Purchasing Risk Analysis For Non-Key Raw Materials Used In B Company

With prosperous OEM mode in 1920s’in USA and Europe, it did not only achieve the significant cost saving used for the factory set-up, management in the operation, but also had free capital invest in the designing & marketing. These advantages are the reason that is becoming more popular and preferred options for many famous companies. With the international cooperation involved in this mode, the relative SCRM (supply chain risk management) is wider in the geography and deeper in the cooperation among the companies. Plus the natural disasters frequently occurring in many countries and slow recovery of global economy after economic crisis, all these promote SCRM more important and attentions to the global learners & companies.After checking some international and domestics references, lots talk SCRM under the environment of OEM manufacturing but merely OEM brand. Especially for a lot of enterprises in China/India, they are seeking the path of transferring from OEM manufacturing to OEM brand with their rising in the economy. Under such situation, the author in the thesis believes it very realistic social meaning and economic benefit when researching and analyzing SCRM with this mode.The author takes non-key raw materials of B company with OEM brand as the specific environment to analyze, identify and control the major purchasing risk points of supply chain, for examples, Tier classification; PS(Preferred Supplier) options, performance appraisals and finalization; PCN (Product Change Notification) management from vendor, risk points in the new and sustaining projects. After the analysis of these key risk points, the author not only gives some suggestions for these points, but also addresses to filter some materials from both Non-key and Key materials as 2nd key materials which the importance is between them. Thus, B company has more power to leverage the relationship with suppliers via negotiating price, business split; suggest to face the serious negative impacts on the business from both the management& execution level when Non-key materials are fully outsourced. Additionally, the author also advises to set the effective mechanism of cost management in the long term.Currently, partial suggestions in B bring the benefit and partial suggestions will be trial-run. Hope there is reference value for other enterprise in the similar walks.