The pharmaceutical industry comprehensively tracks and controls product costs, emphasizing the monitoring of product-related income and costs. Due to the particularity of production links in pharmaceutical enterprises, environmental costs are also included in the scope of product cost control. Then, let's share with you the CFO's analysis of cost management in the pharmaceutical industry. Welcome to read and browse.

Current situation of cost management

Most pharmaceutical enterprises in China still stick to the traditional concept of cost control, that is, they only pay attention to the cost control in the manufacturing process, and rarely transfer the scope of cost management to cover the whole product life cycle. In industrial economy, the repeated reproduction and low knowledge content of enterprises make manufacturing costs account for a large proportion of products, while other costs such as R&D costs and after-sales service costs account for a small proportion, so these costs are not taken seriously in cost accounting and management.

As far as cost management space is concerned, the proportion of direct production costs in the production costs of general pharmaceutical manufacturers is not high, including raw materials, auxiliary materials, packaging materials, fuel power costs and so on. There is little room for cost reduction in the production process, and the manufacturing cost accounts for a large proportion, generally 20% ~ 40%, so there is a lot of room for cost reduction. In the profit statement of pharmaceutical enterprises, product marketing expenses account for a large proportion (in fact, the average level of marketing expenses of pharmaceutical enterprises is 45% of their sales), and the management expenses and financial expenses of enterprises are not high, and most of these expenses are fixed expenses, so enterprises have a large compressible space in marketing expenses.

Guiding ideology of cost management system design

1. Promoting cost management with competition mechanism;

2. Promote cost management with incentive mechanism;

3. Promote cost management with decision-making mechanism;

4. Promote cost management with restraint mechanism:

5. Promote cost management with talent mechanism;

Overall planning based on value chain

At present, there is not much room to consider ways to reduce costs from the perspective of products themselves. The cost is generated in every link of the product (or service) production process, accompanied by the creation of new value and the consumption of various resources in people flow, logistics, information flow and capital flow. Therefore, there are more opportunities for cost control in the value chain. Only by analyzing the value chain of enterprises can cost control be effectively realized.

Value chain analysis of pharmaceutical industry

The composition of cost often runs through the whole life cycle of a product, and the product cost is divided into three parts according to the life cycle? Upstream cost, manufacturing cost, downstream cost. The cost structure is as follows:

Upstream cost: R&D cost, design cost, manufacturing prototype, inspection cost, synchronous engineering design and quality improvement.

Manufacturing cost: outsourcing cost

Direct manufacturing cost

Indirect cost control

Downstream costs: marketing and distribution? Packaging, transportation, samples, promotion and advertising

Service and maintenance? Return, service and product liability

Like other pharmaceutical enterprises, the value chain structure of pharmaceutical industry consists of supporting activities and main activities, including administration, finance, information technology, human resources, technical support, procurement management and so on. The main activities include product research and development, clinical trials, raw material procurement, product production and product marketing. Due to the particularity of pharmaceutical enterprises, the research and development and listing of new products are two key activities in the value chain. However, at present, the pharmaceutical industry has not formed an effective mechanism to guide drug development, and there is almost no research and development ability in new drugs, especially western medicine. This is the weakness of the overall development of the pharmaceutical industry and enterprises? Bottleneck? . In addition, pharmaceutical companies have strict approval procedures for new products before listing, and new drugs can only be listed after approval. If this process cannot be successfully completed, the enterprise value chain will break here and the follow-up work cannot be carried out. Therefore, link approval is also a restrictive factor for the overall development of enterprises.

Overall planning of cost management in pharmaceutical industry

According to the basic idea of value chain theory, the cost control activities in pharmaceutical industry can be divided into two categories: main activities and auxiliary activities. The main activity is the business activity of the enterprise, and the auxiliary activity is the auxiliary activity to promote the smooth progress of the main activity of the enterprise. The implementation of total cost management depends on the normal operation and coordination of these two activities. According to the characteristics of the pharmaceutical industry and the problems existing in cost control, an overall cost control system is designed, as shown in Figure 2.

The main activities of the pharmaceutical industry include material procurement, product production, inventory management and product sales, and the control of enterprise production costs focuses on these four aspects. Therefore, the cost control system of pharmaceutical industry includes four main parts: procurement cost control system, production cost control system, inventory cost control system and sales cost control system.

The overall idea of cost management system design should fully consider the requirements of enterprise development strategy and business objectives, and implement responsibility cost management with cost control as the starting point. The cost control system should form a crisscross cost control network with the centralized management of functional departments as the key link and the control process of major materials as the stagnation point, determine the responsible subjects according to the principle of importance, and implement the responsibilities, rights and benefits according to the principle of controllability.

It will be graded according to the jurisdiction of each department. The first-level cost control center is the company's finance department; The secondary cost control center is the purchasing department, sales department and production department of the company; The third floor is the workshops and teams under various functional departments. And so on until the individual. The company's total cost control is supervised and implemented by the finance department, which decomposes the total cost into various functional departments (secondary cost control centers). Each secondary cost control center breaks down its cost responsibility to each employee. Form a complete cost control system, so that everything is done by someone, everything is done by someone, and there are standards for doing things. Ownership of rights, ownership of responsibilities and enjoyment of benefits? .

Special instructions

In the cost control system of pharmaceutical industry, the introduction of value chain makes the cost control of procurement and inventory more effective. In order to control the cost of purchasing and inventory, it is necessary not only to formulate plans and standards, but also to use the financial system to strictly constrain the purchasing process and inventory circulation process. We should also realize that purchasing management and inventory management are two independent but interactive processes, and their intersection is an important content of cost control, so we should pay attention to managing these intersections in cost control.

The pharmaceutical industry comprehensively tracks and controls product costs, emphasizing the monitoring of product-related income and costs. Due to the particularity of production links in pharmaceutical enterprises, environmental costs are also included in the scope of product cost control. Therefore, to control product cost, we should not only pay attention to the control of product production cost, but also pay attention to the control of upstream R&D, procurement cost and downstream sales and service cost.

;