Purchasing Management And Strategies Of A Company

While global economics and international companies developed, purchasing, supply chain and inventory management turned more important. It affects the company’s competitive edge. By the development of technology, more and more products are growing mature. Competitive advantage of technology becomes less and less among products and equipment. However, the competitive advantage reflects on the purchasing management among companies step by step. The company which has short delivery, best price and good quality can meet customer’s requirements and gain the competitive advantage. Cost control becomes more important when the product is good quality with short delivery. Therefore, cost control turns more important in marketing competition. Purchasing affects the cost of products a lot, if it is controlled very well, it will progress the profit. The control of supply chain will affect the production cycle. In order to shorten the production cycle and meet the requirement of fast development, it is very important to make progress on supply chain management. The control of stock affects the cash flow of the company. Too much stock will increase the cost, so the company should control the stock while controlling the purchasing and supply chain. Besides stock, study and progress of purchasing management includes quality, price, quantity and delivery as well.However, the development of purchasing management can not meet the requirement of marketing competition. Take A company as an example, it is an equipment supplier of automobile industry and it was founded by the development of China Automobile industry, which is exclusively foreign-owned enterprise from U.S.A. These years, quantity of automobiles is increasing more and more in China, so almost all big automobile companies started to build factories in China. In order to gain Chinese market, they are competing prices. Their price competition causes the control of the cost, not only for automobile parts, but also for manufacturing equipment. A company is not an exception. Engineering cost of A company is steady, so the cost control is more important. On the basis of purchasing management theory, it sets forth the characteristic and practicability of purchasing management. Analyze A company’s purchasing status and problems to submit the proposal of purchasing management, including production advantage, management mode, technology, marketing competition, economical benefit, purchasing system, purchase process, payment, stocks, personnel, purchasing management, purchasing benefit, purchasing source and information. The thesis will optimize purchasing management to have preventive action of execution.By optimizing the purchasing management, it is going to decrease A company’s production cost, shorten production cycle, speeding up the cash flow to meet customer’s requirement and to increase A company’s competition. Hope the purchasing theory and purchasing practice may be useful for middle & small size, non-standard equipment companies in China.