Research On Purchasing Cost Control In Company A

With the global economy developing, all companies will compete under the same rules of the game. In the brutal competition, companies continue to seek the road to grow. More and more companies gradually realize that the cost is essential for the development of them, and the purchasing cost accounted for a majority of the total costs, so more and more companies are concerned about the purchasing cost control. Among them, the purchasing cost of raw materials is one of the major cost items. Market is changing rapidly and all sorts of products also emerge in endlessly. Therefore, it is worthy of all companies to study and pay attention to effectively reduce the purchasing cost in each case.There are many problems about the purchasing cost control and management of many companies, and can not have an effective solution for a long time, such as management system, regulation, the management of suppliers and purchasing person and so on, as time goes on, these problems will be gradually exposed one by one, that affect the normal operation of the companies. Therefore, it is necessary for the companies to research on purchasing cost control for their healthy development.This paper through combine the present situation on purchasing cost control in company A, research the factors that affect the company, and according to relevant knowledge to analyze these issues. Such as theory of purchasing cost control, theory of supply chain management, the theory of TCO purchasing cost control and so on, to find the solution of the Specific purchasing management, ensure it have improvement at a certain extent.This paper research on many aspects, such as purchasing process and system, the management of suppliers and purchasing person, resource integration, supervision and management of the purchasing process etc. Among them, by applying the concept of TCO, based on the management of the supply chain to research the selection and evaluation method, this is the more innovative research in this paper. At a new perspective to analyze the factors and the constitution of the purchasing cost, and researched how to minimize the total cost of ownership on purchase. Among them, the purchasing cost can be divided into explicit cost and hidden cost two parts, the former by ordering cost, the purchasing managing cost, inventory cost, etc, the latter by the shortage cost, cost of supplier selection and evaluation, training cost, etc. From global point of view, make the suppliers into the purchasing procedures, control strictly all aspects of purchase. Suppliers as the beginning of the purchasing procedures will be a community of interests with the company. At this time, the hidden cost of purchasing process will have effective analysis and control, so that the purchasing cost can get a comprehensive analysis, no longer limited to the traditional cost such as the order price, shipping Cost, etc. The preliminary study on selection and evaluation system of supplier, make the company A ’s management of suppliers achieve from qualitative analysis to quantitative analysis,at a higher and more comprehensive angle to analyze purchasing cost, strengthen cost control, and improve economic efficiency.Through research on purchasing cost control in company A, have a certain significance to improve the purchasing efficiency and the level of purchasing management and so on.