The Research Of MRO Procurement Cost Control Optimization Of Faiveley

China rail transportation industry develop rapidly recently, but the competition is also fiercely accordingly. Local manufacturers grab the market from joint venture companies due to their cost advantage. If joint venture companies still just focus on production and sales, it will be very hard to improve more profit margin and provide more attractive prices to customers to regain the initiative in the competition. From my point of view, they must find a breakthrough in the procurement cost control in order to help them improve profit margin again and win back the market.Compared with the production parts procurement, many companies look down on the MRO(Maintenance, Repair and Operations) procurement since the lower volume. However, due to the space of production parts procurement cost control become smaller, MRO cost control gain more attention from these companies. Since most of the MRO suppliers are small-scales and cannot provide manifold products, many companies begin to develop the MRO Integrated suppliers to do the management, in order to get better integration and cost control.Shanghai Faiveley company is a joint venture company established in 1994.They produce the components for rail industry and their main customers are Alstom, Bombardier and Siemens. In today’s China market, Faiveley is facing increasing competition and the Market share is losing gradually. High-quality products and advanced technologies is not enough to win customers. The only way is to reduce the procurement cost while ensure the profitability so as to have more advantage in the market competition. Since its production materials have almost no space for price reduction, the company shift the focus of cost control to the MRO procurement, and hope control MRO procurement costs successfully through introducing the integrated management supplier.Firstly, I analyze the MRO procurement cost control problems of Faiveley. Then introduce the integrated MRO supplier selection through AHP methods. The next, analyze the implementation and effectiveness of the MRO procurement cost control after introducing the integrated MRO supplier of Faiveley, and affirm the results generally. Again, consider the risk of integrated MRO procurement and propose the risk control method. At the end, summarize the whole articles and point out the shortcomings and further research directions.