Effective Ways And Methods Of Construction Enterprise Material Cost Control

Material cost management is the core component of construction enterprise cost management. Material procurement is the most important procedure in the construction enterprise material management. Material procurement provides reliable guarantee for the production safety and operation of the construction enterprises. It is also the most powerful line of defense and barrier for the production safety of Construction enterprises. On the other hand, the "procurement" and "supply chain" in the material management can best reflect the fact of that how well the company centralizes its Fund Management. Pertaining material management with strengthening of capital chain, procurement directly reflects changes of marketing price and well supports excellent capital return for construction enterprises. According to modern logistics theory, the implementation of centralized procurement of construction enterprise and optimizing the supply chain of materials procurement is an effective way to reduce material procurement costs and improve the competitiveness of enterprise.How to regulate the material cost management of construction enterprises, optimize the procurement program, correctly analysis all aspects of the usage of materials, seize the cost impacts caused by construction auxiliary material are the key to reduce the cost of construction materials. Especially under the marketing economy, these kinds of work have been blended with a lot of fresh vitality. It well deserves our serious research and discussion.There are three main aspects as far as the key of material cost control of Construction Enterprise is concern:Firstly, it is the cost control of material procurement, actively and effectively implementing centralized purchasing. Secondly, it is the cost control of material consumption. Thirdly, it is the management of turnover materials’ usage and loss. This thesis will mainly focus on three aspects mentioned above. Cost Control will be investigated from all angles with consideration of reality of construction production management.