Study On Purchasing Management Of Guangdong Baoyan Tools Factory

Guangdong Baoyan Tools Factory was founded in 2009, and is a private owned company. Baoyan produced lots of abrasive tools for polishing, including syunhetic silicon carbide abrasive stones, diamond fickert, diamond rollers, diamond squaring wheel and so on. We purchase man-made diamond, metal powder (like Cu, Fe, Ni) as the raw materials. Most of our products are sold for Guangdong local market, and some will be sent out to other place in China or overseas.Since the economy environment running bad and new abrasive factory coming more, the company profit is very low and we have to improve ourselves for more tough competition. Baoyan is a new company in developing condition.We have to perfect the system including production, purchasing and warehouse handling.On the other hand, limited working capital and less good employees shall be changed.We have to solve many problems special for purchasing. The material delivery is not good, sometimes the production have to be stop for raw material. Urgent purchasing and some material in mass store are happening frequently, How to use the limited fund, improve the workers' ability, keep less inventory and cut down the cost, is a big problem for the manager.This paper tries to find the solution by some theories, including purchasing management, warehouse management, the supplier selection and confirming, purchase cost down and electronic commerce. At the same time, we have to find our problems from ourselves, as for current supply management model, finance management and receiving/sending goods flowing. To combine the theory and practice, we shall set up the new system and flowing, enhancing employees training, adopting ABC material management, improving supply management system, warehouse receiving flowing, E-procurement and new idea about purchasing. As the final, we will find the purchasing management policy to good fit Baoyan manage model and improve the company competition for new challenge in future.