Research On Procurement Cost Control Of A Corporation Based On Supply Chain

The rapid development of information technology has greatly improved the speed and breadth of people’s access to information knowledge,and it is very difficult for manufacturers to obtain high profits through information asymmetry.In addition,the in-depth development of global economic integration has intensified the competition among enterprises.In addition to competing for the market with local enterprises,enterprises also face the threat of enterprises from other countries with cost or technical advantages.China’s demographic dividend is disappearing,and the increasing labor cost is eating up the profits of enterprises.The increasingly competitive business environment forces enterprises to find ways to reduce production costs,improve production efficiency and improve product performance.For traditional manufacturing enterprises,purchasing cost accounts for 50%-80%of the total cost of products.According to the survey and statistics,if the cost of procurement is reduced by 1%,the profit of the enterprise will increase by about 5%.Therefore,the effect of procurement cost control will directly affect the competitiveness of the enterprise.The company A studied in this paper is a multinational enterprise that produces road marking.In recent years,the company has been expanding and acquiring competitors,and its market share has increased year by year.However,the company A has not really integrated the acquired factories,shared high-quality resources,and also faced the pressure of raw material cost raising and profit losing.Therefore,the company needs to implement procurement cost control strategies,reduce the cost of procurement.and ultimately reduce product costs and improve profits.This paper analyzes the problems of a company’s purchase cost control from three key aspects,including purchase plan making,supplier selection and inventory management,and from the perspective of supply chain,analyzes the causes of the problems and puts forward solutions in order to reduce the overall cost of supply chain.Based on the theory of supply chain procurement cost control,this paper puts forward the following improvement strategies for three respects:(1)combining with the price cycle of raw materials,implementing bulk procurement and reducing the average cost;improving the procurement concentration and sharing high-quality resources among factories;using Porter’s Five Force model and PEST analysis method,defining strategic suppliers and implementing strategic procurement;taking advantage of the R&D advantages of the company A,extending upstream to produce some raw materials.(2)Eighth dimensional analysis and evaluation,scientific management of suppliers,reduce supply risk.(3)According to the actual production situation of the company A,adjust the turnover cycle of raw materials dynamically;reduce the quantity of sluggish materials,improve the utilization of funds;implement VMI inventory management mode,improve the efficiency of supply chain,and achieve a win-win situation with suppliers.