The Procurement Cost Management Of Manufacturing Enterprise

With the economic globalization and increasing competition of severity, the enterprise now must envisage and resolve the following question: how could they reduce cost and increase profit. It studies the selection and implement of the method of purchase cost management, and the trend of purchase cost management in domestic manufacturing enterprise, aimed at the feature and shortage of purchase cost management in domestic manufacturing, through reviewing relative theory of purchase cost management. There are 5 chapters in the article.Chapter 1 summarized relative theory of purchase cost management. The foundation of purchase cost management is the theory of cost management. The theory of cost management experienced two main stages: traditional cost management theory and modern cost management theory, and then expounded the main content of modern cost management theory.Chapter 2 analyzed characteristics of manufacturing enterprise's purchase cost management, and these characteristics show purchase cost management is vital to manufacturing enterprise. Whereafter, contrasted and analyzed the present situation of purchase cost management between domestic and overseas enterprise, and found out the lack of purchase cost management in China.Chapter 3 brings forward that domestic manufacturing enterprises should use foreign advanced purchase cost management for reference, aimed to the shortage of domestic manufacturing enterprises. Particularized methods of purchase cost management often used by multinational corporations,and discussed the selection and implement of purchase cost management in domestic manufacturing enterprises.Chapter 4 studies the trend of manufacturing enterprise's purchase cost management in China, whole purchase cost and e-sourcing. Whole purchase cost is a new conception of cost management, and it emphasizes whole purchase cost includes material cost, cost due to implementing purchase ,and cost due to bad purchase. Purchase decision should not be made just according as material cost, but whole purchase cost.Chapter 5 is conclusion and shortage. Purchase cost management is the core of cost management in manufacturing enterprises. Enterprises should use foreign advanced purchase cost management for reference, and select and use the method adapt to themselves. At the same time, enterprises also should attention the up to date trend of purchase management, update the conception and method, make the best use of information technology to improve the efficiency and effect of purchase management. Enterprises can win the competitive superiority in this way.