Abc Company Purchased Parts On Time Supply Risk Research

With the rapid development of economy and technology, the competition between enterprises becomes more keen under the marketing economic conditions, it is no longer the competition between single companies, while it is the competition between the entire supply chain and supply chain. Supply chain covers multiple entities surrounding the core company, such as suppliers, distributors, retailers, logistics providers and etc. Modern supply chains become more complex, and the mutual dependence is growing among each entity in the supply chains. When enterprises benefit agility, convenience and efficiency from supply chain, meanwhile they will potentially suffer supply chain broken at any moment, actually, supply chain is a very weak chain, every link in supply chain meet problems, which will inevitably impact the normal running of the entire supply chain more or less.When people primarily talked about supply chain, mostly, they just indicated the company procurement activities, as the main upstream part in supply chain, procurement act as a bridge to tie nuclear company to suppliers, its main responsibility is to find appropriate supplier, and make sure purchasing parts can meet company requirement with a requested qty, quality and delivery time. In recent years, more and more companies start to focus on their nuclear competency parts or products, and transfer too many non-important parts or processes to suppliers for out sourcing, they just keep some key parts or processes in house. So procurement becomes more and more important portion in such companies, the efficient or not for the procurement processes executed are top crucial to the company and entire supply chain. One of the important standards to verify procurement efficiency is whether purchasing parts are supplied on time, which also is a key point for ensuring smooth operation in make to order company. Among the supply chain risks, procurement supply risk should occupy a big portion, such as natural disaster risk, terror events risk, macroscopic adjustment and control policy risk, information risk, supply risk, quality risk, supplier selection risk, and etc. All of these risks will be related to supply risk more or less.ABC company is an American owned company, the main products are air tools, more than 90% of those products are sold to overseas customers. ABC company just take charge in production, parent company is responsible for whole marketing and sales activities. So timely supply customers with qualified products should be the most important metrics of this company. Currently, there are almost over 95% parts are purchased from suppliers in ABC company, the parts are either finished purchasing parts or just semi-finished parts, thus procurement is a very important function department in ABC company. Timely purchasing parts supply is the important guarantee to ensure orders on time delivery to customers. This article mainly study the timely purchasing parts supply risk management and related management theories, cover such theories as risk management, supply chain risk, procurement risk and some evade procurement risk required theories, say supplier selection, inventory management, material Kanban system, SIOP. Then analyze the purchasing parts timely supply risk from two aspects—endogenous and exogenous factors, i.e. analyzed the timely supply risk factors from material management department structure, MTO production process, supply& demand information communication, suppliers status and etc. Meanwhile, also analyzed such supply risk factors are come from governmental policy or acts of God. Based on above analyzed supply risk factors to find actions to manage and control purchasing parts timely supply risks from optimize company process and enhance supplier management. Detailed activities are including optimize company order handling process, improve and monitor purchasing management process, adjust material department structure, optimize supplier selection process, set up supplier Web Kanban system, change purchasing parts inventory management model, and etc. Finally, establish ABC company purchasing parts timely supply risk management system and ensure the system are running smoothly in ABC company.Enhance the consciousness of supply risk management in ABC company, and take this as a routine work to conduct, avoid risks happen or reduce loss impacted by risks, undoubtedly, all of above activities should have important and constructive meanings to ensure a smooth and efficient operation in ABC company. Meanwhile, there is very strong practical significance in this research, which should be a good reference for MTO manufacturing company. The supply risk factors analysis, suppliers management process optimization, ABC inner process optimization, and followed by supply risks management and prevention become the focus of this study.