Study On Purchasing And Inventory Management Optimization Of Zhongji Company

In 2013,the proportion of China's tertiary industry surpassed secondary industry for the first time,and important change with historical significance took place in economic structure.Over a number of years' rapid economic growth,China has stepped into later period of industrialization,and the economy faces staged transformation from high-speed growth normalcy to moderate-high speed growth normalcy.In recent 2 years,the speed of China's economic growth has slowed down,thus enterprises face more serious challenges,and the competition in manufacture industry of steel structure has been becoming increasingly fierce.The enterprises must be able to provide products within shorter time,with more steady quality,at more competitive price,and then they may survive and develop in such fierce market environment.However,the realization of these goals mainly depends on their supply chain management.The competition among modern enterprises is no longer pure competition between enterprise and enterprise,but it becomes the competition of a whole supply chain.Our country is in a certain condition of forming and integrating supply chain,so how to reduce cost and how to increase efficiency are common problems focused by all walks of life.As important method in supply chain management,purchasing management and inventory control are effective paths to solve the problem,which are paid more and more attention by people.Zhongji Company,with all kinds of steel structure as its main products,is a comprehensive enterprise in equipment manufacturing field.At present,steel structure industry belongs to an industry with meager profits.The cost of raw materials,various kinds of auxiliary materials,labor,freight and etc.take up most proportion of product price,and then the profit is only 2%-5%,thus enhancing purchasing management,reducing purchasing costs,perfecting inventory control and expediting turnover of capital are important methods to increase enterprises' benefits and improve market competitiveness,which has direct practical significance for keeping the enterprise's competitive advantages and enlarging market share.The author,who has been serving at Materials and Equipment Department of Zhongji Company for many years,through long-term observation and personal working experience,summarized several problems in related to management system,purchasing and inventory management and purchasing management system existing in Purchase Department of Zhongji Company,and selected two most typical aspects including imperfection in purchasing and inventory management process and the lack of performance evaluation system as study targets and analyzed such targets in details and in-depth.On the basis of widely collecting related research theories and achievements,combining actual situations in Zhongji Company,the author concluded the method and operating steps for coping with Zhongji's problems in plan management,purchasing management,inventory control and etc.All these methods root in the combination of theories and practice,so they are suitable for Zhongji's actual situations,and have guiding significance for solving similar problems in Zhongji Company in future.