Research on the Implementation Path and Effectiveness of Cost Reduction and Efficiency Improvement

Under the background of dramatic fluctuations in raw material prices, corn deep-processing enterprises face systematic profitability challenges. This paper takes leading enterprise COFCO Science and Technology as the research object, and analyses its path of cost reduction and efficiency enhancement...

Full description

Saved in:
Bibliographic Details
Main Author: Liu Boran
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:SHS Web of Conferences
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_01036.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Under the background of dramatic fluctuations in raw material prices, corn deep-processing enterprises face systematic profitability challenges. This paper takes leading enterprise COFCO Science and Technology as the research object, and analyses its path of cost reduction and efficiency enhancement through case study method. The study found that the company through the procurement, production, sales of the whole industry chain linkage optimisation cost structure, the use of raw material diversification and hedging hedge against price risk, and relying on technological innovation to promote the upgrading of high-value-added products, the success of the company from the ‘price of the passive acceptor’ transition to ‘industry standard dominator’. It has successfully transformed from a ‘passive price acceptor’ to a ‘dominant industry standard’. Its gross profit margin stability is significantly better than the industry level, which verifies the effectiveness of the multi-dimensional strategy. At the theoretical level, the study reveals the synergistic effect of strategic cost awareness and technological innovation, and expands the cost management framework of commodity enterprises; at the practical level, the study provides references for similar enterprises to build a systematic risk defence mechanism and optimise policies, so as to promote the industry’s transformation to high-quality development.
ISSN:2261-2424