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Some insights into the circuit board industry to reduce material costs!

106 Published by FASTPCBA 7月 02,2019

Some insights into the circuit board industry to reduce material costs

Since the beginning of this year, the electronic components and the most important raw material CCL of the circuit board are still rising, and the profit margin of the circuit board factory is getting smaller and smaller. On the basis of ensuring product quality, reducing production costs and comprehensively improving profits have become a weapon for circuit board factories to get out of the cost dilemma.

In the production cost of the board factory, the cost of raw materials accounts for more than 60%, so the more it can reduce production waste and inventory waste in the production process, the more profitable space can be created. Below I would like to talk about insight to reduce materials cost in the circuit board industry.

circuit board

I believe that every boss knows that if the purchase price of raw materials can be reduced to the maximum extent, the production cost of finished products can be reduced accordingly, and the economic benefits of enterprises will be greatly improved. Therefore, strengthening procurement management is one of the important means for us to increase corporate profits. Procurement of materials must be based on existing stock quantity and safety stocks to develop a monthly accurate procurement plan. Change the extensive procurement methods to reduce financial pressure and improve enterprise turnover capacity.

Each of the raw materials is compared with each other to refer to the market price, and the suppliers are continuously optimized to increase the purchase bargaining power and extend the settlement time of the goods. The copper, tin and copper clad plates that the company often uses are combined with the company’s situation to increase the purchase volume when the market is in low condition. Not a necessity, can not buy without buying, meet the production requirements is okay, do not prepare materials easily. Purchasing price, timeliness, planned accuracy rate and quality qualified rate of the person in charge of purchasing shall set performance appraisal indicators according to the results, forcing the procurement personnel to continuously improve and optimize the procurement cost.

Circuit board manufacturers not only have low profits, but even worse, if they don’t do inventory management well, the hard-earned money can’t be exchanged for cash, but into the warehouse.

Because most of the circuit board manufacturers need to make products according to customer order types and requirements, the copper clad laminates, inks and electroplating potions used each time are different. In order to better serve customers, only different types of copper clad laminates are prepared in the warehouse. Because of unreasonable material planning, many materials have not been used due to long-term backlog. These resources all require a lot of capital expenditures, so some board factories often make money to buy materials without even putting them in their pockets. They even need to borrow money from the bank, and all the money they earn are to return bank interest.

The warehouse engulfs the cash flow that the company relies on, just like the bottomless pit. Therefore, we must accurately predict the trend of customer orders according to the actual situation of the company, and ensure the normal use of materials in the production department with the least amount of capital. Due to the long-term shelving of materials, not only will it take up a lot of liquidity capital , but also cause waste and quality problems due to improper storage. I believe that everyone can realize that materials must be first-in, first-out, but because the warehouse workers are not active and often cause the enterprise raw material expiration instability and lead to scrap. I have often seen some peers looking for leisure, and the raw materials purchased are placed anywhere. Where is it convenient to take somewhere, causing some materials to be concealed in the corner and not found and purchased twice, but the previous purchased because it was expired and can only be scrapped.

Therefore, we must classify and partition warehouse materials to generate material code to set up files. Strictly require warehouse management to achieve consistent accounts and materials, and purchase can set accurate procurement plans. Make good use of the monthly inventory opportunity to let the finance and warehouse jointly check the inventory of the warehouse. For the cancellation of the order, the more stagnation materials of the purchase will be submitted to the company in time and processed in time. The warehouse’s basic raw materials are first-in, first-out, and the inventory accuracy rate is evaluated to ensure the minimum inventory of the warehouse and avoid unnecessary waste.

Therefore, we must classify and partition warehouse materials to generate material code to set up files. Strictly require warehouse management to achieve consistent accounts and materials, and purchase can set accurate procurement plans. Make good use of the monthly inventory opportunity to let the finance and warehouse jointly check the inventory of the warehouse. For the cancellation of the order, the more stagnation materials of the purchase will be submitted to the company in time and processed in time. The warehouse’s basic raw materials are first-in, first-out, and the inventory accuracy rate is evaluated to ensure the minimum inventory of the warehouse and avoid unnecessary waste.

Of course, enterprises are not only the cost of materials, but also part of the cost of labor. Many bosses believe that each factory needs to compete for wages. If you give more money, you can find good people. I think that this reason accounts for a large proportion. But more people want to achieve personal value, learn from the department’s work process, be able to meet their own needs in the team, and be encouraged and cared for in life, so I think if we can meet the needs of employees, As long as the same industry grows at the same rate, optimizes the reward and punishment system, and improves employee welfare, it will be able to find enough suitable employees.

Perhaps some bosses are beginning to wonder or dismissively think that my company is now implementing such rules and regulations, and it must be perfect. However, because the company’s top decision-makers often focus on the market, with the return of funds and other issues, it is easy to ignore the lifeline of the company’s circulation. It is recommended that the bosses or seniors take time to go through the various processes to observe: Is there any omission in place?

Maybe there are some managers hold indifferent psychology. They think that they buy more materials to use next time. And don’t know the company’s funds will become more and more tense. So that only excellence and keep improving enterprises can survive in a risk-filled environment and grow stronger!

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