In the era of the hottest and meager profits, the

In the era of meager profits, soft bag factories can reduce production costs through five aspects of procurement management

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core tip: procurement is an important link in the supply chain. In soft bag production enterprises, equipment, film, raw and auxiliary materials are essential elements of packaging bag production, accounting for more than 70% - 80% of the total cost. Such a high production cost means good procurement and quality control, which is the key to improve the profit margin of the upholstery industry. Therefore, as a professional department of soft bag procurement, it is particularly important to do a good job in procurement management, make a detailed investigation on the market of soft bag raw materials, and effectively assist enterprises in controlling production costs and capital turnover

[China Packaging News] procurement is an important link in the supply chain. In soft bag manufacturing enterprises, equipment, film, raw and auxiliary materials are necessary elements for the production of packaging bags, accounting for more than 70% - 80% of the total cost. Such a high production cost means good procurement and quality control, which is the key to improve the profit margin of the upholstery industry. Therefore, as a professional department of soft bag procurement, it is particularly important to do a good job in procurement management, make a detailed investigation on the market of soft bag raw materials, and effectively assist enterprises in controlling production costs and capital turnover

this paper will discuss some measures to reduce procurement costs in project procurement management one by one from the perspective of cost control

making purchase budget and estimating cost

1. Definition of making budget

the behavior of making budget is to allocate scarce resources for various work within the organization. Budget is not only an aspect of planning activities, but also an extension of organizational policies. It is also a control mechanism and plays a role of comparative standard

the formulation of procurement budget is an estimation and prediction of the project procurement cost before the specific implementation of the project procurement behavior, and a rational planning of the entire project fund

2. The role of formulating the procurement budget

the formulation of the procurement budget not only makes a reasonable allocation and distribution of the project procurement funds, but also establishes a standard for the use of funds, so as to detect and control the use of funds in the procurement implementation at any time, and ensure that the use of project funds fluctuates within a certain reasonable range

with the constraint of procurement budget, it can improve the efficiency of the use of project funds, optimize the allocation of resources in project procurement management, find some exceptions in the use of funds, and effectively control the flow and flow of project funds, so as to achieve the purpose of controlling project procurement costs

supplier selection

suppliers are an important part of project procurement management. During procurement, the principle of "fair competition" should be followed to provide equal opportunities to all qualified contractors. On the one hand, it reflects the rules of market economy operation, on the other hand, it can also control the procurement cost and improve the quality of project implementation. Therefore, there are two issues worthy of attention in the selection of suppliers:

1. The number of suppliers

the selection of the number of suppliers, which is actually the sharing of suppliers' shares. From the perspective of purchasers, a single source of goods increases the risk of project resource supply, is not conducive to price reduction on suppliers, and lacks the strength of procurement cost control. As far as suppliers are concerned, due to the advantages in quantity, batch supply can give buyers a commercial discount, reduce the payment of goods and the additional costs of procurement, which is conducive to reducing cash outflow and procurement costs

therefore, when selecting the number of suppliers, we should not only avoid a single source of goods and seek multiple supplies, but also ensure that the selected suppliers bear sufficient supply share, so as to obtain supplier preferential policies and reduce material prices and procurement costs. This can not only ensure the quality of the supply of purchased materials, but also effectively control the procurement expenditure. Generally speaking, the number of suppliers should not exceed

2. Ways of selecting suppliers

the ways of selecting suppliers mainly include open competitive bidding procurement, limited competitive bidding procurement, inquiry procurement and direct contract procurement. According to their characteristics, the four different procurement methods are divided into bidding procurement and non bidding procurement

we believe that public bidding in project procurement can take advantage of the competition between suppliers to drive down the price of materials and help the purchaser obtain qualified goods at the lowest price; And the reasonable combination of various bidding methods will also help to improve the efficiency and quality of procurement, which is conducive to the control of procurement costs

utilization of purchasing environment

1. What does the external environment include

the external environment of the project will have an important impact on the formulation of procurement strategy and the implementation of procurement plan. The external environment includes macro environment and micro environment

macro environment refers to external changes that can affect the project organization and how to purchase, including seasonal changes in the market, changes in national macroeconomic policies, adjustments in national fiscal and financial policies, fluctuations in market interest rates and exchange rates, the existence of inflation, wars, strikes and other factors

the micro environment refers to the internal environment of the project organization, including the organizational policies, methods and procedures that the project organization may adopt in procurement, that is, the process and procedures of implementing procurement. On the premise of conforming to the principle of micro environment, a good project procurement strategy should make full use of the external market environment to bring benefits to the whole project

