The Research On Procurement Cost Control Of A Manufacture Corporation Based On Supply Chain

With economic globalization and the advance of the world economy,the competition among enterprises is increasingly fierce.In order to adapt to the changing market structure and the macroeconomic situation,all enterprises begin to adjust and innovate from technology to production management system.At the same time,China's gradually losing the advantages in terms of population and resources.Competitiveness of manufacturing enterprises in the domestic and international market is decreasing.Therefore,reducing costs,improving production operating profits become a top priority of their development.For China's manufacturing companies,the purchase cost of raw materials in total costs accounted for more than 60%,which have an important impact on the success of the production and operation of enterprises.In order to survive in the increasingly fierce market competition,enterprises must improve procurement management,reduce procurement costs and improve the operational efficiency of enterprises.In 2014,the procurement costs of A company accounted for 36.3%of operating revenue,43.2%of operating costs.And the direct purchase price of raw materials accounted for 78.26%of procurement cost,which is generated from the external supply chain.Thus,the control of procurement costs directly affects the company's operating performance,that is the key task of the current rapid development of A company.In this paper,our research focus on A company's procurement cost control,using a combination of case study method and literature review method.Through theoretical analysis and field research,this paper based on supply chain propose several improvement measures about purchase cost control of A company:(1)in the procurement planning stage,streamline and improve the authorization mechanism,improve the efficiency of the procurement approval,in order to improve the internal operation of the supply chain efficiency;(2)in supplier management stage,establish and improve the supplier selection and evaluation mechanisms,and hierarchical management,in order to reduce the operating cost of external supply chain;(3)in the procurement implementation phase,differentiated according to material property purchase,avoid a single procurement model;(4)inventory management stage,use VMI management alternatives ABC management.Through the above measures,improve the operational efficiency of entire supply chain,reducing procurement costs of A company.