Research On Purchasing Strategy Improvement For Company W In China

With the rise of new energy vehicles and the increasingly fierce competition of traditional internal combustion engine vehicles,new energy vehicles have posed more challenges to the automotive parts industry chain:faster information dissemination and update speed,agile and flexible project management,shorter iteration time,etc.,posing new requirements for companies that still adopt traditional internal combustion engine management methods.As a company with great advantages in internal combustion engine products,although W Company actively studies the new energy market and follows the footsteps of the market,the procurement management of traditional internal combustion engine products cannot keep up with the market situation in the context of rapid iteration of new energy.W Company has been entering the Chinese market for nearly 30 years,and traditional products have been localized.The localization rate is constantly increasing,and costs have been significantly reduced.The opportunities for new cost reduction are becoming increasingly small.How to maintain the advantage of procurement management is an important aspect of a company’s profitability level.W Company has a certain representativeness,and this article selects W Company’s procurement management in China as the research object to study its optimization plan.This article starts from the ecological environment of the entire automotive parts industry and the internal ecological environment of enterprises,from the perspective of procurement management,based on supply chain theory,procurement lifecycle theory,and total cost of ownership(TCO)theory.Using methods such as interviews,an in-depth analysis was conducted on the four main aspects of W Company’s current procurement management,namely organizational structure,procurement process,strategic supplier management,and total cost control.Based on the analysis,an optimization strategy for W Company’s procurement management in China has been proposed,and a practical guarantee system has been proposed.Specifically,the first step is to optimize the organizational structure and integrate departments according to their functions,which means transforming the three major procurement departments of raw materials into two,merging the three supplier quality management departments into one,and merging the cost analysis and total cost management departments,which is now integrating departments with similar functions.Secondly,identify and retain core processes,eliminate unnecessary processes,increase procurement flexibility and agility,and adapt to the development of new business situations.Thirdly,establish a reasonable and effective strategic supplier assessment system,enhance the strategic position of strategic suppliers,and promote a win-win situation;The fourth measure is to reduce costs and increase efficiency by controlling hidden costs,optimizing visible costs,improving information management systems,enhancing team cost awareness and sense of responsibility,improving communication efficiency,outsourcing low value-added products,domestic substitution of electronic materials,and reducing waste in the supply chain,in order to achieve the goal of optimizing costs.