BM Company Purchasing Cost Control Research

With the global economic integration, China’s manufacturing systems are being rapidly integrated into the global production system and the competition in automobile manufacturing industry also will be more and more intense. BM company is a joint venture in China, although there are still some technical and brand advantages, the gap from local companies is getting smaller and smaller, due to local Chinese companies to catch up. And now BM company is suffering a greater challenge.In the costs in the enterprise, the largest proportion cost is purchasing costs, so the control and management of purchasing cost is very importance to the company’s competitiveness. Has been established for many years in China as a foreign auto parts company, BM company do someting in the fierce competitive environment to seek development, we need to modernize the business management concepts and methods to reduce costs, enhance competitive.After investigation and research, we find BM company has been established in China for many years, but because of its stock right changed several times before2010, there are still many problems in its procurement cost control and management, this weaken the company’s competitiveness.To solve this problem, this thesis show some analyzes for these issues. And apply various theories relating to costs, such as supplier management theory, TCO-total cost of ownership theory, value chain theory to analyze a variety of problems, and propose solutions. Meanwhile the use of various tools, such as the ABC classification and AHP, make a more scientific and workable solution.