Research On Procurement Cost Of FYJX Company

In manufacturing line, cost determines profit and procurement cost is an important component of cost in breakdown. At present, differences among domestic and foreign products is not distinguished, so it is control on procurement cost that could determine product’s competitiveness in the market. Companies from Japan, South Korea, Europe and America gained big achievements on procurement cost containment which successfully turns to their market share. Since China implemented Reform and Open Policy, Chinese companies have been gradually developing towards world standard. However, its development speed is still not harmonious with procurement cost containment in internal management. In that case, the author takes Company FYJX as subject to have further study on procurement cost containment.The dissertation is mainly based on the combined idea of procurement cost containment and strategic purchasing. In the aspects of purchasing price, supplier relationship, inventory management and purchasing quality, implement containment measurement on procurement cost at stages of pre-procurement, procurement and after procurement. Analyze traditional procurement at different angles, import strategic purchasing idea, change unbeneficial factors to company development in tradition procurement and finally evaluate company procurement cost on the base of total procurement cost.On the view of operation status and management module, the author analyzed Company FYJX’s problems under the module of traditional procurement, then subdivided influenced factors to procurement cost, implement strategic purchasing idea and spent more effort on key issues’analysis. Then draft up procurement cost containment module suitable for company’s high-speed development which will be worthy to further reference for module change from tradition procurement to strategic procurement in manufacturing line.