Purchasing Management For J Company Under Supply Chain Management

Under the background of economic globalization, modern clients are becomingincreasingly demanding in terms of specialty and flexibility in business. Conventionalstyle of competition focusing on a sole enterprise can no longer fit in the new environment,which results in a more and more important part played by the competition of supply chain.As a key component of supply chain management, purchasing management builds thebridge between the company and the supplier, advancing their communication andadministrating the supplier as the extension of the company. Turning from the traditionallyneglected to the third source of profits, purchasing management has thus been elevated tothe strategic level. However, the fact that purchase has yet to get rid of the subordinate andservice role in many companies will do no good to the company in promoting itscompetitiveness, so it needs an immediate improvement.Taking purchasing management in J Company as the subject while applyingknowledge and concept related to both supply chain management and purchasingmanagement, thesis explored deep into the current situation in such aspects of purchasingmanagement in J Company as organizational structure, purchasing procedure, informationmanagement system, strategy for purchase and supply and supplier management. It hasfound out the problem, conducted an analysis of the causes of the problem and madesuggestions for improvement. It has first, concerning the organizational structure andpurchase procedure of this company, made a proposal of combining sections closelyrelated to the supply chain to form a department of supply chain management and raise itto the strategic level. Meanwhile, the company can apply material control in the purchaseprocess so as to better manage the material requirement. Second, in response to thedeficiency in management information system of J Company, thesis has listed severalsuggestions for its improvement in three aspects including the function module, the procedure and the information sources of the management information system. Third,starting with material classification system, thesis has mapped out an overall plan onpurchase and supply strategy of J Company, and gave advice on the role purchase playedin new product development and the improvement of procurement price control. In theend, thesis has perfected the supplier selection process of J Company and madesuggestions on the improvement of the procedure and standard of supplier selectionevaluation and assessment.