Research On Procurement Cost Control Under Supply Chain Of XY Manufacture Corporation

In recent years, with the development of the automobile and motorcycle industry,more and more world famous multinational enterprises enter into Chinese automobile andmotorcycle market, and Chinese automobile and motorcycle industry is getting into the toptime of development, followed by Chinese automobile and motorcycle parts industry,which gets into an extraordinary period in its history. A great amount of the famousautomobile and motorcycle parts companies go into China and invest one after another.Some of them chose to cooperate with Chinese companies, which drives the developmentof our business. The great competition between automotive and motorcycle companiesexists and brings the competition between automobile and motorcycle parts companies. Asan important management activity going through the whole process of business operation,procurement shows more and more importance. Scientific procurement not only saves costand gains profit, but also finds potential competition and guides the direction.In this paper, I do research on the study of the procurement cost and consider thattraditional procurement cost control theory can not meet the needs of modern enterprise.So I introduce the theory of supply chain. Those researches provide theoretical basis forthe analysis and optimization of XY automobile parts company’s procurement process.Based on the study of the procurement cost and supply chain management theory, Ianalysis the present situation of XY automobile parts company’s procurement cost controlunder the mode of supply chain. I give XY automobile parts company a generalintroduction and analysis the supply chain structure, the composition of the procurementcost control and the procurement process of XY automobile parts company’s under themode of supply chain and finds out the main problems existing. In views of the problems Ioptimize XY automobile parts company’s procurement system from two aspects, which isthe internal supply chain, and the external supply chain. From the internal supply chain, Iimprove the official automation platform, renovation the original procurement processsystem, classify material procurement scientifically, and strengthen the audit to reduce andeliminate inefficient activities, simplify procedures, and integration teams based on theadvanced ideas of the supply chain management. From the external supply chain, Iestablish the scientific systems to select and evaluate supplier, control the bargainingpower of suppliers and respond to the price fluctuation of raw materials positively. In this paper, I give suggestions for enterprises to reduce the procurement cost andachieve strategic objectives. The optimization and integration of the internal and externalsupply chain can make the internal procurement process more efficient, and thecorporation between enterprises can make the whole supply chain to be more quickly. Inaddition, I hope enterprises could set up correct concepts of the procurement cost controland the supply management, and change the original concepts that treating reducingprocurement price as the core of the procurement cost control through this paper.