A Study On Purchasing Management Of Honeywell Consideration In Supply Chain

The purchasing management for Honeywell is studied consideration in supply chain, and the practicability and feasibility of just-in-time(JIT) purchasing and vendor managed inventory(VMI) are emphatically studied, which have obviously advance, applicability and novelty. On the basis of collecting, preparing and analyzing variation of information, Honeywell operation environment is comprehensively analyzed, which includes overseas and domestic environment of the security business, macro and industrial environment that Honeywell is confronted, and SWOT analyzing. This paper provides four purchasing strategies for Honeywell after an analysis of current purchasing management and problem Honeywell faced. At first, in order to save cost, the material localization is practically analyzed using the resistor for a typical example. It is very important to utilize external resource management . Meanwhile, supplier reduction, supplier management and supplier early involving(SEI) are studied too. Second, the supplier kanban method, procedure and kanban size calculation can be obtained after giving a demonstration for supplier kanban. Running JIT purchasing for local suppliers, the inventory cost can be saved largely. Third, in order to reduce inventory and validate JIT operation, vendor managed inventory(VMI) Hub is setting up within Futian Free Trade Zone(F.FTZ), and VMI Hub flow is explained in details, the advantage of this case is that inventory turns can be improved. Finally, a new purchasing process is re-engineered after comprehensive analysis of current purchasing process status.