Research On Purchasing Improvement Of M Company

Global economy today is integrated.If a company wants to survive and develop in the fierce market competition,he needs to increase his competitiveness.In the past,company paid more attention to customer development,manufacturing and other fields.But with the change of economy environment and more market transparency,the competition in the future will be more about supply chain.As an important link in supply chain management,purchasing is an important bridge between internal development and external supply,which brings infinite possibilities for improving corporate profits.M company is a leading enterprise in slewing bearing industry in China.Relying on the advanced technology from foreign mother company and low-cost labor in China,M company has performed well in recent years.However,with the continuous influx of domestic competitors,M company is facing more and more fierce competition,profit decline,customer loss and a series of problems.Therefore,in order to maintain a high profit margin and market share,M company urgently needs to reduce costs and improve efficiency from the purchasing side.Taking M company's purchasing management as the research object,this paper introduces M company's purchasing status and problems in purchasing management.In view of purchasing status and problems in purchasing management of M company,we use the methods of Kraljic matrix analysis,supplier relationship management matrix method,FEMA potential failure model analysis and so on to diagnose and improve the purchasing management of M company from the strategic and operational levels.At the strategic level,it is pointed out that decentralized purchasing is to be included into centralized purchasing to realize strict control;Integrate purchasing planning and purchasing executive functions to eliminate internal supply chain barriers and improve internal collaboration efficiency;establish stratrgic purchasing strategy and supplier relationship management strategy.At the operational level,based on two main tasks of purachasing: ensuring supply and reducing cost,establish supply interruption risk response mechanism,control total ownership cost of purchasing and integrate current suppliers.To make sure the strategic and operational level improvement could succeed,M company need to give some support on improving the postion of purchasing inside company,building a more professional purchasing team and improving current purchasing information system.Hope the conclusion of this paper could improve purchasing management of Mcompany.And also hope conclusion of this paper could be used for reference in purchasing management for similar machine parts industry in China.