Based On The Lean Management’s HD Company Procurement Cost Control Research

With the rapidly development of economy and the trends of globalization, the competition among businesses have become gradually the competition of supply chain. As one of three core content of supply chain, the procurement has been thought as the profit centre from the beginning of 20th century 60’s. Researching shows that every 1％ procurement cost reduction, the profit would be increased from 5％to 10％. The procurement cost reduction would be increase the enterprise’s profit and enhance enterprise’s competition ability a lot.HD Company is a joint venture company of a multinational group. its main products are related to environment protection include huge industrial fan, compressor and blower, air pre-heater, tunnel fan, cooling fan etc. Its high profit margin was gradually reduced and its market share was also gradually shrunk because the technology edge was gradually shrunk. The leaders decide to reduce sales price and keep the profit through control manufacture cost of product. As procurement department which take up more than 55％ of total cost would be make great contribution if they can do better on cost reduction.The thesis use lean thinking made a deep analyze and research to the present organization structure, function and cost control methods of procurement department. Point out the present problem and provide the opposite solving scheme. It also provides support for purchasing cost reduction direction through onsite investigation, data collection and analyze and using lean tools make deeper case study. Finally, help the procurement department achieve the goal of cost reduction...