Procurement Management, Supply Chain Environment, Pharmaceutical Companies

For numbers of Chinese medium-small enterprises who make same efforts in improving marketing methods, production technology and service quality, more and more furious market competition makes them aware that purchasing management what used to be ignored can also be an important instrument to compete. With more and more understanding to SCM idea, enterprises found that purchasing which also have value added ability. Supply chain as a ligament links all the enterprises on the chain strongly together, and exert their strength to have a result of "win-win". Purchasing as an indispensable part of SC, infiltrate all the processes of supply chain. Efficient management to purchasing not only help enterprises reduce their cost and add competition ability, but also have a leverage to creating new competitive strength by integrating and harmonizing all kinds of actions in SC, furthermore keep enterprises advantage in rapidly & changefully markets.The paper backed on an enterprise named "HUADONG MEDCINE", directed by purchasing management and supply chain theories, firstly analyses the inner-outer circumstance of the enterprise developed in by SWOT analysis methods to make clear competitive position; by analyzing the structure of SC & cost of " HUADONG MEDCINE " to definite the key position of purchasing management and impel the SC cored by " HUADONG MEDCINE " to compete. In accordance with the problems of Purchasing Management of " HUADONG MEDCINE ", the paper put forward two tactics to upgrade the company's competitive position and the quality of product. One is strengthening management & cooperation with suppliers. Another is optimizing purchasing process. The paper makes details expatiation about the two tactics, also give some methods from practice to improve competition position. I hope these methods can help other similar enterprises to improve their purchasing management, enhance their competitive advantages and assure their supply chain worked smoothly.