Cost control is the secret of the enterprise to achieve high profits. However, to achieve true low-cost carriers, in addition to reducing costs to pay, you can also cut from several aspects. Long-term vision of managers will accurately grasp market opportunities, reasonable planning costs, to choose the most economical mode of production management, to avoid improper waste inventory. In addition, management consulting Heaven to tell you that you can not control the cost of one stick, and to achieve optimal control of costs from business operations as a whole. Such cost control method to achieve real cost targets. Any company needs to purchase the necessary operational resources, such as materials, equipment or services. And do not get any resource is free, you must pay some costs, such as money or some kind of price. Companies pay higher costs, the impact on the enterprise or institution, the more disadvantageous because the cost directly reduce the profitability of enterprises acquired and the availability of funds and so on. Therefore, all companies have a deep-rooted notion that "efforts to reduce costs." However, Tianxingjian management consulting remind you that this "cost concept" purchasing behavior sometimes make us fall into a trap of thinking: "As long as cheap, and that is good," "the more expensive, the more favorable" . This cost-oriented concept of the value of expenditure "cost", but neglect to assess the "value" of the acquired resources. We had to order something low-value and high cost to pay. Have an economic effect, called "escape cut benefits." For example, when a person is thirsty, drink his first cup of water, he will feel good, it can make him a glass of water immediately and thirst. Then he drank the second cup, the third cup, but this time he will not feel the same effect with the first cup of water to drink. Thus, he incurred the cost for each cup of water is the same, but the value is not the same for each cup of water. So, from the point of view of resources made to locate the "cost", then we will find that the cost is far more important value. Because of the high cost and not necessarily correspond to the high-value, low-cost, when its value is not necessarily followed low. In other words, for enterprises, value is more important than cost. The companies should do is to get the highest value at the lowest cost. Especially in the procurement process, procurement officers should hold a "first value, after cost" concept. Contact: Mr Tsang free consultation: 13713817360 QQ number: 756 858 588 Company Name: Heaven Enterprise Management Consultants Ltd. For more please visit: Heaven Management Consulting www.leanchina.cn