X-based Classification Of Materials Procurement Pricing Model To Explore

Procurement is an important part of production and supply chain in a company what makes effort to all of the goods and services that keeping its business running, maintaining and managing. Owing to all sectors are able to benefit on account of the effective procurement tasks and the ambition to be a winner in the market competition, the company must attach great importance to the management of the procurement actions.Procurement management is an activity with the target to systematize and improve the procurement process. As a petrochemical industry one, the company X needs to focus on reasonably pricing materials to meet the specific needs of sufficient quality, quantity and suitable time in virtue of the importance of the procurement management.Firstly, the thesis sets out the background to put forward the research question of how to price the materials effectively, outlining the status and role of procurement costs. The second part is developing theories review, introducing the purchase price issues such as the composition and factors of procurement costs, the goods procurement models and price determining methods. And it then takes the company X for an example, making analysis of the causes about the pricing problem and proposing measures to solve it, with the processes like "material selecting-main factors determining-pricing methods choosing-pricing". What is more, some discussions about supplier selection with procurement pricing management and the efficacious measures, involving management principles, management systems and specific price-fixing methods, are related in the thesis.Thanks to the management of the purchasing price, the company X can reduce the total procurement costs and improve its operating efficiency, ensuring the production and maintenance operations.