"4 7" volume procurement forces enterprises to control costs


Release time:

2019-01-03

A few days ago, the "4 7" urban belt procurement-related varieties led by the National Medical Security Administration reduced prices far more than expected, leading to a collective "diving" of pharmaceutical stocks ". In this round of pharmaceutical companies reshuffle process, how to control product production costs and improve profitability has become the key to the survival of pharmaceutical companies.

To control the production cost of products, it is usually necessary to consider the material cost, labor cost, power cost and manufacturing cost. Enterprises are all racking their brains to reduce the cost of each link in order to improve profitability. But in practice, some links are often ignored by enterprises, such as raw materials.

Raw materials are the basis for the production of medicines. Uncontrollable raw materials and large price fluctuations will directly affect manufacturing costs, especially raw materials with fewer manufacturers, which are more likely to be monopolized and cause prices to rise. In particular, traditional Chinese medicine, along with the market, is more likely to produce large price fluctuations, such as the former Panax notoginseng, today's honeysuckle and so on.

In this regard, enterprises need to establish a "futures" awareness, the future supply of raw materials market to make expected judgments to ensure the supply of raw materials. Many factors can affect the price of raw materials, such as natural disasters or abnormal climate in the main producing areas of medicinal materials, which will inevitably affect the harvest of medicinal materials and cause price increases. In addition, pharmaceutical farmers will also focus on planting varieties with soaring prices according to market conditions, and abandon varieties with depressed prices, thus creating an oversupply or shortage during the harvest period, and the shortage will also lead to soaring prices. This price trend requires long-term experience of procurement staff to make predictions. Especially for several kinds of raw materials that are very important to enterprises, it is better to sign futures agreements if there are relatively stable suppliers.

In the production cost of the product, as the income of employees increases year by year, pension insurance and other expenses increase year by year, labor costs account for an increasing proportion. To some extent, this also forces enterprises to adopt automated production, packaging and storage and transportation methods to greatly improve production efficiency. Enterprises can also reduce the loss of raw materials and even water and electricity and reduce the unit consumption of products by continuously optimizing the production process, reducing the unit consumption of materials, carrying out technological innovation, and rewarding rationalization proposals. In addition, relatively accurate sales forecasts based on factors such as sales trends, off-peak seasons, and promotional activity plans can also avoid inventory losses caused by product outages or backlogs.

In a word, only by controlling the production cost of products, improving the profitability of products, tapping the potential of all employees, saving resources and strengthening management, can enterprises win the next development opportunity.