JD Company Parts Cost Management Research

JD is a foreign enterprises in Ningbo,the production is 30 to 75 HP tractor,in order to study how to reduce procurement costs,JD has been working on it for long time,until 2015,introducing the theory of life cycle cost management.JD company life cycle cost mainly includes the purchasing cost,storage cost,quality,three series parts cost.Also according to the engineering change,we divided them into three categories,named New parts,Production parts and Changed parts,analyzing the cost point.New parts,new parts relies on this kind of parts with the first purchase cost management,three or more than three suppliers comparison,focus on new parts procurement costs and warehousing costs,by applying the comprehensive comparison table of the life cycle cost comparison in 2015,reduce procurement costs by 5%,to use supplier price comparison table in 2014;purchasing lead time reduced from 21 days to 15 days,all new parts,a total of 2015 save storage costs rmb100,000.00 yuan.Mass production parts,mass production parts are no change more than one year,the cost of these parts had a great influence on the cost of the whole machine,involving the whole of life cycle cost,namely the purchase cost,storage cost,quality cost,and their initial purchase cost.VMI inventory management methods are adopted to decrease the storage cost;Structural price negotiation,small assembly outsourcing manufacturing mode,delay the supplier payment time,etc.,to reduce procurement cost,including saving procurement costs more than 1200,that meet the cost reduction target it is 2%Changed parts,it changed base on original production parts,this parts mainly focus on the procurement cost and quality cost,it is very important to strictly control the cost of change parts.Engineering change happened,will add inspection cost,inspection cost on average increased by 1.42 yuan a part of each batch,but it is hard to estimate the internal loss cost,need quality team and sourcing team to do a lot of prevention work,reducing the lower external loss and internal loss.All,parts of the life cycle cost is the core content of JD Company spare parts cost management,different category parts management focus on different part of life cycle cost,this is the reason we manage all the parts by different category.