Purchase Cost Management Research Based On TCO

The quality of the purchase cost management relates the product mass and the cost of enterprise. Along with the social division of labor further thin, the enterprise management incline to be specialized and cooperative, the proportion of purchase cost assumes the rise tendency and its status will be more and more important. From the angle of the total cost of ownership, it regards the supplier and the purchase enterprise as one benefit whole, request supply chain each enterprise considers all activities which the cost occurs in the purchase process, analyzes the purchase flow and the activity cost in purchase process. it's not only considers the purchase price, the cartage expense, the storage cost and so on, but also consider the recessive cost after purchasing, in order to seek the way which can reduces the total cost of ownership.In this paper, the purchase cost management applies the TCO concept, the purchase flow and the supply chain cost management theories to analyze the compose and the influence factors of the total cost of ownership, in order to overcome the disadvantageous factor, adopts the essential measure to reducing purchase cost and enable the enterprise's purchase the cost minimum. In the research process, this paper carried on the exploration and the innovation in many aspects and proposed the entire process cost control of the purchase cost management, from product design purchase cost to purchase recessive cost management. This paper analyzes the purchase cost from the brand-new angle of view. It analyzed the influence factors in purchases cost forming process and provided the basis for the purchase cost control. This paper proposes venture eluding measures which suit for our country enterprise characteristic in purchase cost control process. This paper attempts to establish mathematical model of the total cost of ownership to quantify purchase cost management, providing the rational basis for the purchase cost management decision. This paper discusses how to realize the total cost of ownership minimum, emphatically carried on discussion from the purchase mechanism, the purchase cost control content and the time.Purchase cost management in the supply chain environment achieves optimize process dynamically. On the request of satisfying the customer service, the enterprise and the important suppliers establish the strategic partner relationship, enterprise makes every effort to minimize the total cost of ownership by cooperation, enhances overall benefit process of the enterprise product and operation.