Part 2: How do I optimize my expenses and motivate my employees in the Chinese branch to get back into the profit zone within 6 months?

Here are the second and third steps:

?2.????Analyze the weak points along the supply chain and in the manufacturing process (SWOT of PUR/LOG and production)

Together with your selected employees, the areas of indirect and direct material purchasing, logistics, quality management, maintenance, warehousing and manufacturing processes are analyzed. The team includes HR, sales and finance.

3.????Identify the "Low Hanging Fruits" in indirect material purchasing and develop appropriate improvements.

With the respective project team, for example, "Maverick Buying" will be eliminated, the number of transport companies and warehouses is reduced nationally and internationally, and factory equipment, tool prices and waste disposal contracts are negotiated.

?I advise you competently on the creation of a strategy for cost reduction in purchasing, logistics and production, with which you can quickly identify and harvest the "low hanging fruits".

My latest publication “Effective Cost Cutting in Asia”, deals with practical modern methods for effective cost reduction in Asia and profit growth.

?Karlheinz ZUERL

Interim General Manager and expert for cost management in China