The Study Of Procurement Cost Control On Gz Company

There is no doulbt that 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 one of the main factors which determine the product price level and market competitiveness. But the procurement chain is still not been given sufficient 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 contray to requirements of the supply chain environment.The paper is under the supply chain management environment, taking GZ company as sample, based on the cost control to research the procurement management, which is composed by three parts: the first part is to introduces the supply chain management and procurement management theory, providing the theory basis for the next contents; the second is to expose the main problems in GZ company; the third part is to find concrete ways to solve these problems by studying of the classification of the procurement of materials and giving the appropriate procurement management strategy to different types of material, the use of activity-based costing to optimize the procurement process, implementation of JIT purchasing, reduction of inventory, implementation of the standard cost method to manage the purchase price, strengthening supplier management to form a strategic partnership.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 prices and reducing costs. I just hope this paper can provid help for local manufacturing enterprises'procurement practice.