Research On Procurement Cost Management Of FZW Company

With the development of economic integration and information globalization, the market competition is becoming increasingly fierce. No matter which manner in production companies have focus on the lowest cost supply of high-quality products to the customer with high speed so that to obtain the maximum profits. Therefore the procurement cost to be paid attention day by day, and to be a certain academic research with development. From a global perspective, the general procurement costs account for60%, which are the enterprises to maintain long-term development. How to manage well in procurement cost, how to reduce procurement cost, and more research is needed in the practice let different company adopts different measures.Information makes all the activities of nature and human society are active. Microelectronics is the basis to implement information network and key components in computer or communication machine. The scale of China’s microelectronics in fabrication industry continues to expand quickly into the12inch wafer foundry. And master the advanced technology nodes for the0.18um and0.13um. In recent four years, due to the impact of the global economic crisis, the semiconductor industry market undulating, not only for the expected scientific research and technology can not be verified, but also cause the enterprise bear a great deal of cost pressure. In this paper also made reference to the actual development of semiconductor industry, in facing problem of the current FZW Company with high costs, some of material inventory insufficiency, some of parts over stocks or long-term kept in inventory as well as the raw material prices are still raising. On FZW procurement costs, inventory, supply standards and requirements planning in-depth analysis to generate the use of specifications, source selection to pricing determined, the supply of demand and inventory control, thus reducing procurement costs. Through a series of control methods formed the FZW Company’s procurement management model with continuous improvement. More mention is through empirical research part, not only increase cash flow of FZW Company, but also to create more value for its continuing operations.The significance of this research has practical applications for the semiconductor industry. Especially for semiconductor technology with high levels of manufacturing enterprises have greater practical significance and value of the procurement cost control.