Research On Purchasing Cost Control Improvement Of TD Company

Since the twenty-first century,with the rapid development of the automobile industry,auto parts manufacturing industry as the upstream industry in the automotive industry plays an increasingly important role.With China's huge vehicle consumption market and a substantial increase in car ownership,the domestic market is attracting more and more international auto parts giant to enter,China's auto parts manufacturing enterprises are facing greater competition and threats.Faced with such a fierce market environment,the level of enterprise cost control management will determine the production and operation efficiency of enterprises,to have a significant impact on enhancing the core competitiveness of enterprises and sustainable development.For China's manufacturing enterprises,the cost of procurement accounted for 50%-70%of the total cost,has become an important key point of cost control.Therefore,it is necessary to strengthen the control and management of the purchasing cost of auto parts manufacturing enterprises,so as to realize the value added of the enterprise products and help the enterprises to seek better development in the increasingly fierce competition.This paper is manufactured by TD auto parts company as an example,through the cost control related literature theory analysis,combined with the supply chain management and TCO procurement cost control theory,which analyzes the cost control of the company and finds that the company has some problems in the procurement cost control,such as the low bargaining power of procurement,the complicated procurement process,the backward management level of suppliers,the unreasonable procurement plan and so on.Therefore,this article will combine the supply chain management theory,from the whole life cycle of procurement,to improve the company's procurement cost control.This paper which stands in the TCO angle of the total cost of ownership will be given from the following aspects of specific solutions:to strengthen the management control of the purchase price,improve the company's procurement transaction cost,optimize procurement inventory cost and improve the infrastructure of enterprise purchasing management,to further improve the purchasing efficiency,ensure that the total cost of purchasing has been effectively controlled,and ultimately enhance the overall efficiency of the company.