Textile Enterprise Management Paper 1 Analysis of Cotton Purchasing Cost Management in Cotton Textile Enterprises
As the main raw material of cotton spinning enterprises, the purchasing cost of cotton has an important influence on the final profit of enterprises. Correct selection of suppliers and accurate judgment of market conditions are the necessary conditions for reducing production costs and expanding profits, and high-quality procurement personnel are the prerequisite for correct selection and accurate judgment. This paper analyzes the present situation of cotton purchasing management in cotton spinning enterprises and the problems existing in cotton purchasing management in cotton textile enterprises, and puts forward some countermeasures for reducing cotton purchasing cost. It provides an idea for enterprises to open up the third profit point in the form of fierce competition and rising direct production costs.
Cotton spinning enterprises; Cotton; procurement cost
Procurement, as the primary link of enterprise's production and operation activities, plays a vital role in the survival and development of enterprises. Reasonable purchasing can buy the right raw materials at the right price and ensure the quality of raw materials, thus improving the quality of products and ensuring the continuity of production; At the same time, reasonable and effective procurement can also speed up capital turnover, reduce inventory costs and increase profits. The choice of purchasing cost and strategy will affect the cost and pricing of enterprises in the middle and lower reaches of the supply chain, and even affect the competitiveness and ultimate profitability of the whole supply chain. Procurement permeates all aspects of enterprise activities, and effective management of procurement will make great contributions to enhancing the competitiveness of enterprises, so enterprises must attach importance to procurement management.
For cotton textile enterprises, cotton is one of the main purchasing raw materials, accounting for about 70% of the total cost of cotton textile. The purchase of cotton occupies a lot of working capital of enterprises, so the price of cotton becomes a barometer of the economic benefits of cotton textile industry. Cotton textile enterprises have unique characteristics at the front end of the supply chain. First of all, the logistics and products at the front end of the supply chain where cotton textile enterprises are located belong to agricultural products or primary processed products, which are greatly affected by agricultural policies, production and natural disasters; Secondly, the suppliers faced by cotton textile enterprises are farmers or cotton processing and circulation enterprises. The quality and characteristics of suppliers vary widely, and the scope of selection is relatively small. On the whole, cotton spinning enterprises are highly dependent on suppliers, and the cotton market price is greatly influenced by seasons and climate, so it is difficult for cotton spinning enterprises to reach coordination and synchronization with suppliers in price and supply.
China cotton textile enterprises are in a highly competitive cotton market. They have to face not only the competition from within the industry and other aspects, but also the challenges brought by the sudden change of the current economic situation.
Drucker, a famous management master, believes that improving production technology and reducing raw material consumption are the first source of profits for enterprises, and increasing sales volume and sales profit are the second source of profits for enterprises. With the deterioration of the economic situation and the intensification of competition, and limited by objective technology, the space for enterprises to work hard in the above two aspects is getting smaller and smaller. Therefore, if enterprises want to maintain a favorable position in the competition, they must fully develop the third profit source, that is, strengthen procurement management and reduce procurement costs, so as to achieve the purpose of increasing profits. It is impossible for an enterprise without cost advantage to be invincible in the fierce competitive environment. In textile industry? Big reshuffle? Under the background of financial crisis and the impact of real economy, this paper studies how to tide over the difficulties in cotton textile industry. Develop the third profit source? It is particularly meaningful to cultivate core competitiveness and gain market initiative.
1 current situation of cotton procurement management in cotton textile enterprises
The purchasing process of textile enterprises has certain particularity, which mainly involves the structure of consumer goods and the characteristics of purchasing market. The purchasing activities of textile enterprises involve the supply of materials and technology for production and operation activities, which completely depends on the characteristics of the products produced, the particularity of the technological process and the load of production capacity. In the process of transition to market economy, not only the finished product market, but also the resource market has been formed. Resource market affects the regulation of input logistics and input capital flow. In the practice of purchasing management in textile industry, the division of purchasing business is usually carried out according to the type of materials. The procurement of fiber raw materials is divided into separate procurement functional areas, which is caused by a series of objective conditions. Textile raw materials are usually used in large quantities in a balanced manner and have strictly defined geometric packaging dimensions, which allows simple formation of large shipment batches. Special warehouses are used to preserve textile raw materials. As for the raw material procurement market, it is different from other material procurement markets, lacking stability and relying on natural climatic conditions and policy environment.
