Research On The Cost Control Of Raw Material Purchase Of Midea Group In Wuhan

With the development of economic globalization, the price of raw materials in the international market has been hovering at a high level. China’s precious as a world‐class home appliances manufacturing country, but the big but not strong, lack of innovation and excellence of the procurement cost control. The household electrical appliance enterprises increased competition and the overall capacity surplus, home appliance manufacturing enterprises have begun to enter the era of profit. The competition of household electrical appliance enterprises from monomer enterprise competition quickly developed into a comprehensive competition of supply chain as a whole, under the influence of economic globalization process more and faster. At present, the cost of household electrical appliance enterprises accounted for about 70% of the total cost of the proportion, followed by the circulation and marketing and other related costs. Affected by the high cost of raw materials procurement, weakening the profit margins of home appliance manufacturing enterprises, but also on the operating efficiency of household electrical appliances manufacturing enterprises and the overall competitiveness of the profound impact. Visible to household electrical appliance group enterprise purchase cost control research will become the key factor to enhance the overall competitiveness of household electrical appliances enterprises.The significance of this paper lies in: Midea Group Wuhan refrigeration equipment Co., Ltd. (hereinafter referred to as Midea Group Wuhan base) to control the cost of purchasing the importance of analysis, combined with Midea Group Wuhan base raw material procurement costs control present situation, through the Enlightenment of the theory of value chain analysis company in product development phase of a project and production stages are raw material procurement cost control problems, one by one to implement and improve effectively decreased the company’s raw material procurement costs and give the advice and policy of reducing the procurement cost of the existing problems with the procurement cost control theory and method. Mentioned in this paper using the value chain theory analysis research product raw material procurement cost control problems and corresponding to a series of improvement measures and methods will continue continue to use in Midea Group Wuhan base in the future of all kinds of projects to establish the operation and a batch of production among, also can bring some valuable experience for other household electrical appliances industry, so as to obtain the most effective purchase cost control strategy.