Research On Cost Control Strategy For O Apparel Company

Textile and apparel business is a fully competitive industry.Company cannot increase the retail price on this premise,if company want to increase market share and maintain a certain profit margin,procurement costs is "the first source of profit" to company.lt is vital that company make a full use of decreasing procurement cost to improve corporate profit.O Company is a SPA model fast fashion apparel retailer in Russia,the procurement scale is small and medium sized.Since the development of the company,the purchasing cost of raw material has always been high.In order to find the reason caused procurement cost too high,by analyzing passed 3years procurement data,the reason leading to the high purchase cost are:ignoring the new products characteristics leads to the high purchasing cost of new products,the scattering quantity of orders caused the limited negotiation power.Sales volume and raw material purchasing price forecast is inaccurate,payment delayed lead to higher raw material purchasing cost in the next season.And for these four reasons,using of targeting cost control methods,strategic procurement integration and lateral integration,using of collaborative forecasting method,establishment of strategic partnership for suppliers integration and optimization of internal information and procurement mode,involve into upstream and downstream suppliers cooperation theories to solve high procurement cost problem.The purpose of this dissertation is based on procurement cost management theories,combined with case study and proposed solution of cost control based on company’s practical situation,providing some cases reference for small-medium scale enterprise’s procurement cost control.