Research On Procurement Cost Management Strategies Of C Company

In recent years,with the continuous development of the market economy and the improvement of people’s incomel,the automobile industry has been developing continuously,and the automobile maintenance products industry has also entered a period of rapid development,attracting competitors at home and abroad to enter the market.As the earliest manufacturer of automobile maintenance products in China,C Company has benefited from the continuous development and expansion of the market,but also faces the impact from competitors in the industry.Therefore,how to enhance its competitiveness has become an urgent problem to solve.Procurement cost,especially the purchasing cost is an important part of the total cost of the enterprise,accounted for about 60-70%.Therefore,improve purchasing cost management level,become the breach of C company to improve its core competitiveness.Traditional purchasing cost management method,however,focused on the procurement price,unable to realize the benign and sustainable reduction of procurement cost.Under this background,based on the theory of procurement cost management,this thesis conducts a survey on the current situation of the procurement cost management of Company C,and finds that there are some problems,such as lack of planning of procurement activities,incomplete coverage of procurement cost management,imperfect procurement system and unreasonable material classification,etc.The reasons for the problems mainly include: The purchasing personnel lack the concept of purchasing cost management,the professional knowledge and ability of purchasing personnel are deficient,the existing purchasing cost accounting method is unreasonable,and the lack of department system mechanism and the corresponding supervision and assessment mechanism of procurement cost.Then,using the theory of procurement cost management,this thesis puts forward an optimization scheme of procurement cost management for C company from two aspects of procurement cost accounting and procurement cost control according to material classification.On one hand,establish the procurement cost accounting method based on the total cost of ownership.On the other hand,re-classified the procurement materials and formulate different cost control schemes according to the material categories.At the same time,improve the procurement cost management level by establishing the department system mechanism,improving the procurement management system and strengthening and training of procurement personnel.