Research On W Company's Supplier Management Based On JIT Purchasing

This paper works for research on W company's supplier management based on JIT Purchasing, After acknowledged the background and latest status of W company , analyse the issue of W company's JIT supplier management and find out the root cause . Then list out the solution and how to implement.Nowaday product life cycle is shorten and customer expect is improving, to meet the demand variety in fastest way is being competition between enterprises. JIT(Just In Time) is born in such situation and JIT purchasing is based on supply chain management and JIT manufacture , after that the JIT supplier management comes out. Although JIT purchasing is recognized by world widely , it still has many problem during its implement. Under the current mold of supply chain management , we emphasize cooperation and Win-Win , seeking for profit of the whole supply chain. Then both manufacturer and supplier need to take the liability of JIT purchasing. Supplier selection and evaluation based on JIT Purchasing deeply researches the partnership between supplier and W company , which will bring benefit and has important reference and actual significance. It is helpful to build up the strategic partnership for supplier and demander under supply chain and good for enterprise to implement JIT purchasing. Cost reducing , increase company benefit and society contribution. Long term cooperation of supplier and demander need to do further research and get the dynamic relation. The more information sharing , the lower inventory can be control , that's how the information control well inventory , which can lead supplier join in the inventory management and reduce the material order lead time.In this paper, according to author's personal experience in W company and to solve the problem of the W's are having to implement JIT purchasing management. In JIT purchasing practice, the majority of purchasers and suppliers to each other due to inability to establish effective long-term strategic partnership, which led to the effective implementation of JIT purchasing, JIT purchasing implement is a bottleneck. Both the purchaser and supplier strategic partnerships as a starting point to start the research.First, the paper describes the beginning of W's background and present situation of W's JIT purchasing vendor management problems : Difficult to find qualified suppliers together with the W's JIT; Supplier response time, in fact, is not coordinated with suppliers to establish partnerships; inadequate sharing of information technology issues.Then take theoretical analysis for JIT purchasing supplier management, and identify the root causes. W's procurement focus on price and choose the lowest price suppliers, and suppliers lack of information does not match the competition.Under short term cooperation and competition is more than cooperation.After analyzing the root of the problem, describe the JIT purchasing characteristics relationship between supplier and demander. Supplier relations has gone through four stages of development : Traditional stage -> competition stage -> Improved stage -> stage of strategic partnership. Strategic cooperation relationship between supply and demand is basis to achieve JIT procurement. Both supply and demand for JIT purchasing of strategic partnership between enterprises conducted in-depth study. Explore the relationship between JIT purchasing management of both companies and the characteristics of the nature and proposed strategic partnership based on supplier management program design. Demander and vendors to achieve a mutually beneficial collaborative model , Suppliers can get more benefits than non-cooperation. Supplier should adopt a positive attitude to meet the demand of manufacturers JIT purchasing and production plans to continue to meet these demand , will eventually get a unique competitive advantage. The result will be more and more market share and profitability, and reduce the demand uncertainty caused by excess inventory. The supplier closed cooperation than less cooperation can get more information from demander and get more opportunities to trade between each other naturally more frequent.Last part of the proposed W's JIT supplier management strategies to improve program implementation , list the objectives of W's JIT suppliers management , talk about W's supplier selection and evaluation of the specific method. In accordance with a comprehensive, scientific, comparability, operational principles, the establishment of supply chain management partners, comprehensive evaluation index system. From the supply, distribution, sales and services in four areas to consider, involving supplier performance, equipment management, human resource development, quality control, cost control, technology development, delivery protocols, user satisfaction, etc,. suppliers comprehensive capacity assessment . Overall strategic JIT purchasing problems depends on the W's and suppliers from ordinary trading relationship into a strategic partnership agreement. W's and the suppliers are cooperation, reciprocity, objectives, continuous improvement. We strengthen trust, improve supplier counseling, from time to time an incentive for vendors to identify common goals. W's material incentives of suppliers have increased the share purchase, long-term contracts, to promote the product exemption. The last part of this chapter describes the information sharing. To achieve win-win Target , W's through information sharing platform and a full supplier of information transfer, as much as possible to benefit-sharing . And W's also concerned about information risk prevention.By the study of improving supplier management in JIT purchasing of W Company , which can help to build up long term stratagem between manufacturer and supplier , it is helpful for enterprise's JIT purchasing application .