of input and output, C+V is the input part, M is the output part, C+V can be used as the denominator and M is the numerator. The bigger the numerator, the smaller the denominator, and the better the input-output benefit, and vice versa. Therefore, how to control the cost has become a very critical input-output problem. In C+V, C refers to the constant capital used to purchase means of production, machinery and equipment, and is an important part of commodity value. In terms of cost control, we should pay special attention to the prices of similar production materials, machinery and equipment, and whether there are inexpensive products, especially in the market economy. Under the action of competition mechanism, if we shop around when purchasing, we can not only make our products competitive, but also effectively control the cost, which is one of the main reasons why many factories put elite soldiers in the raw material purchasing department, because only in this way can we effectively control the first level of commodity production-feed prices. V is the price paid to the workers. The value of workers themselves consists of three parts, one is the cost of maintaining workers themselves, the other is the cost of maintaining workers' families, and the third is the cost of cultivating workers' skills. In different countries, due to differences in economic levels, labor prices have different levels. However, one thing is the same. In the value of the labor force, the proportion of workers' skills training expenses is also expanding day by day, and more and more simple labor is replaced by complex labor, so that in many western countries, if nine-year compulsory education is not completed, a lot of work cannot be done. In cost control, V is an important factor, and the level of V is directly related to the level of cost. However, V cannot decrease indefinitely, that is to say, V has a lower limit, which is an acceptable price for both labor suppliers and labor demanders in a similar labor market. Below this price, enterprises can't find qualified workers. In addition, labor costs should be viewed from a dynamic point of view rather than a static point of view. From a dynamic point of view, when paying the labor cost, we should not only see the money spent, but also see the value created by the labor force. We should use the input-output method to analyze whether the wages paid to workers are reasonable. The higher the value created, the higher the wages paid to workers, which conforms to the objective laws of the labor market. If this law is violated, even if the high-quality and cheap labor force is obtained temporarily, it is impossible to keep the high-quality labor force in the enterprise for a long time due to the liquidity of the market, and the appreciation of enterprise assets will be affected eventually because of the departure of the high-quality labor force. Therefore, it is necessary for any enterprise to control costs, but any cost has a lower limit, which is its reasonable level. At this level, enterprises can get maximum output with minimum input. Below this level, it is against the objective law, but above this level, it will directly affect the economic benefits of enterprises. Characteristics of cost control of foreign trade enterprises Foreign trade enterprises are in the field of commercial circulation, and the capital used is commercial capital. The characteristics of commercial capital operation are different from industrial capital and monetary capital, and the operation of commercial capital in foreign trade is also different from domestic trade, which has its own unique characteristics: from a single capital circle, foreign trade enterprises buy export goods from factories. For the factory, the value of the goods paid after being acquired has been realized, which can be regarded as the realization of the value of the goods in the domestic market, but for foreign trade enterprises, the value of the purchased export goods can only be realized in the international market. Therefore, when the export commodities are acquired by foreign trade enterprises, the value-added process is not over, but the value-added space and labor process have shifted from the production field of the factory to the circulation field of foreign trade. Judging from the operating cost of foreign trade enterprises, it consists of two parts, namely, fixed capital and part of working capital investment of foreign trade enterprises. Fixed capital investment includes the purchase of office buildings, office equipment, transportation tools, warehouses, etc. This part of the investment is characterized by one-time investment, repeated recovery in batches and depreciation. There is also part of office expenses, that is, the operating expenses required for import and export business, such as travel expenses, inspection fees, sample fees, communication fees, etc. These expenses belong to working capital investment, which is characterized by one-time investment, short time and quick turnover, and can be recovered in three to six months. The value transfer of working capital is also a one-time increase of commodity value. There is also a part of working capital, which is used to pay salaries and bonuses to salesmen. The salesmen of foreign trade companies are mostly college graduates, mainly from foreign trade, foreign languages and financial institutions. Each company has different salary regulations for college graduates, but the overall level is similar. But there is a big difference in the bonus part. After the reform of the economic system, every import and export company has established an employee incentive mechanism to reward salesmen who create more value, and regards the bonus level as the main means to open the income level. Therefore, in the cost of foreign trade enterprises, wages and bonuses paid to salesmen are also very important components of the cost. From the perspective of total capital composition, there are "three more and three less" in the capital composition of foreign trade enterprises, that is, more liabilities, less equity capital, more working capital, less fixed capital, more short-term loans and less long-term loans. Such a total capital composition makes foreign trade enterprises have more industry characteristics in reducing costs. It is precisely because of the above characteristics that foreign trade enterprises can reduce costs in the following ways: (1) Controlling the purchase price of export commodities is an important link in controlling enterprise costs. At present, most foreign trade enterprises still adopt the purchase system for the export goods of factories, so the purchase price has become the key point to control costs. In the economic system reform, the domestic competition mechanism is taking shape, which provides a broad space for foreign trade enterprises to choose high-quality and low-priced export commodities, and also provides opportunities for enterprises to reduce the cost of export commodities. Therefore, all export enterprises should pay full attention to commodity procurement, adhere to the principle of giving priority to the purchase of similar commodities with high quality and low price, consciously cultivate a number of suppliers of high-quality export commodities, and use the economic benefit mechanism to enable these