Production of materials procurement and management business model analysis

Abstract: The procurement management across the enterprise supply chain is a vital part of procurement management will have a direct bearing on the efficiency of enterprises, and even the company's future development of effective procurement management as the key to ensuring project quality and improve the satisfaction of the owners , low cost high quality to enhance market competitiveness, thereby enhancing the ultimate profitability throughout the supply chain level, the article analyzes the production of materials procurement management company, to purchase materials for corporate management to provide some reference.

Keywords: production material procurement enterprise management

Introduction

In recent years, companies come to realize the benefits of procurement for improving the important role an increased emphasis on the status of procurement, supply chain management theory began to be introduced to the procurement management. Procurement management research generally is conducted in the context of industrial enterprises, as production-oriented enterprise management complexity, although some researchers have made a preliminary study of the procurement management, procurement management have highlighted the need for research, but, overall, business information technology is still relatively slow pace of Man.


1 production company supplies procurement process

Procurement of materials production enterprise business processes vary not only by companies, and even in the same house, different production enterprise business processes the procurement of materials there will be some differences. Typically, this difference is mainly in the sourcing , purchasing and procurement and other business operations, details of the object, although the procurement process there are all these differences, but summed up the basic procurement process is mainly composed by the following procedure.

(1) in the project, production, organization, design is completed, materials planning staff based on the engineering department to develop a rolling production schedule, using technology developed by the Ministry of materials, will be split into a production plan material requirements planning, combined with the actual needs of the scene, taking inventory of raw materials to develop a procurement plan or written material requisitions forwarded to the purchasing department used as a basis for procurement.

(2) The buyer receives raw material procurement plan or requisitions after the original supplier in the good faith of the manufacturers choose to notify its offer, or through bidding, proposal and other forms of inquiry, and through various channels to understand the possible suppliers, will be approved in writing purchase orders sent to the appropriate vendor.

(3) If the supplier can meet the requirements of the order, it will return an order confirmation notice, this business will be conducted in accordance with the normal course of business, if the order does not meet requirements, it proposed to change the delivery date, quantity or price . buyer will reconfirm the price, materials planner at the same time to check the vendor's proposal meets the needs of production planning, if not, buyers and suppliers must also be re-negotiated compromise and reach a compromise even if, due to engineering design changes may also alter the demand for procurement of raw materials. Once this change produces the material planner and buyer must then contact the buyer and then communicate with suppliers, the process repeats until the last signed a supply agreement.

(4), after signing orders, should be based on contract, urged manufacturers on-time delivery. Goods to use the flat, and use of quality control department, custody officers to the scene of the subject matter of the size, quantity and quality according to national standards for acceptance.

(5) after passing the test delivery vendor, invoice immediately, first by purchasing departments to check the contents of the invoice is correct, and complete material procurement and with the acceptance of a single invoice (with BOM) with losses to the financial sector after the payment. Payment when the purchasing department to enter payment application form, and then passed to the Finance department. where vendors not in conformity with the contract delivery of goods or failed the inspection, shall be returned according to contract, and immediately apply for re-purchase procedures, to be closed.


(2) production of materials procurement management company

Production-oriented enterprises have the following material purchasing two characteristics:
(1) the diversity of procurement of goods: on the one hand, enterprise products and other industrial products, especially large build, requiring a lot of business materials, products, components and accessories, and its complex production process requires a lot of production machinery equipment and because the products, components and parts there is no uniform standard, designed to meet the business requirements of the same material will have different specifications, so manufacturers purchase a wide variety of materials, materials specifications of complex occupies more than fifty thousand eighteen categories varieties on the other hand, due to the level of technical level of enterprises of different designers, appreciation and love are different, and the production of the enterprise's economic, technological, natural and social conditions of different, making the company products in the size, form, structure, decoration, production, and organizational aspects of the ever-changing, and often need to use the new structure, new materials, new technologies, new processes and so on.

