RSUSSH 2020

IN20-177 A Study of the Purchase Cost Control Problem and Optimization Scheme of Saint Roba Company

Presenter: Lu Chen
Rangsit University, Thailand

Abstract

            Saint Roba company is a chain catering enterprise in China, in the fierce market competition to strengthen their own procurement management. This paper first introduces the company, presents the status quo of the procurement cost of Saint Roba company, and then analyzes the reasons for the procurement cost control of Saint Roba company from the aspects of material characteristics, organizational structure, process and supplier management. Finally, the corresponding improvement measures are proposed for these problems. Aiming at the problem of supplier management, this paper puts forward the quantification of the supplier selection coefficient, USES the analytic hierarchy process and matrix to calculate the weight of the criteria for supplier selection, and then selects the supplier according to the actual score and the score of the supplier. The importance classification of products is ABC classification. Make adjustments in organizational structure and process management that are in line with the actual situation of saint robb to improve work efficiency. In the supplier management, the current single supplier status is adjusted, and the supplier competition management is increased while the supplier relationship management is adjusted.

Keywords: Procurement management; Cost control; Saint Roba Company; Profits

Citation format:

Chen, L.. (2020). A Study of the Purchase Cost Control Problem and Optimization Scheme of Saint Roba Company. Proceeding in RSU International Research Conference, May 1, 2020. Pathum Thani, Thailand.

QUESTIONS & ANSWERS

Fan Wu (Participant)

圣巴罗公司有何独特之处,为什么选择研究这家公司?

FENGKUN WANG (Visitor)

你好,请问研究该公司得到的结论,是否有普遍意义?有哪些是可供推广的经验?

WANGQIAN (Participant)

请问一下,你为什么对这家公司感兴趣?

Lu Chen (Presenter)

Re Miss.WANGQIAN:

  这家公司是中国西南地区唯一一家大型连锁海鲜自助餐厅,且本人经常光顾,对于他的经营模式和采购模式有浓厚的兴趣。所以选择研究这家公司,一是获取资料方便,二是有利于今后其他相同模式餐厅借鉴经验。

Lu Chen (Presenter)

Re Mr.FAN WU:

    圣罗巴公司是目前唯一一家入驻中国西南地区的大型海鲜自助餐企业,由于地理环境原因,西南地区海鲜食材采购成本高运输路程远,所以给经营带来了一定的困难,研究这家公司有利于今后其他海鲜类餐厅借鉴吸取采购经验,也有利于在当今竞争下如何选取更优异的供应商,降低采购成本。

Fudong Luo (Visitor)

Which aspects should be considered when choosing a procurement supplier?

Lu Chen (Presenter)

Re Mr.FENGKUN WANG:

    该研究对于西南地区海鲜自助餐行业具有普遍意义。

   根据目标矩阵打分选择最佳供应商,根据ABC分类法分类采购物资,对于大部分餐饮企业都具备参考价值。

Lu Chen (Presenter)

Re Mr.FUDONG LUO:

       (1) product quality
The quality of raw materials provided by the supplier and its corresponding technical level are important factors for the purchaser to choose. As a raw material supplier must have a good and stable goods production process and standards, and a quality control system to ensure its continuity.
(2) supply capacity (output, transportation)
Supply capacity refers to the equipment and production capacity of potential suppliers, technical strength, management and organizational capacity, and operational control (e.g., textile and clothing quotas held by suppliers). These factors are designed to take into account the supplier's ability to provide the quality and quantity of the required material and the supplier's ability to provide the relevant services consistently and consistently.
(3) corporate reputation and historical performance
Reputation is the image of the supplier in the execution of the business. Include goods itself, management style, management level, public praise, etc., should choose a satisfactory supplier, to ensure the completion of procurement tasks to lay a solid foundation.
(4) quality assurance and compensation policy
When the raw material product is inspected, because the sampling is not scientific or the inspection technique, the method has the problem, often difficult to discover the problem. If serious problems are found with raw materials during production, they are often returned and compensation is demanded. At this point, it is necessary to consider the other party's quality assurance strategy and compensation policy.
(5) product price
The price of raw materials will affect the cost of the final product and is the main factor in choosing suppliers, but not the most important factor. Taken together, quality, reliability and associated costs are more important. One of the purposes of purchasing is to obtain satisfaction at an appropriate cost, but the price is not necessarily the lower the better.
(6) technical strength
The technical strength of the raw material suppliers is also a factor to be considered, especially for those large and medium-sized textile and garment manufacturers. If the raw material supplier can update the product technology and develop and apply the new technology well, the purchaser will also benefit immensely. At the same time, emphasis should be given to suppliers who are willing and able to respond to changing requirements and accept design changes.
(7) financial status
Generally speaking, raw material purchase funds are relatively large, and is not cash on delivery. If a supplier has financial problems, it is likely to demand early payment or halt production. In this way, it is unfavorable to the long-term purchase.
(8) internal organization and management of suppliers
The internal organization and management of the supplier are related to the future service quality of the supplier. If the internal organizational structure of the supplier is disordered, it will directly affect the efficiency and quality of procurement, and even affect the timely and high-quality completion of supply activities due to the contradiction between the supplier departments. In addition, whether the supplier's senior managers regard the purchasing unit as the main customer is also an important factor affecting the supply quality. Otherwise, when faced with some emergencies, they will not be given priority.
(9) the geographical location of the supplier
Geography is a direct factor in the cost of procurement. The location of the supplier has an impact on delivery times, transportation costs, response times for urgent orders and expedited services. In addition, from the perspective of supply chain and zero inventory, under the same conditions, should try to choose a closer supplier.
(10) after-sales service
After-sales service is the continuation of the procurement work, is an important aspect to ensure the continuity of procurement. General after-sales service includes providing parts, technical consultation, maintenance and repair, technical lectures, training and other contents. If after-sales service is merely a form, then the selected suppliers can only cooperate and cooperate for a short time, and cannot become strategic partnership.