Cost down by trade outsourcing!


Effect of trade outsourcing, the possibility of cost reduction can be expected than the expansion!

Do you not see indirect costs?

"Change to purchase directly from overseas manufacturers, but I cost of the commodity itself fell, I feel like is no longer why previous profitable than the ...."

If you're doing a trade, you hear good such bitches.
How it can be so long because of the gas, this really is not undue importance if it is true.
and because I mean that labor also risk are also increased.

Why do such a thing is would happen?

Japan of QC (quality control) as you know is the highest level in the world.
And it and in proportion,'s the world's best as well, such as Japan of labor and rent rent allowance.

Since these costs are indirect costs, from time to time, it is not visible to all parties.
It is obvious, but can not be aware of those that are not visible.

Outsourcing is often deprived of the eye to just expand the possibilities, but in the particular trade outsourcing, actually I towards the cost down can be expected a large effect.

And roughly the cost "direct costs" and will be two and of "indirect costs".
Such as suppliers of goods are classified as direct costs, such as labor and warehouse costs related to it will be classified as indirect costs.

Only in Do not have deprived the eye direct cost?

Direct cost is I easy to visibly since literally a direct cost, but those indirect costs can not be seen.

SG & A expenses, such as personnel expenses (selling, general and administrative expenses), and the like are classified as indirect costs, I these is the great song person.

Initial cost and in or training or secure a new human resources in the labor costs, maintenance costs for fixing will not be a fool.
But I this, actually Is it not a cost you have not so much consciousness?

But because the cost is cost, I do not look at the gross profit (gross profit), the operating profit would have been included also the indirect costs that bill will come around and tightly.

Also in the business up only gross margin is, it will become the tail wagging the dog is gone down operating profit.

When it would judged by only place easy to visibly, it is a translation to be that "I wonder does not it? In what at profitable?".

You must be careful so as not to lose in total.

Risk is eliminated if variable costs

Another is the way of dividing the cost, there is a view that says "fixed costs" and "variable costs".

Such as personnel expenses it will be classified as fixed costs because every month occur.
Rent rent, such as a warehouse fee will also be classified as fixed costs.

Variable costs outsourcing against this.
Pesky labor and rent rent is usually a fixed cost also is being variable costs to be useful if outsourcing.

When we secure a new human resources such as a new business, fixedly cost, regardless of the increase or decrease of the sales will occur.
When smooth the effect is remarkable, but its cost even if sales in reverse has become a zero will continue to occur.

Because it's variable costs to be proportional to the increase or decrease of the sales, it is to a certain stable say to remain profit.
Although in the graph above I draw a gentle curve nor the end the beginning, the actual last business What if more rapid is not the most?
Last exit costs that are required to have, it is really scary is coming over my house placed on the weak place.

Even if I want to stop that business if, for there are exit costs, if you are not forced to continue fighting in the bloody red ocean ..., but it still is the worst.

Your hourly rate is how much?

Little Not that might not the today of representation was heard "horses for courses"?

The familiar work that no irregular not only time consuming (= cost), is what After all miss occurs it is easy.

Since only not producing rice cake in toys, it is what a small mistake because the rice cake making are skilled.
Moreover, since it has produced only rice cake, experience curves and reduce costs through mass production effect should be able to expect.

Although the outside money flows might feel like were harmed so easy is attached to the eye, and pay only when needed, probably not much more efficient is better to say 0 when unnecessary UGA?

Tuck the building and people of the organization, should normally, not in these ratios.
It might cost you even say a direct money, but more time to Do not forget to say a surprisingly significant cost.

After all, it "horses for courses" is something the cheapest.

Cost down of trade outsourcing unique

It was only a description of the cost down in a typical outsourcing until here.

In When I thought it focuses only on trade outsourcing, what exactly can be expected on the other?

  • Risk down about the payment (= cost)
  • Unified from foreign currency payments to yen payment
  • Unification, such as from a prepayment or payment in installments to the normal payment site
  • T / T unification, such as from (overseas remittance) and L / C to the normal payment method
    • Time of resources down (= cost)
  • Eradication of time consuming for the different business practices
  • To allow delivery control in the purchase order one
  • It bothers you must create paper unnecessarily in a foreign language
    • Stability of quality (= cost)
  • Also to be able to recover in Japan
  • Certain quality are always we hope can be
  • We can talk at the same eyes

  • However, attention here!

    Anything and everything it does not mean say that it becomes cheaper because was overseas procurement.

    If you do not import it to produce a certain quantity, and becomes the trade and transportation costs tend, after all there are many if the direction of domestic production is cheaper.

    The risk in the case of manufactured overseas must also be familiar in advance.

    Still only in so that it is not deprived of their eyes cost, that must be the most importance to the optimum balance of QCD is let so as not to forget!

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