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Two Ways to Cut Internal Cost in a Corporate

Why should we keep a keen eye on internal costs? According to the industry report, if a company wants to keep a sustainable growth and survive in an industry, the capability to control internal cost is quite vital.
In fact, there is no lowest cost, but a reasonable one. Too low cost will lead to low quality. And nowadays, few people will buy a product that is “lowest price but highest quality”. Obviously, it is impossible to ensure high quality while you just invest a little on products. 


Then how can we ensure a reasonable cost while keeping ourselves competitive in the market?
There are two ways to cut internal costs, one is to enhance internal management and the other is to increase efficiency. Before adopting these two methods, offering products and services of consistent quality should come first. Try to understand each requirement from customers and know clearly of customers’ expectations, and then achieve lean production while producing products that really meet customers’ demand. Don’t try to figure out your customers’ needs by guessing and to make an ideal product for yourself rather than for your customers.
For internal management, too many hierarchies mean redundancy and too much management will lead to low efficiency and high cost. So many experts in management hold an opinion that the more simplified the management, the better. Only when you simplify your management, can you ensure a quick response to consumers. A very good example to support this statement is Walmart’s “Efficient Consumer Response”. In addition, when we talk about management, we cannot ignore “people”. Excellent people can not only help you solve problems, but also create value for your company. So if you aim to cut internal costs, please arrange the most talented and excellent person to the front line to execute and take action.
Compared with internal management, high efficiency is much easier to improve because it relies less on people. By just changing some working habits or introducing high technology, the internal working efficiency can be greatly improved, therefore, costs can be cut. For many companies, communication cost, time cost, process cost, and trust cost are quite costly among others. Take advertising textile printing industry as an example, the traditional purchasing model needs a lot of communications, and several people are involved even when you just buy one item. Moreover, because of the time difference, it is really time-consuming to check each detail and piles of emails need to be sent back and forth. And now CFM establishes a new B2F (business to factory) model, digital workshop and online ordering system, no extra communication and no middle links are needed for customers. When the purchasing process becomes simple and easy, it also means low training costs and easy duplication. 

CFM--An internet-based service provider for overnight advertising textile printing in China
When you purchase online through our B2F (business to factory) online ordering system,
1. You can get a quote within 5 minutes;
2. You can place an order in just 3 steps;
3. You can enjoy 24 hours free artwork service;
4. You can enjoy 24 hours/365 days of printing service;
5. You can enjoy 24 hours and 48 hours fast lead time.

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