Research Of AB Company Raw Material Procurement Cost Control Strategy

With the rapid development of global economic integration,more and more enterprises begin to pay attention to the importance of procurement cost control,and manage the procurement cost control as a continuous improvement project.Through the optimization of raw material procurement cost control strategy,it can reduce costs,reduce waste,improve enterprise profits,increase enterprise competitiveness.However,the management theories and methods are not very mature to most of the domestic enterprises,constantly optimize the procurement cost control strategy is of vital importance to the promotion of enterprise purchasing management level and enhance the competitiveness of enterprises.This paper through the analysis of AB company's procurement management status and raw material procurement cost control problems,and using procurement management theory and inventory management theory and supplier management theory and other related theories and knowledge,from the three aspects of procurement control,inventory management,supplier management,research the strategy optimization of raw materials procurement cost control of AB company.The implementation of the optimization strategy can't be achieved without the relevant safeguarding of promotion of management cost consciousness,improving the quality of purchasing personnel,implement procurement performance,optimizing organizational structure and using unified ERP system application.The paper mentioned we should pay attention to the analysis of procurement requirements,update the delivery date information,optimize the procurement price and the procurement contract approval process in the procurement control.It is also suggested to apply of ABC classification to distinguish management of the materials and optimize the material safety stock level and reorder point and analyses the rationality of purchase quantity,strengthen the material withdraw control in the inventory management.By optimizing supplier evaluation and performance assessment procedure,integrating supplier resources,make the backup source development plan of major raw material,optimizing payment terms and other aspects to strengthen supplier management.The above optimization measures should be through the formulation of an action plan to assign the responsibility and tracking the following result.Procurement cost control is a comprehensive project,which needs to be formulated from multiple angles and directions,and continuously improved and perfected to achieve the setting goals.The conclusions of this study can provide some guidance and inspiration for similar enterprises.