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    Analysis Of Foundry OEM Shoes Production Costs

    2010/9/10 15:53:00 280

    OEM OEM Shoes Cost

    A couple of OEM

    OEM leather shoes

    There are four main parts of the production cost.


    Among them, "

    Leather material cost

    The largest (accounting for 40% of income), followed by "production tools" (15%) and "other material costs" (15%), and finally to "workers' wages" (10%).

    The gross profit margin is 20%.


    In the three links of the industrial chain, the product design determines the needs of the above four costs, so the added value is the highest. Raw material purchase can only affect three items outside the labor cost, so the added value is relatively low; "production" can only control the wage and the added value is the lowest.


    So on-line

    industry chain

    The main strategy of the integration and optimization work should be guided by the highest value-added product design, and integrate the two parts of "procurement" and "production" (centralized control cost and listing, production time).


    From another point of view, the price of a pair of leather shoes (the harvest part of products) is determined by the "sales and promotion" link, which determines the final return of the product.

    Therefore, the core of the integration of offline industry chain is "sales and promotion".


    A strategy of "vertical integration" is also launched here.


    The enterprise receives customer demand and market information from the sales and marketing section, and plates into the internal supply and demand arrangement after "order processing", and then creates the right product by the on-line industry chain, and sends the market through the "warehousing and pportation" part to the marketing point.

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