Purchasing Management In The Supply Chain Management Model

During the technology innovation and economy development, globalized information network and competitive market is constructing. Management module of enterprise changes from Vertical Integration to Horizontal Integration. It induces the competition change from enterprise phase to supply chain phase. Purchasing is one of the most significant factors of supply chain. That is because the inbound material quality, delivery schedule and purchasing cost are decided by the relationship between merchant-supplier and supplier capacity. Moreover, as the most cost resource handler, digging out purchasing to be 3^rd profit source is an important strategy of cost down and competition enhancement.Researching the purchasing management under supply chain management with such background has more realistic signification. This dissertation emphasizes the feature of purchasing management in supply chain management. It integrates current purchasing management situation of ABC company, and make serial improvements which include - procurement organization change, category segmentation, purchasing category segment positioning matrix definition, and using scoring model to position the purchasing category - to determine procurement strategy be more purposely.Establishing scientific supplier management and evaluation system, evaluating currently supplier fairly is the precondition of develop and implement purchasing strategy. The dissertation use pyramidal model for supplier grading, setting supplier grades as: key, positive, no-new-business and stop-business suppliers. The scientific supplier evaluation is according to scoring card based on scoring model which considering supplier's quality, cost, delivery, service and strategic accord. Supplier is graded into relevant category after final score. Such kind of system brings fair and efficient purchasing management practice.Utilizing the purchasing management under supply chain management, ABC company's purchasing management KPI has great improvement. This model is the foundation of ABC company to develop as global strategic manufacturing center.