Purchasing Management In New Product Development Of TI Group

Purchasing Management is one of the most important functions of organization's management, and purchasing strategy also becomes a very important part of organization's strategy. With the improvement of outsourcing, 50% income of an enterprise is used for the purchase of material and services, especially in the assembling enterprise, this percentage increased to 85%。What we should pay attention to is that the 70% of the cost of one product is decided in the period of new product development, so purchasing early involvement in new product development is very important.The background of this article is a global automotive components enterprise–TI group, and focus on the purchasing management in new product development- Nissan JA Brake tubing systems. The important functions of the purchasing management in the new product development are including: Cooperating with suppliers and other product development members, to do value analysis for the new product and try to find the measures to cut the development time and decrease the new product's cost; Choosing the right supplier; Decrease product cost by Supplier's Quotation Analysis Model; Managing cost by the strategy of Total Purchasing Cost; Studying every procedure of purchasing to cut down the purchasing cost, logistic cost and inventory cost.With the research of this subject, we'll find the purchasing management is vital for the success of new product development project and also contribute to the competition capability, profit & market share of the enterprise. In the meantime, this article has the instructive function for the purchasing management in new product development, especially in the automotive components field.