Case Study On SND Company’s Purchasing Cost Control In Supply Chain Environment

Today,The development speed of domestic manufacturing industry is very limited,and China’s auto market is highly competitive.In order to increase market share,many auto companies have adopted low-price strategies as a means of sales.Therefore,at the same time of controlling cost effectively,the comprehensive competitive level of enterprises will be improved in an all-round way.According to the automotive industry data,procurement costs account for 70% to 80% of the cost of the entire vehicle.The procurement cost control method in the supply chain environment is widely applied with the continuous improvement of global integration and technology application level.The procurement of materials has become an important link in the supply chain cost control.Through the study of procurement cost control in this paper,I hope to provide some reference for automobile companies.This article adopts a research method that combines theory with practice.First,it studies and discusses relevant theories and knowledge,including supply chain management,TCO procurement cost management,JIT procurement management,inventory management,supplier management and other related theories.Second,it analyzes the status and reasons of SND’s component procurement cost control.At different stages of the procurement process,a targeted optimization strategy for procurement cost control was proposed.The thesis proposes that SND companies should pay attention to the analysis of purchase demand in the purchase cost control and the optimization of the material supply chain process,carrying out purchase price management,including purchase price approval,purchase price monitoring,etc.Strengthen supplier management by improving the supplier evaluation system and subdividing high-quality supplier strategies.When implementing inventory management,ABC classification and JIT collaborative management of materials must be adopted.At the same time,multiple means can be used to reduce the cost of inventory capital.Finally,the implementation effect of procurement cost control in SND’s supply chain environment is summarized,and some implications for other companies in the manufacturing industry are explained.