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Some of the major means for small and medium-sized paper box company to control costs are to purchase low-cost consumables and use cheaper workers. However, they have lost the most critical quality and efficiency in the company's life. As a result, the company's earnings are poor or development is slow. In fact, this is the result of the typical corporate decision-makers paying too much attention to explicit costs while neglecting the hidden costs.
At present, there are many custom printing packaging factories in China, especially small and medium-sized enterprises, which are concerned with the control of costs. However, they often only pay attention to explicit costs while ignoring hidden costs, making it difficult to excel in this field and achieve real high profitability.
With low purchase prices and the use of cheap labor, can the cost be reduced? Innocent Imagine that in packaging and printing companies, time is efficiency, and time is efficiency. The low-cost consumables, which are usually printing packaging boxes suitability or products that do not match production technologies, will inevitably cause more time in the production process to deal with problems caused by these inappropriate products. The explicit cost actually paid is low, but the implicit cost (cost of losing time efficiency) is obviously increased. Moreover, the proportion of consumables used in gift packaging box making processing is insignificant compared to the time efficiency gains. Therefore, this way of reducing costs is not worth the candle.
Consumption is only one of the hidden costs, other losses such as service life, energy consumption, quality and other derivative costs, plus the resulting intangible losses, corporate reputation, employees' self-confidence and so on. All these cannot be reflected in the actual cost.So how to control these costs for paper packaging box factory?
1.It is important to choose the right materials for the company’s equipment and personnel.
When handmade gift packaging suppliers choose a variety of packaging and printing materials, they should not blindly seek low prices, but ignore its additional costs. Should pay more attention to the hidden costs, should choose the most suitable for the company's own equipment design and performance, and most suitable for technical personnel operating habits of materials, so that equipment and personnel in the most coordinated and smooth way of operation. This kind of good cost brings true efficiency and efficiency. It is a true value manifestation. It is what we usually call cost-effectiveness.
2.Small costs have great value
Some of the cost components of packaging and printing companies are "small costs, large values." Excluding films, inks, and adhesives, the proportion of the cost of the remaining consumables is negligible. According to some industry estimates, materials such as rubber rollers, fountain liquids, car wash water, and other chemicals account for no more than 1.5% of the whole cost for making a paper box. However, these materials have a significant impact on product quality and production efficiency. This is the so-called big value of small cost.