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The Research on Purchasing Management in SF Company under Supply Chain

Author: BianChunYu
Tutor: MaLing
School: East China University of Science and Technology
Course: Business Administration
Keywords: Purchasing management supply chain management purchasing procedure sourcing strategy material classification
CLC: F274
Type: Master's thesis
Year: 2012
Downloads: 237
Quote: 0
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Abstract


In new century, with the rapid development of supply chain management theory and the industrial specialization, the tendency of horizontal integration requires the enterprise to cooperate more closely with the partners vertically. The competition between companies has turned into the competition between different supply chains. Under the theory of supply chain management, the purchasing has changed from its traditional "selling and buying" angle to new form of optimizing the whole supply chain and seeking for added value. This change requires the management of the enterprise to seriously look into the existing purchasing organization, purchasing procedure, purchasing strategy and supplier management to find if they are all well fit with the efficient running of whole supply chain, and thereafter come up with necessary improvement scheme.With the focus on the topic of purchasing management, and the example of SF company, based on the theories of supply chain management, material classification and purchasing management, this dissertation analyzed in detail the current status of SF purchasing management, and pointed out the main problems of SF purchasing, and consequently proposed the solutions from four sides:organizational structure, purchasing procedure, purchasing strategies, and supplier management. On organizational structure side, it is proposed to integrate various logistics functions and establish SCM dept to facilitate the material flow, and at the meantime uplift the purchasing position to strategic level in the organization, and also differentiate the team into strategic and operational two levels of purchasing. On purchasing procedure side, it is proposed to enhance the information sharing scheme, and simplify purchasing approval process, bring in VMI purchasing and material group purchasing. On purchasing strategies, it is suggested to classify all the purchased materials into four groups according to the level importance and the acquirability of soureing and adopt different sourcing strategies accordingly. On supplier management, it is suggested to set up a more scientific and relevant supplier selection parameters, and at the meantime a system of daily monitoring of suppliers performance.As the universality of the subject of the research of this dissertation among the current manufacturing enterprises, the conclusion of this dissertation can be a good reference for other companies, esp. those which are at the transitional stage from traditional purchasing to SCM purchasing.

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