2 cotton textile enterprises in the cotton procurement management problems
In practice, most cotton textile enterprises in China have a low degree of modern management and do not really pay attention to procurement costs. At present, the procurement management of most cotton textile enterprises is still in the stage of given inventory management, and their procurement and inventory management are still in the primary stage. With the development of economy and the intensification of competition, the procurement management level of many cotton textile enterprises in China has gradually entered the stage of supply chain management, but few enterprises conduct procurement management from a strategic perspective. It has been 10 years since the cotton circulation system reform in China. The change of cotton market has played an important role in obtaining cotton resources for cotton textile enterprises. Cotton textile enterprises urgently need to change the traditional cotton procurement methods, strengthen procurement management, give full play to the leverage of procurement, and win profit space for enterprises. At present, the procurement management of China's cotton textile industry still has the following problems:
2. 1 The reform of cotton circulation system is not perfect, and cotton prices fluctuate greatly.
Since the reform of cotton circulation system, various systems and forms of cotton purchasing channels have broken the situation that cotton and linen companies dominate the world, and the number of individual businesses that buy without a license has been increasing, and some powerful large enterprises have hoarded and interfered with the normal circulation of cotton; Moreover, the small cotton gin has been repeatedly banned, and cotton buyers collect cotton regardless of grade. The processed cotton has many problems, such as grade mixing, color mixing, more foreign fibers, high short fiber rate and high moisture regain, which seriously affects the product quality of cotton textile enterprises.
2.2 cotton textile industry caused by excessive expansion? Big reshuffle? Polarization within enterprises.
The operation of cotton textile industry is gradually in trouble, which has both policy factors and its own development factors, but the most important thing is the reduction of final demand. Some domestic cotton textile enterprises have reduced the operating rate due to operating pressure. In textile industry? Shuffle? After entering the substantive stage, some small domestic enterprises are struggling to operate, and domestic high-quality textile enterprises are also under pressure.
3 Measures to control the cost of cotton procurement
Cotton textile enterprises should make more efforts in the following aspects when saving cotton procurement costs:
3. 1 Multi-channel procurement to avoid procurement risks.
Under the leverage of purchasing cost, small changes in purchasing cost will bring huge fluctuations in sales profits, thus forming purchasing risks. In addition to the traditional spot trading, the method of using futures and online electronic trading market to hedge against market risks is not only suitable for cotton enterprises, but also for textile enterprises.
3.2 Determine the reasonable order quantity
From the perspective of supply chain, cotton suppliers and textile enterprises are cooperative, and the purpose of cooperation is to obtain higher benefits and efficiency than independent inventory and achieve a win-win situation. Therefore, first of all, we must determine the optimal batch and price that are beneficial to both parties, and take the appropriate quantity discount price form to coordinate the batch of both parties. While promoting the profit of cotton suppliers, it can also reduce the procurement cost of textile enterprises, so that both supply and demand sides can increase their income in the cooperative game.
3.3 Select suitable suppliers and evaluate them.
A good cotton supplier should have processing technology and sufficient production capacity to manufacture high-quality products. Quality qualification certification is the primary factor for textile enterprises to consider. In addition, it is also necessary to consider whether it is located in a high-quality cotton-producing area and the transportation distance, so as to save intermediate costs as much as possible while ensuring quality and quantity. Simultaneously carry out objective and fair supplier evaluation, and inform suppliers of the evaluation results, so as to promote and improve suppliers' supply level and ensure the stability of textile enterprises' supply, thus improving procurement time, reducing the risk of inventory expiration and reducing transaction costs.
3.4 Response to national policies
The State Council mentioned in the adjustment and revitalization plan of textile industry and equipment manufacturing industry. Textile industry is a traditional pillar industry of China's national economy and an important livelihood industry, and it is also an industry with obvious international competitive advantages. It plays an important role in prospering the market, expanding exports, absorbing employment, increasing farmers' income and promoting the development of urbanization. To accelerate the revitalization of textile industry, we must focus on independent innovation, technological transformation, elimination of backwardness and optimization of layout, promote structural adjustment and industrial upgrading, consolidate and strengthen the supporting position of employment and benefiting farmers, and promote China's textile industry from large to strong. ?
Looking back on the development of cotton textile industry since the founding of the People's Republic of China, the development of China's cotton textile industry is closely related to the promulgation and implementation of national policies. China's current national cotton reserve policy, import cotton quota policy, textile and garment export tax rebate policy and exchange rate policy are important tools for the government to carry out macro-control and stabilize the market, which are closely related to the interests of cotton textile enterprises. Therefore, when making purchasing strategies, cotton textile enterprises must objectively analyze the current policy environment faced by the industry, conform to the times, grasp the adjustment orientation of the macro-policies of the industry, study policies, make use of the environment to successfully meet challenges and seize opportunities.
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