Research On Cost Control Of Auto Parts Purchasing Based On TCO Model

Procurement activities are the most important part of the daily management activities of enterprises,providing enterprises with various materials needed for production and operation.With the continuous development of economic globalization and information technology,many internationally renowned automobile enterprises have invested and built factories in China.The era of perfect competition and low profit has come,and the competition faced by the automobile manufacturing industry has become increasingly fierce.Fierce competition in the vehicle market has been squeezing the profit margins of the auto industry.In order to survive and develop continuously and occupy a place in the market competition,the automobile manufacturing industry needs to strengthen its cost control in addition to mastering more core production technologies.According to statistics,the purchase cost accounts for about 75% of the product cost of the automobile manufacturing industry,and the purchase cost of spare parts accounts for about 70% of the purchase cost of the automobile manufacturing industry.Therefore,from this perspective,the control and management of parts procurement cost is the key to improve the market competitiveness of automobile manufacturing enterprises.On the basis of the above background,this paper chooses B company as the research object,through the analysis of the current situation of B company's automobile parts procurement cost,discusses how to control the parts procurement cost efficiently.Based on the theory of purchasing cost control,the theory of purchasing cost of automobile parts and components and TCO theory,this paper decomposes the total purchasing cost of parts and components of B automobile manufacturing enterprise into explicit cost and implicit cost.It focuses on the analysis of the status quo of parts and components purchasing of B company,andoptimizes the problems and shortcomings existing in the control of purchasing cost of automobile parts and components of B company at the present stage.Business management,the establishment of parts TCO cost analysis mathematical model suitable for B automobile company's parts procurement,combined with the historical procurement data of B company,the TCO cost of each supplier can be calculated through one-way regression analysis,real-time monitoring and help enterprises to select the best supplier;for explicit cost,through the establishment of raw material basic cost model,the key raw materials are carried out.Front-end Market Research reduces the unit price of spare parts purchasing,concentrates overseas suppliers' delivery and carries out local self-contained model to reduce logistics transportation costs;in view of hidden costs,through strict sorting out the procurement process,checking the quality of spare parts,making procurement plans to control procurement management costs,quality defects costs and quality inspection costs.The research in this paper can promote B company to control the procurement cost.At the same time for other manufacturing enterprises procurement cost control optimization play a reference role.