Research On Purchasing Strategies Adopted By IT System Integrator For The Purpose Of Zero Inventory

In manufactory industry, around 50% of the cost derives from purchasing. Purchasing plays a role as a source of third profit. While other conditions unchanged, 1 RMB saved from purchasing equals to selling 10 RMB more, which under the circumstances that the company’s profit rate is 10% and the company attempts to obtain equivalent profit through selling more. Of all links in supply chain, purchasing is a very important one. This paper focuses not only on the purchasing cost control, but also on defining responsibilities of purchasing and reflecting multifunctional role of purchasing in IT system integrator, by the means of realizing zero inventory under the guide of purchasing strategy. Zero inventory is a special concept of inventory, which doesn’t necessarily mean the stock amount equals exactly to zero, but attempting minimum amount of inventory through certain control strategy.Specifically, this paper adopts literature research, case study and comparative study. To begin with, this paper presents intensive research of development in purchasing theory, inventory control theory, JIT purchasing theory and IT market. Secondly, this paper presents how zero inventory is realized using a case where Dayang Technology Development Inc. controls purchasing plan and uses JIT method, based on which the type selection and purchasing routine get improved, thus to make sure the zero inventory is realized. JIT purchasing is a purchasing strategy formed through SWOT analysis, assured by tools like PMIS. Thirdly, this paper discusses the positive and negative effects of ERP when attempting zero inventory and emphasizes the important role of informatization to IT system integrator dominated by project management. Finally, this paper discusses important project evaluation established for the purpose of zero inventory. While zero inventory shouldn’t be formalized but requires a broader view of purchasing department who controls resources of materials of the company and its creativity to serve the company in a preferable way.