Study On Purchaing Management Of Hand Tool Industry

The hand tool product manufacturer belongs to the typical labor intensive and low value-added enterprise.Since 2008,both domestic and foreign economic went ups and downs due to the global financial crisis.RMB exchange rate against the USD dollar strongly went up.Anti-dumping tax rate to Chinese hand tools products continue to improve due to more and more China local enterprises export business grow.Since these unhelpful effects,hand tool manufacturing enterprises face heavy pressure,the profit space become much less than before.To cope with the severe economic situation,the hand tool manufacturing enterprise played as the traditional industry must take actions.The supply chain and procurement management of A company in this paper was deeply analyzed in this article.By optimizing the purchasing management of A company to improve the company's profit space and further to cope with the current severe situation.Combine procurement theories and A company practical problem existing in supply chain and production,optimize from procurement demand management,supplier management and procurement model aiming at preparing procurement plan reasonably,improving supplier management level and strengthening procurement management.The optimized procurement processes will enhance the competitiveness of A company in the industry.The methods used include customer demand prediction,demand analysis,inventory management,supplier management and VMI procurement model.The optimization plan is aimed at increasing company profits by reducing procurement cost,improving productivity through eliminating waste in procurement activity,optimizing whole company management through strength procurement function in supplier chain and eventually improving the market competitiveness of A company.At the same time,hope this article can provide value on procurement management to other hand tool manufacturing enterprises in China.