Problems And Countermeasures Of Material Purchasing Cost Management In YL Auto Parts Company

In recent years,with the development of global economy,the automobile industry also presents a trend of global production.At present,China has developed into the world’s largest automobile market.With the development of intelligence and data,the levels of design,R&D,and manufacturing of parts manufacturers at all levels are similar.Nowadays,the competition is very fierce,the high-quality leader effect has appeared,and the industries with poor performance may be eliminated faster.Since2018,the profits of global auto companies have begun to decline.Auto parts companies are facing a difficult situation.For example,customers ask for price reduction,suppliers ask for price increase,and labor costs are still rising.How to optimize the management of the enterprise and reduce the cost of the enterprise to increase competitiveness is already a question that the enterprise must think about.Cost management from the west to China,after continuous iterative development,has been used by more and more Chinese enterprises,but did not produce the desired effect,such as the deviation of procurement cost management concept,the lack of procurement strategy and so on.The carbon steel CCB and plastic front-end frame products of YL company studied in this paper used to be the benchmark of automobile parts industry,and everyone in the industry knows it.But now,with the mature development of technology,YL’s superiority no longer exists,and more and more companies are able to produce products of the same quality at a lower price.YL is facing severe challenges,with a sharp decline in sales,lower profit of metal parts,and gross profit decreased from 15%to 5%.The bidding rate for new products is too low.When FAW-Volkswagen’s new Sagitar is updated,YL was out of the game,and the sales volume of single car of metal parts fell 59.48%.Because of the high cost of raw materials,Volvo’s quotation is not competitive.Purchasing cost management is a new space for enterprises to increase profits and a new blue ocean for competition.Therefore,combined with the current situation of YL company and the characteristics of parts industry,procurement cost management must be imperative,we need to play the role of procurement cost management to add value for enterprises.Based on the previous research on the cost of automobile manufacturing industry,this paper analyzes the procurement cost management of YL company in the five aspects of R & D,procurement,logistics,quality assurance and manufacturing.From the phenomenon to find the problem,from the problem to find the reason,this paper uses the relevant purchasing cost control theory to do a lot of research on the current situation of material cost management in YL company.Through the research,it is found that there are serious problems in the key link of purchasing cost of productive materials in YL company.On the whole,the company is also very lack of the concept of cost reduction,which is reflected in the lack of cost management awareness of R & D personnel,imperfect procurement system,unskilled procurement technology,lack of strategy,the transition of consumption of quality inspection resources,mismatch between logistics inventory planning mode and optimal mode,and internal cost of manufacturing link unable to keep pace with the decline of sales,etc.Based on the idea of theory guiding practice,this paper focuses on the current situation of YL company’s purchasing cost,including a series of analysis tools,such as man-machine material method,ABC analysis method,fishbone diagram,five-force competition model,classic inventory model,etc.,and analyzes a series of feasible schemes for YL company.We also put forward measures in order to ensure the smooth implementation and effectiveness of the scheme.It is hoped that the research can improve YL company’s purchasing cost management capabilities,and then enhance YL company’s market competitiveness and operation capabilities,and improve customer satisfaction.