Second edit
In recent years, the real estate sector as a whole has grown considerably, with the overall size and concentration of the sector growing, with national regulatory policies shifting from one-way regulation to decentralized management, with strong regulatory policies still in place for front-line cities, and an inventory policy in the third and fourth-line cities, resulting in different strategies for different types of housing enterprises in terms of cost management policies. At the client level, client awareness continues to awaken with 85 and 90 leading home buyers, generating unprecedented interest in product life and residential attributes, and how to plan costs and place more of them at the centre of attention for industry cost management. At the same time, the transparency of information and technological advances brought about by the internet revolution since 2015 have led to more management and business innovation on the internal management and external links of enterprises, which have now become an industry trend. The state's policy of retrofitting the camps is more closely linked up and down the industry. Taken together, industry is evolving, client awareness is waking up, mobile internet technologies are becoming widespread and tax policies have changed, leading to a number of innovations in cost management in firms。
Procurement management innovation: open to win-wins
The upstream and downstream of links has become a key initiative for real estate enterprises, many of which extend internal processes and open up internal processes to enhance internal management efficiency by integrating additional external resources. For example, the introduction of mobile phone applications in the contract management chain to enable external vendors to initiate internal processes (visa, request, assessment) and to open some of the nodes and information from internal processes to external suppliers has served as a gesture of leveraging internal and external cost synergies and constructing new initiatives for cost advantages, effectively reducing overall management costs。
Vendor link innovation: information symmetry
Credit symmetry is an important element of cost management optimization, and the phrase is popular in the real estate industry: “what kind of supplier is the cost structure”. It can be said that having a credible and credible team of suppliers at a critical time is the recipe for a real estate enterprise to win, and that a number of developers and suppliers are already using internet platforms to symmetricate information on both supply and demand. Enterprises in the industry use shared thinking to engage in joint recruitment and procurement, thereby increasing the competitiveness of procurement。
Impact of battalion improvements
In may 2016, the state introduced camp improvements in the real estate and construction sectors. This poses new challenges for real estate cost management, both in terms of the need to focus on non-tax-free costs in procurement and contract management and on the availability of full revenue taxes, and in terms of target cost setting, dynamic cost management and data deposition. Overall, cost management requires attention not only to prices, but also to improvements in cost management systems and business processes。
New ideas for contract planning
Contract planning, as an innovative means of managing the targeted costs, has been practised in most real estate enterprises over the years, developing in practice a management model that fits the application of different enterprises, using a direct link between contract planning and target cost, and a separate management approach between subject and contract planning, with different levels of managerial precision required by the practice。
It's for growth
In practice, we find that the level of development of cost management in the industry is uneven, and in order to enable more enterprises to improve their management systems quickly, we specifically intend to add to the end of each chapter “proposals for growth-oriented housing enterprises”, in the hope that the simplest and easiest practices in each link will be listed for the enterprise's information。
Summary
Cost management, booming, and the exploration of pole companies and bright sources have also been on the way, but regardless of how the concept evolves at a later stage, we have always adhered to the following criteria: cost management can lead to a win-win, supplier-win, company-win, and even a win-win situation at the social level (energy-saving reductions, green buildings) that is the ultimate goal of managing domestic real estate costs。
Mr. Xu wing, director of the institute of estates of ming
13 july 2016
