The Research Of Strategic Purchasing Management On J Company

The globalization of the economy and the continuous improvement of market competition is normality now.Company can survive profitably based on the demographic dividends and inadequate market competition before,but can’t now.One of the most recent complaints from business owners is that business is getting harder and harder to make a profit,forcing bosses who used to focus on sales orders have to focus more on in-house management.Procurement management is an important internal operation that can enhance the competitiveness of enterprises.It can increase the profit of the enterprise through cost saving,and can bring the extra value by excavating the innovation of the supplier.For most manufacturing industries,the cost of purchasing materials accounts for more than 50% of the total cost,procurement management plays an important role in enterprises today.J Company is a well-known domestic equipment manufacturer on oil and gas field,the decline of crude oil price has cast a shadow on the development dream of industries,and many oil and gas companies have closed down and reorganized one after another.Many of the upstream oilfield developers have scaled back development and limited production.Under this background,J Company realized the importance of optimizing internal operation management and carried out strategic procurement management.This article has carried on the research to J Company’s strategic procurement management,the author introduced the theory of strategic procurement and the difference between the strategic procurement and the traditional procurement firstly,then combined with own practical work experience,had analysis on the internal and external environment of the company and several problems existing in the past procurement management,and then put forward the necessity of implementing strategic procurement and the objectives and scheme of implementing strategic procurement,showed the key points of implementation and the research of practice finally.Emphasized the significance and methods of strategic cost management,category management,order management and supplier relationship management.Strategic procurement has solved some problems of J Company in price,cost,quality and so on,which has brought great changes to the company.This article has not only given the procurement theory,but also combined the specific procurement cases.Though the research on the problems in J Company’s procurement management,it has given the theory and specific methods.It has strong operability,it can be a reference of other enterprises on setting up the strategic procurement mode.