Actuant Purchasing Management

With the trend of economy globalization, the supply chain environment became complicated and harsh. Therefore, the collaboration mode brought both benefit and risk to the vendors. Meanwhile, Purchasing plays important role in connecting the supply chain vendors. Effective purchasing management is one of the important way to lower the cost and risk, also do good to increase its competitive edge and the performance of the vendors of the supply chain.The paper sets theory basis for Actuant purchasing management by elaborating the basic theory of purchasing and supplier management.By analyzing the current purchasing management situation of Actuant (shanghai) ,the paper intends to optimize its purchasing management with view on its organization structure, purchasing process, items segmentation ,supplier relationship management, supplier performance evaluation and stock control.The paper propose to restructure its organization by seting up cross- function purchasing team. Through purchasing process analysis by ASME method, the paper propose the purchasing process reengineering(BPR) to improve purchasing efficiency and set up the relevant purchasing organization and mechanism to suit the supply chain environment.By diversifying supply management, controlling procedure of purchasing should be adaptable to the outside resource integration. After segmenting the components and supplier by two dimensions of risk and value, we can realize the objective of controlling the risk and managing the suppliers effectively by applying different strategy and management method to different category suppliers.From the perspective of finance, business process, innovation and customer service, the paper uses Actuant (China) as core enterprise to evaluate the supplier by using the tool-Balance score card(BSC). Actuant can smoothly conduct the supply chain risk management process and supplier motivation, thus it will lead to the sustainable ,stable and smooth development of the supply chain. Both Actuant and the suppliers can benefit from risk control management.At last the paper proposes vendor management inventory(VMI) as the solution to Actuant's stock control.