Breaking The Curtain Of Procurement By Comprehensive Budget Management In Enterprises

For any enterprise, procurement is undoubtedly the first step in production. At the same time, Ge Corp (GE) former CEO Jack Welch said: "procurement and sales is the only company that can" earn money ", and all other departments are management fees. Admittedly, procurement management is an important part of enterprise management. In the operation of enterprises, the cost is high, capital investment is large and management links are large. Each purchase step is reduced by 1%. Corporate profits will increase by 5-10%. The fierce competition environment forces the procurement to surpass the existing value level while adjusting its role, and must strengthen and standardize the procurement management.

Nowadays, the purchasing work of enterprises is facing many difficulties. In the news reports, there are frequent incidents of enterprise procurement such as shady events, so that procurement is often associated with such terms as "kickbacks" and "black boxes". According to Bestway's statistics of training and consulting services for many years, the main puzzles and problems in the work of domestic purchasers under the dual pressures of cost and quality are concentrated on the following ten aspects: total cost analysis, negotiation strategies and techniques, supplier partnership, procurement personnel's professional ethics and norms, supplier evaluation, quality improvement and assurance, procurement strategy and planning, price and cost analysis, procurement process optimization, coordination and cooperation skills.

As a key link of cost control, enterprise procurement has a direct impact on the production efficiency of enterprises. How to conduct procurement management effectively? The key lies in two aspects: quality control and cost control.

As the largest enterprise management software supplier in China, with 20 years experience, UF has carried out a vivid analysis of the purchasing problem of enterprises in the first part of the enterprise total cost management framework recently launched, and put forward specific solutions and tools. In terms of quality assurance and cost control, UF has long been an expert in these two fields. The comprehensive cost management software launched by this time has also been insured for the practical pressure of high inflation in recent years. Next, we will give a detailed analysis of the specific solutions of UF's purchasing management with ERP.

Cutting costs by ERP:

The best management platform of Chinese enterprises provides complete processing of procurement business and various cost control means. It summarizes and refuses the following methods of cutting down procurement costs for enterprises at different levels, so as to help enterprises cope with the cost pressure of the era of high inflation.

1. procurement plan: the biggest waste of procurement cost is the lack of an accurate procurement plan. Because of the inaccuracy of the plan, the massive backlog of raw materials or the phenomenon of stopping and waiting for materials can be found everywhere. The system can help enterprises formulate reasonable procurement plan so that they can purchase suitable materials at the right time and with appropriate funds. According to the characteristics of purchasing materials and the characteristics of enterprise management, the system provides the following modes of procurement planning.

2. supplier management: choosing the right supplier is an important job in the procurement management. The quality of the supplier directly determines whether the procurement work is effective and whether the procurement cost can be controlled. The system can help enterprises to strengthen supplier's access control and supplier qualification approval, establish a complete supplier file and complete price database, and help enterprises to comprehensively evaluate, select and clean suppliers according to supplier's historical performance (price, delivery time, quality, etc.).

3. procurement price management: every enterprise will have strict procurement price regulations, but whether it can be effectively observed is difficult. The system can pre configure the purchasing price policy of enterprises, and provide a variety of price control measures including supplier parity, procurement ceiling price and procurement quality based pricing, so as to help enterprises reduce procurement costs. The system can record the whole process of purchasing personnel inquiry, making every purchase available.

In fact, this completely constitutes a set of on-demand procurement methods. Generally speaking, procurement cost includes actual cost of raw materials, transportation cost of raw materials, storage cost of raw materials, labor cost related to raw material purchase. These are consequences after the event, and it is difficult for enterprises to find the key to improvement. Enterprises should pay more attention to the cost, from purchasing, purchasing, purchasing time, purchasing, purchasing and price. Cost killer must start from these problems, looking for ways to reduce costs and improve supply chain efficiency. All this, today, for business operators, in the ERP platform for standardization and control can fully achieve the good management of procurement results.