Research On Procurement Cost Management Optimization Of Jiedian Company

JieDian electronics(Wuxi)Co.,LTD is an OEM electronics manufacturing company.In recent years,in face of the rapid development of the global economy,the competition between enterprises is increasingly fierce.In order to improve the sustainable competitiveness of the enterprise,apart from leading in product quality,responsiveness,and actively responding to the needs of clients,cost management is the key factor.At present,the problem for JieDian is that the client requires a low price for the supply,or it will not place the order.This shows the importance of cost management and raw material procurement costs are the largest proportion in the total cost.Nowadays,due to the rising raw materials and labor cost,many vendors do not agree to do reduction;on the contrary,suppliers will raise prices.So how to achieve both to meet customer demand appropriate price reduction,but also do well in procurement cost management under the pressure of rising supply price.This is the focus of this paper.This paper mainly analyzes and optimizes the internal and external cost management of the company.The internal cost management improvement includes perfecting the current procurement quotation management process and price reduction management process of JieDian company,formulating the selection standard of suppliers,strengthening the relationship maintenance of core suppliers,promoting suppliers to become the common advance and decline partners of JieDian company,paying attention to guiding suppliers to reduce procurement costs.The design and purchasing departments work together to avoid the high cost of excess design.Project and project engineers to strengthen communication,strive for product standardization;External cost management improvement includes from the perspective of supply chain,helping suppliers to improve raw materials,production and processing process,product quality,supplier logistics and other aspects.Finally to the effective implementation of the optimization,the author puts forward the safeguard measures: JieDian corporation to provide policy support,grab from the source of recruitment of human resources,purchasing department for the right talent,optimization of strap down point of procurement staff professional skills and ability training,raise awareness of the overall cost of employees and the team cooperation spirit,set procurement staff performance appraisal indicators and talent retention policy.Through the implementation and optimization of the above scheme,it really brings real improvement and improvement to the procurement cost management.