Research Of Purchase Cost Control In BD Company

Purchasing,as one of the important role of operation provides materials and service for production.Nowadays purchase spending accounts for above 50% of the total spending in most factory.Studies demonstrate strong association between purchase cost and product price.Good purchase cost control will lead to the competitive product price for customer and will bring us benefits of bigger profit,enhance the satisfaction from customers and finally create advantage of company in the long term.BD Company is a multi-national manufacturer that focus on the traditional communication market.In times of constantly increasing competition between companies with fair average products,BD company meet difficulties of limitation on new technology,shrinkage of market share and hiking material and labor cost.In contrast,BD's traditional purchase cost control mode,which is based on the principle of minimum material cost,is behind the dynamic market situation.This article focuses on the introduction of the TCO model,the theory and procedure of TCO cost control,which minimizes the total cost of ownership from strategic point of view.In consider of case study of BD Company we make analysis on the structurer of total cost thereafter initiate countermeasures to reduce the total cost accordingly.Finally,summarize experience and limitation,providing valuable experience for future purchase cost improvement activities.This article is divided into following five sections.The first section is the introduction.This section introduce the background and purpose of the research.Summaries the current situation and trend of purchase cost control both at home and abroad.The second section is the theories foundation apply to the research.It describes the definition of purchase cost,cost control theories and TCO cost control.The third section is the evaluation of the purchase cost control based on BD Company.This section make analysis on the composite pattern of total cost of ownership and raise the question of actual status.The fourth section is mainly about the counter-measurements to improve the purchase cost control.The fifth section is the implementation of the counter-measurements and safety guard actions.