Study On Purchasing Cost Control Of KM Company

With the continuous development and progress of China’s society,especially the continuous emergence of the wave of intelligent manufacturing and intelligent transformation,the competition between mechanical equipment manufacturing enterprises has intensified.To break out of the tight encirclement in the fierce market competition,business operators must be more aware of the importance of open source and throttling.As a relatively large proportion of the total cost of an enterprise,procurement cost control has become increasingly important,and the role and status of the procurement department is also gradually changing.However,in recent years,the cost of energy,bulk raw materials and labor has been rising year by year.More and more enterprises have begun to pay attention to reducing other costs besides raw materials,labor and administrative expenses.In this context,enterprises bear greater cost pressure than upstream customers.The KM company studied in this paper is a manufacturing enterprise engaged in the research and development of concrete spraying equipment.At present,KM company still implements the traditional procurement mode and lacks attention to cost control.Therefore,it is of great significance and representativeness to select KM company as the research object to conduct research on procurement cost control and analyze the relevant problems in its procurement cost control.Under the guidance of the total cost of ownership(TCO)theory,this paper divides the procurement activities into three stages,which are pre-purchase,procurement,and post-purchase,and systematically analyzes the procurement cost status of the three procurement links,and Combining with the property of purchasing cost incurred,the overall purchasing cost of KM Company is analyzed.First of all,by introducing the basic situation of the company,the status quo of procurement management,cost structure and other aspects elaborated in detail the status quo of KM’s procurement costs.After analysis,it is found that the following problems exist in the procurement cost control of KM company: the lack of strategic objectives for raw material procurement,the unreasonable organizational structure of the company,the non-standard procurement process,the low level of procurement management informatization,the low comprehensive quality of procurement personnel,and the non-standard supplier management Seven problems,such as high inventory backlog,were identified,and the reasons,optimization plans and safeguard measures were found.Relevant optimization schemes include: formulating procurement strategic objectives,optimizing the company’s organizational structure and procurement process,introducing EDI,SAP and other office systems to strengthen information construction,and using various methods to strengthen the management of procurement personnel and suppliers.At the same time,it also puts forward the guarantee measures of cost control to facilitate the better implementation of procurement cost control.Through research,this paper also achieved the following research results:(1)The company implemented strategic procurement,effectively reducing the total cost of procurement and supply;(2)Optimized the company’s organizational structure and procurement business process;(3)The TCO supplier selection and evaluation model is used to make the supplier selection more scientific,normative and standard;(4)Through ABC inventory classification method and VMI inventory management method,effectively optimize and reduce inventory and accelerate capital turnover;(5)The performance management index system of procurement personnel and suppliers has been developed to improve their work efficiency.