Study On Linkage Mechanism Between Purchasing Cost And Market Price Of Oilfield Material

A more effective material procurement system of oilfield enterprises has been claimed since C hina’s oilfield enterprises have developed rapidly in domestic and foreign markets. With the continuous change in management system of oil company, traditional management of material supply system is shifting to reduce cost and increase economic benefits. As the cost center of an oilfield enterprise, procurement is a bridge linking purchasing department to market material suppliers. From this perspective, effective and rational procurement is an important part of cost management. Due to a wide range of oilfield supplies, materials procurement methods also show the diversity. Purchase Framework Agreeme nt is an important form of current procurement, and procurement contracts are often prepared a few months ahead of the actual purchase behavior. In this case, an additional procurement cost will occur as the ignorance of changes in market prices if there is no dynamic and overall process management of the goods price. Therefore, in order to decrease cost, increase benefit and enhance competitiveness, the oilfield enterprises should establish a linkage mechanism between material procurement costs and market prices.The study is based on both the analysis of material procurement in oilfield enterprises and the relevant theoretical research or practical experience at home and abroad. By studying the material types, procurement cost and material market price, the market-oriented linkage mechanism between material procurement costs and market prices is built with the subject of oilfield enterprises and the object of material supply department. The build of this linkage mechanism will make up the gap between purchasing cost and market price, and will be a scientific theory and practical reference guide for the material procurement.