Research On Company G's Casting & Forging Procurement Management

Company G is a European wind power generating equipment manufacturer, one of renowned wind power facilities and service provider world wide. Its market share has been maintaining No.1 in China since the company entered Chinese Market from 2003. In order to explore local market well, company established factory in TianJin to implement localization. However, company has been experiencing great difficulties and setbacks because perception of company G to purchasing management remains price-based, multi-party procurement, furthermore no suitable purchasing technique such as processes, methods and tools; since working condition of the wind power generating machine is atrocious, quality requirement of parts is very high. So the success of the purchasing heavily depends on the development of the suppliers, which requires that selection and development of suppliers must be guided by proper idea, method, process.In this paper, the author takes the casting & forging procurement of company as example to analyze the problems in company purchasing management, especially in suppliers sourcing and development; try to find solutions for company purchasing management. There are six parts in the paper. In chapter 1, it introduces the background of the paper, current status of purchasing management study at home & overseas and meaning & research direction of this paper. In Chapter 2, it reviews development of purchasing theories and its important function in company management. In Chapter 3, it describes the company's problems in purchasing management by analyzing procurement processes, company organization, suppliers sourcing & development, and company's inside & outside circumstance. In Chapter 4, it discusses what kind of purchasing technique must be taken by company under current situation and how to implement it by studying new procedures, processes, meaning and requirements for the purchasing people. In chapter 5, it studies how to map out purchasing strategy, selecting purchasing people and reforms the purchasing management of company by organization re-engineering, new process and tools for suppliers sourcing and development. In chapter 6, it summarizes this paper, points out next step of study following this paper and prospects perspective of casting & forging purchasing at home.