(2) supplies of variability: the production of business sites is a unified, fixed, and use of a full-scale, which determines the production of non-permanence of enterprise products. Producers produce according to the different needs of users satisfied with the product, the materials used in production as the product not only to changes in the demand specification is changing, not because of fame and fortune as the market often sell materials procured, directly affect the normal production, which requires good alternative materials, thus increasing the uncertainty of supplies and therefore can not make material procurement and supply standardization, and need flexible supplies to meet production needs, may cause the production of chaos. Links to free download http://www.hi138.com 3. manufacturing enterprise supply chain materials purchasing management features

3.1 based on production-oriented enterprise supply chain management, procurement of materials at two levels
(1) the technical level of procurement management: Supply chain management should serve the business goals that meet customer value components, and thus corporate procurement management must ensure that products or services in a timely, accurate and meet customer needs, so in under the conditions of supply chain management, purchasing management tasks to companies outside the enterprise to change based on market demand, through effective economic management activities, for the production of material to provide strong protection from the technical point of view, companies first need to purchase management consider what technical means and methods used to protect the company's manufacturing activities, supplies, while the technical aspects of procurement management should consider to reduce procurement costs, reduce inventory, improve procurement quality, and shorten the procurement cycle four.

(2) the strategic level of procurement management: Supply chain management under the corporate purchasing is based on both supply and demand on the basis of good cooperation, the scope of corporate procurement management must be extended to the external business environment, management focus from traditional management to the internal affairs outside the enterprise resource management where the so-called enterprise resource management is an enterprise external collaborative relationships between the establishment, development and maintenance of the establishment of partnerships between enterprises is a strategic issue, which involves resources of both companies, business strategy, development objectives and other strategic factors, therefore, supply chain procurement management company engaged in management of external resources, from the height of corporate strategy should consider how to select suppliers and determine with what kind of strategic partnership, in order to solve the technical level of procurement issues, to meet the procurement needs of the enterprise supply, production and supply needs to abandon the search for that trading partner practice.


3.2 Procurement management analysis of the key points
Traditional materials procurement mode, the main procurement activities commence around the price The price factor is the procurement of the most important factor to consider, even for a long time been considered the only element of procurement activities, so the price of the enterprise in order to obtain advantage, generally take more and more supply procurement strategy, by increasing the number of suppliers to reduce the purchase price in the supply chain management, procurement needs to be considered has changed significantly. more and more enterprises realize the product purchase The total price is only part of the cost, the quality of the total cost of the product also has a considerable impact.

High-quality raw materials or components will have a longer life cycle, resulting in lower total production costs or higher finished goods prices and quality in the current buyer's market, the product of high prices or low quality will greatly affect the products more competitive in the market face of fierce competition, companies need to respond quickly to customer needs, in this case, the timeliness of delivery, and delivery lead time is particularly important, therefore, the purchaser to develop procurement strategies, will certainly take into account the timeliness of delivery, and delivery lead time of these two factors is why, in the supply chain management based on the implementation of procurement management, selection and evaluation of suppliers, must fully take into account the timeliness of delivery and delivery lead time of these two factors if the two can not get enough protection, then the overall advantages of the supply chain will not be reflected.


3.3 System Model Design
In the system model design, we must first demand and market analysis, according to the comparison of supply and demand in supplier selection and procurement, followed by the proposed development of a strategic partnership with suppliers to negotiate and sign test agreement for co-commissioning, then the final test run was selected partners, signed a long-term cooperation agreement, to enter the stage of formal cooperation the two sides began formal cooperation, the procurement is established under the framework agreement, signed without each purchase order contract. procurement department procurement plans based on purchase orders to suppliers, vendors began to implement the order confirmation in the procurement process of implementation, the procurement department to keep the communication, coordination of suppliers and production departments of supply and demand planning, supply and demand to ensure consistency, balance and finally purchase evaluation and vendor evaluation, and procurement departments to organize the relevant departments and timely cooperation of procurement evaluation and the evaluation results back to the supplier to supplier for further improvements, and based on evaluation results, the supplier accordingly incentives.


4 Conclusion

Over the past few decades, the majority of manufacturing companies using the traditional procurement methods, namely, the procurement process throughout the supply chain of trading by a series of independent sub-process composition. Materials management includes not only procurement, including inventory management, supply and distribution management and other activities, procurement activities associated with these activities, greatly improving the efficiency of procurement and now many companies are aware of the procurement activities and other activities continue until the entire supply chain, manufacturing companies closely pair the importance of successful implementation, and as such many Enterprises pay more attention to procurement management research. Links to free download http://www.hi138.com