Methods of controlling purchasing cost in enterprises

Methods of controlling purchasing cost in enterprises

Enterprises can control procurement costs in many ways, but the main purpose of reducing costs is to understand, find and reduce unnecessary costs first, and allocate and utilize costs reasonably on the basis of ensuring product quality.

First, the necessity of cost control in procurement management

Creating wealth for shareholders is the primary task of enterprise operation. Enterprises gain profits through production and operation, and then they can increase wealth for shareholders. Increasing sales and reducing costs are the main ways for enterprises to increase profits. Procurement cost, as the largest component of enterprise operating costs, directly affects the profits of enterprises. The leverage of procurement cost on enterprise profits is very significant. For example, an enterprise has sales of10 million, and the procurement cost accounts for half, that is, 5 million yuan; Pre-tax profit accounts for one fifth, that is, 2 million yuan; The remaining 3 million is other expenses. If the cost changes with the sales volume, then if the pre-tax profit of the enterprise is 2.2 million yuan, we can increase the sales volume by one tenth or reduce the procurement cost by 4%. It can be seen that the effect of increasing sales by 10% is the same as that of reducing procurement cost by 4%, and the proportion of procurement cost to sales is directly proportional to the difference between the two effects. Therefore, it is of great significance for enterprises to control the procurement cost of increasing sales quickly and investing less. Faced with the pressure of continuous improvement of product technical level, diversification of product demand, gradual shortening of product production cycle and increasingly fierce market competition, enterprises can only increase profits by cutting costs if they cannot develop effectively. Especially with the increasing proportion of purchasing cost in average sales, purchasing personnel can only provide added value for enterprises by reducing purchasing cost.

Second, the influencing factors of cost control in procurement management

Enterprises should comprehensively consider many factors when making purchasing strategies for purchasing practice. First of all, enterprises should consider the form of purchasing services or products. The most basic requirement of procurement is to know whether the nature of procurement is continuous or one-off; The purchasing strategy should conform to the purchasing form. Compared with one-time procurement, continuous procurement requires high cost analysis. However, if the cost of one-time procurement is large, we should also pay attention to the importance of cost saving. Secondly, enterprises should consider the relationship with suppliers. The seller divides suppliers into three levels: traditional suppliers, approved suppliers and strategic partner suppliers. The seller will share the cost with suppliers with different cooperation levels in different ways. If it is a traditional supplier, it will definitely not get detailed cost structure information. Only by forming a close relationship with suppliers and forming a strategic alliance can we share the cost information of related products with suppliers. Finally, enterprises should also consider the life cycle stage of products. The product life cycle stage will directly affect the purchase volume of enterprises. In the three stages of introduction, growth and maturity, the purchase volume of products will gradually increase, and only when the products are in recession will the purchase volume gradually decrease, and the purchase cost is also determined by different stages of products.

Third, effective measures for cost control in procurement management

(A) the implementation of procurement agency measures

Purchasing agent has the characteristics of fast, efficient and cheap, which is a new material purchasing mode and a new means for enterprises to reduce purchasing costs. Unlike purchasing agents, purchasing agents specialize in specific kinds or types of related materials based on customers. They have warehouses and special distribution teams, which can deliver materials to designated places quickly and accurately after receiving instructions from customers. Through this purchasing agent model, many enterprises will not need to set up material purchasing departments and stock raw materials. The advantage of purchasing is that the price is low, and the price of the products provided through it is lower than the price purchased by the customers themselves; The products it provides meet the quality requirements of customers; And it has high integrity, and will deliver the products to the places designated by customers on time and accurately, which is also the basic condition for the development of purchasing.

(B) focused, classified management

Enterprises can centrally manage purchased parts and materials through classification. The most effective method is ABC classification. This purchasing management method classifies all parts and materials of an enterprise, among which Class A occupies a lot of purchasing funds; Class C is the basic enterprise means of production; And class b is between the other two categories. Enterprises can also carefully divide these three categories according to their own conditions. Class A should be the focus of enterprises' attention, and cost control should be carried out for this class, rather than reducing the procurement cost of all materials and parts.

(C) the use of the laws of market economy for centralized procurement

Centralized procurement of materials is easier to achieve standardized management. Centralized purchase orders are large and easy to attract the attention of suppliers. Purchasing departments can also ask suppliers to give discounts or deliver goods quickly, which not only saves freight, but also facilitates the communication between purchasers and suppliers. Centralized procurement can help enterprises effectively control procurement activities, and it is easier to control one department than to control multiple departments. Centralized procurement is also conducive to the development of professional skills and professional division of labor.

(d) Selecting an appropriate procurement method

Modern procurement methods relying on advanced scientific and technological achievements can solve the space and time problems that traditional methods cannot solve, which is conducive to improving the convenience of procurement activities and reducing procurement costs. MRP procurement mode is rigorous and meticulous in planning, sensitive in market response and high in procurement efficiency. JIT procurement mode directly faces the needs of users, which is not only sensitive to the market, but also reduces the inventory of customers. Supply chain procurement mode can not only meet the needs of users, but also avoid the waste of inventory materials; Online procurement mode can effectively recreate the procurement process, which is beneficial to the strategic alliance between the two parties.

;