Southern Airlines, Air Material Purchasing Management

As the important part of supply chain management, purchasing management is one of the best ways to reduce the corporation cost which be used in some developed countries. China Southern Airlines Company Limited (i.e. the Company) together with its subsidiaries is the largest airline in The People's Republic of China. The Company operates a fleet of more than 200 aircraft, consisting of more than 90 Boeing aircraft as well as Airbus series aircraft. To make aircraft service available, spare parts are integrant to maintenance and repair aircraft. Spare parts are very expensive in value and hi-tech in function. So how to reduce the cost of purchasing spares and continuously supply is a very hot topic in airlines.Firstly this thesis introduces China Southern Airlines Company Limited and its spares purchasing system and some knowledge of spares purchasing in China.Secondly, after the explanation of purchasing management theory and introduction of spare parts purchasing, the problem of the company spare parts purchasing system is analyzed. This thesis indicates that it is very necessary to strengthen purchasing management of the company by applying purchasing management theory.In the end, in this thesis a practical scheme is worked out, which includes four methods that are strengthening the purchasing organization management, improving the purchasing flows, evaluating suppliers and buyers' performance and strengthening the management of suppliers. Using these four methods, spares purchasing cost can be cut down and realize the goal of continuous spares supplying.