As it’s know, Chinese production industries are suffering from lots of troubles in recent years and because of the high cost, low effectiveness and lacking of skilled staffs, the Chinese production industries development is slacken down. This situation for Chinese LED display industry is especially serious, to control the cost is urgently necessary for the led display enterprises.

Bosses are headache about how to effectively control the cost everyday because the enterprises have to pay money for raw material purchasing, organizing production, products selling, business service and office works and so on. How to finish as much work as possible with the minimum cost is the key to keep the cost within a reasonable range to the enterprises so as to maintenance better developing management.  

At present the technology, quality, price ans service are the four main competition factors in LED display industry. LED display industry has already became the “center” of world’s production industries after more than 30 years development, quite a part of Chinese enterprises are trapped into homogeneous situation, they have same convergences between their entity, technology, product quality and functions and product models and so on, it’s difficult for them to stand out by competitive technology and production process. But they can enhance their relative advantages by offering better quality with same technology, cheaper prices with same quality and better service with same price. Each aspect has its unique cost, the enterprise with the lowest cost can win the final competition. In this situation to control the cost becomes the core of the competition between the homogeneous enterprises.
Generally speaking there are five ways to control the cost:

1.Make a cost limitation target range:
The cost is formed in the whole production process and on each link, so the cost should be share on each department and even each person, however, the target decomposition can’t be rough otherwise it doesn’t work, it should be measurable to avoid staffs losing confidence.
2.cost in logistics supply chain
The purchasers should try to reduce the prices and service cost as much as possible during purchasing procedures, salesmen should do best to find the cheapest and most reliable logistics chain and the store department should keep the stocked goods amount in a very reasonable level so as to reduce the storage charges to the minimum. There is a teamwork in the logistics supply chain to increase enterprise economic benefit and reduce the delivery cost.
3.Control the cost during products design stage.
Engineers should maintain very strong cost control consciousness and cost control methods to avoid wasting during the following production procedures. They should remove the extra design which will increase production cost and functions but won’t increase products market price. Products should use the concise and easy design to reduce the production difficulties and production cost.
4.Set up a special cost control center
The account department should take more responsibility in cost control because it is the enterprise cost control and manager center. The financial staffs have professional data analysis ability to help engineers maintain good control control in products design stages.The account department should positively cooperate with design department and provide the latest price for raw material, production costs in each link of the production process so that the engineers can have a reference.
5.Efficiency and cost should be associated
Human cost is also included in the production cost, but it doesn’t mean enterprises should reduce staff’s salary to reduce the production cost but it means to increase the staffs working efficiency and the leading teams’ ability. If the staffs have higher efficiency, the relative human cost is cheaper.

As  the industry is in the process of constant shuffling, more and more homogeneous enterprises are closed or will be closed, though the cost control is not the basic element to solve the crisis, but it is an indispensable important link. When other links can’t get improved at present, the cost control is a favorable method for this situation.