Research On Strategic Purchasing Of SA Company For Reducing Product Cost

With the rapid development of the world economy,the continuous application of science and technology,and the gradual advancement of industry 4,enterprises are facing more and more fierce market competition environment.It is a necessary way for enterprises to improve their innovation ability and reduce the cost of products.Reducing the cost of products and expanding the market share can help enterprise to have profits to maintain the company’s continuous development and innovation.Controlling product cost has been mentioned by many multinational corporations and even famous enterprises.There are a lot of factors that make up the cost of the product,in which the purchasing cost is the focus of the research and control by many enterprises.Many international companies begin to study and analyze how to control the cost of purchasing,and begin to study the application of strategic procurement in the enterprise."Strategic procurement" was first proposed by the famous consulting firm A.T.Kearney in 1980 s.Corney is committed to the research and promotion of strategic procurement.It has provided strategic procurement consultancy services for 2/3 of the top 500 enterprises in the world.Strategic procurement is "the process of planning,implementing,controlling strategic and operational procurement decisions".The purpose is to guide all activities of the procurement department to improve the ability of the enterprise to achieve the enterprise vision plan.It is different from the conventional procurement management,focusing on the "minimum total cost",while conventional procurement focuses on the "single minimum purchase price",which is used to systematically assess the purchase requirements of an enterprise and to identify internal and external opportunities,thus reducing the total cost of the purchase,which is good to fully balance the internal and external advantages of the enterprise.In order to reduce the overall cost,it covers the whole procurement process,and realizes the whole course management from demand description to payment.Based on the theory and model of strategic procurement management,this thesis tries to explore and analyze the problem of how to reduce the cost of product by SA Company.Through the comparison of traditional purchasing and strategic purchasing,it highlights the disadvantages of traditional purchasing,the minimum cost advantage of strategic purchasing,According to the guidance of strategic procurement,the current management status of SA enterprises is improved.According to the material characteristics of SA enterprises,the appropriate strategy of strategic procurement is chosen.use the SCOR model to analyze the current state of the company’s supply chain management and how to improve it,and use the strategic purchasing tool scoring card to analyze the specific activities of the strategic procurement,so as to provide the basis for the selection of the selected quality strategic alliance suppliers.Through the implementation of the strategic procurement to improve the enterprise procurement process,improve the efficiency of the procurement work and ultimately to reduce the total cost of purchasing,to reduce the cost of enterprises and to make more markets to contribute.