The Research On The Problem That Internal Control Of Raw Material Procurement Activities In JY Company

Food industry is an important industry,which is relevant to people’s livelihood and its people livedand worked in peace and contentment, and we should carry on the effective management and operation tothe food industry for promoting the healthy development of the national economy. Compared with otherindustries, the supply chain of food industry has certain particularity. Only depending on the coreprocessing enterprises in the supply chain, the safe and healthy of food can not be guaranteed, which alsorequires upstream suppliers to provide the safe and healthy of raw materials for the food processing. Inorder to procurement raw materials can have the right quality and be applicable to the production, avoidingthe food safety accidents effectively,the food processing enterprises should strengthen the raw materialprocurement management, and construct a sound internal control system of raw material procurementactivities.The procurement of raw materials is the starting point of enterprises production and operations, whichis closely linkerd to production, inventory and sales, determining the quality of the product and the level ofprofits. Strengthen internal control of raw materials procurement activities plays an important role inreducing the costs, guarding against the risk of purchasing and enhancing the competitiveness. By studyingthe theory of internal control,the paper describe the background and significance of the issues firstly,introduce the domestic and foreign research situation about internal contorl and set research contents andresearch methods. Then, based on Standard for Enterprise Internal Control and the second chapter ofApplication Guidelines for Enterprise Internal Control No.7-Procurement Activities relating to thepurchase, this paper chooses JY Food Co.,Ltd as an example, analysing the current situation and problemsof the internal control in the procurement of raw materials, including that, the procurement process havedefects, the supplier management is inadequate, tracking and management of procurement contracts are lessthan the place, the inspection of raw materials is not standardized. At the same time, according to theseproblems, the paper analyzes the causes of problems in the internal control of raw materials procurementactivities from these perspectives that a deletion of procurement plan management system, imperfectsupplier seclection and evaluation system, lack of procurement staff performance appraisal system, the system of inspection for the raw material has faults, the work that collect and communication ofprocurement information does not do well, a deletion of raw material purchasing self-evaluation. Finally,the paper puts forward the improvement measures from improve the system, strengthen the collection ofinformation and communication,implement self-evaluation, in order to promote the enterprise to furtherimprove the procurement activities internal control system and raise the company’s profitability and corecompetitiveness.The paper, based on analyzing the problems of internal control in JY company raw materialpurchasing business, finds that it is indispensable that system design, information and communication andself-evaluation for building a sound internal control of raw material procurement business and achievingthe goal that scientific establishment and effective performance, the improvement scheme, is proposed fromthe three aspects, have certain reference meanings to other companies. But in practice,,the internal situationand external environment of different companies are different, which means that other companies can onlyput the scheme as a reference, we must combine their situation to modify and improve its, and can notcompletely copy, only in this way can we ensure the construction of raw material purchasing businessinternal control system to maximize the effect.