Research On Purchase Cost Control Strategy Based On The Theory Of Resources Operation

In the competition movement of the more and more drastic marking, the competition of enterprise has been expressed as the competition of cost when 21st century coming, so the enterprise have no other way but to launch on strength the cost control when incept feedback from marketing. Seldom process of the enterprise operation can keep away from the swirl of Cost Control including the production process. Procurement, as people recognized traditionally, as a"pay money"department, always being the key leader of Cost Control and Cost Down in the organization; while it is very formidable for organization to balance the direct cost and indirect cost when making cost down, this is so-called"Red Sea"symptom. It is not difficult for most of organization to found, after a certain period of cost down, the cost is very similar as mercury in the U tube. The height of the mercury on this side is very correlative with other side. So people always connected low-cost with low-quality and low-service closely. So people always take up with searching for any tools that can down the cost, but balance the quality.This article, through the analysis of current operation mode of PPG Coating Co, disclose the problem of PPG Co when control the cost, especially the limitation of purchasing. This topic brings the blue-print of solving the bottle net of control purchasing cost in PPG, based on the analysis of industrial characteristic, scale of company and the theory of resources operation. Meanwhile, also bring three strategies of cost control based on resources operation; they are outsourcing, VMI and total-cost strategy. The topic mainly emphasize the process management in control the total cost on supply chain.