The Study Of Purchase Under Supply Chain Management

The method of supply chain management brings the new hope to manufacturing under challenge. Margin is the life of an enterprise. Then to achieve higher profit, the final purpose of supply chain management is to improve the competition capability of enterprises. Purchasing or procurement is one chain, which connects a company with its outer organizations. First, the production management of the business enterprise is the consumption process of the material supplies. To maintain the production round-the-clock, the constant material supply is a must in complement to the demand of the original material, semi-processed goods etc. Second, the costs of original material and parts take a big share in the whole costs. The control of the procurement costs is an efficient way to increase profits. Third, from a study of the value-added contribution of three segments: procurement, production, marketing, it can be concluded that the role of procurement outweighs the other two. Apart from above, original material procurement is closely related to inventory. It is essential for a manufacturer to attach more importance to procurement so as to realize the decrease of storage.Under the upper background, firstly, it introduces the basic theory and concept of supply chain and supply chain management. Then it introduces the five phases of supply of supply chain management according to the challenge. In the third chapter, it introduces the importance of purchase in the cost control and value chain and the definition of purchase, purchase management and purchase organization. Based on the five development phases of manufacturing, it introduces the purchase tactics in tactics, target, organization, staff, information and supplier. In the fourth chapter, it introduces the concept of cooperation among enterprises, the risk and benefit that will bring to enterprises through the supply chain partnership. In the fifth chapter, it discusses the supply chain management and purchase strategy according to the fact of A company. After the analysis of A company'supply chain and purchase management, it provides the improved purchase tactics according to the shortcomings.