Research On Optimization Of Company T’s Hand Tool Procurement Cost From Overseas Suppliers

Since the beginning of the trade war between China and US in March,2018,the United States has imposed large-scale tariffs on goods imported from China.In addition,the appreciation of the RMB and the rapid rise of labor and raw material cost have put great pressure on manufacturing enterprises due to the increase in export costs.The cost advantages of Vietnam,India and other Southeast Asian countries are gradually emerging.In order not to stall in the competition,Chinese manufacturing enterprises relying on the U.S.market began to develop overseas suppliers and purchase finished products and parts.Regarding cost control,it is self-evident for enterprises about the importance especially for the procurement cost control.T company hand tools overseas supplier procurement cost management is regarded as the research object,aiming at the overspending problem of purchasing cost,per questionnaire survey and interview,which finds out the key factors influencing the product purchasing cost in project management,and puts forward solutions from the aspects of price cost analysis,procurement strategy and supplier selection.At the same time,according to the theory of total cost of ownership analysis method,for the lack of total cost of ownership concept in purchasing cost management,this paper puts forward the strategy of optimizing purchasing cost based on total cost of ownership;According to the theory of target cost method and product standardization method,aiming at the problem that T company has not solved the contradiction between product design demand and cost,puts forward the cost optimization strategy of integrating product with standardization method;According to the ABC classification theory,aiming at the problems of T company’s lack of systematic cost management and unclear supplier management strategy,this paper puts forward the strategy of using ABC classification and optimizing cost based on strategic procurement.Through the implementation and optimization of the above scheme,the total procurement cost of T company is directly reduced by 3% compared with last year,the average cycle of new product development is advanced from the original 12 months to less than 11 months,the tooling development and maintenance costs are also reduced by 8%,the quality and reliability of products are also strengthened,and the competitiveness of products is greatly improved.The research conclusion has certain theoretical significance and practical reference value for Chinese hand tool manufacturing foreign-funded enterprises relying on the U.S.market to expand overseas production and procurement.