In the value chain analysis, procurement is regarded as a collection of interrelated activities. By analyzing the cost, the cost of each activity is closely related to its related activities. Value chain analysis includes:

① Analysis of internal value chain. Internal value chain analysis is to pay attention not only to the production process, but also to the operations before and after production, so as to find out the internal relationship between them and finally achieve the purpose of reducing product costs.

② Analysis of external value chain. That is, the relationship analysis with suppliers and customers. Suppliers not only produce and purchase a product or service used in the value chain, but also affect other aspects of procurement. For example, frequent delivery by suppliers can reduce the inventory demand of procurement. Customers also have their value chain. For example, customers who have fewer orders and are uncertain in advance have higher costs than those who have more orders and are determined in advance.

2. Attach importance to intangible cost drivers and procurement competitive advantages.

Cost drivers include any factors that lead to costs. Paying attention to the analysis of intangible cost drivers can provide an opportunity for purchasing to change the current cost situation and enhance competitiveness. It is the essence of strategic cost management to strengthen cost management from intangible cost drivers and create competitive advantages in procurement.

3. Use the information management system to reduce the procurement cost.

In the information age, the idea and method of reducing purchasing cost should be based on computer-centered information management system. Without an efficient information management system, there is no way to reduce procurement costs. Therefore, purchasing must first establish an efficient information management system centered on computers and the Internet.

4. Reduce procurement costs through resource sharing.

Resources can be divided into * * * enjoyment resources and non-* * enjoyment resources. For * * * shared resources, the product cost is related to the number of products sharing the resource cost. The more products share this resource, the lower the cost allocated to the unit product. For example, buying fixed assets is a typical resource. In addition to fixed assets, there are:

(1) product development expenses.

② Procurement cost of resources. Information usage fee.

③ Information dissemination expenses.

(4) The cost of establishing and using sales channels.

⑤ Transaction costs.

⑥ Market development expenses.

⑦ Enjoy the experience. Increasing the scale and frequency of using these resources can reduce the product cost.

Procurement cost refers to the logistics cost related to the procurement of raw materials and spare parts, including purchase order cost, management cost of procurement planner and management cost of procurement personnel. The purchase cost of inventory includes the purchase price, related taxes, transportation fees, handling fees, insurance fees and other expenses that can be attributed to the purchase cost of inventory. For ordinary taxpayers, the purchase cost does not include input tax; But for small-scale taxpayers, input tax is included in their procurement costs.

References:

Baidu Encyclopedia Entry Procurement Cost