Strategic Sourcing Initiatives - China

procurement management is not standardized 3 China's retail procurement management is not standardized performance: the amount of experience determined procurement, resulting in procurement volume and demand do not match the procurement volume to determine the unscientific method.

The widespread implementation of decentralized procurement model, the retail business can not enjoy the discount of the number of preferential purchase; opaque procurement process, buyers of gray procurement, retail enterprises, the loss of resources.

The traditional procurement model has a complicated process and slow reaction to the market, so JIT purchasing can not be done.

Purchasing performance evaluation emphasis on cost indicators, ignoring the strategic height of the procurement performance evaluation.

(D) based on the traditional procurement model The procurement of traditional retail enterprises is based on a forecast of procurement, inventory to protect the supply, that is based on historical sales information and changes in the external environment, adopt certain techniques and methods, the right Future sales trends within a certain period to make a forecast, the forecast results to determine the procurement time, the number of purchases.

However, due to the imperfect information transmission, the forecast result is uncertain and the procurement risk is increased.

(E) Procurement relationship with suppliers to deal with the main inconsistent interests Under the traditional procurement model, the relationship between retail enterprises and suppliers is a simple relationship between the commodity trading, the interests of the main inconsistencies.

Retail retailers control sales terminals and take the initiative in their relations with suppliers.

There is a phenomenon that they seek profits for themselves at the expense of suppliers.

For example, retailers do not share sales information with suppliers in a timely manner, leaving their suppliers unable to obtain inventory and sales information from retailers, resulting in backlogs or out of stock.

Such a simple transaction with the supplier, is not conducive to the reduction of corporate procurement costs and corporate resources organization.

(F) of the purchasing staff performance appraisal system is not perfect Retail enterprise purchasing appraisal indicators are generally more concerned about the purchase price and quality of the purchased goods, and the lack of procurement of suppliers and delivery control of the storage costs rise is not enough attention.

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• Posted By: Dong Sourcing Market Union Co.,Ltd

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