With the increasingly fierce competition in the cross-border market, refined cost control is particularly important. According to relevant statistics, in the cost composition of cross-border enterprises, the procurement cost is generally greater than 60%. Do a good job in purchasing management and reduce purchasing costs, which can directly become the profit of the seller.

Among them, procurement reports play an important role in supporting procurement decisions, daily commodity price management, reconciliation between the procurement department and suppliers at the end of the month, and financial accounting costs.

How to find clues in the purchase report to improve the seller's profit?

Composition and Analysis of Purchase Reports

The composition of the purchase report

It is said that it is not difficult to make a table, but the difficulty is to make the data clear at a glance. The basic work flow of a buyer is relatively many links, the link is long, and the reports involved are naturally many.

It includes making purchase plans, inquiries, making purchase orders and contracts, tracking goods receipt, quality inspection, and warehousing settlement. According to the procurement process, it roughly includes the following reports:

(1) Purchase schedule

(2) Procurement budget sheet

(3) Supplier management table

(4) Procurement schedule

(5) Purchase order details

(6) Purchase order analysis table

Summarize all the content involved in the above process into one form, you can get the purchase report. It needs to be explained in advance that, whether a report is reliable or not, there are two basic principles: reliable data sources and uniform calculation methods.

Analysis of Purchase Reports

Strictly speaking, a table listing various information is just a data-carrying tool. What really matters is the analysis of this table. Which dimensions should you focus on so that you can quickly get the results you want? Focus on the following dimensions:

(1) Procurement cost analysis

Some of the costs incurred by purchasing activities are visible, that is, costs that can be directly derived from purchasing statements and financial statements; some are invisible, that is, difficult to analyze or easy to ignore, and these ignored costs Extracted from the following dimensions:

①Purchasing cycle

Generally speaking, the unit price of materials purchased by enterprises is inversely proportional to the quantity, that is, the more quantity, the lower the purchase price. In reality, it is impossible for an enterprise to purchase too many materials at one time, because although this saves a part of the purchase cost, the cost of the backlog of inventory and the occupation of the funds used by the enterprise for development is far more than the cost saved.

Enterprises need to analyze whether the procurement cycle will affect the stocking from the time of each procurement based on the sales situation and inventory situation.

②Delivery time and payment time

The length of the supplier's delivery time will directly affect the increase in procurement costs. If the delivery date is ahead of schedule, the inventory is hoarded and the space is insufficient, resulting in an increase in inventory costs. If the delivery is delayed, it will lead to a delay in the delivery of the finished product, which will affect the quality inspection, transportation, and even sales in the later stage, and there will be cases where buyers on the Amazon platform have placed orders but have not received the goods.

The delivery date determines the payment period, and the supplier's early delivery may also lead to the advance of the account period, and the company has to spend a lot of cash, which affects the liquidity turnover rate. Enterprises should reasonably control the delivery period and payment period to improve the capital turnover rate.

③Sales situation

For a certain period of time, focus on the annual purchase amount, monthly purchase amount, and the proportion of material purchase amount, and then combine with the sales profit to find out which products have high purchase prices and few orders, and which products have low purchase prices, but bring high profit. Sort and sort and adjust purchasing strategies.

(2) Supplier analysis

It is not difficult to find a supplier, but it is difficult to find the right supplier and do the matching business. Enterprises should pay attention to the following elements when conducting performance appraisal of suppliers:

①Quality

Quality is the most basic element of supplier assessment, focusing on the yield rate, defective rate and return rate of products. For example, the quality is judged according to the return rate within a certain period of time (such as one month, one quarter, half a year, one year). For example, in the first half of the year, a supplier has delivered 50 batches and decided to return 3 batches, and the return rate is 3÷50×100%=6%, the higher the return rate, the worse the quality of this supplier may be.

②Aging

Timeliness is a factor related to the supplier's delivery performance and its planning and management level, focusing on on-time delivery rate, order change acceptance rate, and delivery cycle. Among them, the order change acceptance rate examines the flexibility of the supplier's production capacity, production planning and response speed.

