How to Reduce Cost and Improve Supply Capacity?

December 25, 2017 | Author: | Posted in Business

   Toady, Meishen, a professional magnesium oxide manufacturer talk about reducing cost and improve supply capacity with you. Recently, The main advantages of low cost production factors and manufacturing exportation competition, which is depended by Chinese economy sustainable growth, is experiencing fundamental changes. However, the rising cost makes these advantages will be no longer in existence. Last year, the Central Economic Working Conference took “reduce cost” as one of the big five tasks, and put forward to carry out the operation of reducing enterprises’ cost.

It is an important deployment for new structure of economic development in the future. What’s more, it has significance to reduce cost of magnesium oxide suppliers and improve enterprise competitiveness.

It is necessary to reduce cost and improve supply capacity for the supply side reform. In recent years, the government pays more attention to reduce enterprise cost. It creates a good policy environment for enterprise development. However, because of various causes, the problems of real enterprises’ high cost is still acute. At present, a expert from a professional supplier points out, “High cost lead to weakened profitability of real enterprises. It has already became mechanical damage of supply side. Therefore, the most most urgent problem is to remove the barrier on the development road.”

One, streamline administration and institute decentralization further, and reduce trading cost actually. Over the years, all local governments and departments constantly advance streamlining administration and delegating power, cancel or delegate to the items requiring administrative review and approval.

Two, advance tax reform and reduce the burdens of the enterprises actually. The nature purpose of tax is taking out some resources to maintain social economy functions. Its intention is to make social economy runs more smoothly. But it seems that some parts of charges are unreasonable.

Three, advance the market reform of raw material price, and reduce the cost burden of enterprises’ raw material. In this process, in order to make the raw material price can reflect the changes of market supply and demand actually, you should carry out the reform program of raw material price mechanism at present, and clear the relationship between raw material and product price further.

Four, promote the reform of the financial system and reduce the magnesium oxide supplier scale of the financial costs. For the entity enterprises, especially small and micro businesses, the greatest impediment is the difficulty in financing.

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