Since June of this year, Shanxi Coking Company has undergone drastic reforms in response to loopholes in the management of warehouses and official vehicles. Currently, it has used more than 100 million yuan of funds.
The first "knife": to recover the warehouse, focus on zero inventory. Since the establishment of the plant, due to extensive management problems, Shanjiao’s stock of materials has increased dramatically and material losses have been severe. As of the beginning of June, the company’s book and inventory stocks had reached RMB 77,862,300, which had basically lost its liquidity value and became an idle backlog. The serious backlog of materials brought huge operating costs to Shan Jiao. In this reform, the company resolutely withdrew all the secondary warehouses and equipment warehouses, changed the supply department to directly manage various types of warehouses, and concentrated the original warehouse custodians to implement competition. The new mechanism has shown new conditions in the short term. In June of this year, the company’s material consumption was 2.62 million yuan, a decrease of 35.7% compared with the 4.09 million yuan in the same period last year. According to the actual production needs, the company’s material consumption will be controlled below 2 million yuan/month, which is much lower than last year's 3.4 million yuan/month. Only one material consumption will reduce company expenditure by more than RMB 16.8 million each year. At present, the Shan Jiao material supply department actively simplifies the process of picking materials and approvals, establishes material distribution points and delivery personnel, provides more convenient and efficient services for production, and finally realizes a zero-stock material supply model.
The second "knife": Take back the bus and implement the lease system. At present, the number of official vehicles in Shanjiao has reached 230, and the grade of the vehicles is also high, and the funds used by buses have reached as much as 27 million yuan. In 2004, the company’s book expenses, including depreciation, on official vehicles amounted to as high as $1,290.96 million, and the resulting costs were staggering. This time, the company resolutely withdrew 175 official vehicles distributed in various units, and scrapped 59 vehicles, auctioned 59 vehicles that still had use value, and retained only 50 vehicles for management by the company. At present, the company has promulgated the “Regulations on the Centralized Management of Official Carsâ€, which stipulates that all vehicles used by the units must be rented from the trucking company and adopt the principle of who uses the car and who settles it. Since June, Shanjiao’s bus expenditure has plummeted, with an average monthly drop of 60%. Only the bus refueling fee can save 8,000 yuan per month.
The first "knife": to recover the warehouse, focus on zero inventory. Since the establishment of the plant, due to extensive management problems, Shanjiao’s stock of materials has increased dramatically and material losses have been severe. As of the beginning of June, the company’s book and inventory stocks had reached RMB 77,862,300, which had basically lost its liquidity value and became an idle backlog. The serious backlog of materials brought huge operating costs to Shan Jiao. In this reform, the company resolutely withdrew all the secondary warehouses and equipment warehouses, changed the supply department to directly manage various types of warehouses, and concentrated the original warehouse custodians to implement competition. The new mechanism has shown new conditions in the short term. In June of this year, the company’s material consumption was 2.62 million yuan, a decrease of 35.7% compared with the 4.09 million yuan in the same period last year. According to the actual production needs, the company’s material consumption will be controlled below 2 million yuan/month, which is much lower than last year's 3.4 million yuan/month. Only one material consumption will reduce company expenditure by more than RMB 16.8 million each year. At present, the Shan Jiao material supply department actively simplifies the process of picking materials and approvals, establishes material distribution points and delivery personnel, provides more convenient and efficient services for production, and finally realizes a zero-stock material supply model.
The second "knife": Take back the bus and implement the lease system. At present, the number of official vehicles in Shanjiao has reached 230, and the grade of the vehicles is also high, and the funds used by buses have reached as much as 27 million yuan. In 2004, the company’s book expenses, including depreciation, on official vehicles amounted to as high as $1,290.96 million, and the resulting costs were staggering. This time, the company resolutely withdrew 175 official vehicles distributed in various units, and scrapped 59 vehicles, auctioned 59 vehicles that still had use value, and retained only 50 vehicles for management by the company. At present, the company has promulgated the “Regulations on the Centralized Management of Official Carsâ€, which stipulates that all vehicles used by the units must be rented from the trucking company and adopt the principle of who uses the car and who settles it. Since June, Shanjiao’s bus expenditure has plummeted, with an average monthly drop of 60%. Only the bus refueling fee can save 8,000 yuan per month.
Shunyuan Wangda Trade Co., Ltd. , http://www.cpdiecasting.com