The Research Of Procurement Cost Control Management For Aircraft Materials In Company S

With the acceleration of global economic integration,the market competition becomes more and more fierce.Due to the particularity of this very industry,the raw materials for Chinese civil aviation manufacturing enterprises are mainly imported from the developed countries in Europe and the United States.The deteriorating economic situation makes the international purchasing cost higher and higher.How to improve the cost control has been an important subject that has been concerned about with such enterprises.By the experience of procurement management in Company S and the data in the aviation manufacturing enterprise for years,this thesis analyses the structure of procurement cost,studies the problems during the procurement process especially for the international procurement process,and proposes the direction of strategic procurement for Company S.Firstly,this thesis analyzes the main problems of procurement cost management and the main factors affecting the procurement cost in Company S to determine the r ising pr ices of raw materials is the main object of procurement cost control,which is influencing factors of direct and indirect costs.Secondly,this thesis suggests solving the problems of procurement cost management by the cooperation with strategic suppliers and alliances,and dealing with the problems of internal procurement cost by setting up strategic inventory.At last,using ABC classification method to guide the selection of suppliers,using the economic order quantity(EOQ)model to determine the number and frequency of the batch purchase.By balancing the cost from the purchasing price and the inventory cost,the optimal order quantity can make to the total cost lowest by minimizing purchasing price cost and inventory cost.Through the implementation of the above strategies,Company S finally managed to control the procurement cost effectively.By the methods of strategic procurement and plustek cost control this thesis proposes,Company S has achieved the goal of procurement cost control.And by the improvement of total cost control,Company S may become more and more competitive in the civil aviation manufacturing industry.The methods also can be used for reference for the same type of other companies.