Research On The Optimization Of Purchasing Cost Management In Retail Enterprises A

Benefit from Reform and Opening Up since 1978,China’s economic developed very fast.The retail enterprises obtained a lot of opportunities,but the competition among the market became more and more fiercely.With the development of the Internet and the logistics industry,e-commerce penetration of the whole retail market grew up very fast.While the market share of the traditional retail decreased,the trading environment became more and more competitively.In 2016,the concept of "new retail" appeared.Major retail enterprises tried to transform into "new retail" mode and tried to accelerate the integration of online and offline resources which further divided the retail market.With the pressure of the increasing operating costs,the small and medium-sized retail enterprises are facing huge operating pressure.As the key to survive and create profits,procurement cost management is worth to study.Enterprise A is a typical small and medium-sized terminal retail enterprise which also facing fierce market competition.In recent years,the purchase cost and operating cost of A increased year by year.The enterprise’s profit compression has led to greater pressure on the enterprise’s continuing operation.This paper studied the current situation of A’s operation and procurement cost management,followed the theories of Porter’s five forces model,SWOT model and other theories to analyze the problems of A’s generalized procurement cost management,supply chain management and operating management.It was found that enterprise A need to improve the bargaining power,inventory management,cost accounting,process sorting,etc.This paper applied the theory of joint procurement strategy,activity-based costing method,value chain theory to study the strategy of optimizing procurement cost management on the current situation of enterprise A.