Research On The Cost Control Of Raw Material Purchase In H Company

As one of the key factors of the total cost of manufacturing companies,the proportion of raw material procurement costs in total cost has always been the concern of managers.60%-70% of the cost ratio exists in most enterprises in China.As a plastic pipe manufacturing enterprise,in the process of expanding the domestic and foreign markets,H company’s procurement cost,especially raw material procurement cost control,has become a major problem facing the company.In order to solve this problem,it is necessary to continuously strengthen and optimize the management of raw material procurement costs,so as to achieve the purpose of cost savings and increased benefits.First of all,this article provides an overview of the H company’s business situation and raw material procurement status,and briefly introduces the company’s organizational structure,procurement staff composition and division of labor,raw material procurement characteristics and situation.Secondly,comprehensively use quantifiable analysis methods,such as chart analysis and value engineering method,to explore the problems existing in the different stages of procurement(planning,supplier selection and implementation stage)of H Company and find out the problem of the company’s raw material procurement cost control is concentrated in three aspects: the first is the lack of predictability in procurement demand and budget,and the number of professional procurement personnel is insufficient;the second is the lack of reasonable identification and management of suppliers;the third is due to it is caused by long price fluctuations in foreign procurement cycles and weak bargaining power in domestic procurement.Thirdly,from the three different stages of the purchase plan,supplier selection and purchase implementation,the cost control optimization schemes were individually proposed.Starting from the planning stage,not only the demand must be clarified,but a strict budget review should be established.At the same time,we must train relevant purchasing personnel and closely manage the procurement progress.In the supplier selection stage,in order to ensure quality and efficiency,we must choose from high-quality suppliers,and at the same time strengthen the incentives and performance management of suppliers;finally,on the basis of fully understanding the market conditions,we must pass the data management,continue to propose innovative solutions for procurement to effectively implement procurement.Finally,in light of the optimization measures,three guarantee measures that should gradually improve the formulation of raw material procurement schedules,focus on the professional skills training of procurement personnel and strengthen the procurement data management of the ERP system are proposed.