The Procurement Cost Controlling Analysys And Research Under Supply Chain Of Elec-Tech International Co., Ltd

Under the world economic globalization environment today, the procurement costs are less than satisfactory control among the domestic enterprises. However, the foreign supply chain theory and practice are increasingly sophisticated, relying on its advanced information technology and scientific management methods, the procurement cost management is getting higher level .In this area, there is a greater gap between Chinese enterprises and developed countries in the world. Thus the competitiveness of Chinese enterprises due to the poor in global competition is at a disadvantage. Since the 2001 accession to the WTO, Chinese enterprises have been involved in a fierce competition with the powerful foreign companies. Enterprises have to obtain advantages in the competition, cost control is very important. We have to learn as much as possible about the advanced management ideas, combining with China's enterprises to increase the procurement cost control management, gradually narrowing the gap with competitors.The traditional procurement cost control management has some lack and limitations. This article takes a example from Guangdong Elec-tech International Co., Ltd. procurement management system to dissertate the management and control of the purchasing cost of the enterprises from the overall perspective of view and supplying chain management point of view. And it analyses the cost of procurement management and control completely and clearly. And then it proposes a quality control method from supplying chain perspective. Firstly, it stated the concept of purchasing the "total cost of ownership" (TCO). It also analyses the make-up of the procurement costs, as well as a variety of factors which impact of the cost of procurement. Secondly, it sums up the traditional cost control method and its advantages and disadvantages, and dissertates the cost control under the supplying chain. It finally summarizes the method of cost control under supplying chain. Focusing on the exist problem of the company's organizational structure, procurement process, procurement and cost control, using the "total cost of ownership" model to make a specific analysis of the total equipment procurement. This article makes a analysis and suggestion about the purchasing cost. A new design process as well as the new cost-control methods is also hammered out in this article.This article is practical and useful for its citing detailed and accurate information, integrating theory with practice. But for lack of the knowledge about the BDO's Elec-tech company and the procurement of purchasing work, the counter-measures which has not been practiced in reality just stay idealistic thinking and theory. Since the company's information is confidential, some of the cases, data processing are not the actual data. In this paper, the case of the total cost of ownership models to choose equipment suppliers is from the BDO Elec-tech-house training materials, enterprises can learn the way of thinking as well as the way of decision-making.The cost of procurement management and control, as a basic link in one of the supply chain, played a crucial role for the successful implementation of and Construction of supply chain. How to control the procurement costs and keep it improving under the guidance of supplying chain will be a important question for modern enterprise to think.