The Research On Purchasing Process Management Of KD Filter Co. Ltd

Resulting from the quick development of automotive industry, more and more auto parts company build domestic factory recently, which lead to the competitive of auto parts industry. Under this environment, enterprises are facing the pressure of purchasing cost, product development, and customer keeping.As one of the three important functions of an enterprise, Purchasing is not only the beginning of the scientific enterprise management, but also the most susceptible to the vulnerability of business chain. Its efficiency and quality plays a crucial role for its following steps and the entire production activities.Firstly, purchasing cost covers a large proportion of total production cost. It will directly affect the product’s sales and profits If the purchasing price is too high; it will affect the material quality and further affect the product quality if the purchasing price is too low, which leads to reducing market competitiveness.Secondly, purchasing department adjust purchasing strategy according to market changes. On the one hand, buyers can reduce purchasing cost through materials replacement; On the other hand, if the purchasing department learn the market trends well, the buyers can suggest the requestor to purchase more when the price is low, and purchase as less as possible when the price is high. In recent years, many companies began to notice the importance of purchasing procurement with the increasingly fierce market competition, and they begin to pay more and more attention to try their best to reduce cost.As the competition increasing, many enterprises start to realize the importance of purchasing. They pay more and more attention on the cost reducing as well as the sales, production and quality. Under this environment, this essay choose KD company as an example, introduce and analyze the current situation and existing problems from the aspect of purchasing procedure and purchasing management, and raise the purchasing procedure improving method, and also the improvement of supplier choosing and managing.Of course there are also many problems in purchasing. First, consider the purchasing activity as serving department of production; second, consider purchasing just a way to saving cost, and ignore the impact of purchasing management to the whole enterprise; third, because of unscientific procurement process, buyers can be bribed by suppliers, resulting in significant loss of economic efficiency of enterprises and personnel; fourth, ignore to apply new techniques and methods because of inadequate management mechanisms. Therefore, standardized management of the procurement process is essential.This essay provide the purchasing procedure improving method by analyzing the current problems in KD company, which is valuable. Theoretically, it is meaningful for cost controlling, supplier managing and new project launching.