Analysis On RAW Material Purchasing Strategy Of WJ Company

With the rapid development of the automobile industry,the market competition faced by major manufacturers is becoming increasingly fierce.In order to survive in the cruel market competition environment,we must rely on two magic weapons: cost leadership and business innovation.In the current market competition environment,automotive parts is a special industry,and its product design is often matched parts designed by customers according to the vehicle requirements of the complete vehicle factory.Unlike other industries,component manufacturers often design products that meet the requirements only according to the requirements of customers,and there is limited space for innovation through business and design products.In this case,in order to stand in the cruel market competition environment,the way out is often to rely on their own ability to reduce costs.In the current fierce market competition environment,enterprises have to expand business and reduce costs in order to survive and develop.Within the limited scope of business,in order to improve profits,they can only reduce costs.In the traditional way,by improving the process and efficiency,in today's increasingly rising labor costs,efforts to find ways to reduce production costs have become the top priority.One of the most important ways to reduce production costs is to reduce procurement costs.As a traditional automotive parts manufacturing industry,WJ company's procurement cost accounts for the vast majority of the cost of enterprises,and 60%-70% of annual sales are its procurement cost.Therefore,whether it can reduce the procurement cost plays a vital role in the profit margin of its enterprises.This study will help enterprises to adopt better procurement strategies,thereby reducing procurement costs and improving corporate profits.In this paper,the purchasing strategy of WJ Company is taken as the research object,and the improvement direction of purchasing strategy is analyzed from the aspects of supplier management and raw material classification.Firstly,this paper introduces the characteristics of WJ company and its products to be purchased.This paper analyses the present situation of WJ company's purchasing strategy and the existing problems.In view of WJ company's low level of internal informatization,too much repetitive work of purchasing department and the existence of many relatives hinder the normal development of purchasing work,and the problems of long purchasing cycle,high inventory pressure,high inventory cost and shortage risk in the process of raw materials purchasing.The deep-seated causes of these problems and the corresponding countermeasures are analyzed.The purchase strategies and optimization methods of imported grease,rubber parts and steel products,which account for a large proportion,are emphatically analyzed.Through the classification of suppliers and raw materials to be purchased,this paper analyses and improves the purchasing strategy.ABC classification method is used to classify the purchased materials.Different methods are adopted to deal with different problems.The purchasing cycle is shortened and the inventory cost of enterprises is reduced.