System Construction Of Procurement Cost Control

Enterprises must change the existing traditional procurement concept, have the vision to control the overall cost, and be able to evaluate the key cost links and other related long-term potential costs involved in the procurement process.

Only in this way can the procurement cost be saved from all links and details.

A correct concept of purchasing is the first key factor to decide whether an enterprise can carry out scientific and reasonable cost control.

Procurement cost

It is not only a matter of the purchasing department, it also bears the responsibility of total cost management, which affects subsequent research and development, production, sales and other links.

In view of some corrupt practices such as "kickbacks" and so on, to prevent procurement corruption, enterprises should establish a strict and perfect procurement system.

This will not only prevent bad behavior such as purchasing corruption, but also standardize the purchasing behavior and optimize the process of the enterprise, so as to improve the efficiency of procurement.

The procurement system should be formulated according to the classification of the products purchased by the enterprise.

The application category of different products, the approval permission of the authorized person, the way of purchasing raw materials, and the final product.

And so on.

We must clarify the responsibilities and relationships of the relevant departments, and we must not go beyond the level of operation, resulting in the confusion of the final process and the irresponsibility and responsibility.

Of course, whether the procurement system can be implemented smoothly depends on the quality of the whole purchasing team. The professional quality and professional ethics of the purchasing staff will be the key factors affecting the stability and efficiency of the procurement activities.

Formulate

The premise of the purchase plan is to understand the specific requirements of the demand department and the supply information of the materials.

Procurement activities are always in the position of production service throughout the enterprise. The procurement plan is mainly based on the specific requirements of the production plan, and is based on the actual situation of the production demand department, rather than arbitrary procurement.

At the same time, we should also consider a series of factors such as the possibility of fluctuation in supply market and inventory cost, and finally arrive at a reasonable and scientific procurement time, purchase lot, order period and delivery mode, and compile scientific and executable purchasing plans.

The supply location model is an analysis tool from the two aspects of the amount of product purchased by the enterprise and its impact on the enterprise, the supply risk and the opportunity. It is an analysis tool for the procurement of enterprises to play a guiding role in determining requirements, obtaining and selecting quotations, and supplier evaluation.

From the perspective of the total cost of procurement ownership, this paper will use the supply location model to help explore the procurement cost control strategy from the perspective of the total cost of procurement ownership.

The supply location model uses the form of matrix to classify the products: the horizontal axis is the division of procurement expenditure according to Pareto's 20/80 rule; the vertical axis is the comprehensive positioning classification of opportunities, risks and impact possibilities.

The supply positioning model divides the products purchased by the enterprise into four categories: daily, bottleneck, leverage and key.