A Study Of Auto Parts Procurement Cost Management

With the fierce competition among automobile enterprises,joint venture brands have gradually lost their competitive advantages.Domestic brands in the automobile market are increasingly recognized by consumers.Luxury brands have also begun to lower themselves and enter the ranks of price reduction army.With the state's opening up of foreign investment into the field of automobile production,the existing vehicle enterprises will also face the challenge of building factories wholly owned by foreign automobile brand giants.Nowadays,the whole automobile industry in the world is in the stage of transformation.New energy vehicles,intelligent connected vehicles and other emerging things are emerging.Major automobile enterprises have invested funds and R & D forces in order to occupy a larger market share in the future automobile market.In such a fully competitive market environment,A automobile company as a small scale joint venture brand car enterprise,in order to stand firm in the market and obtain rapid development,cost management is very important.A automobile company was founded in 2005,only 15 years ago,and the planned annual production capacity is only 200,000 vehicles.A automobile company has no independent products,and the selection and design of products depend on the foreign parent company.From the sales situation in recent years,the sales volume of compact cars accounts for the majority,accounting for about 70% of the total sales volume.Although the sales volume of SUV is lower than that of cars,the contribution of SUV to the overall profit accounts for 70%.The cost of auto parts is the most important cost of a car.The purchase cost determines the product cost and the basic profit space of the enterprise.From the perspective of target cost management theory and supply chain cost management theory,the influence of parts procurement cost is affected by target cost setting,procurement scale,supplier management and information sharing.In a word,this paper uses target cost management theory and supply chain cost management theory as tools,and uses the advanced experience of Toyota and Ford as reference,analyzes and discusses the problems of parts procurement cost of A automobile company carefully,and puts forward a series of operable countermeasures and solutions around reducing parts procurement cost.