Research Of Procurement Cost Control In C Company Based On TCO

With the increasingly fierce competition in the power engineering construction industry,whether the cost of the company can be effectively controlled is a key factor for the company to gain market competitiveness.The purchase cost is too high in the project cost,and the importance of purchasing cost control is self-evident.Under the premise that more and more companies have realized the importance of procurement cost and introduced e-procurement,how to further control the procurement cost so that the company has a sustainable competitive advantage is an important issue to be solved.This paper adopts the case study method,taking C company as an example,using TCO theory,combined with supply chain management theory,to study C company procurement cost control and propose improvement programs.First of all,in-depth understanding of C company in the procurement cost control of the status quo,problems and causes.There are three main problems in C company,such as unscientific procurement cost control,imperfect supplier management and low efficiency of e-procurement approval process.Secondly,the C company procurement cost control scheme is proposed.It consists of three parts: First,in the TCO-based procurement cost control method,by analyzing the TCO-based procurement cost structure of C company materials,establishing the TCO procurement cost model of materials,based on TCO setting cost reduction rate and strengthening TCO total cost control to improve C company procurement cost control methods.Second,in the improvement of the supplier management system,the supplier management system is improved by selecting and evaluating suppliers based on TCO and establishing strategic partnerships with quality suppliers.Thirdly,in optimizing the e-procurement approval process,the electronic approval process is optimized by increasing the electronic flow method,establishing the incentive mechanism for electronic flow approval personnel,and dividing the approval level according to the material procurement type.Three conclusions were found through the study,first,the procurement cost control of C company should be based on the total cost of TCO.Second,supplier management is an important part of C company procurement cost control.Third,the optimization of the e-procurement approval process can improve the procurement efficiency of C company and reduce procurement costs.The conclusions of this paper provide reference for C company and similar companies in the procurement cost control scheme,and obtain cost advantages through TCO procurement cost control to improve the competitiveness of companies.