Research On The Procurement Cost Control Of CH Company

With the vigorous development of market economy, the competition between enterprises is increasingly fierce, whether developing independent brand or OEM enterprises strive to produce qualified products at the lowest cost, so as to make the most profit. Generally speaking, the purchasing cost in the total product cost to account for about 60%, manufacturing firms may even reach 70%-80%. Therefore, it is of great significance to control purchasing cost for companies, and effective control of purchasing cost, can make the product more advantage in cost, and strengthen the competitive power of the enterprise.Control purchasing cost is the most direct way to reduce the purchase price, this is also the main direction of traditional procurement cost control research. However along with market competition intensifying, blindly reduce the disadvantages of purchasing price to control purchasing cost is becoming more and more obvious, such as purchasing prices sharply lower, leading to frequent raw material quality problem; Upstream enterprise due to lower enthusiasm unbearable purchase price falling supply, lead to the circumstances of the shortage of the enterprise. So enterprise want to in the present fierce competition, in addition to the traditional cost control method to reduce the purchase price, more from the perspective of supply chain to control purchasing cost, choose the TCO to lower the cost of the supplier, using futures, leasing or other financial instruments to hedge risk of purchase cost, reduce the purchase cost, at the same time the product whole life cycle cost control. By applying the above cost control methods, the traditional procurement cost management to expand, to establish new enterprise purchase cost control system.CH company as an example, this article selects the old home appliance enterprises to expand the procurement cost control research, analyzes its existing problems and reasons in the purchasing cost control, at the same time, through combing purchasing cost control theory and research results at home and abroad together with the present situation of CH company, to build new purchasing cost control system is presented, namely, to establish the supply chain cost control system, and through the TCO the lowest total cost to select and evaluate suppliers and financial instruments such as futures, leasing are used to the purchase of commodities, in order to realize the effective control of the purchasing cost.After the construction of the new procurement cost control system, although not directly bring in small profit industry of CH company profits, but through the construction of the new system will promote the company’s internal management, enhance the competitiveness of the company’s products, the company own profit guaranteed at the same time, drive the upstream and downstream enterprise’s profit and development together.