How to Make Unitex Underwear Manufacturer More Efficiently Against Economic Recession

  • By:Teresa Zhang
  • Date:2022/09/29

After the pandemic, major companies began to plan carefully in response to changes in the external environment, the coming economic recession. A comprehensive cost reduction and efficiency increase is beginning. Currently, most SMEs make their companies healthier by reducing team and budgets, adjusting the working environment of employees, and improving work efficiency. However, it is often blindly used to reduce the welfare cost of employees as a means, but it will cause employees' rebellious emotions to affect the quality of work. Only by improving efficiency, reducing costs and strengthening product quality testing to improve the pass rate of products, it is easier to be accepted by more people, so that the company can continue to develop in a sustainable and healthy way in terms of cost reduction and efficiency increase.


Business operators are always striving to maximize profits when operating, and reducing costs is one of these methods. How to reduce company costs, today I will take you to understand how Unitex underwear manufacturer reduce company costs.


1. Reduce the cost of purchasing materials for enterprises.

Procurement cost is a key expense incurred by an enterprise in its development. This gives us an idea to save costs here. For example, as an underwear manufacturer, when we purchase the company's fabric accessories, we will first consider choosing a reliable and honest supplier, and long-term cooperation with a reliable supplier, and long-term cooperation will inevitably lead to corresponding price reductions Demand, price fluctuations are also reduced, which nicely reduces the cost of the company.

The cost of a piece of underwear = Fabric cost + Accessories cost + Labor + Business management expenses + Profit

For the basic cost of a piece of underwear, we first need to know how many materials are used in this product in order to calculate its material cost.

For example: Materials needed for men's underwear and boy’s underwear : fabrics, printing, straps, elastics, main labels, care labels, buttons, etc

Materials needed for women's underwear and girl's boxer shorts: fabrics, prints, elastics, lace, bows, care labels, etc..

Boy's boxer-1.jpgUnitex-underwear.jpg

The biggest cost of an underwear is the cost of the fabric, so how can we reduce the cost of the fabric? We must first understand how to calculate the cost of underwear fabrics?

The first step is to use the paper pattern and calculate the consumption of each part. When calculating the consumption, if the conditions allow, it is best to draw the all size pattern according to the ratio to calculate the average value, if not, take the intermediate size. First calculate the material consumption area of the underwear (pay attention to adding various losses). Underwear area x gram weight = fabric weight. The weight of the fabric x the price of the grey fabric = the cost price of the grey fabric of the underwear.

Cost of fabric: Raw material cost + Knitting cost + Dyeing cost + Knitting consumption + Dyeing consumption + Finishing cost.

In this way, we can calculate the fabric cost of the whole piece of underwear. The most difficult thing to grasp here is the loss of fabric. There is no fixed standard for this, and it requires certain experience to judge. If the quantity of single-color fabrics is not enough for the MOQ, it needs to be purchased according to the MOQ price or demand, and the loss here is relatively large. Generally, each color of plain color needs 3,000 pieces, and each color of yarn dyed needs 5,000 pieces. If the quantity is not enough for the MOQ, the loss will be larger. If you need to go through other processing: such as printing, flocking, bronzing, etc., the loss will increase.

Cost of accessories: such as the waist elastic band of elastic boxer shorts, if the quantity is not enough to meet the MOQ, the loss will be relatively large and the cost will increase accordingly, so it is generally recommended that the customer's QTY should at least meet the suppliers MOQ. Besides, these are just the materials on the production line, other packaging materials are also included, such as bags, hangers, hang tags, wash labels, cartons, etc.


2. Reduce the associated time cost.

Time is virtual to most people, but it does create monetary value. In business, time cost refers to the cost of using a certain material or occupying a certain facility in order to complete the relevant task. These fees can be paid. It can be seen from this that the higher the time cost, the higher the money cost. For example, by using advanced machine equipment, we can reduce related time costs and further reduce company costs.


3. Assess the employees of the enterprise to improve their work efficiency.

Enterprises need employees with high efficiency and high ability to do things, not employees who are mixed with wages every day. If every employee of an enterprise eats and waits to die, the company's benefits will not increase, and the cost of the company will naturally increase. So we have to conduct performance appraisals for each employee, so that each employee can be tight on a string. Improve motivation and work efficiency, and create higher-than-usual value in a short period of time, thereby reducing company costs.


4. Strengthen product quality inspection and improve product qualification rate.

The quality of products is a high requirement, and it is also an important guarantee for enterprises to gain popularity. For an enterprise, the more substandard products, the more wasteful the related costs become. Therefore, we have to strengthen the quality of our products, the quality is guaranteed, the cost will naturally be reduced, and the company's cost will also be small.


In general, there are many ways for companies to reduce costs. Within the scope of legal and not deceiving consumers, we can start with products, improve product quality, and improve the efficiency of employees.

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