Astudyon 0ptimal Purchasing Strategy Of ABC Homeau Division

ABC Company is an American company whose HQ is located in Stamford, US andlisted in NASDAQ, with more than 60 years experience in audio system & goodreputation in audio field as market leading player. It has 18 brands in worldwide, and 6socialized and leading brands among them. ABC Home Audio Division moved its productdevelopment center from Northridge, US to Shenzhen, China, Home Audio Division ismapping the business globally.The thesis analyzes the status of ABC Home Audio Division, Home Audio fielddevelopment status and division purchasing status. We conclude that current purchasingcan not meet business development requirements and it is high risk to constrain the futurebusiness development, and suggest to do supply mapping globally to eliminateunacceptable suppliers and add new proper suppliers to enhance global supplier base; andsupplier relationship needs to be reviewed & adjusted accordingly since the major supplierrelationship is mismanaged in the past in order to grasp favorable position whilenegotiation with suppliers; facing manufacturing cost increasing, proposes to optimizecost control to achieve purchasing KPI. The thesis is analyzed by the method ofcomparison, history analysis, theory & practice analysis, and use the knowledge ofpurchase & supply management and strategy management to analyze current ABC HomeAudio Division purchasing status and make suggestions to optimize purchasing strategy.