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Procurement management

Procurement management, Supply chain management procurement, supply and demand balance

Supply chain management procurement is a very important aspect. In general, the production-oriented enterprises typically use to conduct 40p% of sales of raw materials, spare parts procurement. Procurement of speed, efficiency, order will directly affect the implementation of this enterprise is to quickly and flexibly to meet the needs of downstream customers.
Wealth theology, roads lead to Rome
Many people have this kind of feeling: the product updates more quickly, before a computer can be three years, but now less than a year is necessary to update. This phenomenon reflects the fact that product life cycles, and this has brought trouble to the production forecasts, such as the materials ready, etc. can not be accurate and complete, how to resolve this contradiction, it is supply chain management issues to be discussed.
In manufacturing, I do not know since when, "globalization" has become the most fashionable contemporary terms. The wave of businesses have pushed to the "global operations" position. The so-called "global operations" is targeted at the world level, procurement, production, and distribution behavior. Manufacturing supply chain mainly includes three parts: first, the customer, which is one of the most important part, because an enterprise's customers include many types, such as managing their own brands to customers, as well as OEM production customers and so on, from the customer the perspective of the needs of different customers, the supply chain, demand is also completely different; the other part is our own factory, computer, for example, this computer might be the production of parts and components in the mainland, and then bring the United States assembled, the final sold to customers in Mexico, which is typical of the global supply chain management; There is also scattered around the world, suppliers, and here is the product of raw materials, parts or service, may come from many different countries.
For the manufacturer, in order to do so based on how a good product, at what time, what kind of prices, with the fastest speed sent to the customer, and ultimately achieving a balance between supply and demand. And this result is advantages and disadvantages of measuring an important indicator of the supply chain. In this sense, accurate forecasting and rapid response rate is to ensure a well-functioning supply chain, a necessary condition. Many people think that an accurate forecast better than faster, but from the statistics, fast response speed than an accurate forecast of a more effective! Therefore, regarding the supply chain, a standard for judging good or bad comes down to the speed of the manufacturing supply chain!
To Dell, for example, they have not have their own manufacturing plants, but for the diverse needs of customers, they all meet, and can be completed within 3 days, all would have attributed to the credit for the quick response.
In other very different manufacturing industries - integrated circuit industry, there is also the same problem, but its supply chain and manufacturing are very different, in all industries, the vertical division of labor is almost the most in-depth industry. Each output of a product in this industry is to go through a lot of working procedure, such as processing, testing, and packaging and so on. Their products will be available to such as IBM, INTEL and so on. But these companies are not end-users, because their products will also provide foundry, computer systems manufacturing, communications products manufacturing factory. In a sense, these factories are not the ultimate customer, the product through marketing headquarters, branch offices, stores and other procedures, the ultimate customers are ordinary consumers, so this way, the industry's supply chain becomes very long.

The body of the circuit industry, manufacturing and supply chain will find a little more, both to highlight the focus is completely different: the manufacturing sector procurement of raw materials accounted for 50% -80% of the ratio of the integrated circuit industry, the totally do not care about raw materials, they are concerned about the capacity, because of the industry such as machine-like fixed assets investment is very large, a machine often have to spend tens of millions of cost, all the focus of their concern is how to make full use of capacity. From this perspective, said the two are not interchangeable. However, little attention is not hard to find in modern supply chains become increasingly complex and positive direction. Traditional supply chain in general, including manufacturing, suppliers and customers of three parts, but now, semi-finished products assembly and testing may have been outsourced distribution may have been transferred to third-party logistics, finance by the bank to complete each company only responsible for its own core competitiveness of the part of increasingly complex supply chain to management brought about a series of problems: a lack of synergy between the various trading partners of cooperation mechanisms; the formation of fracture of the supply chain: information can not be shared, management can not be coordinated; supply chain, inventory, increase the cost of reduced ability of the market response. Different industries have focused on supply chain management at all, but ultimately all in one direction is the so-called "roads lead to Rome."
Supply and demand balance, from the collaborative supply chain start.  
How to achieve balance between supply and demand in the true sense? This is also from the product begins, as shown on the right: red for the production process curve, the beginning because it has just mass production, so the quantities are small, when the product and the market gradually matures, when production has reached the maximum until the recession after the arrival of products from the market gradually. Green is the channel (fixed volume) curve, the beginning we have been predicting that products will be hot, so a large number of orders, but the production capacity can not be fully satisfied at the same time, given the volume of customer demand (dashed line for the customer demand curve) there is a certain gap, but ultimately These three curves will be classified as one point. In this process, the following questions:
1. Production can not meet demand, resulting in serious shortages.
2. To meet demand, a large number of channels for ordering.
3. When the supply to catch up with demand, orders were canceled.
4. Financial and production planning can not meet the market really needs, but production is still continuing.
5. When demand began to decline, supply chain, companies are beginning to deal with all of the stock to reduce losses.
This is from a product point of view of supply and demand issue, then how should achieve real balance? Usually have three strategies, namely: compress the supply chain, to encourage the supply chain collaboration among all the companies to meet the rapid market response to product design.

The above is the overall understanding of the supply chain, but how to coordinate the supply chain would also like to start purchasing from the collaboration.
 
 




 
 
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