Procurement Cost Control Analysis Of JST

The transformer is one of indispensable power equipment in electric power engineering construction. With the rapid growth of national economy and the advancement of national electric power construction transformer manufacturing industry also has been a steady development. But with the low industry admittance threshold, increasing production enterprises, competition intensified bankruptcies and mergers and reorganization happens sometime. The domestic and foreign counterparts have a price war for the market share. The product cost of raw materials, labour, logistics and others are continuously rising. Under this background, cutting the procurement cost become the important measures to improve the profitability and enhance the market competitiveness.The thesis based on the research of the purchasing cost control theory, analysis of the core factors that affect the purchase cost control, studies the importance of purchasing cost control for enterprises to develop, work hard to settle a solid theoretical basis.Thorough analyses the current situation of JST company’s procurement cost control, personnel composition of the purchasing department, procurement process, procurement system, and find out the problem of the JST company in the procurement process, system, personnel management, planning, inventory control, price control method are as follow:procurement process in investigation and supervision is not in place, more division of labor, lag Revised procurement system, departments relations, the rights and responsibilities are not clear; Lack of purchasing person, imperfect performance evaluation system, talent incentive mechanism and unreasonable personnel structure with low quality and poor experience; Procurement planning is lack of pertinence and lack of market supply and demand relations research; Inventory management chaos which is bigger stock and long cycle; Raw material purchasing price control does not reach the designated position; Passive management supplier selection, no classified management, do not take the cooperation relations, delivery punctuality is poor and lack of incentive mechanism, etc.In view of problems and contradictions, JST Company using the combined research methods of empirical research and normative analysis, using the quantitative analysis and qualitative analysis statistical tools, put forward the purchasing cost control countermeasures which is applicable and suitable to the JST companies. Covers the basic principles of raw material procurement cost control, perfecting the system and process, strengthen the personnel management, standardize procurement plan, reasonable control inventory, flexible choice method of price controls.Further optimize the procurement process, standardize procurement system, improve the performance management system, optimize the procurement plan, reasonable control inventory, flexible use of purchasing price control method to optimize supplier management measures, standard the supplier selection and development, establish long-term strategic partnership with supplier, improve supplier evaluation and rewards and punishment system, to fully optimize JST company’s procurement cost control system.