Study On The Parts Purchasing Management For FAW Car Co., Ltd.

Since 1958, China's first "Dong Feng" brand car was manufactured in FAW. FAW has developed from the earliest industry pioneer into one of largest domestic automobile enterprise group in China, with total assets of about 130 billion RMB, 118 thousand employees. As a wholly owned subsidiary by FAW , FAW car bear the" red flag" Brand Revitalization task, assuming the FAW Group independent brand rise task.It is also the leading enterprises in independent innovation of Chinese auto industry. However, as the world famous car manufactures have entered China, China's auto market is becoming increasingly fierce, FAW car also felt the great pressure, how to guarantee the FAW car product quality advantages and effectively control the purchase cost, improve procurement efficiency, enhance the market competition ability of the enterprise, have became the core with the development in recent years.In recent years, China's automobile production and sales are over 10 million. China has became the world's most active and the most competitive auto market. As the most important position of the supply chain, purchasing management decides the quality, cost and the company's benefit. Throughout the global auto market supply, the Japanese car company formed with Toyota as the representative of the"Pyramid"type of supplier relations. The United States formed a relatively independent"parallel"type of supply, while the European companies have both types of supply.FCC's purchasing department was settled up in 2004 and we have four main sections: Domestic office,Collaboration Technology section,Production purchasing section,General material purchasing section. According to TS16949 procedure requirements, we set up our own procurement processes. And with the development in recent years, we have gotten great progress and purchasing department has became the important department in FCC. But we still have many other problems, such as: supplier selection and evaluation is not uniform, the policy of procurement is not clear, the process cycle is too long, the ways of cost control is simple and the consciousness of supplier relationship management is weak.In order to improve the procurement efficiency, reduce purchasing cost, we must solve the problems mentioned above. With the FCC's management current situation, we should make some details for supplier selection and evaluation to help FCC choose the suitable supplier firstly. Secondly, we will apply the process reengineering knowledge to optimize the FCC's purchasing process. Then, as the most important work in purchasing work, FCC requires the establishment of platform cost, standard cost, and target cost three systems. All these will help FCC to control the cost reasonably and effectively. Finally, we should focus on supplier integration management and relationship management to enhance the cooperation relations between suppliers and FCC.