Study On Cost Management Model For Supply Chain Based On The Meager Profit Environment

Auto industry is always regarded as the leader to drive economies, and hence plays avery essential role all over the world. The supply chain management of auto industry is atypical supply chain organization structure mode. It is an organization which regardsvehicle manufacturing industry as the center of supply chain, the vehicle manufacturer andsupplier work together to develop new products for long period. Furthermore, based on theprofessional logistic function, the exchange of business processes and the function ofinformation sharing, it can achieve to make the members of the supply chain to receive theinformation as well as to respond timely and hence to satisfy the customers’ requirements.Currently, in auto industry, the main body and central part cost that the enterprisesdesire to control is the procurement cost about80%of the total cost in procurement.Therefore, the procurement cost influents the production price and the profit. A goodperformance of procurement would improve the profit and the value of the whole industry,and is favorable to the industry to get superiority during competition. In manufacturingenterprise, such as auto industry, the procurement is divided into two categories. One isproduction procurement, namely parts purchase, which is relative to the purchase of carparts. The other one is indirect purchasing, namely non-part purchase, which is relative toother items procurement except vehicle parts purchase. Therefore, the content of the themeis about the indirect purchasing, which is combined with methods of direct purchasing,such as rebuild structure, classification of materials, supplier management and contractmanagement to rebuild its processes.New process will abandon the unreasonable parts, introducing new theory and basedon practical situation to generate new procurement processes and hence to promote morerapidly development as well as competition.