Purchase And Contract Study Of TZ Clothing Company

Internal control is the basis for the sustainable development of an enterprise and it is a self-regulating and internal repair system produced by an enterprise during its development,which plays an important role in the entire management system of the enterprise.China is the world's largest apparel producer,consumer and exporter,but China's apparel production industry is highly fragmented.Separately,most apparel production enterprises are small in scale,and internal management is loose and chaotic.Under the impact of new e-commerce,these apparel production enterprises will be eliminated eventually.The reason is that these garment manufacturers lack a reasonable and effective internal control system and gradually lose their market competitiveness.Established in 2001,TZ Company mainly produces women's clothing,which has developed from a small garment factory when the company was first established to a professional garment company with a relatively large scale of independent operation today.TZ currently has four series,forty categories,and more than three hundred varieties of clothing products.At the same time,the company currently has five sales centers in East China,Central China,Southwest,South China,and North China,and has 623 sales stores.TZ company has a certain market foundation and popularity.Because clothing production is a labor-intensive industry,although China's labor resources are very rich,the quality of laborers is not high.Since its establishment,TZ company has also adopted extensive management,which has problems such as unreasonable organizational structure,unscientific production arrangements and lowquality awareness.As TZ company began to enter the growth period,TZ company also realized the importance of internal control and established an internal control system in 2017.After three years of operation,TZ company may still have problems in internal control.Therefore,this paper takes TZ apparel company as the research object,and the internal control system of TZ company is analyzed through the five elements of the COSO system and the theoretical knowledge of internal control management.Then this paper analyzes the reasons for these problems in the internal control of contract management and procurement management of TZ company.It was found that the main problems in the contract management of TZ company include the lack of contract negotiation scheme,the confusion of contract signing and management,the lack of contract performance supervision and the imperfect contract follow-up management mechanism.In terms of procurement management,TZ company's main problems include no annual material procurement strategy,inadequate supplier evaluation and annual review,inadequate material control and supervision,inadequate verification of procurement business transactions and incomplete material purchase special analysis reports.Subsequently,this paper analyzes the reasons for these problems in the internal control of contract management and procurement management of TZ company.It was found that the reason for the contract management problems of TZ company was that the contract did not implement centralized management,the negotiation process was not implemented in place,the contract did not execute the termination procedure,the contract management self-check link was not perfect,the contract negotiation program procedure was not executed and the contract filing procedure Execution is not in place.In terms of procurement management,TZ company's problems are due to the inadequate implementation of the material procurement strategy,the failure to pay attention to the supplier's annual review,the risk assessment of purchase orders,the lack of supervision and control of on-site material consumption,and the lack of verification of purchase transactions and no special analysis has been carried out on the executed and material procurement.Therefore,in view of the reasons for the contract management and procurement management problems of TZ company,this paper puts forward the corresponding suggestions one by one to improve the internal control of TZ company contract management and procurement management to improve the company's operating efficiency and performance.