Study On The Important Raw Material’s Purchasing Strategy Of Q Company’s M Product Based On The Raw Material’s Classification

Nowadays the pace of China’s urban modernization becomes faster and faster. Theelevator industry as the crystallization of urban development is becoming into theemerging industry of manufacturing and also has a huge development. Q company as amember of the industry encountered its own problems in the development of the tide withfierce competition: higher production costs, while lower profit margins. Some mainreasons of leading to these problems’ occurrence are concluded as follows: first of all,diversified customers’ demanding bring into new problems for production and purchasing;secondly, the lead time of demand orders is becoming shortened, while the purchasingperiod is very long; thirdly, the raw materials’ prices have many types of changes and thepurchase is complex; fourthly, it leads to low efficiency purchase that Procurement staffneed to deal with many temporary and small order; last but not least, the purchasing planof the raw materials is not thorough, etc. In this paper, a series of strategies to solve theseproblems Q company faces will be studied and present by the way of analyzing the statusquo and combining the theoretical knowledge with practical. To handle these problems wealso fully understand that efficient procurement has an active function on reducing costsThis article is from the perspective of key raw materials’ segment. First of all,combining with M product’s BOM some important raw materials that has great influenceon M product’s raw materials procurement costs can be got by using the method of fuzzycomprehensive evaluation decision. The purpose getting the important raw material is forthe key management so that we can under the premise of the same effort get a quickresponse, Accumulate experience and lay a solid foundation for purchasing managementafterwards. Secondly, by analysis of some relevant raw material classification’s knowledgeand together with Q company’s present situation, this paper combines a fuzzy clusteringand classification principles with the Kraljic matrix materials classification method.Through the analysis of various scholars’ research in recent years, this paper selects Profitimpact and supply risk suitable for Q company as two dimensions of classification indexessuccessfully. After that these important raw materials are divided into four categories: Non-critical items, bottleneck items，leverage items and strategic items. Finally, this paper,on the basis of analyzing the characteristics of all kinds of raw materials and the status quoof Q company, gets raw materials procurement strategy suitable for all kinds of rawmaterials, including: single framework agreement procurement strategies, procurementstrategies, just-in-time purchasing strategy and strategic sourcing purchasing strategy. Inaddition, some corresponding strategy implementation process and recommendations willbe provided.This article not only verify the effectiveness of the evaluation index system andclassification methods, but also found the root of saving cost, increasing profit andenhancing Q company’s competitiveness through the layers of analysis. Moreover, somepurchasing skills and methods of improving work efficiency are presented from thestrategy level.