Research On Purchasing Cost Control Strategy

In 2010, China became the world's largest auto market. It made a new record with 18.00 million cars. When other countries were affected by the financial crisis and recession, but China had a growth which was more than 38%! As China is the world's largest potential auto market, the fierce market competition is the thing which Chinese automobile companies can not be avoided, and then as a comparative advantage of Chinese enterprises, cost has a strategic importance. Purchase cost control in the supply chain competition is important, the use of effective purchase cost control method has a significant role, but its role in the play is inseparable from development and implementation of sound purchase system, establish and maintain cooperation with suppliers and other measures. Controlling the purchase cost is very important to an enterprise's business performance. Purchase cost reduction can not only enable businesses to reduce the cash outflow, but also can decrease production costs, increase profits and enhance company's competitiveness in the market. As the material cost often occupies 51% or more of production costs, therefore, controlling and continuously decrease purchase costs is an important and direct means for a company to reduce product costs and increase profits continually.After China has entered WTO, enterprise of our country starts the cut-throat competition facing a lot of international enterprise directly. Enterprise of our country needs to want to seek survival and develop in this fierce rivalry environment. The cost must reinforce enterprise right away controls, reinforce the concept that modern cost of enterprise controls. Cost controls a important link in being control of production cost, the current situation that our country business cost controls goes up because of capital goods price ceaselessness, enterprise assets cost of production is notable increase by, much the enterprise Chen cost is out of control and under the control of, the sources of energy dissipation is comparatively grave, make cost of goods manufactured loss increase by. Enterprises are trying to find a better method of cost control in order to more accurately calculate product costs and cost control requirements of the system function better. ? Purchasing cost control is the requirement of purchasing management development. Through controlling purchasing cost can help to improve the internal management mechanism, enhance the company's management level and economic efficiency, it will help to improve the efficiency of cost management and conducive to the competitiveness of the company, and make the company go to the institutionalized and legalized track. Through controlling purchasing cost can help to reduce the company's product cost. So that enterprises can remain invincible in the fierce market competition.In last year, the company which I am located in strengthened the management and control of purchasing costs by different control methods, and so to make the overall purchase cost declined 2%, and achieved very good economic benefits. Now I do the summary the daily work in purchase, to explain how to control purchase costs.Based on the analysis of purchase process and purchase costs, I found that value discipline under market economic conditions, supply relationship and competitions make the purchasing cost become the central issue among various choices, and the purchasing cost control is the requirement of constantly changing international market. In this article, I describe the method of reducing purchase costs, and then describe the implement steps of reducing purchasing costs. Only actual using these methods to reduce purchase costs ,and make the behavior of controlling purchasing cost be a major strategy for the company, then can make the company survive and develop in a rapidly changing new world and new economic order.