Research On Optimization Of Purchase Cost Control Of L Company Under The Background Of Two-way Fluctuation Of Rmb Exchange Rate

In 2005,China reformed its exchange rate system,making the RMB exchange rate formation mechanism more flexible.Subsequently,China continued to steadily promote the marketization of the RMB exchange rate formation mechanism,and the reform achieved significant results.In the past three years,the fluctuation of the RMB exchange rate has increased,and the two-way fluctuation of the exchange rate has gradually normalized.Exchange rate risks have become apparent,and it is expected that the RMB exchange rate will continue to fluctuate in both directions in the future.The bidirectional fluctuation of the RMB exchange rate affects China’s import and export trade,affecting the profits of Chinese import and export enterprises.The case L company in this paper was founded in 2000,which is a wood processing enterprise integrating design and production.The company has been engaged in import business since 2017 and is a small and micro enterprise with a large import amount in the BS region.More than 95% of the raw materials of L Company come from abroad,and the products produced and manufactured are sold to domestic enterprises,with almost no export business.Compared with domestic procurement,foreign procurement has a long business cycle,multiple links,and rapidly changing market conditions.The two-way fluctuations of exchange rates bring exchange rate risks to enterprises,affecting procurement costs and efficiency,and ultimately affecting the stable operation of enterprises.L company’s own procurement cost management is not perfect,and exchange rate risk has increased the difficulty of enterprise procurement cost management.Therefore,how to effectively recognize and manage exchange rate risk,how to effectively use strategies to avoid exchange rate risk,optimize procurement cost control,and increase revenue are important issues that L company faces.This article adopts literature research,normative research,case study,and investigation methods to study the procurement cost control of L company.Against the background of bidirectional exchange rate fluctuations,it reveals the problems existing in L company and proposes corresponding solutions.Firstly,the current situation of bidirectional exchange rate fluctuations is analyzed.Based on reviewing and referencing domestic and foreign literature,theories and literature on exchange rate risk management,procurement cost control,and the impact of exchange rate fluctuations on enterprises are elaborated,laying a theoretical foundation for subsequent research in this article.The author conducted internal interviews and investigations with relevant personnel within L Company to understand their understanding of exchange rate risk management and the company’s exchange rate risk management situation.They collected internal data from L Company,analyzed the impact of two-way exchange rate fluctuations on the company’s procurement costs,and sorted out the current situation of the company’s procurement cost control under two-way exchange rate fluctuations.They also included three aspects: procurement planning,supplier selection,and logistics,Study the problems in purchasing cost control of Company L under bidirectional fluctuations in exchange rates,and provide corresponding suggestions for the identified problems.Finally,summarize and summarize the research content of the entire article,and draw inspiration.