Analysis of just in time procurement management ba

Based on the analysis of just in time procurement management in the supply chain environment

in the traditional procurement mode, the purpose of procurement is to replenish inventory, that is, to store and purchase for the library like a digital replacement simulation. With the formation of the global economy, the market competition is more intense, and the competition mode has changed from the original competition between enterprises to the competition between supply chains. Just in time purchasing is a purchasing method based on supply chain management. The so-called supply chain management is to use computer network technology to comprehensively plan the business flow, logistics, information flow, capital flow, etc. in the supply chain, and to plan, organize, coordinate and control. It regards the whole supply chain as an entity and optimizes it from a systematic point of view to improve the competitive advantage of the whole supply chain

first, the concept and basic idea of just in time procurement

just in time procurement (JIT Procurement), which evolved from just in time management. JIT Procurement is an ideal material procurement method. Its ultimate goal is zero inventory and zero defects of raw materials and purchased parts. Its basic idea is to supply the right quantity and quality of goods to the right place at the right time. The best way to meet the needs of users is to purchase on time. Just like production on time, it can not only best meet the needs of users, but also greatly eliminate inventory and waste to the greatest extent, thus greatly reducing the purchase cost and operating cost of enterprises

second, the main advantages of JIT Procurement under supply chain management

1. it is conducive to exposing the hidden problems in the production process and improving the production efficiency at a deep level. JIT Procurement believes that excessive inventory not only increases the cost of inventory, but also covers up many contradictions in production and management. JIT is an ideal material procurement method, which sets a highest standard and a limit target, that is, the inventory of raw materials and purchased parts is zero, and the quality defect is zero. At the same time, in order to achieve such a goal as far as possible, JIT Procurement provides an effective way for continuous improvement, that is, reducing the inventory of raw materials and purchased parts - exposing material procurement problems - taking measures to solve problems - reducing raw materials and inventory

2. eliminate the non value-added process of the production process. In enterprise procurement, there are a lot of activities that do not increase the value of products. JIT Procurement greatly simplifies the procurement process, so it eliminates these wastes and greatly improves the work efficiency

3. further reduce and eventually eliminate the inventory of raw materials and purchased parts. Reducing the raw material inventory of an enterprise depends not only on the internal of the enterprise, but also on the management level of suppliers. JIT Procurement is not only a procurement method, but also a scientific management mode. The operation of JIT Procurement Mode will greatly improve the scientific management level of user enterprises and supplier enterprises. It is beneficial for enterprises to reduce the occupation of working capital and accelerate the turnover of working capital. At the same time, it is also conducive to saving the occupied space of raw materials and purchased parts inventory, so as to reduce inventory costs

4. Enable enterprises to truly realize flexible production. So as to minimize the inventory of raw materials and purchased parts. In this sense, JIT Procurement can best adapt to the changes in market demand, so that enterprises can have real flexibility

5. It is conducive to improving the quality of purchased materials. Generally speaking, implementing JIT Procurement can improve the quality of purchased raw materials and purchased parts by times

6. it is conducive to reducing the purchase price of raw materials and purchased parts. Due to the close cooperation between suppliers and manufacturers, internal economies of scale and long-term orders, as well as the elimination of some waste in the procurement process, the price of purchased raw materials and purchased parts has been reduced

III. JIT Procurement Strategy under supply chain management

1. reduce the number of suppliers. Ideally, a certain raw material is purchased from only one supplier. This method of burning or baking to remove the plastic fixed on the screw is called single source supply. The advantage of single source supply is that it increases the dependence between enterprises and suppliers, which is conducive to the establishment of long-term mutually beneficial partnership

2. Small batch purchase. As JIT Procurement aims to eliminate the inventory of raw materials, procurement must be in small batches. Small purchase batches will increase the frequency of delivery, resulting in an increase in transportation and logistics costs. The supply logistics system must be improved accordingly

3. Choose suppliers reasonably. JIT Procurement adopts single source supply. It can be said that selecting qualified suppliers is the key to the successful implementation of JIT Procurement. When selecting suppliers, it is necessary to comprehensively evaluate suppliers according to certain standards, which should include product quality, delivery date, price, technical capacity, adaptability, batch flexibility, balance between delivery date and price, balance between price and batch, geographical location, etc

4. More strict requirements for punctuality of delivery. An important feature of JIT Procurement is the requirement of punctual delivery, which is the prerequisite for the implementation of just in time production. Delivery on time depends on the production and transportation conditions of the supplier

