| Foreign trade,investment and consumption are always three carriage driving Chinese economic growth, especially after China entrys into WTO, foreign trade companies appeared everywhere such as bamboo shoots after a spring.and import and export trade volume increased year by year.That lets China become a trade power. However, in recent years, with the increasing of the RMB, the domestic labor costs and raw material costs continue to rise, the condition is changing now.Meantime,due to the impact of the economic crisis abroad, the market is downturn, and consumers fatigue.Customers started to be increasingly sensitive to price, Therefore, in order to keep the cost advantage,foreign trade companies began to pay attention to control cost more when they selected suppliers. However, lots of small foreign trade companies often only concerned about the price that suppliers quoted without paying attention to other elements of supplier. However, some elements of suppliers could bring about adverse effects to them.And the actual cost not only products rise, but that will cause the company’s reputation, even loss of customer and market risk.First of all,this paper analysised the current market environment, and it points out that the current small and medium enterprises including foreign trade company encountered difficulties, and then,it describes the developing process and the application with theory of cost control and supplier selection theory.Meantimes, the paper emphasises the connection and work for foreign trade company between the cost control and supplier selection.Finially, the paper list a example how RY company in China fail to select supplier selection case and causation.Through the case,we give some suggestion and help RY company to establish the selection of suppliers based on cost control.The main purpose of the paper want to help those small enterprises secpecially foreign trade companies to build a system of selecting suppliers based on cost for reference and inspiration. |
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