Parts Purchasing Process Optimization For BMW Brilliance Automotive Co.,Ltd.

There is more and more competition in the market nowadays, which includes not only market sharing, but also sales volume etc. in industries; so enterprise focus more and more on the cost. So purchasing, as one of the most important points in Modern en-terprise management as well as in supply chain, gets more and more attention from en-terprises and enterprisers. And it is not an easy issue on how to reduce the purchasing cost only by reducing the cost or labor. According to available statistics, in the content of cost in manufacturing industry globally, the cost of the purchased raw materials and components have covered56%-88%of the sales turnovers of the enterprises, if the pur-chasing cost can be decreased6%-12%, the profit will be increased by6%-11%, and the total material cost and direct labor cost could be decreased to4:1from3:1in mid of1990’s. Therefore, there will be more purchasing business in manufacturing industry un-der the more and more competitions as well as the increased of manufacturing technolo-gies, while whose cost is inevitable to increase. But there is the respectable potential to increase the profit if the enterprise can optimize the purchasing process. Nowadays, it is not common understanding that purchasing is only the business scope for taking material or only providing raw material for manufacturing department, it is the key point for en-terprise to catch the core competitive strength by challenging the traditional management function, emphasizing process management as well as improving purchasing process op-timization for enterprises.The BMW cars produced by BMW Brilliance Automotive Co., Ltd.(abbr."BBA") successfully achieved the target, Local Content Rate40%, which is government required. It has not only led the development for vehicle enterprises with high brand in China, but also provided new opportunities and challenges for parts suppliers. Especially the project for2nd plant for BBA which was setup in the year of2010, it not only increased the cur-rent production capacity, but also the capacity for more new vehicle variant, especially as well as the development for parts/components suppliers and its setting up plants and expanding plants in China. Therefore, according to its own trait, by learning the experi-ence from headquarter BMW AG, BMW Brilliance should, on the basis of the mainte- nance and continuous improvement for suppliers’ product quality, compete for the best benefit for his own by reducing the cost in steps.The article analysis the current business process and actual cases for parts purchas-ing according to purchasing theory as well as the actual business status in this department of BMW Brilliance Automotive Co., Ltd., points out its problems. It provides the pro-posal for optimizing the management process for parts purchasing with reference to the current worldwide entertainment and actual business status, set up operative and stan-dardized purchasing process, and make it implemented effectively in order to archive the best benefit and the final target, which is to strengthen the core competition for enter-prise.