Research On The Improvement Countermeasures Of Raw Material Purchasing Cost Control Of H Company

With the rapid development of the global economy,the cost of raw materials and labor is rising.Manufacturing enterprises should not only compete fiercely in supply ability,product quality and service level,but also reduce and optimize enterprise cost comprehensively and continuously.In manufacturing enterprises,the procurement cost accounts for 60%-80%of the total cost of the enterprise.Therefore,the enterprise’s procurement cost control ability is directly related to the production and operation status of the enterprise,and determines the enterprise’s market competitiveness and sustainable development ability.H Company studied in this paper is a well-known multinational enterprise in the aluminum machine processing industry.Set R&D,production and sales in one,in the technical capacity,quality level and customer service are at the leading level of the market,but in recent years,in the market continued price competition began to be at a disadvantage.Although the purchasing department will reduce the price of suppliers every year,the price reduction trend is not sustainable.Meanwhile,the quality and delivery time of suppliers are unstable and decreased,which leads to the increase of the company’s overall operating cost and the decrease of customer satisfaction.By analyzing and studying the current situation of H Company’s procurement cost control,this paper adopts the methods of literature research and field research,and on the basis of learning and summarizing the procurement cost control theory,supply positioning theory,supply chain management theory,VA/VE value analysis and value engineering theory,analyzes the incompleteness of calculating the procurement cost with "purchase price" in H company.The quality and delivery of the purchased materials are lagging behind,the supplier partnership is rigid and the way to reduce the procurement cost is too simple.Based on the above problems,some improvement measures are put forward,such as implementing TCO concept,creating supply positioning model,perfecting supply chain management and implementing sustainable cost control of value engineering.To ensure that H company can optimize and reduce procurement costs while meeting the improvement of the company’s supply chain level and the reduction of operating costs.