China's Manufacturing PMI Index Released in June, Cost Control Becomes The Key To The Development Of Industrial Enterprises

According to data released by the National Bureau of Statistics, in June, China's manufacturing purchasing manager index (PMI) was 50.9%, and the manufacturing industry continued to expand steadily. However, the manufacturing purchase price index is still at a relatively high level, 9.8 percentage points higher than the ex-factory price index, indicating that the growth rate of the raw material prices of enterprises is significantly higher than that of finished products, and the profit margins of enterprises continue to be under pressure. Cost control will still be an important proposition for the development of industrial manufacturing enterprises.

As one of the core cost expenditures of industrial enterprises, the supply chain is an important link in cost control. Statistics show that the procurement cost of Chinese industrial enterprises is about 70 trillion yuan, of which indirect materials such as MRO and direct materials such as raw materials included in industrial products, the procurement cost is no less than 30 trillion yuan. In the past, restricted by technological constraints, there were a large number of "efficiency depressions" in the supply chain of industrial products, which slowed down the efficiency of enterprise operation and management. For example, there are millions of industrial products, and it takes 1-2 weeks to purchase only the source of the goods. In addition, factors such as the remote location of the factory and the difficulty of direct delivery to most social logistics make the purchase cycle of industrial products too long. Industrial products are the basic guarantee for daily industrial production and operations, and they must be replaced and replenished at any time. Therefore, companies have to increase inventory to ensure production safety. However, excessively high inventory will occupy a large amount of resources and capital costs of the enterprise.