A Company Pepper Procurement Model Research

With information technology advancing and widely being applied, the market become more and more transparent. Enterprises face more and more pressure and difficulties in surviving. Although manufacturing technologies and marketing strategies can help enterprises to gain more profits and broader space for development, cost remains the crucial factor for their survivals. Competitiveness of products of an enterprise will be greatly undermined, if there is not strict control to cost of source. To manufacturers, it is key to control purchasing cost on rough materials. Therefore, we need to pay attention to save cost while enhancing our marketing.Company A, an enterprise for processing agricultural products, is confronting with growing pressure on the cost of purchasing. In particular, recent days have witnessed the fact that similar companies emerge like mushrooms after rain, since the techniques to extract paprika oleoresin became simpler, more skillful and more open than before. Rough statistics show that there are about 65 enterprise producing paprika domestically. Company A is in face of a big challenge to stand out among such a large number of line business.The writer is responsible for current purchase works in Company A. The essay itself is to analyze related aspects including the status qua and issues concerning the company’s purchase, purchasing modes for rough materials, estimation on purchasing risks, suppliers, cooperation between company, cooperative and household farmers, purchasing contracts and compare cost and profits, through related theories on supply chain management. It hereby makes suggestion on optimizing basic purchasing modes from the perspective of extending choice and profits of the enterprise as wide as possible.The essay is in hope of finding a proper procurement model way to develop Company A through following research. Meanwhile, it provides ways and techniques to strengthen purchasing cost for other manufacturers.