Thursday, October 21, 2010

Great way to circumvent the procurement risk

Communication skills

Procurement risk usually refers to the procurement process, a number of accidents that may occur, including the human risk, economic risk and natural risk. Specifically, such as procurement or inaccuracies lead to materials can not meet the requirements of production or over budget, supplier groups, leading to the supply of non-production down time, the goods do not conform with the order, dull material increase in the work of procurement staff mistakes, not between suppliers honest and even illegal, these will affect the procurement is expected to be achieved. These risks, we need to take certain measures to avoid to reduce losses.

First, the means to circumvent the procurement risk

Everything has risks, procurement risk in the final analysis, is also available through certain means and effective measures to prevent and avoid the. The main methods include: make annual procurement budget and strategic planning; careful selection of suppliers, supplier selection and importance ratings; rigorous review of order contract, try to improve the terms of the contract; broaden the channels of information, keeping information flowing smoothly; sound risk control system full use of supply chain management optimization of supply and demand; strengthen the process of tracking and control, to take timely measures to deal with the problem found to reduce the procurement risk.

Hamming e Xu, general manager of global sourcing and marketing into that full use of specialized information website to help buyers more convenient and more accurate access to information for evaluation based on suppliers and products. Also an important supplier company can send full-time member of the Mill, or the regular quality checks on suppliers. He stressed that the procurement should be reduced to individual over-reliance on large suppliers, can use options and alternative suppliers to diversify the procurement risk. As for the budget, as the procurement budget is based on material cost and sales forecasts derived from such data, in order to access a single type of production-oriented companies should pay attention to the possibility of some of the key components required time shipment, appropriate use of MRPII systems and integration of stock Methods to reduce the risks, project development before full communication with all suppliers of raw materials, so that vendors with a clear direction and requirements.

Second, the key to reducing procurement risk

Enterprises have to lower the quality, delivery, price, service, financial aspects of procurement risks, the key is with suppliers to establish and maintain good relations of cooperation. Establish a good relationship should pay attention to several stages.

First, the supply of the initial study phase of business: in the choice of supplier, Yingdui supplier of brand, reputation, size, Xiao Shou performance, Yan Fa Deng Jin Xing Xiangxidiaocha, Ke Yi Gong Si sent to each other for Xianchangliaojie, in order to make the whole Ping Gu. Be necessary to set up a procurement, quality control, technical departmental supplier selection team quality level of suppliers, delivery capacity, the price level, technical ability and service of judges. Determine the need for the initial development, the proposal will be informed of their company's suppliers.

Second, product certification and business phases: the required product quality, yield, users, pricing, payment terms, after-sales service for each test or exchange.

The third is the small batch certification stage: the suppliers of products for small volume production, delivery, demonstration area.

The fourth stage of large bulk purchases: Under the cooperation, gradually increase the purchasing efforts.

Fifth, to conduct an annual evaluation of suppliers: suppliers of the good cooperation, inviting them to share next year, the company's work plan.

Third, buyers can not only consider the procurement risk

Procurement as the connection between the company and the supplier window and bridge for the company's import department (marketing for the output department), the company's profit center, not only consider the prediction and prevention of procurement risk, should stand the company's point of view, considering Thus the company's manufacturing, logistics, finance, marketing, quality, service and other impacts. Note also that the total cost of equity accounting business, not just the purchase cost, makes the whole company to maximize profits, the lowest cost, least risk to outside-from the bottom up integration of the company's management.

In order to better address this problem, improve overall profitability, minimize risks and losses can be classified as supply purchasing development (sourcing) group and the purchasing (buyer) groups. Sourcing is mainly responsible for cost control, risk prevention, product quality and comprehensive capacity assessment of suppliers (including suppliers, logistics status, service, corporate finance, general management, etc.); Buyer Sourcing information provided in accordance with the company's production conditions and demand for purchase and track orders.

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