Purchasing Management In Supply Chain Under Network Convergence Background

In early 2010, the Premier of the State Council hosted a State Council standing committee meeting, explicitly pointed out that China's network convergence process of telecommunication network, broadcasting network and internet should be speeded up and enhanced. Network convergence problem, which has been discussed from ten years ago, finally made breakthroughs. Network convergence is being gradually promoted throughout the country. For the network industry, convergence will break the traditional layer separated and scattered pattern of broadcasting and movies, bringing revolutionary effects to the propagation idea, ways and means, business models, and mechanisms. Broadcasting and television networks will be transformed from TV network transmission units to comprehensive information operators. To that end cultivating future core competence is the key to operation. Successful supply chain management is one of the critical factors to operators' core competitiveness. In the 21 century, the corporate competition is not only between enterprises, but also between supply chains. Supply chain management has been generally recognized and applied in the manufacturing sector. But, in industries such as broadcasting and television network operations companies have taken technology driving as a pilot project and government protection as a"capital", desalting supply operation management, especially the purchase management in a supply chain. This pattern obviously will be broken under the background of network convergence. Broadcasting and television network operators have to integrate business processes, including new product development, network construction, customer service, post-sale service, and payment, because these operators have to directly compete with which are Mobile China, China Telegraphy and Unicom New Space, the Top Three Chinese Fortune 500 operators. Creating value through supply chain through purchase management will increase an enterprise's core competence.With the background mentioned above, this article applies fundamental theory and methodology of supply chain management, integrates the background of actual purchasing management of TJ Broadcasting and Television Network operators, and analyzes how broadcasting and television network operators cope with the challenge and requirement of the transformation under the background of network convergence. From the points of supplier management and total purchasing cost management in supply chain, the author analyses how broadcasting and television network operators advance enterprise's core competences through purchasing management.This article firstly presents basic concepts relevant to the theory of supply chain management, supplier management and total cost management, and introduces the practices about supplier management and the total cost in the broadcasting and television industry supply chain. Secondly, suppliers are classified by product features in the broadcasting and television industry. Supplier evaluation system is then built up from the view of supply chain management, the risk in supply chains, and measures to evaluate and avoid risks. With the perspective of total purchasing cost, not only the explicit cost, but also the implicit costs, is considered. Finally the case of TJ broadcasting and television network operator is presented to demonstrate that supply chain management can promote enterprise's core competences and reduce the total operation cost.