The annual raw and auxiliary procurement capital required for Shanxi's production is as high as 280 million yuan. It is an arduous task for Shan Oak to reduce material purchase costs and increase economic efficiency under the premise of guaranteeing normal production. To this end, Shan Oak has put forward the goal of benefiting raw materials management in order to achieve the goal of responding to market competition, alleviating liquidity constraints, and striving for maximum efficiency. They take a step-by-step approach and gradually increase the raw material procurement management.
First of all, they implement a monthly review system for raw material procurement plans. The supply department proposes a plan, and the comprehensive management department reviews the price, inventory, production needs, etc. to prevent the purchase backlog. Through this measure, the average monthly reduction this year is 600,000 yuan.
Second, a monetized management system was implemented for 76 kinds of consumables. The actual consumption of consumables used by each unit should be converted into cash according to the quantity of materials, and all units should control themselves, which reduced the use of materials by the employing unit and greatly reduced the total amount of original consumables by 50%.
Third, implement procurement bidding for materials. This year, the company plans to take out nearly 20 kinds of bulk raw materials with mature conditions for bidding. At the end of February, 5 kinds of materials were tendered. The bid prices were all lower than the current prices, and the procurement funds were reduced by 199.2 thousand yuan. At present, the bidding work for the other 5 kinds of bulk raw materials is under preparation.
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