5. Ensure the procurement quality from the root. After JIT Procurement, the inventory of raw materials and purchased parts of the enterprise is very small or even zero. Therefore, in order to ensure the smooth production and operation of enterprises, the quality of purchased materials must be grasped from the root, that is, the supplier should be responsible for the quality problems, not the material procurement department of the enterprise. This ensures the quality of procurement from the root

6. The demand for information exchange is strengthened. JIT Procurement requires a high degree of information sharing between supply and demand sides to ensure the accuracy and timeliness of supply and demand information. Only the reliable and rapid two-way information exchange between the supplier and the demander can ensure the timely supply of raw materials and purchased parts

7. Reliable delivery and specific packaging requirements. As JIT Procurement eliminates the buffer inventory of raw materials and purchased parts, the supplier's delivery errors and delivery delays will inevitably lead to the suspension of production lines. Therefore, reliable delivery is a prerequisite for JIT Procurement. The reliability of delivery often depends on the production capacity, transportation conditions and adaptability of suppliers

IV. the difference between JIT Procurement method under supply chain management and traditional procurement method

1. traditional procurement selects more suppliers, with loose cooperation and unstable material quality; Less suppliers are selected for on-time procurement, with stable cooperation and material quality

2. In terms of supplier evaluation, traditional procurement only evaluates contract performance ability; Just in time purchasing comprehensively evaluates the contract performance ability, production design ability, material distribution ability, product research and development ability, etc

3. In terms of delivery method, traditional procurement is arranged by the purchaser and delivered according to the contract; On time purchasing is arranged by the supplier to ensure the punctuality of delivery

4. In terms of arrival inspection and information exchange, the information of each arrival inspection of traditional procurement is asymmetric, which is easy to lead to black box operation; The quality of on-time procurement is guaranteed without inspection. The procurement and supply sides share on-time and real-time information, which is easy to build trust

5. In terms of procurement batch and transportation, traditional procurement, mass procurement, low distribution frequency, effective Kanban management, year-on-year full scale management level also means the same, but generally used to indicate that the full scale of the extensometer is reduced by 90%, reducing the occupation of inventory funds

v. JIT Procurement implementation method under supply chain management

1. create just in time procurement teams. Professional and high-quality procurement team is very important to implement just in time procurement. To this end, first of all, two teams should be established, one is dedicated to dealing with supplier affairs, and the other is dedicated to eliminating waste in the procurement process

2. Make a plan to ensure that the just in time procurement policy is popular in the aerospace industry because of its ultra light and super strong characteristics, and implement it slightly and step by step. We should formulate procurement strategies, improve the current procurement methods, reduce the number of suppliers, correctly evaluate suppliers, and issue visas to suppliers. In this process, we should work with suppliers to agree on the objectives and relevant measures of just in time procurement, and maintain regular information communication

3. select a few suppliers and establish partnerships. The selection of suppliers should consider these aspects: product quality, supply, adaptability, geographical location, enterprise scale, financial situation, technical capacity, price, substitutability with other suppliers, etc

4. Carry out pilot work. Start with the pilot of a product or a production line, and carry out the pilot of just in time supply of parts or raw materials. Through the pilot, summarize the experience and lay the foundation for the formal implementation of just in time procurement

5. Do a good job in supplier training and determine common goals. Just in time procurement is a common business activity between the supplier and the demander. The efforts of the procurement department alone are not enough, and the cooperation of suppliers is required

6. issue the product inspection exemption certificate to the supplier. The difference between just in time procurement and traditional procurement is that the buyer does not need to carry out more inspection procedures for the purchased products

7. Realize the delivery mode of cooperation with just in time production. The ultimate goal of just in time procurement is to realize the production punctuality of enterprises. Therefore, it is necessary to realize the transformation from the predicted delivery mode to the just in time delivery mode

8. Continue to improve and expand achievements. Just in time procurement is a process of continuous improvement and improvement. It needs to constantly sum up experiences and lessons in the implementation process, and make improvements from various aspects such as reducing transportation costs, improving the accuracy of delivery and product quality, and reducing supplier inventory, so as to continuously improve the operation performance of just in time procurement

the implementation of JIT Procurement depends not only on the internal of the enterprise, but also on the management level of the supplier and the management level of the whole society. Therefore, JIT Procurement poses new challenges to the procurement management of enterprises. Enterprises need to change the traditional management mode of inventory procurement, improve flexibility and market responsiveness, increase information contact with suppliers and mutual cooperation, and establish a new cooperation mode. (end)