Research Of Cost Control In Company D Based On Supplier Management

Currently, production enterprises in China are facing the pressure of price increasing forraw materials and labor forces. Also there are obstacles coming from fast step development oftechnology, suppliers’ monopoly, and difficulty of new suppliers’ sourcing.At the starting several pages, this thesis introduces the ideas of traditional purchasing cost,and supplier management theory related to production enterprises’ purchasing cost. Then itcombines the real situation of D company, make the detailed analysis of its suppliers’ price,inventory and quality, raises up the facing problems and related solutions separately.Firstly, the direct purchasing raw materials’ price is the focus of supplier’s costcontrol. This is also the first reaction from traditional price control. Secondly, the stocklevel of the customer has close relation with the supplier’s. In order to make a goodwarehouse management of company D, it’s also important to get a well knowingunderstanding of suppliers’ stock level. Last but not at least, suppliers’ qualitymanagement is another important image of a company’s development and comprehensivestrength. At the same time, supplier’s quality level influences a lot of the customer’sproduction quality level and development strategy. In the severe competition of business,whether a company can have a long enough life time relies heavily to on-time delivery,good quality, low cost, and high after-sales services. This article takes company D as anexample, showing the current situation, finds the problem, and then gives respondentsolutions, in order to reach the aim of optimize suppliers’ management.From this thesis, there is the conclusion, based on the management and control.ofsuppliers from the above three aspects, we can reach the purpose of cost control forproduction kind enterprises.