Improvement of oil industry procurement of logistics based on TCO

Procurement costs as a large part of the oil industry logistics cost, the importance and urgency of its management is growing remarkable. This paper based on the TCO cost theory, which is on the point of view of oil industry procurement to the use entire process, is valid to control the total cost of procurement of goods. For the problems existing in the oil industry procurement, this paper proposes the improvement strategies to lower the total cost, mainly from two aspects of the choice of suppliers and quality management.