Study On Procurement Cost Control Problem Of Company J

Purchasing activities are the core link in the daily management of an enterprise,so purchasing cost control is the key link for the total cost control of the enterprise.For most manufacturing enterprises,the proportion of procurement costs can reach more than half of the total cost of the enterprise.Controlling the procurement costs of an enterprise can have a beneficial impact on the operating profit and development direction of the enterprise.It is very important for enterprises to control the purchase cost in the operation process,which is an important way for enterprises to enhance the market’s comprehensive competitiveness and expand profit space.However,the current understanding of procurement cost control by enterprises still rests on the price of raw materials,and it is still through traditional methods such as price negotiation and bulk procurement to reduce procurement costs.Under the rapid development of global economic integration,market competition is fierce and the development space of enterprises is shrinking.This kind of procurement cost control method that only seeks for its own benefits gradually lags behind and is eliminated.Instead,it is a "win-win" development model.Therefore,based on the perspective of supply chain management,it has become an urgent need to manage purchasing cost control of enterprises.Company J is an aluminum processing and manufacturing enterprise,which has a good reputation in the industry.However,in a market environment where competition has become fierce,good reputation and perfect technical equipment alone have been unable to attract more customers to expand the market.Share,only under the condition of ensuring good products and services,and constantly reducing the company’s own product costs,can the company have more competitive advantages under high pressure.J company’s procurement cost control methods are still slightly insufficient.Through field research and interviews with relevant staff,this paper found that J Company only used annual price negotiations and centralized bulk procurement to reduce procurement costs in terms of purchase prices.Inventory costs are not considered properly,the price fluctuations of raw materials are ignored,and the supplier management system is not perfect.In view of the above problems,this paper proposes concrete and feasible measures such as paying attention to procurement cost,optimizing the procurement process,strengthening the management of raw material price fluctuations,strengthening the coordination of procurement and inventory,and improving the supplier management system.