The consumer goods industry is an industry that sells goods, which is characterized by high consumption frequency, short use time, facing a wide range of consumer groups, and requiring consumption convenience. The sales channels in this industry are various and complex, and multiple channels such as traditional formats and emerging formats coexist. With the passage of time, the concentration of the consumer goods industry has gradually increased, and the competition has become increasingly fierce.
How should the consumer goods industry start with comprehensive budget management, and how should companies design comprehensive budget organizations? How to realize the profit forecast based on sales and production? Under the condition of full market competition, how to control promotional expenses? How to realize the combination of production and sales, and prepare and control the production cost budget? How to assess sales organization and production organization? You can get some inspiration from this article.
It is understood that the consumer goods industry has four main characteristics:
- Full control of marketing expenses: FMCG industry is facing fierce market competition, and marketing expenses are constantly increasing. Managers need to control marketing expenses intelligently to meet the needs of enterprises to expand the market and improve sales performance, and keep the expenses within a reasonable range.
- In addition, the marketing function has gradually moved downwards, and the core of enterprise competition has shifted from the upstream production of the industrial chain to the downstream marketing. In order to enhance the ability to control market competition, the company has strengthened communication with lower-level distributors and key distributors, shifting from focusing on wholesalers to operating terminal markets.
2. Production cost management: The consumer goods industry usually adopts a process-based production model, and the competition between cost and quality has become the key to industry competition. Therefore, many companies regard strengthening production cost management, cost control and tapping internal potential as the foundation of their foothold.
3. Recipe (BOM) management: Recipe is a very important technical data in the consumer goods industry, similar to the bill of materials (BOM) in other manufacturing industries. Formula management is one of the key tasks of enterprise production cost control.
A food limited company is a key local food leading enterprise, mainly producing and selling candy and puffed food. With the listing of the company, the requirements for the refined management of the enterprise are getting higher and higher. To this end, the company introduced the amoeba management concept and decomposed the operating profit indicators to the responsibility center. Before implementing amoeba management, it is necessary to establish a comprehensive budget management system to assess the profit, income and cost of the smallest business unit in the production and sales links. Before the implementation of the budget, the author conducted a SWOT analysis of the company's internal and external market environment.
With the continuous expansion of the scale of the enterprise, the increase of the production base and the expansion of the marketing organization, but in the fast-growing and highly competitive market, the response speed of the enterprise to the market is slow, the operating cost rises and the benefit declines, which directly affects the competition of the enterprise force. In order to improve the management level, it is necessary to establish a comprehensive budget system from the following four aspects:
1. Layer-by-layer connection from forecast to plan, plan to budget, and budget to execution, to realize collaborative management of enterprise production and sales.
2. Carry out demand calculation according to the overall sales forecast, and prepare an overall demand plan to provide an important basis for the enterprise's production and sales balance.
3. Effectively monitor workshop production and realize standard production cost management and control.
4. Implement the profit center model, manage the sales organization and production organization, make the middle and high-level managers understand the operating conditions of each level of organization, and conduct assessments of each level of profit center organization.
There are multi-level production organizations and sales organizations in the consumer goods industry, involving multiple single products, rapidly updated products, and multi-dimensional assessments. The management of the enterprise believes that the current accounting and assessment methods are relatively extensive, the organization is not clearly divided, and the assessment is just a formality.
Therefore, the current primary task of the company in the case is to lower the management and assessment of production organization from the workshop level to the production line level, take the production line as the responsibility center for independent accounting, and mainly assess indicators such as income, cost, expense and profit. In the process of business sorting, the business model of each profit center was standardized, the organizational categories were distinguished, and a comprehensive budget preparation form was designed.
Comprehensive budgeting of sales profit center
The logic of sales budget preparation is: the sales budget is the starting point of the overall budget, and the accurate sales revenue budget is the assessment of the sales minimum responsibility center office. In the consumer goods industry, market channel costs are the key point of control, and the control of granularity must go to the two dimensions of office and product category. Responsibility centers at all levels are responsible for income, costs, and expenses, and each office prepares a profit statement to assess income, cost, and profit.
The company must assess the profit of each office, which is the minimum profit center of sales. Since the dimension of sales budget preparation has reached the office, each office can prepare a budget based on sales revenue, sales cost, variable expenses, and fixed expenses. Budget income statement issued in the format. The budget profit statement can also be summarized level by level from offices to provinces, districts, districts and sales departments to form a sales organization budget profit statement summarized by the upper level. Under the condition of clearly dividing fixed expenses and variable expenses, the income statement analyzes the direct correlation between cost, sales volume and profit and makes a "cost-volume-profit" analysis model to analyze the impact of sales volume factors on the profit and loss of the enterprise. Analyze the direct functional relationship of variables such as sales volume, sales revenue, variable costs, and fixed costs every month, every quarter, and every year, and predict key indicators such as capital-guaranteed income and maximum profit.
Production Profit Center Budgeting
The main points of the overall budget preparation of the production profit center: there is a corresponding relationship between the sales volume of the office and the production volume of the production base, and the output is calculated according to the estimated sales volume of the office; the production budget is compiled according to the process route and production line; the standard cost is calculated according to the product BOM as Preparation basis of production cost; generate production line profit statement according to production line. The production organization takes the production line as the minimum preparation organization of the profit statement, calculates the value created by each production line per unit time, and the group measures the profit contribution made by each production line. Each production line is used as a production-type amoeba to achieve market-oriented accounting, and the formula for preparing its budget and profit statement is: production line profit = revenue - variable cost - fixed cost