Study On Solution To Purchasing Logistics Of Conv Company

Under the circumstance of Economic Globalization, the competition is much stifferthan ever, which pushes multi-national suppliers to continuously develop. For the purposeof keeping their market share and enlarging the selling profit, the manufacturers need tostrengthen the core competence and attract customers' order in all the ways they can find.Therefore lower and lower price of products, better and better service quality, closer andcloser relationship with customers are all focused on. To achieve these objectives, themanagements of companies implement programming based on business conditions andadvanced manage theories and technologies, such as Supply Chain Management, BusinessProcess Reengineering, etc.CONV Company is also in this rank and needs to explore a solution for optimization.With analyzing the historical data of purchasing volume in China, success rate ofpurchasing orders, logistics spending, the root cause is found as high logistics cost. Withgoing deeply into the practical reasons to the cost, three types of problems related tomanagement are figured out, they are tangled communication, unreasonable purchasingprocess, decentralized management to transportation.With studying the related modern times logistics theories, internal and externalenvironment, company started programming on internal logistics operations: Defining thetarget, re-engineering the purchasing and logistics processes; outsourcing the logisticssupplier, choosing one Third Party Logistics supplier as strategic partner aligning withAnalytic Hierarchy Process (AHP), designing the international transportation scheme andconsolidating the shipments, centrally controlling the purchasing logistics.The implementation of systematical programming is proven periodically successful,and transplanted to another unit. Not only the problem with logistics processing is solved,but also the model can be sample for another company puzzled by the similar difficulties.