The Purchasing Cost Management Of The Ningbo Guochuang Power Company

As the development of the manufacturing enterprise, the purchase cost management has changed from the traditional one to strategic one, the former only focus on the lowest purchasing price, and the latter pays close attention to the total cost of purchasing which stands the perspectives of the enterprise strategy height, they are quite another. Strategic procurement cost management requires the enterprise that for making up and keeping long-term competitive advantage they should manage and control the purchase cost with whole process, multi-angle, especially the minimum of the supply chain cost. So the purchase cost makes the competitive ability and the competitive advantage of enterprises.This thesis analyzed Ningbo Guochuang power company’s business characteristics, the nature characteristics of the purchasing management by the actual research of its procurement cost management activities in combining with the research of the theory and the comprehensive evaluation method. And this thesis also talks about the impact on the procurement cost in procurement process, procurement cost management, supplier management and purchasing information system. This paper also points out that the imperfect of the procurement cost management system will reduce procurement cost management and controlling efforts, the bad supplier management will reduce company’s competitive, the lagging procurement information system will make the procurement materials management with low efficiency and high error rate.Controlling the purchasing cost is the key to the enterprise operating performance. Controlling the overall procurement effectively not only reflects the reduction of the enterprise’s cash outflow, but also the dropping of the product cost, the increasing of the profits, even enhancing enterprise’s competitive. So controlling and reduce the overall procurement cost continuously, is an enterprise’s strategic target and also an effective way to reduce the product cost, increase the overall profit. Based on the theory of strategic cost management, this thesis makes the company procurement cost management an overall planning, puts forward to improving the procurement cost management measures, constructs the strategic procurement cost management pattern, gives out some specific suggestions on the company procurement cost management and improvement measures to Ningbo Guochuang power company.