Management Of GT Automotive Co., Ltd. Procurement Costs

China’s auto demand is rapidly growing, Which provides a rare opportunity for development of China’s automobile manufacturing enterprise,such as GT Automobile Co. Ltd., the important way to raise the level of competition of China’s automobile enterprises is improvedment level of procurement cost management to reducing procurement costs.Analysis through the establishment of models and charts, found the GT Automotive Co., Ltd., there are a lot of problems in terms of cost management. The lack of understanding of the procurement department to reduce procurement costs, financial sector, did not reduce the cost of procurement of enthusiasm; the GT Automotive Co., Ltd. procurement cost management philosophy that procurement cost management is the things of the purchasing department, and focus only on the purchase of all aspects of cost, procurement cost management cost management and other departments in isolation; GT automobile Co., Ltd. procurement cost management within the enterprise-oriented, not actively seeking to reduce the cost of the entire supply chain from the point of view of the entire supply chain to consider. GT Automobile Co., Ltd. only see one aspect of the procurement costs, and therefore can not reasonably determine the purchasing bulk; unscientific method of procurement cost management, locality management, rather than a global management; consider the cost from the supply-side management is plus target profit on the basis of the cost to develop the sales price, the product can not fail to be recognized by the market; oriented enterprise internal management, not active use of external resources to seek ways to reduce procurement costs. The supplier management unscientific, can not reasonably determine the number of suppliers. No scientific analysis of the material should be purchasing or production.Target costing can effectively help the auto companies to improve procurement and cost management, through the establishment of model and chart analysis to explore the path of GT Motors Limited use of target costing implementation of improved cost management, and use of the data analysis of the company’s specific application. Finally, the summary of the full text, the prospect for future research.