The Research On Purchasing Management Of Shaoyang Textile Machinery Co., Limited

Shaoyang Textile Machinery Co., Limited (hereinafter called "the company") is a large-medium state-owned textile manufacturer with a forty-year history. In the past years administrators found their way to expand sales, develop researches and strengthen its competitive edge. Some good results had been achieved, however, profits were still quite poor. The company's annual cost of raw material accounts to 70% to 80% of the total cost of production, whereas its purchasing activities haven't attracted enough attention and correct treatment for a long time. Therefore low-efficiency of purchasing management is one of the essential reasons of low profit.Purchasing management mainly includes materials, activities and performances. It should be regarded as a "chain" running through inside and outside of the company. Leaning to neither side is incorrect. We're trying our best to re-design internal and external system according to its specific situation.When re-designing internal purchasing management system, we suggested that BPR (Business Process Rebuilding) should be adopted. On this basis we introduced the new management conception of "Flow Management + Regulation Management", which means to get rid of redundant parts and control key points under strict regulations. Thus its internal supply chain could be kept unblocked. From classifying ABC level of raw material, re-confirming flat organization structure and duties to re-designing purchasing flow, we tried to embed our research to every important aspects, such as internal control, quality, price, cost, delivery and stock.Before re-constructing external purchasing management system we explained advantages and importance of strengthening management of suppliers. Then we went deep into a new model. Exploring new suppliersassessingselectingstabilizing cooperation establishing strategic alliance. In many modern manufacturing companies huge changes are taking place in the form of purchasing, i.e. outsourcing. So does the company. Outsourcing supplier is quite different with normal one. Therefore we offered corresponding management models.We established this article on basis of analyses of the company's current situation of purchasing management. We then redesigned the flows from the viewpoint of supply chain. We also tried our best to set up a typical model and generate useful advices for all manufacturers of how to strengthen purchasing management, diminish stock, control overall costs and improve quality and reaction.