Reflections on the optimal procurement cost decision making method

Many first-chain professionals have expressed similar ideas or methods of reducing costs in their speeches and practices, which is certainly not the first for the author. However, on the basis of his own practice and the methods of others, the following four steps are further refined.

Step 1: Bargain directly. For small enterprises or enterprises that have been chaotic, it is necessary to directly bargain and squeeze out the water; However, for enterprises that have been operating normally for many years or large enterprises such as transportation and finance, if they are still using this method frequently, it can only mean that the procurement personnel are too rudimentary, rude and simple.

Because directly and the aunt vegetable market.

Haggling is a principle. In general, this method can save 5% of the cost without using water, and it is a one-time saving, which is difficult to sustain.

Step 2: Bid. Regardless of whether it is a new business or an old business, the bidding is not only more formal than the first step, but also can learn more about the market information and the level of the businessman, so as to infer a reasonable unit price range.

In the case of free competition in the market, there is no need to worry too much about what the absolute optimum** should be. An ordinary multi-price comparison is enough to know the average level of the market. The expected cost savings of 5% can be easily achieved by bidding.

Step 3: Exchange volume for price. From the perspective of the best businessman, it is a small profit but quick turnover. In the case that it is impossible to make a bigger cake, it is also an effective way to reduce the number of merchants and make the cake bigger for each businessman.

Step 4: Process and operation optimization. For example, effectively promote VMI or consignment to reduce inventory (and indirectly reduce procurement management costs); The promotion of e-commerce can at least save a lot of paper documents and improve the efficiency of the corresponding staff.

Process optimization can undoubtedly reduce the cost of integrating the chain, but it is difficult to measure the numbers completely or accurately.

ToCheck is for tenders.

Algorithm optimization and text error correction function are provided to help users avoid risks by discovering suspected plagiarism, plagiarism, collusion and bid-rigging.

The reasons why procurement cost affects decision-making are: cost control, business selection, order quantity, and chain management.

1. Cost control: Procurement cost is very important to the cost control of the enterprise. By reducing procurement costs, companies can reduce production costs, improve profit margins, and enhance competitiveness.

2. Merchant choice: The level of procurement cost also affects the choice of merchant. Enterprises can choose the most suitable supplier by comparing procurement cost factors such as transportation costs, quality assurance and so on.

3. Order quantity: Procurement cost also affects the company's order quantity decision. By controlling procurement costs wisely, companies can optimize order quantities and avoid overstocking or material shortages.

4. Chain management: Procurement costs are also closely related to chain management. Enterprises can reduce procurement costs by optimizing all links of the chain, and realize the efficient operation and synergy of the chain.

Procurement costs refer to the expenses that enterprises need to pay for the purchase of goods or services, including purchases**, transportation costs, customs duties, storage costs, etc.