The control of the loss of base paper is the key to reducing the cost. The base paper accounts for about 60% to 80% of the cost of the carton. The specific value depends on the added value of the carton product. For example, the base paper of the special-shaped box accounts for about 60% of the product cost, and for cardboard, the base paper accounts for about 80% of the cost may be higher. Calculated based on 70% of the cost of carton, every 1% reduction in raw paper loss means an increase of 0.7% in profit, which is equivalent to an increase of 7,000 yuan in profit per million of turnover. For a carton company with an annual output of 50 million yuan, a loss of 1% of the base paper is equivalent to a loss of 3.5 million yuan in profit. This is a rather amazing number, and it is also the reason why domestic and foreign carton companies are focusing on reducing the consumption of raw paper. Sources of base paper loss The loss of base paper comes from various departments within the enterprise: Improper purchase of raw paper: the required paper or width is not in stock, and the undesired paper or width is in stock, and substitution will cause waste. Raw paper inventory depletion: Improper purchase of raw paper will cause excessive inventory, resulting in inventory depletion, such as damage to the surface of the raw paper, scrapping, etc. Cardboard production loss: Corrugating machine will produce raw paper loss every time it changes paper. Controlling the number of paper changes is an effective way to reduce raw paper loss. Loss of carton forming section: excessive inventory of semi-finished products (WIP) is the main reason for the loss of base paper. Carton finished product inventory loss: In order to meet customers' timely delivery (Justin time delivery) requirements, finished product inventory is essential. However, inventory occupation, capital, and employees may cause losses due to various reasons such as customers no longer need them. Carton return loss: Carton return and scrap due to unqualified products. The sum of the above losses is the total loss of the base paper. Accurately monitoring the losses of various departments is a prerequisite for reducing losses. As a member of the enterprise, can you accurately know the daily losses of various departments? The key to control and reduce the loss of base paper 1. Reduce the type of base paper through standardization Each combination of paper quality and width is a type, such as K125 + 100 (125g cattle card, width 1000cm). Too many base paper types are the main reasons for improper purchase of base paper, excessive stock of base paper, and too many times of corrugated machine paper replacement. The type of base paper of foreign carton factories is much less than that of domestic equivalent carton factories (probably only 20% to 50% of domestic base paper varieties). From a partial point of view, the trimming of an order has increased, but from an overall point of view, the management of raw paper procurement and inventory, and the number of times of corrugated machine paper replacement can be greatly improved. As an enterprise manager, it is a challenge to find a balance between the optimization of the trimming of orders and the control of the total paper consumption. 2. Manage to each roll of base paper Each roll of base paper has a "life" cycle: roll into and out of the roll, and roll into and out of the roll until it is used up. The roll-in storage is related to the purchase order, and the output is related to the production lot number or time period. Once this relationship is established, you can track the source of base paper loss and find ways to reduce base paper loss. 3. Management of remnants Rolling out of the corrugating machine on the warehouse, there is a high possibility that one roll can not be used up. The registration of the remaining residual rolls (also means the registration of the original paper used for work) is extremely important for tracking the source of the raw paper loss. Some carton factories in China do not agree with the management of each roll of base paper, and think that it increases the workload of warehouse staff. This view is one-sided. For warehousing, the workload is increased, but the workload for inventory management, inventory, tracking the loss of base paper, etc. will be greatly reduced. Even in foreign countries, where the salaries of staff are much higher than those in the country, foreign carton factories manage every roll of base paper. The proportion of base paper in the cost of carton boxes is much higher than the salary of one or two inventory workers. In fact, this is a problem of concept. Jiangsu Sleeptight Household Technology Co., Ltd. , https://www.sleeptightoem.com
Paper prices have skyrocketed for several rounds, but your company's base paper is still being consumed every day!