2. How to use the purchasing environment

an important part of making full use of the procurement environment is to be familiar with the market situation, understand the market situation, and master various market information of goods and services required by the project

for example, in combination with the requirements of the types, performance parameters, quality, quantity and price of the purchased goods or services, understand and be familiar with the price and supply and demand information in the domestic and international markets, the source of supply and demand of the purchased goods, the situation of the foreign exchange market, international trade payment methods, insurance contracts and other relevant domestic and international trade knowledge and business intelligence and information

this requires the project organization to establish relevant market information mechanisms to achieve the purpose of effectively using the procurement environment. Good market information mechanisms include:

establish a database of important goods supplier information, so that when necessary, we can find the corresponding suppliers at any time, as well as the specifications and performance of these suppliers' products or services and other reliable information

establish a price catalogue of the same kind of goods, so that buyers can compare and choose, and make full use of competitive methods to obtain price benefits

analyze and study the market situation and make predictions of market changes, so that purchasers can have a reliable and effective basis for reference when formulating procurement plans, deciding how to contract and what procurement methods to adopt

only by establishing a good market information mechanism can we achieve "know yourself and know the enemy" in project procurement, and have a full understanding and grasp of the procurement environment, which enables buyers to be in a strong position on both sides of supply and demand, obtain price advantages, and obtain not only high-quality goods or services, but also cost benefits

supplier management

starting from the concept of long-term reduction of procurement costs, the idea of "supplier management" should be run through the procurement management of the project, that is, the management of suppliers should be included as a part of the project procurement management. In this way, we can not only obtain reliable supply and quality assurance through long-term cooperation, but also obtain the advantage of purchase price in terms of time and purchase batch, which is of great benefit to reducing the cost of project procurement. It is worth noting the following two points:

1. Establish a direct strategic partnership with suppliers

for the purchaser, once it has determined the suppliers that can cooperate for a long time, it should establish a direct strategic partnership with suppliers. Based on the principle of "benefit sharing and risk sharing", both parties establish a win-win cooperative relationship, so that the purchaser can obtain the guarantee of supply and cost advantage in the long-term cooperation, and also enable the supplier to have long-term stable large customers, so as to ensure the stability of its output scale. Turn off the controller and computer;. The establishment of this strategic partnership can bring long-term and effective cost control benefits to the purchaser

2. Performance management of supplier behavior

in the process of cooperation with suppliers, performance management of supplier behavior should be carried out to evaluate the quality of supplier behavior in the process of cooperation. For example, establish an information system for supplier performance management, rate suppliers, establish quantitative supplier behavior performance indicators, and use the results of performance management to measure the follow-up cooperation with suppliers: increase or reduce the supply share, extend or shorten the cooperation time, etc. more than 3/4 of the incentives and rewards for suppliers are hot-air plastic granulator punishment. In this way, suppliers can continue to improve their supply behavior, ensure high-quality and timely supply, and effectively reduce the total procurement cost of the project

concept of whole process cost

1. Based on the concept of whole process cost, discuss the problem of procurement cost

when discussing the problem of cost reduction in project procurement management, we should establish the concept of whole process cost. What we should pay attention to is the cost reduction in the whole project procurement process, which is the control of the total cost, rather than the price of purchased goods or services

obtaining low-cost purchased goods is certainly a reduction in cost, but obtaining high-quality services, timely and rapid supply, reliable supply assurance, etc. is undoubtedly a cost benefit for Jinmin new material, which takes the partnership entrepreneurship platform as the carrier

2. Considering the procurement cost, we should take into account the interests of various aspects

at the same time, reducing the procurement cost means not only reducing the cost of the procurement project itself, but also considering the interests of relevant aspects. The cost is like mercury in a U-shaped tube. If you compress the cost here, the cost there will increase

reducing a certain cost alone without considering the reactions of other aspects will not be reflected in the profits of project procurement management. Therefore, it is necessary to establish the concept of the whole process cost to control and reduce the total cost of the whole project procurement management

we should not only see the most direct cost reduction, but also measure the cost effectiveness from the whole process of project procurement, and explore effective measures to reduce the total cost from the whole process of project procurement. Only in this way can we explore ubiquitous opportunities to reduce costs in the procurement process