Supply Chain Management For NEUSON's Purchasing

With china's accession to the World Trade Organization (WTO), China has integrated.into the global market. More and more foreign companies enter the Chinese purchasing market. It is important and realistic how to improve supply chain management and get agreement of co-operation for adding value of supply chain and reducing cost and risks.NEUSON, a foreign owned company, found purchasing center and purchase parts in China. Low price sourcing in China is a certain allure to Neuson, However, Neuson face to the issues to improve the procurement cost and risk during purchasing due to bad procurement and cooperation mode with the domestic suppliers. In the other hand, domestic suppliers are also facing the problems of high cost and waste of resource as well. Through analysis on the factor of impacting NEUSON's purchasing cost, transaction cost, operation cost and the factor of influencing cost and risk domestic suppliers assumed. The paper point out that supplier management based on simple trading relationship can't cut price, meanwhile, delivery time and quality can't be guaranteed. However, MTO (Make to Order) cannot improve purchasing in time and reduce procurement cost and risk.This paper analysis the cost and risk of NEUSON and domestic suppliers, which is the problem they all accounting. The paper point out that only taking the method of based on Supply Chain Management can reduce cost and risk. Through taking effect quality management, technical advice and information sharing to attain the goal of suppliers' orientation, Selection, evaluation Optimization effectively. Just-in-time purchasing which based on effectively anticipation can overcome the impacting factors during purchasing. It has effectively reduced the cost of cooperation parties and achieve the goal of Just-in-time purchasing, improving product quality and achieving win-win situation.