The Study Of VS’ Purchasing Strategy Based On Buy-and-sell

Under the economic globalization, more and more enterprises emphasize on core competitiveness, a business to have a full range of resources is not conducive to the rapid establishment of its competitive advantage. OEM(Original Equipment Manufacturer) referred to as "OEM", that is, a one-stop outsourcing model, production of all raw materials and entrusted to the subcontractor, which has been in operation for many years and works at the international level, particularly in the IT industry. But when the product matures, a large number of competitors customers have the resources to pursue better quality and delivery faster, especially cheaper and be able to meet their individual needs, products or services, enterprises realize the traditional OEM may no longer be the best mode of supply, which needed a more effective way to reduce costs, to footing in the fierce market competition.VS is a display Brand Company, committed to providing all kinds of innovative display technology products and video solutions. From the establishment of the company, has been using OEM model. But with the display of the product industry into the mature stage, the price competition is increasingly day by day, the survival and development of the space is more and more serious. In the face of such a situation, the procurement cost in OEM mode is less competitive, and VS company needs to find a more effective way or way to reduce the cost of the product, in order to enhance the company’s price competitiveness.In the last year, a new optimization model based on the processing of materials, Buy-and-Sell(Buy&Sell) in the IT industry is happened. The so-called Buy&Sell specified in OEM mode, brand companies to suppliers direct purchase of raw materials, raw materials(not after any kind of processing) sold directly to OEM, by the OEM will be raw material manufacture into finished products sold to the company’s brand. In this mode, the Brand Company not only can directly control the price of raw materials, that is to enjoy the low cost advantage of the processing mode, and help the Brand Company directly passed on to the processing mode of raw materials required to bear the raw material procurement and inventory pressure. Based on this, VS company plans to introduce Buy&Sell supply mode to try and explore. How to use this model and make it play the best becomes one of problems that VS faced now.In this paper, the VS uses Buy&Sell mode as the research object, analysis and research in this mode, VS company how to use the Carla Jack matrix and its own actual situation will be divided into four categories: strategic material, leveraged material, bottleneck type of material and general type of material. By analyzing the characteristics of different types of material, the corresponding purchasing decision and supplier relationship management and the operation of VS company in Buy&Sell mode are proposed.Finally, this article hopes that the above analysis and research results can be successfully applied to VS company, to provide a strong theoretical basis for the follow-up of its practical operation and ultimately achieve the purpose of reducing costs, improve the competitiveness of the company. It is also expected to provide new ideas and references for some enterprises that are being discussed in the implementation of outsourcing decision-making, how to reduce the cost of the product and get the competitive advantage.