Research On The Purchase Cost Control Of Z Company Based On Supply Chain

Under the recession situation of substantial economy in our country or globally, manufacturing-type enterprises are facing unprecedented cost pressures. Now, the buyer’s market is taking over almost every industry, when "open-source" becomes more and more difficult, then "saving the cost" turns more and more important and procurement cost which occupies more than half the total cost bears the focus of attention. In hence, procurement cost reduction has great realistic significance for Z company such bus way manufacturing enterprise’s survival and development. With the pressure increasing for upstream and downstream industry, collaboration is the best choice, the competition between enterprises has gradually transformed into competition between supply chains.This paper focuses on combination of theory and practice, absorbs the discipline of management, operational research and economics, firstly introduces procurement characteristic under environment of supply chain as well as TCO concept and basic principle of AHP. After the introduction of related theoretical basis, we deeply analyze the present situation of Z company, its industry and purchasing situation and significance of controlling purchasing cost by focusing on total cost through the case of procurement of connection box, for purchasing managers, they should pay more attention on total cost especially hidden costs. Combining with activity-based costing, this paper analyzes each factor which constitutes the total cost and obtains scientific cost data after each quantitative analysis, it proves that price is not the decisive factor in enterprise purchase, purchasing process and activity cost in each activity including its transportation, storage and disposal are all with great significance for enterprise to understand integrated procurement costs. In addition, Z company’s management practice also proves that good choice of suppliers have positive and practical significance for cost control, with application of AHP method and combination of Ma Shihua’s supplier evaluation selection regarding technology, as well as time, quality, cost, service and flexibility, the five elements, this thesis transfers qualitative evaluation science into quantitative research by means of questionnaire survey, discussion and research and various other methods, which successfully solves the multi-objective decision issue of aluminium profile supplier development and scientifically selects optimal aluminium profile supplier of z Company, so as to achieve the effect of procurement cost saving in front end and help enterprises to better realize that suppler is of great significance for enterprises to save costs.This thesis gives detailed analysis regarding products purchasing of dominant and hidden cost from supplier development to product treatment, and achieves total procurement cost saving through scientific selection of practical case of aluminium profile supplier, which provides reference for z Company and similar manufacturing-type enterprises to promote cost control of procurement.