Since the Group Corporation proposed the overall work approach of “1-1-6-6” for cost reduction and efficiency enhancement, BGS has earnestly implemented it, placing great emphasis on cost reduction through reform, process optimization, and technological innovation. BGS has effectively integrated short-term and long-term goals in its efforts to reduce costs and boost efficiency, thereby driving the cost-reduction and efficiency-enhancement initiatives to deeper levels.

Establish a comprehensive system and ensure that leaders personally take charge and give it due attention.

BGS promptly implemented all requirements from the Group company by establishing a leading group for cost reduction and efficiency enhancement, along with its subordinate “One Office and Five Teams.” The leading group has formulated an overall working approach centered on “reduce, increase, and comprehensiveness.” “Reduce” refers to cutting costs by aligning with the company’s actual production and operations—controlling labor costs, rents, and material consumption—and fostering coordinated efforts across all departments. “Increase” involves enhancing management effectiveness through incentive mechanisms and process optimization; by piloting multi-position models, we are linking income directly to performance, thereby promoting higher-quality management and greater efficiency. “Comprehensiveness” means cultivating a company-wide awareness of cost control and business management, thoroughly exploring diversified revenue streams, and strengthening employees’ sense of personal income responsibility.

The Leading Group Office, based on the working approach, breaks down relevant tasks to specialized working groups and tracks and supervises the progress of these tasks. In coordination with the Office of the Comprehensive Budget Committee, it fosters a dual-drive mechanism that simultaneously promotes and enhances budget management and cost reduction while boosting efficiency. At the same time, a monthly reporting mechanism has been established to further align thinking, synchronize situation analysis and forecasting, share best practices and successful experiences, and require each department to report in turn on the achievement of cost-reduction targets and the implementation status of assigned tasks.

Precise management—departments truly “plan well” and get things done with practical action.

All departments have actively responded to the company’s call by re-examining internal flexible and rigid expenditures, further refining cost-reduction and efficiency-enhancement targets. Taking budget management as the key driver, they are closely aligning with mid-term budget adjustments to further optimize budgets and proactively explore projects aimed at reducing costs and boosting efficiency. Meanwhile, each department has also adopted various approaches—such as posting self-made slogans and soliciting drawings on cost reduction and efficiency enhancement—to encourage employees to develop a mindset that “all costs are controllable.”

The functional support departments have thoroughly analyzed budget implementation, adhering to the principles of measurability, quantifiability, and non-interference with production. Based on their respective functional characteristics, they have implemented a series of measures: eliminating the provision of bottled drinking water at meetings and events, discontinuing the use of coffee machines; adjusting the workload of cleaning staff and reducing their numbers; controlling expenditures on newspapers, magazines, printing, and communications, and issuing early warnings to departments with particularly high spending in these three areas; avoiding duplicate printing, promoting double-sided paper usage, and restricting color printing functions; closely aligning with real-time energy pricing policies, intensifying energy-saving publicity, and actively cooperating in efforts to conserve energy and reduce consumption; and further strengthening attendance management, especially daily attendance monitoring within the functional support departments.

The business operations department makes full use of technological tools, focusing on resource conservation and waste utilization, and adopts a variety of measures to achieve cost reductions. It vigorously promotes the use of electronic document modules for printing and signing, thereby advancing paperless office practices. The department also implements multi-skilled job training and establishes an internal mutual support mechanism to lower labor costs. To reduce power consumption, it promptly turns off or puts idle office equipment into sleep mode when not in use. Before leaving the office, staff members check to ensure that air conditioners and lights are turned off. Excess packaging paper and bags are collected and disposed of as waste. File folders and paper clips used for binding office documents are recycled and reused. Discarded wire and yarn are repurposed into beautiful handmade decorations to enhance the office environment.

Seeing the big in the small: Employees “pool their ideas” to build consensus.

Through the company’s leadership team taking “personal charge,” each department developing “excellent plans,” and continuous dissemination of the “company-wide cost reduction” concept via various communication channels, BGS has fostered a positive atmosphere for cost reduction and efficiency improvement. The company timely launched a “Golden Ideas” solicitation campaign, focusing particularly on areas such as operational cost management, safety and quality, and labor productivity enhancement. Using DingTalk’s online platform to collect suggestions, employees have actively offered their insights and proposals. To date, we’ve received 61 “golden ideas.” Based on the categories of these “golden ideas,” the company has assigned responsibility to specific departments and prepared briefs detailing the departments’ research, verification, and follow-up progress after improvements have been made. We’ve already produced four such briefs, creating an innovative “ecosystem” characterized by demand-driven responses, resource sharing, and dynamic updates. The key to effective implementation lies in putting plans into action. Regarding some of the suggestions put forward by employees—such as collaborating with airlines to obtain airline-issued baggage-handling accident reports (in quadruplicate) bearing the airline’s logo, thereby reducing the number of forms used; or reusing or selling discarded plastic tarps generated during cargo handling at ports—we’ve already conducted departmental discussions and begun implementing these measures, achieving substantial progress.

Next, BGS will further consolidate and implement the “reduce, increase, and comprehensiveness” approach, continuously strengthen coordination and collaboration among departments, adhere to a problem-oriented, goal-oriented, and results-oriented approach, promote cost reduction and efficiency enhancement in a steady manner, and achieve high-quality development.