The love of the boss

Chapter 142 Cost Crisis and Ways to Break Through

The sudden rise in raw material prices was like a heavy hammer hitting Lin Xiao and Su Yao's hearts, and the company fell into a serious cost crisis.

"Su Yao, the price of raw materials has risen too much. Our costs have skyrocketed and our profits have been greatly compressed." Lin Xiao looked at the financial statements with a frown on his face, full of anxiety.

Su Yao's face was also very solemn. She said, "Lin Xiao, we must find a solution as soon as possible, otherwise the company's operations will be greatly affected."

Their first thought is to renegotiate prices with suppliers.

"Lin Xiao, the supplier's attitude is very tough. They said that due to market conditions, it is difficult to lower the price." The purchasing manager said helplessly.

Lin Xiao pondered for a moment and said, "Then can we find new suppliers to increase our bargaining chips?"

So the purchasing department began to look for new suppliers.

"Su Yao, although some of the new suppliers have relatively low quotations, there are certain risks in terms of quality and supply stability." said the purchasing manager.

Su Yao reminded: "You can't just look at the price, quality and supply stability are equally important, and you have to make a comprehensive assessment."

In the process of looking for suppliers, the company also tries to optimize product design to reduce the use of raw materials.

"Lin Xiao, the technical department is working hard to improve product design, but this requires a certain amount of time and R&D investment." said the technical director.

Lin Xiao encouraged: "Speed up the progress, and at the same time ensure that the new design does not affect the quality and performance of the product."

However, the research and development process was not smooth and encountered many technical difficulties.

"Su Yao, some key technologies cannot be broken through, resulting in the plan for product design optimization being shelved again and again." The technician said anxiously.

Su Yao decided: "Invite external experts to provide technical guidance, or consider technical cooperation with other companies."

At the same time, the company also began to control costs and cut unnecessary expenses.

"Lin Xiao, all departments are cutting costs, but this has also restricted the implementation of some work, and employees have some complaints." said the Executive Director.

Lin Xiao said: "We need to explain the current difficulties clearly to our employees and we should work together to overcome the difficulties, but we should also be careful not to affect the normal business operations."

In order to increase revenue, the sales department stepped up its marketing efforts in an attempt to boost product sales.

"Su Yao, the market competition is fierce. Although we have increased our promotion efforts, the effect is not obvious and sales growth is slow." The sales manager said worriedly.

Su Yao said: "Re-analyze market demand, adjust marketing strategies, and find new sales channels and customer groups."

After a period of hard work, the company has achieved some results in cost control.

"Lin Xiao, through a series of measures, costs have been reduced, but they have not yet reached the ideal level." said the financial director.

Lin Xiao frowned and said, "We can't relax! We have to work harder and try to find a more effective solution."

However, just as the company was struggling to cope with the cost crisis, a sudden industry rectification brought them new challenges.

This made the already overwhelmed company management even more anxious. Faced with such a situation, Lin Xiao and others had to re-examine the company's strategy and operating model to cope with this sudden storm.