Purchase Cost Management Study Of ABC Company Based On Supply Chain Management Environment

Along with rapid economic globalization and the diversification of customer’s need, Enterprises are facing an increasingly fierce competitive environment. Lots of foreign companies get into Chinese market; they bring about much pressure on local companies by taking advantage of better management experiences, advanced technologies and sufficient cash-flow. In foreign countries, "Made in China" all over the corner of the world, foreign companies are using cheaper labor and material cost of China and that makes many products with foreign brands. Local enterprises still employ extensive way of economic growth so that international competitive power reduced. Local manufacturing corporations are going through the critical time.Facing fierce market competition, New type of industrialization is the way for local manufacture to survive, highlight own innovation of own intellectual property, especially strengthen our cost advantage, it’s the only way for us to success.The paper focus on purchase cost management for manufactures under the environment of supply chain management. Cost management system consists of cost control, cost calculation and performance evaluation, hence, the most important parts of the paper are formed by purchase cost control of manufacture, purchase cost analysis and purchase cost management overall evaluation.The paper divides into 3 parts:The first part of the paper is the chapter 1 which is purchase cost definition and analysis, discussed current wait-to-resolve purchase cost definition issue. The second part is the chapter 2 which is purchase management based on supply chain management, discussed the current situation of purchase management under supply chain management environment and studying it by comparing to traditional purchase management; the third part is the most important part of the paper, composed by chapter 3, chapter 4 and chapter 5. They respectively are current purchase cost management status and issues of ABC Company, purchase cost management evaluation system study based on supply chain management environment, purchase cost control system set up under supply chain management environment. The chapter 4, purchase cost management evaluation system study based on supply chain management environment, and chapter 5, purchase cost control system set up under supply chain management environment, are the core parts of the paper.