Research On Control Of Raw Material Purchasing Cost For SY Company

Raw material procurement costs accounts for an average of about 60% of sales for many manufacturing enterprises. Industry has a view that the reduction of procurement cost is the increase in profits. So the cost of raw materials procurement control is the key to the entire cost control system. The cost control depends mainly on the procurement cost reduction.The raw material purchasing cost control problems of SY company are studied in the thesis. SY company is a typical manufacturing enterprise.Procurement cost has always been the main part of the total cost of the company, and raw material prices continued to rise in recent years, SY Company’s procurement cost control performance always is not high.This thesis argues that that the procurement cost control is to grab from fountainhead, so this thesis focuses on the raw material procurement costs of the SY Company control. how to strengthen the raw materials procurement to reduce product cost of SY Company, to provide greater profit and increase the competitiveness of SY Company is the research content and objectives of this thesis.This thesis firstly analyzes the present situation of raw material procurement costs of SY Company in order to identify the problems about raw material procurement cost control in the product development stages and production stages, and to provide a method to improve the raw material procurement cost control level for SY company. Lastly, this thesis puts forward the suggestions of raw material procurement cost control level for SY company. The application shows that the proposed method is effective.