Research On The Control Of The Material Purchasing Cost On Shenzhen Hong Wei Company

The economy and technology globalization makes the enterprise more competitive,for the enterprises do not only to open new markets but also need to improve and optimize their inner management levels to enhance their competitiveness and create more profits.Most of the enterprises,especially manufacturing enterprises know the enterprise competitiveness are closely related with the supply chain management levels for it is an important part of the enterprise inner management controls,these companies will make improving the supply chain management levels constant as their goals,however,in most cases,they are not aware that their supply chain management theory is passive and do not use the management ideas and scientific methods to carry out the work in this area.This dissertation researched on the problems of raw material purchasing cost control of Shenzhen Hong Wei company,mainly to solve the problems for how to use the scientific supplier management theory and the perspective of TCO to control and manage the raw material procurement costs to achieve the long-term comprehensive and effective way to realize the objectives of continuous improvement of its raw materials purchasing cost.Therefore,this dissertation combined the theory of supply chain management,process control theory and TCO theory to establish the supplier relationship management model and TCO accounting model,added the similar enterprise specific application of control method of the procurement cost of raw materials.This dissertation firstly introduced the background of the research maids,put forward the research questions,researched contents,methods and the significance of basic contents.Then reviewed the theory which would be used later.Through the study and thinking on relevant theories of supply chain management,it got the results that supply chain management theory and TCO theory was the basis for the management of procurement cost control of enterprises,meanwhile the procurement cost control method was the tools to run the reference management of procurement cost control of enterprises;secondly,to introduce the research object: Shenzhen Hong Wei company,to describe the situations which focued on the current of procurement cost control in detail by using interviews and in-depth data access;third,to establish the models of improvement TCO accounting and supplier relationship management for providing the operation tools and concrete strategy system for the better control of raw material procurement costs in Hong Wei company;finally,it would be three aspects to improve the management levels of the raw material procurement costs in Hong Wei company: from the supplier management strategy,it was important to establish the supplier relationship management system,which means it need to set up the selection of suppliers processes and cultivate partnership relationships with suppliers according to the characteristics of raw materials;from the purchasing management strategy,it needs to establish TCO theory system to judge the cost of raw materials,it also needs in the supplier selections,meanwhile promote JIT procurement so on.To optimize the procurement process designs,change and cancel the unsuitable,inefficient procurement process designs,alternative the actual,speed up efficient ones.;in the procurement performance appraisal management,to design comprehensive KPI targets and avoid the single KPI targets;in the method of procurement cost controls,it needs to distinguish with the different stages of the product life cycle respectively to choose the different cost-down methods,just like in the product development stage,in the procurement preparation period and in the product trial production stage.Especially this dissertation proposes the RAT procurement method which could put forward to good procurement costs control method.The above mentioned can make effectively compensate for the previous single batch of Hong Wei purchasing cost control method.In this dissertation,it improved the management problems of the procurement cost control of the company with using the supply chain management theory and TCO theory--the total cost of purchasing cost control methods,the main research results was as follows: It would not be reasonable if enterprise procurement cost of raw materials evaluation only to count the raw material procurement execution cost.The correct approach should be to consider TCO,at least according to the actual situation of enterprises,add raw material delivery cost and quality cost etc.This dissertation established TCO accounting model which would be easy to understand and be practiced conveniently using in the actual operation;procurement cost control was based on the benign supplier relationship management,only had a stable supplier team,an appropriate number of strategic partnerships with suppliers in order to bring stability the long-term cost advantage.According to the characteristics of the raw materials of Hong Wei company,this dissertation established the supplier relationship management target,supplier relationship establishment and supplier performance management methods and model of training;on the choice of procurement cost control method,it solved how to apply the purchasing cost control methods in different procurement periods to obtain the effective cost of revenue.This dissertation could give Hong Wei company and similar enterprises the good reference of the procurement cost control management.It also had practical significance for improving the enterprise's overall cost competitiveness.