Transportation Cost Control For Purchase Logistics In Automobile Part Production Industry

China auto industry had opened to the world after being a part of WTO. Many famous vehicle manufactures and spare part suppliers have entered China. The automobile part production industry achieved rapid growth, but at the same time, the competition is getting more drastic. In this competition, the cost control and technology innovation will be the critical points to the success. To a great extent, the cost control determines the company's competitiveness. Now, to strength the predominance, manufacturers have changed their priorities from resource saving and labor productivity improvement to high efficiency logistics system. In China auto industry, the logistic cost has taken up over 10% of all the cost and it has direct influence on the profit and competitiveness. How to control and lower the logistic cost effectively will be a difficult task for manufacturers.In this thesis, the technical knowledge and practical solutions of purchase logistics have been expatiated systemically. The aim is to have a study on the methods and strategies of transportation cost control, which takes the highest proportion of purchase logistics. We may cooperate with 3rd party logistic provider to get the least total cost, most profit and optimize supply chain. This thesis use correlation analysis, then focus on how to control the transportation cost according to target costing.Firstly, the thesis introduce the background, objective for this research project and the theory of logistic cost; expatiate purchase logistics basic mode and indicate the current problem for automobile part production industry; design transportation system for automobile industry base on transportation theory. Then owing to the tendency of introducing 3PL suppliers in auto supply chain,the thesis constructs evaluating system for the third party logistic service provider and introduce the method for cost management.Finally, take one of automobile part company for example, considering the transportation flow of material import from North American, the thesis analyze the correlation for purchase volume and transportation cost, focus on how to control the transportation cost according to target costing.