A Study On The Application Of Procurement Cost Management Based On TCO In T Logging Company

In the overall product cost structure of an enterprise,the cost of raw materials purchased accounts for a high proportion of the total cost of the enterprise.Traditional purchasing cost analysis focuses on the supplier's price and ignores other costs.Therefore,how to accurately decompose the cost structure of manufacturing enterprises,and then carry out cost control is an important problem to be solved.In this paper,TCO(total cost of ownership)is applied.From the perspective of cost of ownership,enterprises are required to consider all the activities with cost in the purchasing process,that is,before purchasing,during purchasing and after purchasing.Taking this as a starting point,this paper analyzes the composition of T company's total procurement cost,summarizes the necessity of T company's procurement cost control by combining with the current situation and existing problems of T company's procurement cost management,analyzes the factors of T company's high procurement cost from four perspectives of purchaser,supplier,external environment and supply market,and summarizes three reasons that affect T company's procurement cost,That is,the procurement management system is unreasonable,the procurement cost control method is inappropriate,and the supplier selection method is not accurate.And the corresponding solutions are formulated,that is,to establish a perfect procurement cost control system,to apply reasonable cost control methods,and to select suppliers based on TCO.Then,through empirical research,the logging cable and perforating charge purchased by T company are taken as the research objects,and the monitoring model is established based on the historical data to verify the above strategies,so as to achieve the purpose of controlling the purchase cost.Compared with the traditional procurement cost control,TCO can reflect the real cost of the enterprise,provide a scientific method for the enterprise to formulate procurement cost management strategy,and provide an objective basis for the enterprise to choose the right supplier.