Research On JIT Purchasing In Automobile Enterprise Based On The ABC Classifying Method Which Is Improved

Automobile manufacturing is the epitome of industrialization, and it's also a strategic industry of national prosperity. After accession to the WTO, many multinational auto companies entered this huge market full of potentials. So our auto market ushered in international competition. With intensified competition and fast demand changes of the market, automobile manufacturers have to cut down costs, improve responsiveness for market demand and improve flexibility of the entire supply chain. As purchasing, which is called "the third profit source", plays a prominent role in reducing costs and improving the supply chain efficiency. Therefore, JIT Purchasing has been pushed to the forefront of the times as the optimization for the traditional one. It can reduce inventory, short the delivery time, and at the same time it also helps to establish partnerships with suppliers and improve part quality, thus eliminating the negative impact to the enterprise by avoiding the bullwhip effect. Many foreign companies have already been using this kind of JIT purchasing and obtained satisfactory results. But in China, the JIT purchasing has not been commonly used yet. Under this circumstance, car manufacturers face how to implement JIT procurement of auto parts and achieve innovation, and this has been an important issue for most auto manufacturers in China.This paper analyzes features of the JIT purchasing from a strategic point and compares it with the traditional purchasing. Then this article analyzes the current purchasing management situation of auto manufacturers in China and points out the need for implementation of JIT purchasing. Because of the wide range that ups to fifteen thousand for auto parts, companies can not use the same purchsing model for those auto parts. So classification of auto parts is required. Traditional ABC classification only considers value of the standard components and can not reflect key components, ease of purchasing and other important characteristics of auto parts, so it is necessary to improve the implementation. This article uses AHP theory and proposes classification of automotive parts comprehensive evaluation index system, the use of AHP and fuzzy comprehensive evaluation method to improve the combination of ABC classification. This paper confirms the effectiveness of the evaluation index system and evaluation method through numerical examples. The paper provides some purchasing strategy based on ABC Classification. Different classifications are proposed for different parts of the purchasing model, Milk run has been suggested for parts of class B to achieve further costs reduction. The paper also proposes the establishment of model-based JIT Purchasing Management ERP subsystem by strengthening supplier management and establishing rational organizational structure. I hope that this paper can provide valuabe reference to JIT purchasing for automobile manufacturers of china.