The Procurement Optimization Strategy Study Of The Weak Manufacturing Enterprise

Since the market competition becomes increasingly fierce today, manufacturing enterprises have to deal with the pace of technological change and the pressure from changeable market demand. Paying attention to the distributions helps increasing sales and market share, but it is not enough to be competitive in the whole market. The optimization of procurement management is also crucial to a rapid development of manufacturing enterprises. Procurement plays a particularly important role in reducing the operating cost, especially for small and medium-sized manufacturing enterprises. In Chinese market, there are lots of small and medium-sized manufacturing enterprises, whose material cost accounts for the largest proportion of total manufacturing cost. Besides, every cost which saved by procurement could turn to profits. Enterprises should recognize the importance of procurement and the huge potential of reducing procurement cost, as well as apply the leverage effect for improving enterprise profits.Research about supply chain management optimization in manufacturing enterprises becomes a common concern in enterprise and academic fields. The related researches in this field are rich, no matter in China or abroad. This dissertation points out appropriate procurement strategy for weak enterprises to face the strong supplier. This dissertation firstly shows the current research status of procurement strategies by literature analysis, and then proposes suggestions for weak buyers in four aspects. First, the weak buyers should know their aim and primary task, ensures the procurement going smoothly and helpful for the subsequent production. Second, the weak buyers should choose the suitable suppliers according to their own condition, and build a long-term cooperation with them. Third, the weak buyers need to find the most reasonable sourcing strategy from the analysis of price, delivery time and quality. Finally, the weak buyers should establish good communication with other departments, such as production planning and warehouse. At the end of this dissertation, an empirical analysis is given which combines with author's own working experience.