Editor's note:
* The establishment and application of the model is a means of cost analysis, and it is also a powerful tool to improve the control of procurement. According to the procurement characteristics of communication operators, combined with the category division ideas of daily, leverage, bottleneck and strategic products, this paper digs deep into the best data resources, and establishes different TPSM (target building models) through the comprehensive evaluation of the five best elements, which greatly improves the applicability and procurement efficiency of the purchased products. The resulting product category model library also assists the demand and purchasing departments in their cost accounting.
According to the whole life cycle (TCO) theory, the procurement cost accounts for a large proportion of the company's total production cost, excluding front-end support, back-end maintenance and other expenses, the procurement cost can account for about 90%. Therefore, how to achieve high-quality and high-price procurement is a key issue faced by enterprise operations, if the product materials or equipment can not be obtained in a reasonable way, it will directly affect the company's operation, if the purchase is too high, the product cost is higher, affecting the company's overall profits.
At present, the communication industry product cost analysis still lacks a standardized implementation model, and the personnel of various departments do not have a unified and standardized measurement scale for cost budgeting and procurement, so how to establish a target price setting model (TPSM) before purchasing or finally signing a contract according to the characteristics of different product categories to provide a reasonable determination Finding the optimal source and grasping the market trend is the key problem that needs to be solved urgently. This paper establishes different TPSMs based on category strategies to help companies reduce costs and increase efficiency.
one
Product category classification criteria
Based on the Peter Karajic matrix model, based on the classification of purchased product materials, the matrix model of the relationship between the purchased product category and the first product is established from the two dimensions of profit impact and risk, and the analysis is as follows.
For non-critical or routine products, such as commonly used office supplies, the focus should be on keeping routine maintenance work low to reduce procurement costs.
For leveraged products (such as optical cables, anti-corrosion wooden poles, etc.), it is purely transaction-based, and the buyer's voice in the market can be used to ensure the best quality and terms, so as to meet the business needs of the organization for cost and management.
For bottleneck products (e.g., specialized accessories or highly specialized consulting services, which can lead to operational delays if not obtained in a timely manner), the main business need is to control short-term sustainability and safety. Maintain a certain relationship with the best businessmen, and appropriately increase inventory to avoid sudden shortages.
For strategic products (such as 5G base stations, storage equipment, high-end servers, etc.), a long-term, win-win strategic cooperative relationship can be formed with the best business partners to meet a more complex series of business needs (such as forming strategic alliances, controlling life cycle costs and value, ensuring long-term supply security and competitiveness, etc.).
II. II. II
Product** Comparison Dimension
Establish TPSM as an effective tool to guide procurement negotiations and verify that the ultimate** is justified. TPSM contains five elements, namely:
History**: Purchases of the same materials in the past** or purchases of similar subject matter**.
Friends**: Purchases from other operators**.
Response: Preliminary quotient, which is a necessary basis for TPSM.
Market**: Through RPA automatic crawler technology, the market that can be found on the Internet can obtain the *** of bulk raw materials or small goods**.
Cost**: Estimate the cost of raw materials, man-hours, overheads, profit margins, etc. through the full life cycle (TCO) cost analysis method.
Three
How data is obtained
1 Big data sharing (system embedded) acquisition history**
Collect the history of various product procurement under the four categories of the industry and the company in recent years, and gather it into a big data sharing information platform.
2 RPA automatic crawling to obtain competitors and markets**
Friends and the market, through Jingdong, etc., in the early stage, the follow-up needs to use RPA automatic crawling technology, focusing on 10 20 **bidding and bidding on the bidding information to obtain the situation, change the traditional query channel imperfect situation.
3. TCO analysis acquisition cost**
In order to understand the cost of the purchased products, but not to invest too much effort in analysis, this achievement focuses on the cost analysis of the first part of the TCO, and the later warranty, maintenance, depreciation and other expenses are not considered. It mainly analyzes the direct materials, direct labor, manufacturing expenses and sales expenses (GS&a) that constitute the main business cost (COGS), plus the pre-tax profit from its sales, and roughly calculates its cost**, which is calculated in Table 1 for specific calculation methods.
Four
TPSM weight allocation principle
Communication enterprises belong to the oligopoly competition market, so the five dimensions of the ** have more practical reference value, the weight of this paper is set as follows.
Starting weights: Historical, Friends, Response, Market, Cost** weights are all set to 20%.
Adjust the weight: According to the product characteristics of the Karajake classification, the weight is not given to the ** dimension that does not affect or has little impact, and its own 20% weight is averaged to other ** dimensions.
