Research On Centralized Procurement For Auto Spare Parts

The car dealer is the integrated service provider of the automobile circulation and is theengineer of the communication between the whole automobile industry and customers. Withthe rapid development of our automobile industry, the group management has been the mainmode of the automobile circulation management. The dealer group has expanded the businessscale vertically while enlarged the scale of operation and then gradually come into the field ofautomobile service. The centralized procurement meets the requirements of interests of thedealer groups with plenty of chains and branches, and the requirements like the ability ofproviding for the upstream suppliers of the attraction and bargaining because of the plenty ofpurchasing amount, strong network of sales and fixed groups of customers because of lots ofstores, and making the management of groups to be vertical integration with the combinationof various of sources. However, there are various and complex supporting systems of theautomobile spare parts as well as the different principles of the supply and demand. Therefore,the issues of how to apply the platform of the centralized management, how to exert theadvantage of scale and realize the centralized procurement of the spare parts, are the mostimportant problems for the automobile dealer groups.This paper will pay attention to the application of supply chain management in thecentralized procurement on the basis of related documents and the current situation of theindustry, and make a study and discussion of the centralized procurement for the automobilespare parts and then give the specific operation methods. I will point out the background andcurrent problems of the centralized procurement for the spare parts by introducing the trend ofthe centralized automobile dealer and the Game between the brand manufactures and dealers,and then effectively deal with the problem of order selection of the Genuine Parts and the nonGenuine Parts that have troubled the dealers by dividing the automobile spare parts into eightcategories with the use of the three dimensional Kraljic Matrix and the selective centralizedprocurement. Then I will explain the selection of the suppliers and the centralizedprocurement selection, which are the two main problems in the centralized procurement of theautomobile spare parts. The method of bidding is the most suitable one for the spare parts purchasing dealers with some special measures. It could help the automobile dealers to findthe suitable purchasing operation method by constructing the hierarchy structure model. Thelast part of the paper verifies the theory study under the utilization of the centralizingpurchasing of the large automobile dealer group, GWQM, and makes a summary.