Research On Procurement Management Based On Cost Control

Procurement is the most important part of enterprise's logistics, which links different enterprises in the supply chain. To strengthen procurement management and reduce procurement costs is considered to be another way to improve profit. In manufacturing enterprises, the cost of procurement is the main part of the cost of product, and it's of the main factors which determine the product price level and market competitiveness. But, the procurement chain is still not been given the insufficient attention it deserves, especially for the implementation aspect. On one hand, many enterprises only manage the procurement process but not raise it to a high level. The managers should coordinate the relationship between procurement and supply. On the other hand, most of the procurement studies are from the perspective of the procurement companies to analysis the procurement process and the reduction of cost, lacking the consideration of the supply chain's overall interest, and being contrary to requirements of the supply chain environment.This paper is under the supply chain management environment and based on the cost control to research the procurement management, which is composed by two parts: the first part contains the chapter 1 and 2, it briefly introduces the supply chain management and procurement management theory, providing the theory basis for the next contents; the second is the main part of the paper, it focuses on the classification of procurement, makes different procurement management strategies for different kind of material procurement, and basing on which researches on procurement strategy under the supply chain environment, and then introduces the centralized procurement management theory, and on basis of which establishes the centralized procurement optimization model and reflects the advantage of centralized procurement, by comparing the final result to decentralized procurement.This paper aims to raise the awareness of people to procurement and to guide the enterprises to establish correct supply chain management and procurement management concepts, going out of the mistakes of lowing price and reducing costs. I just hope this paper can provide help for China manufacturing enterprises'procurement practice.