Research On Supplier Cost Management Based On ERP System

The majority of the cost of the manufacturing enterprises product comes from its suppliers. In order to control manufacturing enterprises product cost, it’s not enough just limits our attention in the enterprise, or just pay attention on the transaction cost with the suppliers. So, it’s meaningful to manage supplier cost standing on the point of view of the manufacturing enterprises. It’s also helpful to realize the aim of the supply chain cost management, then improving the competence of the whole supply chain. The ERPⅡ system, advocating collaborative commerce, provides a good interactive platform for the supplier cost management. The concrete research is as follows:(1) Study on supplier cost management object. Because of selecting supplier is the first step in managing the relationship with suppliers, this thesis studies the standard of supplier selection, and then, it proposes multiattribute decision technology of supplier evaluation, and solves the problem of supplier selection. After this, it discusses the classification of supplier transaction goods, it gives out a management model of supplier transaction goods under an ERP; on the base of discussing the core competency cooperation in the supply chain, it puts forward a selection rules and implement method of supplier transaction goods, which based-ERP systems in angle of view of the supplier cost management. At last, it well defines the objective of the supplier cost management.(2) Study on cost coordination control problem in design phase from the source of supplier product cost. In this part, it first explores that the object of modular product design is to deal with the environment change with as few changes as possible, and to satisfy the individual demand in the most economic ways. Then this passage analyses the application of value engineering in the decomposing the product targed cost, proposes the framwork how to breakdown the target cost and the route how to match the module function, and gives out a fuzzy comprehensive evaluation model to seek the function evaluation score. After that, this thesis puts forward how the target cost in purchase phase being transmitted to the key supplier based on how the supplier define their target cost and how the target cost is implemented in the cooperative design phase. At last, after introducing the BOM’usage in production manufacturing process, this thesis proposes the model how to optimize the quality-cost problem in BOM design, insures the key supplier source control of the product cost.(3) Study on amalgamation of supplier cost management methods. First, analyzing the advantages and disadvantages of some representative fine cost management methods, such as the standard costing method, the target costing method and the Activity-Based-Costing (ABC) method, and then discussing the possibilities to amalgamate these three methods as one method, and put forth that the cost management shouldn’t just focus on these methods, the method also should serve for the cost management. After that, Building the framwork of amalgamation these three methods TS-ABC, giving out an overall amalgamation route of these three methods based ERP system, putting forth the TS-ABC real time cost control model in the business based on ERP system, it promotes the effect of cost management.(4) Study on guarantee mechanism of supplier cost management. In this part, it first discusses the knowledge transfer problem, proposes the pattern and module of knowledge transfer from product manufactory to supplier, and gives out the answer of knowledge loss problem when the knowledge transfers. Then, it explains the reason of sharing the knowledge, besides, it also analyzes the factors, which restrict the knowledge sharing between product manufactory and its key supplier, and it also answers the knowledge sharing mechanism and sharing risk. Then it puts forth the strategy how to incentive the suppliers in an explicit and implicit way. It explores that the information system plays an essential role in supplier cost management. Then this thesis analyzes how the ERP Ⅱ system promotes the supplier cost management. At last, after analyzing the function of SAP product, this thesis proposes the route that the ERP system could provide a technical support for the supplier cost management from an application view.