Facing The Cost Pressure, How Should Clothing Enterprises Respond?

First, "profiteering changes to small profits", and garment enterprises are trapped in "small profits whirlpool".

With the rising price of raw materials and the huge increase in labor costs,

Long ago, farewell to the "profiteering" era more than 10 years ago, more garment enterprises were plunged into "small profits" because of higher and higher cost pressure.

China's clothing enterprises generally adopt the traditional labor intensive production mode and extensive management mode, which makes garment enterprises only passively accept the gradually reduced profits when dealing with the problem of rising costs.

The reduction of profits has directly led to the inability of enterprises to invest more in brand innovation and extension, which has restricted the development of clothing brand. How to curb costs will be a serious problem for garment enterprises.

Two, the three elements of cost containment: inventory, sales and supply chain.

Faced with increasingly serious cost problems, garment enterprises have taken measures to "cut corners and tighten their expenses", and even resort to passive ways such as layoffs.

The key to the problem is that the direction of cost containment is unclear.

There are three main elements of cost containment:

1, inventory: inventory backlog problem is a must test for every garment enterprise.

According to reports, Metersbonwe's inventory reached 2 billion 982 million yuan at the end of 2011, accounting for 49.55% of the current assets, while the sea Lanhai home company's inventory reached 3 billion 863 million yuan at the end of 2011, accounting for 56.82% of the total current assets.

There are many similar data, many enterprises have "died" in the inventory problem.

2, sales: store sales ability determines the profitability of clothing enterprises and inventory pressure.

Closing shop is not the only choice for clothing enterprises, but how to improve sales is the king's way.

3, supply chain: the smooth flow of information in every link of supply chain is a major premise to ensure that enterprises have enough circulating capital.

In addition, the continuous rise of international oil prices has brought higher logistics costs to garment enterprises. In this context, timely response of supply chain has more important significance.

Considering the above three factors, the most practical way to solve the problem of high cost is to implement the information technology effectively.

Three, use communication to run through the information cost management system.

In recent years, because of its powerful role in cost control, information technology has attracted widespread attention of garment enterprises. Many enterprises have begun to deploy proprietary Invoicing system or ERP system, and realize cost control by optimizing the process.

However, from past experience, these systems have improved the efficiency of enterprises and reduced the fault tolerance of all links to a certain extent.

Therefore, when emergencies occur, communication in all links is particularly important.

At present, many well-known enterprises in many industries including BELLE, Shanshan and reporting birds adopt the method of introducing IMO and other enterprise communication platform, and use communication to run through the information cost management system and enhance the emergency handling capacity.

1, the supply chain is open, and the inventory problem is solved.

Strengthen communication between supply chain links and control inventory effectively.

such as

Instant messaging platform can achieve full coverage of headquarters, production, stores and other links.

Headquarters can understand the promotional results of all stores by means of text, video, voice, electronic bulletin and so on. Then, according to the sales information feedback from stores, it will immediately formulate sales strategies and production plans, and minimize unnecessary backlog on the basis of ensuring safety stock.

2, form a linked sales system:

The store sales ability can be enhanced through self coordination among stores.

Through the organizational structure function of IMO, clothing enterprises can put stores in the communication system of enterprises, and carry out unified management of information platform.

Stores encountered problems such as insufficient stock and broken code in the sales process. They can share information with other stores with IMO, forming a linkage sales system, greatly enhancing the digestion ability of individual stores for customers' needs.

3, sales, inventory, supply chain interaction:

Speed up the response and improve the ability to deal with emergency.

In the face of all kinds of accidents that may occur in logistics, pportation, store sales and other links, enterprises can choose to share information with other departments through IMO's instant messaging, and discuss emergency response plans. Headquarters can also make longitudinal intervention based on the actual situation, using IMO's electronic bulletin, SMS and other collaborative office functions, so as to ensure enterprises' ability to control the whole sudden situation and effectively avoid inventory and unsalable problems caused by information island.

Conclusion: we can see that although

Under the unprecedented pressure of cost, many enterprises have gone through the shackles of cost pressure by means of informatization.

The market will never wait, not enter and die.

How to find out a set of cost management system suitable for enterprises in the current difficult situation will be of great significance to the future development of enterprises.