993 Scientific management
"What's the trouble?" Jiang Hua asked with a smile: "I've been keeping to myself these days, and I haven't done anything out of the ordinary except for this article." β
The leader angrily slapped the piece of paper on the table: "It's the chain reaction caused by your article that has caused me such a big problem." β
Jiang Hua took the paper and didn't look at it, but said with a smile: "What else can stump your old man?" β
After speaking, Jiang Hua carefully read the things on the paper, and it turned out to be an application report typed by the boss of the Changhong Group in western Sichuan, requesting that the color TVs of the Changhong Group be sold at a reduced price.
Hastily looked at the first few lines, and Jiang Hua in the back did not look at it seriously, but said jokingly: "What is there to be embarrassed about, no matter how normal the decision, we have no obvious advantages in technology, only make a fuss around the price, and the boss of Changhong Group is very wise." β
"Not embarrassed? Wise? Another leader said with a smile: "Look at how much he asks for a price reduction, it's just a problem for us." β
Jiang Hua took a closer look, Changhong Group asked for a price reduction of 30 percent, to be honest, Jiang Hua did not feel anything about such a price reduction, many things in later generations were reduced at a diving price, he didn't feel that there was anything inappropriate, just a conventional means of marketing.
The leader said excitedly: "Thirty percent, is selling at this price disrupting the market?" β
Jiang Hua shook his head: "How can this be called disrupting the market?" What really disrupted the market was the moment foreign brands entered the market, and the market was already chaotic at that time. β
A middle-aged man said: "People are in accordance with laws and regulations to compete in the market. β
"Then this kind of price reduction and price war is also a normal market competition." Jiang Hua shrugged his shoulders and said: "The price war is not an illegal operation in the international community. β
"If he cuts the price by 30 percent, what will other companies do, can't they all follow him in lowering the price?"
Jiang Hua nodded: "It's just to reduce the price with him." It has been said that our products have no technical advantages compared with foreign products, so we can only make a fuss about the price. β
"Thirty percent, not to mention the impact on the market." The leader patted the table and said: "Do you know what the gross profit margin of Changhong color TV is?" It's only 25 percent, and you lose 5 percent for every unit sold. β
Another leader also said bitterly: "There are 2 billion products piled up in the Changhong warehouse, what is 5 percent, according to his calculations, he will lose a whole 100 million, isn't this a waste of state-owned assets?" β
Jiang Hua smiled: "The leader's calculations are very good, but the accounts are not clear." β
"I don't get it?" The leader said a little angrily: "Okay, since I didn't understand it, then you can figure it out for me, and you can calculate it for me." β
Jiang Hua nodded, took a sip of the tea that was already a little cold, and said, "Then you listen to me and give you the calculation, and see if what I said makes sense." β
"You just said that Changhong now has two billion color TVs piled up in the warehouse, and if all of them are sold at a reduced price, according to this discount, it will lose 100 million."
The leader shook his head: "I don't need you to repeat my words, I'm not old and confused, and I remember what I said clearly." β
"But if you think about it again, if you don't reduce the price, these two billion goods can't be sold, and the loss is not one hundred million, but the loss of two billion, and if you can't sell it, these two billion products don't count."
Jiang Hua's answer was reasonable, rhymed, and several leaders couldn't help but nod in agreement.
"It's a great opportunity, a great opportunity." Jiang Hua continued: "Using the price of these two billion goods to reduce the price and bring the price down at once, we can not only occupy the market, but also clear the inventory, and after getting the funds, it can be used to expand production and research and development of new products." β
"You have to know that these two billion goods exist there, in addition to not being a fart, it will also increase logistics costs and warehousing costs, so I say he is a wise person."
At this time, that Liu Anmin spoke, he sneered and said to Jiang Hua: "Boss Zhang has to admit that what you said makes a lot of sense, but have you realized one thing, that is, once Changhong Group lowers the price of its color TV, it will be difficult to rise again in the future, is it necessary to sell according to the loss of five percent of each unit in the future, so what's the point of occupying the market?" β
Jiang Hua teased: "Oh, I didn't expect me to look away, you still have a little real material." β
Liu Anmin was both proud and angry, Jiang Hua smiled disdainfully: "First of all,Color TV is different from those HermesγLVLuirthella,After the price falls by 30 percent,It represents a decline in brand value,Color TV is not counted,30 percent is at most a big reward,Color TVs with different technologies can be appropriately adjusted in the future,As long as it is not outrageousγ β
"Secondly, I don't know if you've ever heard of supply chain management."
"Supply chain management?" Liu Anmin nodded: "I've heard of it, but I haven't studied it in depth." β
The leader asked with interest: "What is supply chain management?" β
"A scientific management method." Jiang Hua explained with a smile: "For a long time, we have defaulted to the production cost of raw materials, workers' wages, energy consumption, and machine depreciation, etc., in fact, storage costs and logistics costs are also one of the production costs. β
Jiang Hua gestured with his hand: "There is an iceberg theory in the theory of logistics management, what is logistics cost?" It's like an iceberg floating on the sea, on the surface we see that the iceberg is so big, but in fact, under the water, we can't see the place is bigger. β
"You mean that as long as I manage the logistics costs, I can save a lot of money?"
Jiang Hua and Liu Anmin nodded at the same time, and Jiang Hua continued: "So the theory of supply chain management has been proposed, and the ideal situation is that the factory does not have a warehouse at all, for example, before the factory workers go to work every morning. The raw materials are transported to the factory, the workers produce immediately, and before the end of work, the finished products are also shipped, which directly reduces the storage on the warehouse, which is a lot of money. β
"That sounds like a very good reason." The leader smiled and said: "It's a pity that it is too much of a test of cooperation in all aspects. β
"That's right." Jiang Hua spread his hands and said, "So this is the most ideal situation. At present, we can't do it, which requires big data analysis, Internet applications, and so on to reach a certain level of technology. (End of chapter)