Research On The Application Of JIT Purchasing In The Company A

With the competition pricking up and the customers'characteristic request increasing, it's a hard problem for every leader in enterprises about how to adapt to the market variety, raise service level availably, lower production cost and improve product quality in the meantime. Now, the competition of market has already been much more than the competition between enterprises, but the competition between supply chains. The JIT purchase is evolved from the supply chain management and the JIT production, which is an effective method proved by practice to solve the above problem.This paper uses the methods of literature research and substantial evidence research combining the writer's own practicing experience in the A company. Guided by resolving actual problems, this paper studies some relevant problems about A company's implementing the JIT purchase.Firstly, this paper introduces the research background and meaning, research target, research contents and the methods of this topic, then elaborates supply chain management, JIT purchase and the theories of VMI HUB that this paper involves.Secondly, the paper gives a brief introduction to the basic current situations of the industry of passenger cars in our country and A company so that the readers could have fuller understandings to the research environment of this topic.Then, the paper introduces the situations of A company's purchase management and enumerates such problems existing in the current purchase management as large stock, high logistics cost, slow speed to respond, weak suppliers management, etc. . According to the thorough analysis to these problems, the paper points out the reasons of these problems are the lagging ideas, inventory strategy and logistics methods.Finally, on the basis of analyzing, the writer puts forward the proposal that we should cooperate with the third party's logistics company and apply VMI HUB and Milkrun theories to carry out its JIT purchase. The writer also designs an information system, operating model and logistics delivering model. Next, from the three aspects—A company's conditions, economic benefits and the influence of A company's competitive power, the writer analyzes the feasibility of carrying out JIT purchase and come to a conclusion of the project. Finally the article points out a few problems that we should pay attention in the implementing process of VMI HUB.In the process of implementing the VMI HUB, it is very important about how to support the benefits of suppliers and strengthen the trust of the three parties .Because of the limited time and space , this paper doesn't touch that problem, further research needs to be made later.