Strategies For Improving Procurementcost Managementof JH Company Under ERP Environment

As the primary link of production and operation,the level of procurement cost directly affects the economic benefits of enterprises.Procurement cost management plays a vital role in the whole enterprise management system.With the continuous development of information technology,advanced information management means,especially ERP system,have played an increasingly important role in procurement cost management in recent years.With China's economy entering a new stage of development,that is,the economy has entered a "new normal" and the industry competition is becoming increasingly cruel,which puts forward higher requirements for the procurement cost management of enterprises.How to achieve better results in procurement cost management under ERP environment is a difficult problem that many enterprises need to solve urgently.Based on the theory of total cost of ownership,this paper divides JH's purchasing cost into three aspects:purchase cost,ownership cost and post-ownership cost.Taking the three problems of purchasing cost management under ERP environment as the research object,this paper comprehensively applies the theory of ERP and other related theories of purchasing cost management to analyze the problems and put forward improvement strategies.Firstly,this paper summarizes the relevant theoretical literature.Through investigation and case analysis,it finds five problems in JH company's procurement cost management:one is the problems in the use of ERP system,the other is the problems in the bidding and procurement methods of bulk materials,the third is the problems in supplier management,the fourth is the problems in inventory management,and the fifth is the procurement cost management.Existing problems in assessment.Next,according to the problems found,on the one hand,according to the theory of ERP,put forward some improvement strategies,such as unified thinking,straightening out the system,strengthening coordination,simplifying process,strengthening management and control,to deal with the problems existing in the use of ERP system and make it play its due role.On the other hand,in the ERP environment,in terms of purchasing cost,the paper puts forward improvement strategies for bulk material purchasing by means of bidding,improves supplier management by establishing supplier access,classification,evaluation and dynamic management,and improves inventory management by means of strengthening inventory,ABC classification,quota introduction and consignment in terms of ownership cost.At the same time,it puts forward some improvement strategies for the evaluation of procurement cost management.This paper hopes that through the improvement strategy of JH company's existing procurement cost management under ERP environment,the company can play its due role while possessing advanced information management means,and at the same time,can maximize the potential of the company's procurement cost management improvement.It is also hoped that this paper can play a reference role in the procurement cost management of enterprises of the same industry type.