Study On Material Cost Management Of Long-distance Oil And Gas Pipeline Construction Enterprises

In an increasingly competitive market environment,the key of ensuring enterprises' core competitiveness is to improve profit margins;profit margins largely depend on the management and control of various costs generated in construction process,among which the management of material cost is an important link.How to continuously strengthen and standardize the corporate material management is the key issue that every business operators and managers should discuss in the long run,and how to effectively control material management costs including procurement,storage and transportation,poses as a pressing problem most enterprises are concerned with.The paper first describes existing situation of material management both in China and abroad,analyzes and lists problems existed in the material cost control for long-distance oil and gas pipeline construction enterprises.Then it will discuss the importance of material management to construction enterprises and study the material management mode,relationship between material management and cost control,basic condition and problems of material cost management in the construction process of long-distance oil and gas pipeline by referring to the advanced and practical methods in material cost control abroad.What follows is the demonstration of how to further strengthen the material cost control and avoid fund waste in procurement,storage and usage to improve the profitability of construction.Finally,the paper,combined with years of work experience,will put forward practical methods of operation and cost control measures in terms of materials planning,contractor selection,contracts,warehousing,logistics,recipients and residual materials;meanwhile,it will propose that the information systems and web applications can be better used in material cost control.Building an effective and relatively complete material management and control system can achieve the full-process control over corporate material costs,which can help to accomplish the purpose of reducing costs and increasing benefits so to further enhance the core competitiveness of enterprises.