The Study Of Indirect Purchasing Management For JD Company

As we all know, the competitive environment for modern enterprises has changed from the simple marketing environment in the past to the complicated, dynamic, competitive and cooperative environment currently. Purchasing came out from operations as a business supporting team, and became a key input for the expected goal of business. Non-direct materials means the indirect materials and services, whose expense occupies one fourth of the total purchasing expense, that’s why indirect materials and services purchasing need to be controlled by the enterprise’s operations. While because the category of indirect materials and services is multiplex and the specification is non-standard, the supply management of indirect materials and services is lack of theory supporting, and a series of problems came out naturally.JD Company is the branch company of a global manufactural enterprise and it is a typical example which inherited the entire management process from Mother Company, but during the localization period, the branch company met with a lot of supply management problems due to the organization structure, process conflict and the unique characters of the single unit. This p aper did the deep analysis for the process of indirect materials and services based on the supply management theory related for JD Company. By focusing on the aspect of organization, role and process, this paper explained the problems and reasons, and figured out the corresponding solutions to the problems. In order to ensure implementation of the solutions in long terms and the gain the purpose of the research, this paper tried to build up a series of supporting strategies based on the aspect of company perspective, key business indicator and communications channel at last, only in this way, the result of the research can be closed.The purposes of this paper is appealing not only to solve the problems of indirect materials and services purchasing happened, but also want to offer some practices for global enterprises which meet with the same operation problems during the localization project.