The Research On YQ Company Parts Procurement Cost Control

Under the background of economic globalization,opportunities and challenges coexist in Chinese automotive industry.After successfully joining the WTO,and with Chinese government gradually opening markets and lower tariffs,coupled with the Chinese having a lot of labor,these make international automobile giants have poured into the domestic market through a variety of ways to carve up China market share, such as a joint venture setting up factories and directly exports, etc. Competition in the automotive industry has evolved from the traditional product quality competition is price competition, forcing companies to take price cuts and other means to attract customers,Parts procurement costs accounted for the largest proportion of the total cost of the automobile manufacturing enterprises, whose share was up to 60%,and we can see that the level of cost of components has a great influence on the size of corporate profits,Therefore, the study on the control of parts procurement costs has practical significance. According to statistics in 2014 China Association of Automobile Manufacturers, the analysis results: Chinese independent car brands were sold 2,774,400 cars, sales of which fell by 17%,accounting for 22.4 percent of domestic car market share of China’s total, compared with a year earlier share down 5.6%.Holding the largest Chinese market share is German cars, accounting for 27% of total car sales; followed by Japanese cars and American cars, accounting for the amount of total car sales,respectively,17.5% and 16.5%;the Korean Series sedan and law cars accounted for 11% of car sales and 4.9% share respectively,Compared to last year, sales of imported brands of vehicles keeps on the rise, in which the US Department and Japanese kept low growth.Being a subsidiary of China First Automobile Group, YQ company is China’s first joint-stock car manufacturing company whose main business is the development, manufacture and sale of passenger cars and accessories,YQ FAW Group Corporation is one of the major development of own-brand passenger car business, so the company’s procurement costs for YQ control case study is of practical significance.This article revolving around the YQ company’s parts procurement cost control is divided into six parts: The first part describes the background, significance and current research topics,The second part is an overview of relevant theories, concepts including procurement costs and structure, the concept of purchasing cost control, procurement and cost control,The third part discusses the control status of the YQ company’s procurement costs, including purchase cost structure and procurement cost control methods,The fourth part points out YQ company purchasing cost control in many major problems existing,The fifth part mainly analysis the causes of the problems existing in YQ company purchasing cost control,Finally, we put forward corresponding improvement measures for the problems existing in YQ company purchasing cost control.By writing this article, I hope it can make YQ company strengthen management in the procurement aspects, take effective control of its procurement costs, so as to achieve lower costs and to increase profits for the purpose.