A Study On Procurement Cost Control Of Project In Sinopec

Based on present procurement management pattern analysis of Sinopec and the union engineering project purchase elementary theory, the conventional routes and the research present situation,the cost control nodes based on the risk control is presented in this article . Each node control method and the influencing factor are elaborated.The key control nodes are identified– control of material supply plan, control cost, transportation cost, control the cost of purchasing management, control inspection cost, control storage cost, control time costs and control of stock cost. The appropriate control methods are presented.With actively adjusting internal industrial structure, optimizing resource allocation and gradually eliminating backward factories, Sinopec increases conversion expansion and building a number of first-class equipment and first-class large projects.Sinopec often makes international procurement.Based on the analysis of international purchase cost constitution and influencing factors, the most important of supplier management is proposed . Subsequently , the management principle, admittance procedure, assessment criteria of Sinopec are summarized. That the purchase is no longer purchasing the material object but managing supplier process is proposed in the article.Especially in the petrochemical projects international procurement,that strengthen supplier management is effective for avoiding the transfer exchange rate risk, reducing capital occupied, controlling of financial risk, ensure delivery, reducing travel expenses, reducing inventory costs and controlling purchasing management costs and so on.And the total cost of the international procurement is effectively reduced.The effectiveness of supplier management in procurement cost control is dissertated through Tianjin petrochemical company FFS film packaging projects.At the end of the article, the conclusions was summarized as follow:1. On the base of the analysis of Sinopec procurement management and procurement procedures from the project cost management theory,the cost control nodes and the key control node are presented.moreover the corresponding models and methods are derived.2. According to the analysis of Sinopec international procurement cost component and influencing factors, the importance of the supplier management in purchase management is put forward . The model of reducing international procurement cost through supplier management is presented. 3. The theory and the practice are combined through the example analysis.This has provided the realistic case for Sinopec engineering project international purchase control cost.