Research On Server PCB’s Procurement Cost Management In Company D

After growing customer spend in recent years, the server market experienced serious competition. IDC expects2013spending to decrease mainly driven by the severe competition in IT industry, fast development of technology and customer’s unstable requirement. With the spending shrinking, procurement cost management becomes more and more important, at the same time, procurement management role has changing rapidly from traditional supporting to the spotlight. Nobody can deny the truth:procurement cost management has significant impact on the company’s core competency, lower procurement cost comparing to competitors means the company can gain more margin than competitors.In this paper, the author uses case study method, with her own rich working experience, to analyze and summarize company D’s current printed circuit board’s procurement cost management working model and existing issues and provide effective solutions.The paper has introduced the procurement cost management basic theories of domestic and oversea scholars, and then explained how to apply those theories into company D’s procurement cost management working model. After plenty of analysis, the author has concluded from three directions, firstly supplier selection and evaluation is the basis of procurement cost management, secondly supplier’s early involvement is to make sure optimized design cost, thirdly price negotiation based on cost regression model and reverse auction is a quick and effective way to achieve reasonable procurement cost. In the paper, the author has chosen some part numbers with high volume and high spending as example, and run cost regression model and reverse auction systematically,and proved the solution is workable to control the server printed circuit board’s procurement cost and make company D in a competitive position.