Five
Establishment of TPSM
By assigning reasonable weights, the target ** is calculated. Then set the challenge based on the past performance of the quotient. The better the business performs in the past, the closer the challenge** will be to the goal**;The worse the performance, the lower the challenge**. The goal is regarded as the highest reasonable, and the challenge is the least reasonable, and the final negotiated agreement is considered reasonable if it is between the goal and the challenge.
The use of TPSM should be based on product categories, not uniformity, and different goals should be set according to product characteristics**. The following is an example of the telecom operator industry.
1 Everyday products
As an operator, most of the daily products belong to general products, such as office supplies, bottled water, flowers, etc. This category of products is characterized by abundant supply, easy procurement, low financial impact, and standardized product quality. This is a balance of power between buyers and sellers, and there is less interdependence. The establishment of the goal is mainly to focus on the history, response, and marketSince daily necessities are not special products for communication operators, and most of them are simple, standardized products, and the transparency of profits is high, the establishment of TPSM does not need to consider the cost of competitors.
For daily office supplies, the greatest impact is the level of market supply and demand, the market should be used as the main reference standard, and our company's current procurement for the scale of centralized procurement, history and response should be used as the other two reference standards, the weight is 333%。Based on this, the TPSM of daily products is composed of history, response, and market, as shown in Table 2.
2. Leveraged products
The characteristics of leveraged products are mainly procurement items that can bring higher profits to buyers due to the large number of suppliers to choose from. Products such as optical cables, anti-corrosion wooden poles, transmission pipeline construction and other products in operators are leveraged products, and it is easier for such products to replace the first supplier, and the buyer takes the initiative and is generally interdependent. Therefore, the establishment of TPSM should focus on its cost, use full competition to maximize the benefits of our company's procurement, and should also focus on friends, history, and responseThe market does not need to be considered, mainly because as an operator industry, the application field of the product is narrow, and the procurement of friends can basically replace the market, and the scale effect of other markets is not as large as that of the operator's purchase, and it is often too high.
Based on this, the TPSM establishment focus of leveraged products should be set to 25% of the cost, history, competitors, and responses, and the response of these four types of targets should be set to establish a model, as shown in Table 3.
3. Bottleneck products
Bottleneck products refer to the purchased products that can only be provided by a specific ** business, which are inconvenient to transport, but have a low impact on the normal operation of the company's production. The position of the buyer and the seller is the seller's initiative, and the interdependence is general. This kind of product is the most common in the operator industry, such as customer single designation, customer expansion development, specific technical training services and other products.
Combined with the characteristics of bottleneck products, due to the fact that there are fewer vendors to choose from, the reference should be more historical, market, such as a single software expansion development, and the focus should be compared with the daily unit price of developers in the marketProperty security should be compared to the local labor costs of other property security in the market;At the same time, this kind of product should focus on history, and the response should be referred to as little as possible, and the leading nature of such products is strong, and the reference significance is not great.
Therefore, the TPSM establishment of bottleneck products should focus on market, history, and cost, with a weight of 333%, and the competitors** and responses** do not need to be referenced, as shown in Table 4.
4. Strategic products
A strategic product is a procurement item that is critical to a buyer's product or production process. These products tend to be at high risk due to scarcity of supply or transportation difficulties. The value ratio of strategic projects is high, the product requirements are high, and at the same time, it can only rely on individual merchants or it is difficult to ensure it. For example, Huawei, ZTE, Ericsson, Nokia and other 5G base stations with a high degree of dependence on our company;Inspur, Huawei, Fiberhome and other high-end server equipment.
Due to the strong technical nature of strategic products, strong interdependence with operators, and also the focus of the products purchased by friends, the focus should be on history, friends, and costsBecause the application of this product is narrow, it is mainly used in the operator industry, and the friends can basically represent the market, and because of the high dependence and cyclical procurement products, the reference of the response is not as good as the history.
For strategic products, the main consideration is to set history, friends, and costs, with a weight of 333%。Table 5 shows an example of TPSM, a strategic product jointly built by these three types.
Six
Summary
The establishment of TPSM provides a standardized way to determine the reasonableness - select products by category, input the data of related products, and form goals, challenges, and reasonableness. The model can be used to put the first rationality analysis work in advance, realize the first determination of a certain category of products, and measure the quality of procurement.
It should be noted that TPSM in different industries needs to be re-determined according to the characteristics of the industry, and the establishment of its goals should be supported based on in-depth data mining.
Author Affilications:Ye Lujun, Wei Aman, China Mobile Communications Group Shandong Fu Lihai, China Mobile Communications Group Design Institute Shandong Branch.
Article**: Bidding and Procurement Management.
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