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Briefly describe the procedure of purchasing cost management?
Procurement process: information collection, inquiry, price comparison, negotiation, evaluation, sample application, decision-making, purchase requisition, ordering, coordination and communication, expediting, incoming inspection and collection, and payment arrangement.

Calculation of purchase quantity: quantity to be purchased in current period = production demand in current period+unplanned inventory in current period-estimated inventory in previous period-purchased inventory in previous period.

How to reduce the procurement cost reasonably: make a reasonable procurement plan in advance, inquire about the current market situation, and master the factors and events that affect the cost. Appropriately find a number of qualified manufacturers to quote, make the bottom price or budget, and use bargaining skills. Afterwards, choose the manufacturer with the right price to sign the contract, and use the quantity or cash discount.

The composition of purchase price: supplier's cost, specification and quality, supply and demand of purchased materials, production season and purchasing opportunity, delivery terms and payment terms.

Cost composition of outsourced goods: engineering or manufacturing methods, required special tools and equipment, direct and indirect material costs, direct and indirect labor costs, manufacturing costs or outsourcing costs, marketing costs, taxes and profits.

Strategic procurement:

According to the business strategy of the enterprise, the commodity manager formulates and implements the material purchasing plan of the purchasing enterprise, and analyzes the internal customer demand, external supply market, competitors and supply bases.

On the basis of benchmarking, set long-term and short-term purchasing targets of materials, purchase strategies and action plans needed to achieve the targets, and find suitable supply resources through the implementation of actions to meet the comprehensive indicators of enterprises in terms of cost, quality, time and technology.