PROPOSAL OF

PURCHASING COST
CONTROL MEASURE

ISSUE

Improper plan on
purchase raw
material

SYNOPSIS
Improper plan on purchase raw
material
Currently in Purchasing Department we
facing an issue on premix order. This
issue occur because of unplanned or
improper schedule from marketing on
their daily or future planning order.

SYNOPSIS- cont.
Unplanned order will affect us on
getting raw material on time and
also will cause highly price because
of time constraint. This is also will
affect production to schedule their
time and will increase on overtime
cost and time wasting.

SYNOPSIS- cont.
Canceled order last minute from
internal group company also
cause production cost,
transportation chargers and also
supplier expectation.

OBJECTIVE
To propose to Marketing Department to
forecast their daily sales and future
sales.
To schedule material order to suit with
marketing forecast for getting best
prices.
To minimize time wasting and managing
cost effectiveness.

PROPOSAL
Dealing with marketing personnel
to come out with proper plan on
forecasting market demand.
The production team also need to
submit closing report on the raw
material usage to Purchasing
department for us to forecast next
purchase raw material.
Purchasing Department will
supporting on purchase raw

RECOMMEDATION/
SUMMARY
.
We hope management will
understand this issue and also will
recommend our action plan to
minimize uncertainty cost.
We also hope that this process will
maximize our profit based on our
planning activities and cost
effectiveness also will be rewarded
to staff to adopt cost saving
behaviour.