Based On Material Cost Supply Chain Management Perspective

With the development of economy globalization, quick spreading of modern technology and IE business, enterprises are facing more and more competitive pressure. To survive in the crucial battle and meet customer’s demand, they need service more quicker lead time, more special service, much better quality and more lower cost while the lifecycle of product is becoming more and more short. Under such serious background, cost control especially the manufacture start, material cost control has been the most urgent concern of the enterprises especially those in manufacture industry.Under the traditional conception, when saying material control, we put more focus on single KPI improvement and balance from company inside itself. Now under the socialized production, there established more tighter relationship between the companies, more deep influences and more bigger controlled power between each other. Therefore, the material cost now is not just a problem that can solve from single inside but discover new way which combining both internal and external environment, from more systematic, more overall thinking, more thoroughly thus make more effective and more efficiency. That is supply chain mind.This article tries to dig material cost control way from supply chain side. Firstly, introduce the backgrounds, meanings and methods. Charpter2is about supply chain management theory, after that primarily discuss about material cost control. Charpter3introduce the basic information about PWSP, point out the problems existing in current material cost management way; chapter4identifies the necessary of improvement after environment analysis and establish material cost model and design improving project combining chapter2content; chapter5, executive, effect and feedback, finish the improving PDCA cycle. Final, summary and questions.PWSP is belong to surface treatment chemical industry and is located in the middle in the supply chain, strategy on cost leading. With the increasing of labor cost, PWSP is facing huge competitive pressure and the problem and environment PWSP faced now is facing to most manufacture factory. Through this article, we wish some new ideas can be brought to those who are facing the similar problem.