Cost Synergies Based On The Procurement Information. JZ Control Study

The competition in 21ST century has been in transition to comprehensive strength (cost leadership, quick response and procurability) from former single cost and time competition. As the development of science and technology and intense competition, we want to achieve a better cost based on quick response, so just imagine how the cost control pressure is. The procurement cost is the most important aspect of company. The core concept for the cost control of company is how to control the total cost of supplier chains, especially for total procurement cost. Reducing the total procurement cost will help lower the whole of supply chains a lot.JZ Company is a big state-owned electronic manufacturing enterprise. JZ accumulates some procurement experiences with scale development for many years, but the surrounding comprehensive supplementary environment is a little worse, the scale products for civilian requires a better and better cost. JZ have two different products with different supply chains, so the strategy for controlling the cost is different, however, the main digital products for civilian always pre-procure the common-used components as per the technology solution and strictly organize the production as per the purchase order. The key components and PCBs are purchased from outside and the component with an important effect to product performance and the subassembly (including main-board, power supply, clamp panel and front control plate) restricting the total cost of the products are manufactured by JZ itself. The peripheral structural components with little value are outsourced. The price for scale general products affects the purchase order a lot. The profit of the products is very low which can be achieved only by mass production and scale effect. Based on this sales condition, the important and long focused issue for JZ is cost control management for procurement chains under the customization scale production.This article analyzes the current condition of procurement cost management and the problems of vague procurement strategy, low level of IT application and short supply chains information. Based on information collaboration strategy, IT system construction and integration, electronic commercial collaboration management and management strategy under information collaboration, this article brings forward corresponding solutions for the problems. The writer proposed some operational ideas for JZ such as the plan for enterprise information collaboration platform, supplier evaluation, JIT procurement and ground settlement which better solve the current procurement cost management problems with a certain novelty.The article is monographic and the problems of procurement cost management in JZ are very common in large state-owned company. The article express that the information collaboration is the core for the global supply chain competition, the article also proposed that the information collaboration must be the importance and focus of procurement cost control in the future. Based on JZ Company's current condition and according to supply chain's views, the article proposes the solution of procurement cost management under information collaboration which will bring a strong support for JZ Company and also be as reference for other similar company.