Study On The Application Of Jit Procurement In G Corporation

With the rapid development of modern economy, there is an increasing competition between industries, in order to prevail over rivals, corporations are supposed to reform themselves in a comprehensive and profound way so that they adjust themselves to the changing market and enhance competitiveness. Although purchasing is disregarded in the process of management reformation, material purchasing plays a vital role in the operation management. However if reformation that eliminating waste is carried out in non value-added purchasing activities, it can have a great influence on corporation especially operation capability enhancement, fund utilization rate increasing as well as on-time satisfaction the needs of customers in quality and supply.JUST IN TIME purchasing method, which is a vital part in the JUST IN TIME SYSTEM(LEAN PRODUCATION) founded by Toyota Motor Corp.1970’s is favored by modern corporations. Lean Production which is driven by orders has become increasingly mature in theory. In practical applications, there are more and more large enterprises to adopt this advanced production system and the application of JUST IN TIME purchasing is maturing. After much practice, JIT purchasing can be already used in enterprise production management as a separate procurement management mode, the idea of supplier management can make enterprises well adapt to rapidly changing market environment and there is great significance in improving the efficiency of corporate funds, corporate operational capability while such an idea is in line with modern supply chain management. However, in the practical application of this procurement mode we cannot completely copy the relevant theory, especially most of scholars focused on the application of large Western multinationals. For Chinese enterprises, especially SMEs need to own actual situation on the relevant theories adaptation when apply this advanced procurement patterns. In this paper, we first described the background and significance of this study and then summarized the research idea and basic framework. This paper briefly discusses the theory about JIT procurement model. Based on the basic theory of JIT purchasing, we will integrate the actual situation of the company’s especially SME G. After analyzing the status of the company G’s procurement activities, we conducted application design for the implementation of JIT purchasing patterns in G company. And proposed specific steps for the implementation, finally the effect of application was analyzed.