Study On The Raw Material Cost Control Of Guofeng Company

In the background of the rapid development of global economic integration, enterprises increasingly fierce competition, from product design, development, manufacturing, quality control, purchasing, sales, service and other sectors, to the integration of resources, collaborative management, capital operation, development strategy, an enterprise should develop, must pay attention to the study of every a part of the upgrade, the competition also has been extended to the enterprise supply chain. The enterprise wants to obtain the competitive advantage in the market, it is necessary to consider the implementation of cost leadership strategy. At this stage, China’s manufacturing industry is facing many factors of production costs competitive challenges to survive need deeply research on cost control. However, China’s manufacturing enterprises in the procurement of raw materials cost is about 60% of the total cost, and even some industries have been as high as 80%, the procurement cost of raw materials has become the main part of the cost of enterprises, has become the key factor affecting the enterprise market competition. Therefore, enterprises need to consider the implementation of cost leadership strategy, we need to strengthen the control of raw material procurement costs, the enterprise raw material procurement cost control as the focus of the work, enhance the market competitiveness of enterprises.2013 Anhui Guofeng Limited by Share Ltd PP company procurement of raw materials accounted for sales of 56.5%, accounting for plastic film business sales of 63.4%, accounting for about 80% of BOPP sales. Thus, Guofeng plastic raw material procurement costs is an important work, directly affect the overall effectiveness of the company. The author unifies own work experience, in-depth understanding of the actual situation of Guofeng company, access to procurement and supply activities in the specific operation process of first hand data, the application of cost management theory, the theory of supply chain management, purchasing management theory, Guofeng Plastic raw material procurement cost control as the theme, carefully combing domestic and foreign literature raw material procurement cost control, management and control of raw material procurement costs Guofeng situation, introduce Guofeng company organization and operations of the formation of a company’s procurement staff, roles and responsibilities elaborate comb polypropylene supply company characteristics and current situation of raw materials procurement, raw material procurement cost control analysis of the problems, analyzes the influencing factors and the use of the questionnaire method, the factors affecting the cost of procurement investigation and sorting; then from the procurement planning stage cost control management (clear demand for raw materials procurement, procurement of raw materials to strengthen the progress management, strengthen procurement management talent development, raw material sourcing to use standard, raw material procurement budget system), vendor selection phase of cost control management (long-term strategic partnership, strengthen supplier incentive management, supplier performance management behavior), procurement environment stage cost control management (to understand the market price and supply and demand information, vendor information database established and innovative raw material procurement plan) put forward three raw material procurement costs control and management strategies.The innovation of this paper by a raw material procurement’s point of view, combined with work experience, according to the actual situation of Guofeng company’s production and management, and the purchasing activities in the specific operation in the process of first hand data as an example, the application of the related management theory, the Guofeng company in purchasing and supply problems in the process of analysis, the raw material procurement cost control management strategies from various stages of procurement management, especially put forward by polypropylene futures hedging, long-term bond orders and raw materials trading scheme, presents the method of cost control of all kinds of difficulties in the process of enterprise procurement of raw materials, has the maneuverability and reference use.Through the study of this paper, raw material procurement cost control strategy for Guofeng Company to explore, to better enhance the Guofeng company competitive advantage in the market, to make a contribution to our similar industry raw material purchasing cost control.