Research On Procurement Cost Control Of D Company

With the continuous improvement of production intelligence and the increasingly fierce competition in manufacturing industry,enterprises must pay attention to cost In order to take and hold the lead,.As the starting point of business operation,cost control of procurement process is of vital importance.The traditional procurement cost control can no longer meet the needs of modern enterprise management,and the profit margin available is limited.Against this backdrop,the value chain cost control gradually,which extending forms a complete upstream chain from internal procurement management to upstream suppliers,enters the field of vision,replacing traditional methods to become the main stream.From a broader perspective,enterprises can effectively reduce procurement costs,respond quickly to market changes,and comprehensively enhance their core competitiveness,by coordinating and cooperating with enterprises in the upstream supplier value chain,.Therefore,how to find the objects that can be controlled in the complex enterprise procurement value link and propose the procurement cost control solution is the main problem discussed in this paper.Based on the fundamental theory of value chain and cost control method,focusing on actual case of D company as an example,there are there parts in this paper.Firstly,the relevant literatures of value chain theory and procurement cost control were reviewed according to the research status of domestic and foreign scholars.in the second part there is a value chain analysis for the case enterprise – D company,including internal and external environmental analysis,the composition of procurement costs and the current status of procurement cost control,and identified the problems of procurement management,warehousing logistics and supplier management of the enterprise.Finally,feasible solutions based on the analysis results were proposed,including detailed research on classification of inventory materials,supplier evaluation and classification,and the establishment of joint warehouse,aiming to improve the procurement cost management efficiency,build competitive advantage of D company and promote the steady development of the company by reducing the cost of each link in the value chain.