Purchase Management Under Supply Chain Conditions

Supply chain management is an integrated managerial theory and method. In contrast with the traditional managerial modes which only fix eyes upon sectional optimization, supply chain management can be used to realize synchronic operation and benefit maximization by business reengineering and optimization in the whole supply chain from the standpoint of the systems theory. For modern enterprises, the purchase management based on the theory of supply chain management is an important approach to making resources decisions and enhancing its core competitive capacity. To cut down the cost, improve the operation efficiency and economic benefit, this management mode endeavors to optimize the purchase flow, improve the purchase strategy, control the inventory scientifically, and build up the strategic cooperative relationship with suppliers.Firstly, this paper generally introduces the theory of supply chain and supply chain management. Secondly, based on the comparison between the traditional purchase management and the purchase management under the supply chain conditions, this paper attaches importance on the discussion of JIT and CPFR purchase strategies, the purchase organization structure, the opportunities and challenges taken by the new trend of purchase development. After summarizing several traditional inventory control modes and their weakness, this paper introduces three types of advanced inventory management strategies: VMI, JMI and multi-level inventory optimization and control, and then, starting from the transition of the relationship between manufacturer and supplier, this paper discusses the classification, selection and evaluation tactics of the suppliers, and gives some key points for effective supplier management. At last, it illustrates the application of the purchase management theory under supply chain conditions through analyzing a specific case.