Research On Purchasing Cost Control In Company H

The importance of purchasing to a corporate is beyond all doubt. it satisfies acorporate needs of all necessary production material and services. As the Chineseautomobile market expands, competition of supply market becomes fierce day by day,and the enterprise is facing enormous pressure of quality and cost from the customers,purchasing function also is faced with different circumstances and challenges.Purchasing cost accounts for at least60%of product cost or more, decides anenterprise’s price level and market competitiveness, thus to strengthen theprocurement management, improve supplier relationship management, establish asound purchasing cost control system is the key factors for an enterprise to achieve itsmarket strategyThis paper takes a foreign-owned Auto Lighting Parts company H as an example,and undertakes the research of purchasing cost control. Although the vast majority ofenterprises are aware of the important role of strengthening the purchasingmanagement, but in reality, it does not reflex that importance and many problemsexist, H company is a typical example of it.This paper is mainly divided into three parts, first introduced the H company’soverall situation, the various stages of evolvement, procurement functions change,organizational structure and division of tasks, as well as the relationship betweenlocal purchasing and central of company H’s parent company, as well as the currentstatus of purchasing cost controlThe second part analyzes the problems of purchasing cost control and the causes.If purchasing management cannot catch up with the overall strategy of anenterprise, it will constraint the growth of the enterprise. Attention that an enterprisepays to the purchasing organization construction, a professional purchasing team,having clear purchasing strategy, all these are the key for enterprise to realize itsstrategic target, also the premises to establish a purchasing cost control system. An enterprise’s system and procedure are gradually established during growing,according to its operational management, market situation. They are the security of anenterprise to obtain the good performance. If the system and the procedure are notperfect, the effect of the purchasing cost control will be weakenedPurchasing cost control is one aspect of the cost management, how to choose thecontrol method determines the final implementation effect and realization of thetarget.The third part are the suggested countermeasures in respond to the problems ofcurrent purchasing cost control.