Problems And Countemeasures Research Of Purchasing Management In Company W

Company W was a small business producing metallurgical measuringinstruments. With the impact of financial crisis, it had to face to more fiercecompetition. In order to keep the market share W had to control the purchasing priceto keep its strongpoint. How to reduce production costs on the premise of fine-qualitywas the core issue here.The quantities of supplier was small, then suppliermanagement was ignored by W. The relationship between W and the suppliers oftenseemed to be casual and unequal. Single purchasing relationship made the supplierrelatively fixed, but leading the purchasing price to be unavailable, sometimes thesuppliers cannot deliver the goods in time, even delivered quality rejected goods. Allthese really cracked the profitability and competitive forces of W.In order to solve the problems in procurement price and quality, the article aimedat the defect phenomenon in W, and summed up the causations, then gave theprescription for improving the purchasing management in W.The paper began withsituations of Company W, including manufacture and business circumstance. Afterthat it described the purchasing process and purchasing department, then found theproblem in purchasing management and analysed them to get the solutions, it shouldbe noticed that there were two reasons caused the purchasing troubles, includinginside and outside aspects. Inside causation included the process and the workingarrangement of purchasing, all of them seemed irrational and the low level trainedpersonnel. Meanwhile the operation lacked of advanced methods also broughttroubles. The outside causation was from the suppliers, W had not established anysystem of supplier management, such as supplier development and evaluationresearch etc.. W cannot establish a long-term and steady relationship with thesuppliers. This exacerbated the purchasing situation. Finally, the author made policydecisions to solve the two causations.If only the prescription for purchasingmanagement would be well received by Company W and similar small businesswhich has the proximate problems.