Research On The Controlling Of The Purchase Cost Under The Supply Chain Management

With the development of the global economy,the competition between the enterprises are becoming more and more severe.It is forced the enterprise to focus on reducing their manufacturing cost so as to meet the cost target of the customer.Purchase cost is taking up at least 60% of total cost in the manufacturing enterprise,purchase cost is affecting the product price levels and market competitiveness,so it has been the most important path to increase their profit on reducing the purchase cost.Most of the enterprise does not give full attention to the purchase management,there are plenty of issues among their daily purchase management.On one hand,purchase price is quite high and the enterprise is weak in purchase plan management which leads to high cost in raw material shortage.On the other hand,the enterprise spends most of their time on the lower purchase unit price but neglects the total cost ownership among the purchase cost control process;they are treating all suppliers from the buy and supply relations and forgetting that the strategic partner with the suppliers would bring the influence to the total cost ownership.The thesis is making the research on purchase cost control in the case of AFPROEAF Company,analyzing the existing problems and reasons among its purchase cost control,coming up with setting up AFPROEAF purchase cost control system based on related supply chain theory and situation of AFPROEAF.Purchase cost control system was made up by four aspects,they are purchase cost control design,and supply chain plan management set up,perfect supplier management and evaluation and optimize supply chain inventory management.It comes up with the effective guarantee actions for setting up purchase cost control system,they are strengthening the purchase strategic position,optimizing the current purchase procedures and system building up,tightening up purchase team management and information management.The goal is to get better control on AFPROEAF purchase cost via the above mentioned channels.The thesis is to make sure the enterprise can focus on the purchase activities,set up the right supply chain management and purchase cost control philosophy.Enhancing the purchase management levels and work them out via setting up the purchase cost control system.It will help AFPROEAF company to reduce its purchase cost so as to increase its market competitiveness and profit levels,it is also providing referential meanings to the other manufacturing practitioners.