Page 28 - USI Newsletter No.94

Finance &
Law
Supporting Cost Reduction
and Efficiency Improvement
from a Financial Perspective
Author: Shanghai Zhangjiang Site / ADM / Finance /
Finance Center I / Rogan Hsu, Delin Xia
ver the past three years, the persistent
impact of the pandemic has undoubtedly
O resulted in inevitable losses for most
businesses, hindering further development. To
find breakthrough points to maintain business
vitality, an increasing number of companies
have shifted their focus inwards, expecting to
achieve cost reduction, quality improvement, and
efficiency enhancement through the promotion
of refined management. To sustain long-term
competitiveness, companies need to lower
operating costs, reduce unnecessary expenses,
and implement scientifically sound cost control
strategies. Simultaneously, by conducting in-
depth analysis of various financial management
metrics, companies can identify weak points in
their operations, propose optimization measures,
and fill the gaps. Strengthening cost management
allows for obtaining equivalent or higher returns
with lower expenditure, thus overall enhancing
corporate performance.
26
理財與法律
As a result, enhancing and perfecting internal
management, coordinat ing upst ream and
d o w n s t r e a m op e r a t i o n s, a n d i mpr o v i n g
competitiveness have become essential challenges
that companies must face. Cost-cutting and
efficiency improvement are effective measures to
cope with the pandemic's impact and activate the
intrinsic driving force for sustainable development.
For USI, cost reduction and efficiency improvement
are also critical tasks during the course of our
business operations and development. In this regard,
we will discuss how to support cost reduction and
efficiency improvement from a financial perspective,
which can mainly be achieved through the following
aspects:
Financial Budgeting and Expense Control
Develop reasonable financial budgets and ensure that
each department adheres to the budget. Strictly
control expenditure, review and optimize various
expenses, such as reducing non-essential spending,
lowering operational costs, and optimizing supply
chain management. Additionally, implement cost
control policies to encourage resource-saving
behavior among employees and increase work
efficiency.
NO.94
Procurement and Supply Chain Management extended to data entry, report generation, data
organization, and other workflow tasks. RPA robots
Optimize procurement strategies and supply chain can execute tasks according to predefined rules and
management to achieve better cost control and
processes, improving data processing speed and
efficiency. Actively engage in effective negotiations
with suppliers to secure more favorable prices and accuracy while saving on human resource costs. We
believe that in the future, there will be more
terms. Furthermore, establish a supplier evaluation
system to analyze product quality, delivery extensive application of RPA within the organization,
allowing financial personnel to transition from
capabilities, and costs of each supplier, selecting the accounting functions to analytical functions,
best suppliers for collaboration. utilizing the value of finance to generate more
Performance Management and Incentive Mechanisms revenue for the company.
At the end of 2022, we established a Shared Service
Establish an effective performance management
system that aligns performance goals with cost Center (SSC) at our Suzhou Site to achieve cost
reduction and efficiency improvement objectives. Set reduction and efficiency improvement through
clear targets and metrics and engage in effective standardization and process optimization. By
communication and feedback with employees. Also, ensuring that all departments and business units
implement incentive mechanisms such as bonuses, follow the same standardized processes, the SSC
commissions, or equity incentives to motivate eliminates redundant steps and resource waste. As a
centralized service provider, the SSC offers consistent
employees' proactiveness and creativity. service quality and process execution for all
Technological and Automation Applications stakeholders, avoiding duplicate efforts and resource
waste.
Leverage information technology and automation
Furthermore, the integration of RPA technology and
tools to enhance the efficiency and accuracy of
the Shared Service Center (SSC) enables USI to achieve
business processes. Additionally, investing in
appropriate technology systems and software, such process automation and centralized management,
as financial management systems and supply chain optimizing resource allocation, reducing labor costs
management software, can improve the accuracy and and error rates, and improving work efficiency and
processing efficiency of financial data, automate quality, thereby achieving the goal of cost reduction
repetitive tasks, reduce labor costs, and error rates. and efficiency improvement.
Currently, USI has made various attempts and
USI is adapting to the changes of the current era and
investments in technological and automation
is currently using the Huilianyi for expense
reimbursement processes. Electronic expense applications, integrating business operations with
reimbursement reduces employees' manual finance, enabling various departments and the
finance department to share and interact with data
processes, eliminates the need for physical receipts,
resources, enhancing the company's ability to
and reduces the workload of financial auditing.
Additionally, the shift towards paperless processes respond rapidly to market changes. It provides
decision-makers with accurate decision-making data
contributes to environmental sustainability and has
for more precise market predictions, thereby
become a crucial indicator of measuring the
company's commitment to sustainable development. enhancing the company's core competitiveness.
Before the formal implementation of new policies, we Through these financial measures, the company's
also started applying Robotic Process Automation cost reduction and efficiency improvement goals can
(RPA) technology for issuing digital invoices, receive effective support, and its profitability and
automating repetitive and rule-based tasks, reducing competitiveness can be significantly enhanced.
manual work, and error rates. This technology can be
27