A Study On Procurement Cost Management Of China Broadnet Network Equipment Based On TCO Model

In recent years,market competition among communication operators has gradually intensified,and the requirements for refined operation and management of communication operators have become increasingly stringent.Continuously reducing costs and increasing efficiency have become an important issue that communication operators in China have to face and actively solve.As participants in capital intensive industries,communication operators need to continuously invest in network construction,control enterprise procurement costs,and fully consider implicit costs in the process of purchasing network equipment,in order to avoid falling into supplier price circles.Effective procurement cost management is an important issue in the current market competition environment.This article takes China Broadcasting and Television Network Co.,Ltd.as the object,based on cost management methods,and using the concept of Total Cost of Ownership(TCO),combined with enterprise practice,industry background,and characteristics,to conduct in-depth analysis of the problems in its network equipment procurement management.The TCO model is used to consider implicit costs,and an improvement strategy for China Broadcasting and Television procurement cost management is proposed.By analyzing historical procurement data from the past three years,a new project application concept was proposed and applied in practical cases,verifying the effectiveness of procurement cost control and supplier management based on the TCO model.Therefore,the optimization direction of procurement management methods was proposed.This article proposes a TCO price model that integrates the characteristics of broadcasting and television,which improves the original procurement cost control schemes of broadcasting and television industry operators and communication operators.It also has universal reference value for cost control of capital investment projects in other industries.