Research On Cost Control Of A Company Purchasement

Raw materials account for product's cost more than 80%in wire industry.Copper and aluminum's price changes quickly which puts big influence on the profit.However,the small and medium-sized cable enterprises don't have effective measures to deal with the fluctuation of raw material price.At the same time,due to the lack of effective purchasing payment system of internal control and supplier selection,the purchasing cost istoo highto compress the profit.This paper conducts a case study of Acable company for the purpose of improving the company's procurement cost management and providing effective reference for small and medium-sized cable enterprise purchase cost control.Therefore,this paper is of important theoretical and practical significance.This paper uses the supplier management and internal control theory control thepurchasing cost from the perspective of global and the whole supply chain.Through analyzingthe present management situation of procurement cost and combing the processes of purchase,find the problems existing in purchasing system,such as the purchasing organization is unreasonable,the activities in purchasing is inefficient and purchaser is unprofessional.Moreover,there are problems in the link of the whole purchasing actions.Such as procurement plan is far away from the realistic demand,supplier management is disordered;procurementprice is under unreasonable control;raw material's checking and accepting are lack of fierce standards etc.For the purpose of improving the procurement cost controlfundamentally,establishing the idea of strategic purchasing,and building advanced procurement system is the first request.Strategic sourcing insists on achieving the lowest total cost as the supreme principle of procurement.Adjustprocurement organization,formulate targeted procurement policy,strengthen the ability training of procurement staff,put various control measures in the purchasing process,Control the total procurement cost from four aspects:purchase price,storage cost,shortage cost and quality cost,put suppliers under good control and apply scientific standards to supplier's selection.Finally,promote the realization of the core value of procurement,and make contributions to the maximum of profits for the company.