suppliers to provide high-quality and low-price export commodities for foreign trade enterprises. At the same time, foreign trade enterprises can also infiltrate capital into industrial enterprises through three shares and holding shares, organically combine the interests of foreign trade enterprises and industrial enterprises with asset ties, and control costs through the interest mechanism, which is conducive to enabling both industry and trade to obtain maximum output with minimum input. (two) through the effective control of inventory and accounts receivable, accelerate the circulation and turnover of liquidity. A considerable part of the working capital of foreign trade enterprises is used to buy export commodities. Due to the timeliness and seasonality of export commodities, many commodities have to be stored in the warehouse for a period of time after purchase, forming inventory commodities. Of course, there are also reasonable inventory and unreasonable inventory. Generally speaking, a high inventory turnover rate means that the inventory speed is fast and the liquidity is low. The same amount of liquidity can bring different economic benefits because of its fast turnover. Therefore, every enterprise strives to speed up the turnover of inventory. But if the inventory turnover rate is too high, it reflects that the enterprise has insufficient inventory. If the inventory is too small to meet the export demand, it will also affect the normal operation of the enterprise. Therefore, a moderate inventory turnover rate is more appropriate. As for what kind of inventory turnover rate is more appropriate, it varies according to different commodities, different markets and different sales targets. Each foreign trade enterprise may formulate according to its own operating conditions and commodity characteristics. Accounts receivable are also an important part of working capital of foreign trade enterprises. Accounts receivable can be divided into accounts for domestic factories and enterprises and accounts for foreign customers. Establishing reasonable accounts receivable can promote the development of import and export business, but the failure to collect accounts receivable is an important reason for the losses of foreign trade companies. In short, because most of the working capital of foreign trade companies comes from bank loans, the interest burden of banks will be calculated in the export cost. Therefore, accelerating the circulation and turnover of liquidity will be an important means for foreign trade enterprises to control costs and increase profits. (3) Revitalizing fixed capital investment can indirectly reduce the cost of enterprises. The fixed capital investment of foreign trade enterprises is mainly manifested in the purchase of office buildings, staff quarters, means of transportation, communication equipment, warehouses, etc. The purchased properties, such as office buildings, staff quarters and warehouses, occupy the largest amount of funds and constitute an important part of fixed capital investment. According to the traditional view, once these fixed capital is invested, it will be several years before it can be recovered through depreciation. However, if we establish asset management values, then the property invested with these fixed capital can also bring certain benefits to the company before the depreciation is completed. For example, if you invest in building office buildings, dormitories and warehouses, you can mortgage them to banks and get preferential interest rates. As a working capital, the loan can be invested in import and export trade, which can bring some benefits to export companies because of the preferential interest rate. For example, in the property market, the company's property assets can also be traded. A company can use real estate as an investment method for other enterprises in the form of three shares and holding, so that fixed real estate assets can flow in the form of value and bring benefits to the company. (D) reducing office operating expenses is also an important part of cost control. The operating expenses of foreign trade companies constitute a very important part of the cost of foreign trade enterprises. In the period of planned economy, this part of the expenditure was not taken seriously because of eating from the same pot. After the economic system reform, especially after the implementation of the contract responsibility system, office operating expenses, as an important part of cost expenditure, are firmly linked to the profits created by employees and the distribution of funds after the completion of tasks. Some import and export companies put expenditure indicators, profit indicators and reward indicators into practice for individuals (for example, Lu Changsheng Management Law of Shanghai Base Import and Export Company). This system of linking expenditure with profit creation by input-output method undoubtedly plays a decisive role in minimizing office expenses. Some import and export companies use this method to save tens of thousands of yuan on telephone bills alone, but for every salesman, this mechanism tightens the string of saving money in their minds, so that they don't have to call if they can write a fax to contact the business, and they don't have to fly if they can take the train. The saving of office expenses not only saves the company's operating expenses, but also brings economic benefits to the salesman himself. In the input-output formula, office expenses, as the input part, are the denominator and the output part is the numerator. When the denominator decreases, even if the numerator remains the same, the income will still increase. (5) Properly setting the ratio of salesman's salary to bonus can also effectively control the cost. In foreign trade companies, the business activities of salesmen directly create economic benefits for enterprises. Therefore, the salesman's management ability, foreign language level, understanding of the market, familiarity with product characteristics, and mastery of domestic factories and foreign customer networks have become important factors for them to create profits for the enterprise. After mastering the same amount of liquidity, high-quality salespeople can create several times or even dozens of times more profits than ordinary salespeople. Therefore, it is particularly important for foreign trade companies to establish an effective incentive mechanism, which is also one of the effective ways for foreign trade companies to retain talents. In the salary and bonus distribution of sales staff, the formulation of the ratio of the two is of great significance to control costs. If the relationship between the two is 3: 7, then the salesman can only get the corresponding bonus if he creates a certain profit, so that in the input-output ratio, the enterprise cost will be relatively reduced because of the increase of output. Of course, the appropriate salary and capital ratio are not fixed, and each enterprise should constantly modify it according to its own business development. In short, effectively controlling enterprise costs is like an "endless homework" for entrepreneurs. If this homework is done well, the cost of the enterprise will be reduced, the profit will be improved, and the speed of entrepreneurs creating wealth will be accelerated. Article source: