Research On Purchase Cost Control Of Automotive Parts Of Ito Changchun Company

As one of the largest and most important industries in the world,the automobile industry has a history of over 100 years.China's automobile industry has achieved remarkable achievements since the reform and opening up,which has provided a strong driving force for the smooth operation of the economy and has become a pillar industry of the national economy.From year 2015 to year 2016,the state council implemented the policy of decreasing half of the purchase tax for the 1.6 liter and the following passenger vehicles.It can be seen that national policy makers attach great importance to the development of the automobile industry.However,in spite of the rapid development of China's automobile industry,the profit margin of the automobile industry is declining and some listed companies are in the deep loss due to the sharp decline in profits.How to reduce the operation cost of automobile industry and related industries and improve enterprise profit margins,so as to promote economic growth of the automobile industry and the inexhaustible power for the national macro economy runs smoothly is a very important research subject.It has a very vital significance.This article regards Ito Changchun Company as the object of study.The research on the problems existing in the process of purchasing cost control of automotive parts.First of all,using descriptive statistics analysis on the financial department of the company in recent years and the data relates to the procurement department of trend analysis,grasp the company's cost of spare parts procurement cost of each part of the variance,clears the main problems faced by the company purchasing cost control is automotive parts procurement unit price on the high side;High cost of automotive parts transportation;The storage cost of automotive parts is not keep up with the standard;The management cost of purchasing personnel is too high.Then,using literature analysis method,based on previous research result of purchasing cost control problems to find and analyze the reasons of the purchase cost control problems of Ito Changchun Company,which are caused by the supplier do not cooperate to match with the price so that it cannot reduce the purchase price;The supplier's geographical dispersion and long supply cycle cannot reduce the transportation cost.The low degree of enterprise electronic degree leads to the lack of effective control of inventory cost.The backwardness of personnel incentive measures increase the turnover cost of personnel.Eventually,in view of Ito Changchun company procurement cost control problems.The causes of formation surround the background of globalization and collectivization of the company and combine with the company's actual situation.In order to solve the problems existing in the company purchasing cost control.This article projects the procurement cost control plan from four aspects.On the first one is to take advantage of the company's globalization and collectivization to optimize purchasing strategy and purchasing way to seek a lower purchase price.The second is by reforming and innovation for the transportation mode to reduce the transportation cost of parts.The third is by strengthening enterprise computerization degree,importing the introduction of electronic system to make the planning department and purchasing department can do the timely response for demand changes of customers so as to adjust the orders and inventory to decrease the cost of spare parts in warehouse.The fourth is to reduce the turnover of purchasing personnel by improving the incentive mechanism of staff so as to reduce the cost of purchasing personnel management.The company can think about the suggestions above from each aspect and cooperate with each other to make the purchase cost control work having a significant improvement so as to reduce business operating costs and the company can keep continuing operations.According to the industry comparative analysis,the problem of purchasing cost control of Ito Changchun Company is not an individual case.Across the whole country,there are a lot of cars and their related industries enterprise purchased parts are similar with the characteristics of the parts bought by procurement of Ito.The crux of the problems in terms of purchasing cost control and the causes of difficulties on reduce of the purchasing cost are similar with Ito Changchun Company.Therefore,the strategy of reducing procurement cost planning for Ito Changchun Company has universal applicability.