| China's automobile industry develops in blowout state in recent years,the world's largest car group and parts enterprises seize the huge potential of the Chinese market,surging with blossoming into China's car market strategic layout.Competition in the car industry is intensifying because of the full entry of competitors,in order to get more market share as possible,prices has become a theme of nearly two years China's auto market.The fierce competition between enterprises directly leads to a decline in the industry profit,this requires the vehicle and parts enterprises to enhance the ability of cost management,cost reduction,in order to make profits.Purchasing is also transformed from a purely transactional unit to a supporting role for organizational performance and becomes an outstanding contributor in the whole supply chain of auto parts manufacturing in product development,material supply and quality assurance.Peter Drucker,a famous management guru,argues that companies'profits come mainly from three areas:first,improving the process and reducing the consumption of raw materials;the second is to increase sales and increase sales margins;by reducing the cost of purchasing,the increase in relative profits is the third source of profit for the enterprise.According to statistics,the product cost accounted for approximately two-thirds in traditional manufacture enterprises,and achieve as high as 70%to 80%in auto parts industry.In addition to the raw material purchasing,the goods and service that are not directly related to the product in the process of processing and manufacturing also have received the attention gradually.Former GE CEO Jack Welch once put forward:purchasing department and sales department are the only units can produce benefit in one company,what happens in any other department is overhead.The effective management of non-productive purchases is the pursuit of lower cost,superior service and higher efficiency.This is a more comprehensive way of cost control,which would require purchasing management not only focus on the raw materials,but apply cost control to all operations in the company,including non-productive procurement.Company B is a prestigious transnational group company in the world,who is providing high performance automobile brake systems,entered China 10 years ago.Company's non-production material scope is very extensive,in addition to tangible products,such as equipment,packaging materials,office supplies and IT equipment etc,there's a large proportion of intangible service,such as factory building,employee training,international freight logistics and warehousing etc.Based on non-production material purchasing management of company B as background,combining the theory of purchasing management and supplier management,as well as procurement organization model,analyzing present situation of non-production material and existing problems of purchasing strategy,supplier performance evaluation and procurement organization model in company B by using Pareto Principle and Kraljic Matrix,and puts forward the optimization scheme to solve these problems.Procurement strategy based on material segmentation,effective supplier management system and optimization plan of purchasing organizational model are proposed to solve these problems.The aim of this paper is to make some reference to the improvement of the non-productive procurement efficiency of company B and the reduction of procurement cost.At the same time,it is expected to provide the necessary theoretical basis and method support for non-production material purchasing management of domestic manufacturing enterprises. |
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