Purchasing Strategy Research Of D Company

From 2011 to 2017,the demand of the consumer electronics industry increased,giving Chinese electronics manufacturing enterprises a good opportunity for development.But since 2018,the consumer electronics industry has been affected by changes in the supply and demand of the market,coupled with the impact of the changes in COVID-19 and the international situation in 2020.The overall order situation is facing a severe crisis,and the overall profit margin of the industry has plummeted.The internal operating profit of company D decreased sharply in 2018,and company D suffered its first loss since its establishment in 2019.Company D needs to quickly reverse the unfavorable situation.If the enterprise wants to make continuous profits and improve its competitiveness,the managers should formulate a cost leading company strategy.As company D is a pure production and manufacturing enterprise,its product category and market are relatively single,and the proportion of purchased materials is more than 80%,its procurement function strategy is highly correlated with the strategy of company D.In this difficult and turbulent fierce competitive environment,only by designing a good procurement strategy and layout can we ensure the successful implementation of the strategy of company D,turn losses into profits,and form a more long-term development mechanism.The purpose of this thesis is to apply the concepts and tools of strategic management to carry out strategic management for D company’s procurement,integrate the enterprise’s strategy and procurement strategy,and provide support for the realization of D company’s strategy.We no longer only regard procurement as a tactical oriented behavior,but change it into procurement,which should focus on strategic management.Establish a sound procurement strategy management system to improve the profitability of D company.The practical significance of this thesis is that D company needs to quickly reverse the adverse situation,and many enterprises ignore the importance of procurement strategy.Through this research,D company formulates and implements procurement strategy,which provides solutions and directions for the company to reduce costs and improve profitability.The conclusions and schemes analyzed in this thesis also provide practical and feasible operation methods for D company,provide basis and guidance for improving the profit goal of the enterprise,and can also be used for reference for similar enterprises in the industry.Firstly,based on the cost leading corporate strategy implemented by D company,this thesis makes a systematic analysis on the external environment and internal ability of D company’s procurement,and makes a quantitative evaluation on the influencing factors by using the internal and external factor evaluation matrix.Then on the basis of the above analysis,this thesis further uses the SWOT analysis framework to give the procurement strategy of D company,finally formulates the material category subdivision procurement strategy based on krajack matrix,and establishes the implementation path of procurement strategy.1 Material cost optimization management based on TCO theory;2.Optimized supplier selection management based on TCO;3.Organization optimization and personnel capacity improvement management.Finally,the idea of balanced scorecard is introduced to ensure the consistency between D company’s procurement strategy and the company’s strategy,and provide quantitative indicators for the implementation,correction and improvement of the strategy in the future.In the process of formulating the strategy for the procurement department of company D:on the one hand,by learning the cutting-edge theories,research contents and methods of strategic management,it provides a systematic and professional research method for the procurement department of company D to formulate the strategy for the first time.On the other hand,the specific strategy applies the methods of karajack matrix,TCO and balanced scorecard to provide scientific methods for specific strategy formulation and quantitative performance incentive and control guarantee for strategy implementation.The innovation of this study is that through the analysis of strategic management,procurement strategy and procurement management theory,the procurement strategy choice of D company is obtained.On the other hand,it puts forward the implementation and guarantee path of procurement strategy.