Companies do not purchase, not talk about supply chain management

  China's sustained rapid economic development provides a good macro environment for the rapid development of modern logistics and supply chain management services trade industry. China's growth in international trade provided a foundation for business logistics and supply chain management services. Despite entering 2019, the import and export volume of our country by the international environment and the impact of economic development has decreased slightly, but in the long run, China's import and export will be in a relatively stable growth, laying a logistics and supply chain management services good economic foundation.

  Purchasing management is supply chain management of builders, participants, implementers.

  Face enormous competitive pressures, effective use of resources of the enterprise, to create unique supply chain management mode, the same can form the core competitiveness of enterprises, supply chain management because competition is different from the traditional mode of competition (business-to-business competition) another new competitive pattern emerged i.e. a competition between the supply chain management, supply chain management and the other, mainly in the competitiveness of the total cost of the whole supply chain management and speed of response to end-user requirements, profit maximization objective will be based on the entire supply chain management.

  Due to historical reasons, the purchase has not been enough attention, procurement management behind not only in the supplier management in a "pressure on costs, cooperation is not trust, purely trading relationship", and ultimately lead to the following phenomena:

  1, the privatization of information, do not share: procurement, supply both try to hide their information, can not effectively share information, lead to information asymmetry, caused by mutual distrust, and ultimately increased costs.

  2, the relationship between supply and demand is temporary or short-term partnership: The partnership has resulted in competition than cooperation, leading to uncertainty in the procurement process, hinder the smooth conduct of cooperation.

  3, in response to user needs the ability to slow: Due to lack both the supply and procurement of information in the communication of timely information feedback, in the event of changes in market demand, the purchaser can not change the existing order contract supplier, the lack of deal with changes in demand ability.

  4, for quality and delivery ex post checks: the purchaser difficult to participate in the supplier's production process and quality control related activities, can not purchase goods for real-time tracking and tracing.

  The procurement management as a core competitiveness of enterprises to consider, but also the procurement management as a core competitiveness of enterprises, from the perspective of supply chain management, the core competitiveness of enterprises strategic level, the new building procurement management.

  First, procurement management is a very important link in the supply chain management. Procurement for the enterprise security of supply, to maintain normal production, to create conditions to reduce the risk of out of stock. As the moment of raw materials rose and the stock risky, they react in those companies usually do not focus on procurement, supplier relationships, once the market changes, and almost helpless.

  Secondly, in terms of quality, the supplier delivers part quality defects once extended to the enterprise product appeared enlarged to product failure. Purchasing department must establish a high-quality raw materials is the enterprise product quality basic notion, suppliers of raw materials involved in the overall quality of the relationship between products, there is a relationship business market.

  Finally, also important in terms of cost management, procurement costs typically occupy 50-80% of the total cost of the enterprise, reduce procurement costs to direct the competitiveness of enterprises and key, so a variety of cost reduction methods include the International ESI (early supplier participation), DFV (for suppliers design), JIT (JUST IN TIME), VE / VA (value Engineering / value analysis) and so ultimately, to enhance corporate cost control capabilities through improved supply chain management.

  Therefore, competition in the market competition and comparison is not business to business competition, but the supply chain management and supply chain management, which is destined to be an extraordinary purchase node.

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