How can machining enterprises effectively reduce inventory costs?
First: material cost in design stage
The cost of design is mainly considered from two aspects: on the one hand, it refers to the cost of the design itself, on the other hand, it refers to the cost of the designed product.
The cost of design itself refers to the cost caused by repeated design and transitional design in the design process. For this part of the cost, relevant departments need to establish their own knowledge system. Ensure that the designed product quality is stable and the design cycle is short.
Product design cost refers to the difference in product cost caused by the different materials used in the designed products, the designed process route, the versatility of the designed parts, etc. In this design process, we should make full use of existing equipment and molds, reduce the complexity of production planning, improve production efficiency, ensure quality and reduce costs.
Second: material cost in the planning stage
The material cost in the planning stage also includes two aspects: purchase plan and production plan. These two aspects are to meet the needs of production through reasonable Kun stock and ensure the smooth progress of production.
The purchase plan is mainly formulated according to the production plan, which depends on whether the production plan is reasonable.

Production plan, the reasonable arrangement of production plan needs to follow three aspects: first, ensure the delivery time of the order; Second, ensure balanced production to meet production needs; Third, ensure the efficiency of production batch.
Third: material cost in use stage
In the use stage, the material cost control is mainly achieved by reducing waste. Although in theory, the workshop should follow the standards of the technical department when picking up materials, in actual production, waste often occurs, and there are many reasons. At the same time, due to unclear accounts, workshop materials are often not received according to the production plan documents. There is also a case of direct waste, such as loss or scrap, which often occurs in production.

For the above three kinds of material cost expenditure, the solutions mainly include: first, establish the process and system of material requisition in the workshop, and standardize the behavior of material requisition; The second is to establish an exception handling mechanism to define how to deal with excessive picking behavior. In addition, we need to use ERP management tools to control the quantity of picking and standardize the behavior of material transfer.
Fourth: material cost in storage stage
In the inventory stage, we also need to control the cost of materials. We can start with the management of obsolete materials in inventory. Find out the causes of sluggish materials. And according to different reasons, carry out relative solutions.

If you want to reduce the cost expenditure of machining enterprises in an all-round way, it is not enough to only rely on the control of cost expenditure, but also need the cooperation of other aspects. Therefore, the cost of machining enterprises is a very important content, which needs comprehensive and scientific analysis and management.
