Study On Packing Sourcing Strategy Of L Company

The global competition is increasingly fierce with the economic globalization and the quickly development of technology network.The rapid development of e-commerce also drives the rapid growth of the cosmetics industry.However,with the pressure from the government,society and environment,corporate social responsibility and green procurement requirements have become the key elements for the strategic development.The packing of cosmetics cannot blindly pursue the gorgeous appearance.The colorful packaging may have had an impact on the environment in the process of production.Enterprises need to take into account the elements of corporate social responsibility and consumers’ requirements for packaging design,which brings severe challenges to purchasing practice.Taking L Company as an example,this paper analyzes the market situation of the packing material by using Michael Porter’s Five Forces Model.Moreover,from internally we analyze the organizational structure,procurement process and packing material of L Company.Although L company is a leader in the cosmetics industry,its purchasing maturity is still at an ordinary level.The management of material subdivision is too simple and there is no differentiated management.Meanwhile,the procurement process is complex,time-consuming and inefficient.In terms of supplier management,the number of suppliers is also increasing which leads to scattered procurement and declining performance of existing suppliers.L Company needs to find the corresponding solution as soon as possible.In this paper,we use the Kraljic matrix model and ABC classification to subdivide the materials.In terms of supplier management,we use AHP to upgrade the supplier selection and evaluation system.The new evaluation system can help sourcing to integrate suppliers and focus on developing strategic suppliers to reduce procurement costs.Finally,the implementation steps of the optimization strategy are made to ensure the improvement.