A Study On PTPC Cost Control Based On Strategic Purchase

Supply chain management becomes more and more importang along with the development of globalization.Purchase material cost management is the key point under modern industrial production, especially in the mechanical marget segment, the purchase cost is around 60% to 80% of the total product cost, so the purchase cost is one of the key point of company’s competation. Another key point is whether or not the company can supply qualified products. Industrial and Electronic cabinet is one of the key product in PTPC, so which is typical mechanical facility, this dissertation will focus on this subject and provide a detailed analysis of purchase cost management.First, this dissertation described the theory of supply chain and cost management, and then analysed the supply management deparment responsibility and working porcess in very detail, and further comes to change of organization based on current problems, which is devided current 2 teams (commodity team & supplier quality development team) into 3 teams and set up a project supporting team considered from value engineering & project cost analysis standpoint, so that we could better control and manage purchase cost.And then the dissertation further analysed each group’s daily working process and improvement needed. About the supplier development group, it mainly based on different commodity and related commodity sourcing engineer, and how to do cost reduction and how to measure it.And further it analysed the growth group ( project supporting)’s working process, it mainly analysed as per 4 stages of project management, and described on how to implement with value engineering.And the last charper analyzed the responsibility of supplier quality improvement group, included how to do new supplier assessment, how to measure supplier, how to do supplier performance review and other tools on supplier quality control, more details on how to creat the supplier performance measurement matrix system.With the new supply management system’s implementation, the whole supply management team reached the target of cost reduction and improved suppliers’quality and on time delivery rate increased significantly by the end of this year.