③Cost

The cost core mainly focuses on the purchase price. Compare the purchase price with the market conditions, such as the lowest price, highest price, average price, and self-assessment of similar materials in the market, and then calculate a relatively standard and reasonable price. Or make judgments based on the supplier's actual cost structure and profit margin.

The purpose of supplier performance management is to survive the fittest. Enterprises need to know who are high-quality suppliers through quantitative methods, and screen out the most suitable suppliers.

(3) Analysis of buyers

By periodically summarizing the core indicators of the purchaser's procurement work, looking at the historical price trend of the purchase, analyzing the bargaining power of the purchaser and the completion rate of the purchaser's work. Or combine workload/work quality assessment indicators to help managers quantify indicators. Specifically look at the following indicators:

①Workload consideration indicators

Purchase volume, arrival volume, pending arrival volume, good product volume, defective product volume, return volume, order amount, arrival amount, pending arrival amount, etc.

② work quality indicators

Work quality assessment indicators: defective rate, sampling defective rate, return rate, overdue purchase volume, overdue rate, average overdue time, etc.

Efficient Procurement Management Solutions

Although the procurement report is good, there are many difficulties in manual production and analysis:

(1) The efficiency of manual table making is low, and it is difficult to track combined commodities

When the number of purchasing SKUs is too large, manual table preparation is inefficient and prone to errors; when the combined products are separated and multiple suppliers are connected, the real-time purchasing situation cannot be tracked and synchronized.

Leadstar ERP solution: tracking management of the entire procurement process, real-time synchronization of information

Linkstar ERP purchase report, one table contains purchase order execution status, details and other information, supports custom setting of time span, filter and view product dimension information, including purchase quantity, purchase amount, purchase quality, and can be selected from products, suppliers, purchases Statistics are grouped by dimensions such as members.

Through the Lingxing ERP procurement report, the relevant personnel can quickly understand the procurement progress of the commodity, analyze the procurement status of the commodity graphically, and provide data support for adjusting the procurement strategy.

(2) There are many dimensions of supplier assessment, and it is difficult to control costs and expenses

In the face of multi-supplier supply, there are mixed situations. For supplier assessment, manual procurement reports cannot synchronize supplier data in a timely manner, and therefore cannot quantify supplier service quality, such as arrival quantity, defective product quantity, arrival time, and overdue time. If things go on like this, the loss caused by defective products is a considerable expense.

Leadstar ERP solution: refined management of suppliers, accurate and efficient financial reconciliation

Leadstar ERP purchase report integrates the supplier's arrival, quality inspection, timeliness and other indicators into one table, and dynamically controls the supply situation throughout the process.

Support to check the supplier's purchase quantity, arrival quantity, defective product rate, return rate, overdue rate, overdue time and other data at the time of ordering/arrival time. business, screening high-quality partners.

In addition, in the process of financial and procurement reconciliation, the amount and quantity are inconsistent, the settled and unsettled documents are confused, and the traceability problem needs to check all the procurement documents, which leads to huge communication costs, which can also be solved in the lingxing ERP.

Leadstar ERP purchase report tracks the purchase, arrival, and return of each purchase. Through one-time data entry, subsequent processes are automatically synchronized, which simplifies repetitive work, helps finance quick reconciliation, and improves overall work efficiency.

(3) The work of buyers is difficult to quantify and management is difficult

Regardless of whether it is an operation or a procurement specialist, the manager cannot comprehensively evaluate the overdue situation of the buyer, the rise and fall of the purchase unit price, and the quality control of the product.

Leading Star ERP Solution: Quantitative Buyer Evaluation, Rewards and Punishments

Leadstar ERP purchase report helps sellers quickly and comprehensively quantify the work performance of buyers through data cross-analysis, reward the good and punish the bad in a targeted manner, and fully mobilize the enthusiasm for purchasing.

By analyzing the purchase report, not only can you learn more about the company's purchase amount, product details, etc., and provide data support for decision-making such as purchase plans and product pricing; it can also help companies determine which suppliers have better quality, find excellent partners, and achieve cross-border Profit growth in the overseas business.