Research On FAW-Volkswagen Spare Parts Purchasing Cost Control

The author starts the analysis from the present competitive environment of Chinese automobile market. Now the domestic automobile market is crowded with various cars, such severe competition forces all OEMS to keep its marketing share by depreciation, which directly resulting in a bigger pressure on the inner purchasing department of OEMS. Accompanying such pressure from inside, the outside raw material price is keeping increase. The continuous rise of ironstone has aroused an obvious markup of the steel. As a steel animal, the car's profit is squeezed badly by the increasing parts cost. So the big issue for the purchasing department of OEM is how to lead a reasonable reduction of purchased parts under the double stress from both internal and external.As a professional purchaser of automobile parts, the author suggests that an effective purchasing strategy in automobile enterprise should be applied to confront the present violent price competition. With the theory base from the study and research of the basic concept of purchase cost control, the influence factor of purchase cost, the common methods of purchase cost reduction, and the significance to control purchase cost risk, the author make a comprehensive survey of international parts purchase development history and automobile enterprise and its suppliers evolvement history. By the comparison and investigation of the purchase cost control mode in the developed countries, combined with actual working experience, the author analyzes the existing FAW-VW purchase cost control in term of various automobile parts.Aiming at the actual FAW-VW purchase working flow, control mode and the relationship between purchaser and supplier, the author points out the problems, its improving countermeasures and put forward the following standpoints: enhance Self-cultivation, foster an open, equal and justice purchase environment, establish harmonious supplier system, build core supplier, constitute corresponding cost control measures according to different type of products,The author wishes this paper has a practical significance in reducing FAW-VW purchase cost, building right relationship with supplier, increasing the economic efficiency of enterprises, promoting a quick and flexible adaptation to the severe market competition.