The Research On Material Purchasing Optimization Based On Cost Control In Construction Business

Construction industry,as a pillar of national economy,affects directly the national economy and social stability in the development of economic construction.With the rapid development of economic construction,Chinese construction enterprises go abroad step by step,bringing opportunities and challenges at the same time.With global economy go worse,domestic construction companies face brutal competition with foreign construction companies,which inevitably lead to profit margin declination.Construction companies have to optimize internal management system in order to survive.Cost control is the key factor for company development.Having low cost will help company earn more money and enhance surviving ability,in order to become more adaptable in the rapid changing environment.Purchasing cost accounts for more than 60%of the total cost of the construction project,therefore reducing purchasing cost will bring more profit.Material purchase is regard as the most profitable and potential part in construction area,and also the most important process in the whole project,the key in cost control.Currently,construction companies begin shift their emphasis from implementation safety and construction quality to cost reduction utilization rate improvement,which will boost profits and improve competitiveness.In the optimization process of operation management of construction companies,lacking experience leads to many problem which is common in construction industry.Some methods are helpful but not suitable for the company.Finding the right solution which is conform to development is the key to stay competitive.Combining theories and practices,the paper analyze the problems in cost control and purchase process from the perspective of material purchasing.Selecting supplies is the key process in material purchasing,but lacking evaluation mechanism making selecting suppliers a disaster.Analytic Hierarchy Process is an useful tool to build supplier evaluation mechanism.By collecting corrective cost data,and sorting out the practical problem,this paper gives several suggestions and improvements have been presented.