Research On Purchasing Strategy Based On Material Classification

With the rapid development of production technology, widely application of information technology, and the rapid economy globalization, the competitive environment has been increasingly high. In the traditional manufacturing enterprise, the possibility to enhance the competitiveness with technology improvement in manufacturing process is becoming lower. It is well known that highly effective procurement management is one of the most important approaches to reduce cost and enhance competitiveness.Beginning with the angle of material classification, this study finds a way to analyze purchasing strategy, and then to apply it as a demonstration for material procurement of the notebook at a company.The manufacturing style in the electronics industry is small batch production of the various kinds of products, and the competition is especially high. This study firstly depicts the characteristic of the special characteristics of the electronics industry, and then develops the procurement model base on the bill of material (BOM) to meet the requirements of MRP and customer's order. It then analyzes the purchasing strategy according to the result of the material classification. At the same time this paper studies the advantages and disadvantages of the traditional ABC inventory classification and Kraljic matrix, and develops the new approach to classify material by using clustering analysis, which classifies the material based on the MRP requirement. According to the classification result, this study makes decision for procurement strategy by combining with Kraljic matrix, finds out the procurement approach by considering organization structure, supplier management, supply tactic, logistic process, enterprise information system, to enhance the enterprise competitive advantages. At last but not least, an example by using notebook products at a company demonstrates the approach in this thesis to sort out the materials, to select the corresponding procurement strategy, and to put it into practice and to verify the effectiveness.