Production enterprise benefits(1)

Production enterprise benefits

 

Fang Relative to character, the acquirer over-reactive supply-side in a relatively passive position, however, using OEM way still be profitable.

 

(1) to enter the international market, and participate in the international competition. In recent years, domestic appliances industries in fierce competition, market is saturated, some domestic manufacturing enterprise in order to expand the market, and for foreign brands do OEM. Enhance enterprise's global consciousness.

 

(2) scale production and reduce the cost. Modern production exists in the economies of scale effect, namely with output scale expanding and show the unit cost downward trend. This may come from the deepening of specialization, fixed cost allocation. If the enterprise itself exists that overcapacity, cost reduction effects will be more apparent. Participate in OEM supply, means that the expansion of the scale of output, not only raised the sale of the products, and reduce the cost.

 

(3) learning experience, perfect management. Provide OEM of enterprise often in OEM the acquirer products supply chain to play an important role in the production, the OEM purchasers can administration, marketing, product development, etc have strong strength, in cooperation process, OEM supplier can be in control products quality, successful control, operational efficiency control of the management in accordance with the requirements of the acquirer organize production, with advanced organization control, from "dry" learning experience, improve the management level of enterprises.