The Research Of Procurement Costs Control Of Shipbuilding Company

China is a big shipbuilding country. From January to August 2010, the number of completions, new orders, and order forms of the shipbuilding, has ranked first in the world. With the booming of shipbuilding, the margin profit rate of shipping industry is around 5%, while that of ship corollary equipment is at least 15% to 20%. The low margin profit is directly related to the high purchasing cost.This paper deeply analized the procurement costs structure and the current controling state of the shipbuiding company, and mainly focused on the purchasing cost control of ship fittings. The paper reviewed the basic theory of procurement cost control, especially that based on the supply chain. It summarized the current purchasing cost control state of the shipbuilding company, and the basic strategy of it. It is concerned that in order to control the purchasing cost, the object cost control system should be built first. The management of ship fitting purchasing assembly pallet should be established, so we can get profit from management.The procurement cost control of shipbuilding company should not be limited to the study of the basic thoery of purchasing, but to be considered in the whole supply chain. The paper gave a qualitative research on the usage of VMI in purchasing cost control of ship fittings, pointed out the elements shipbuilding company should think about if they wanted to choose VMI, and carried a SWOT analysis in shipbuilding and ship fitting companies. It also designed a structure to precaution risks, an information system based on internet, the specific process of purchasing ship fittings through VMI, and the assessment system and process of the carryout effect.Besides these, the choosing of supplier should also be concerned. The researcher designed a survey outline. Nineteen evaluating indicators about the suppliers were selected. Thinking about analytic hierarchy process and Delphi technique method, four main indicators about quality, price, delivery term, and after-sale service were chosen, to evaluate the suppliers. We choose deck machinery to test the four domestic and foreign suppliers , and at last chose the lowest-cost integrated supplier of procurement.