Ningbo Port, Materials Procurement Process Optimization

Today, when logistics raise from the operation level to enterprise's strategic management level, how to unify logistics, especially unify the purchasing and storage module which functioned as connection point of logistics now becoming the must-solved question in both academic and management area.Today, traditional purchasing management style becoming out of the fashion. So in this paper, we studied the following topics: how to correctly recognize various purchasing management factors and complex storage systems; how to adjust purchasing and storage strategy; and what kind of inventory model should be set up in order to satisfy the purchasing material demand in the new era.In year 2005, Ningbo port's freight throughput reached 268 million tons, ranked the second in the whole mainland china after Shanghai port. The container throughput reached 500 million TEU。And for the rapid growth of Ningbo port, the construction need is especially important. From the 1990's, Ningbo port had spend several billion in construction expenditure, especially in the recent two years, investment grew up to 2 billions per year. This massive expenditure must be supported by massive material purchase, and purchase level continued exceed 500 millions per year recently. Now Ningbo port now has its own material purchase department and standardized supply chain...