The Supply Of Enterprises Under Inflationary Pressure

Since July 2007, China's CPI (consumer price index) has risen more than 6% in 6 consecutive months. In 2007, CPI hit a 4.8% highest in 11 years, while the central bank's CPI warning line was 3%.

What is more serious is that, according to authoritative experts, China's CPI index is difficult to control under 5% in 2008 because of the root causes of excess liquidity, the high price of international agricultural products and crude oil, and the continuous rising of domestic food prices.

Inflation has become a social problem faced by domestic enterprises.

Generally speaking, materials for manufacturing enterprises

At present, enterprises usually have the following two ways, one is to improve

It is an effective way for enterprises to cope with inflation by turning the management of strategic supply from a paction - based tactical procurement to a process - oriented strategic supply management.

The purchasing cost of manufacturing enterprises is much higher than that of labor costs and other costs. Only by improving the purchasing and supply functions of enterprises is the root of long-term cost control.

The supply department can resist unreasonable price rise through good bidding strategy, improve the quality and timeliness of materials to reduce various wastes through dynamic supplier management strategy, reduce the cost of material in sales cost through value engineering analysis, and improve supplier cooperation strategy, such as implementing early supplier involvement (ESI) strategy, so as to enable suppliers to provide services faster and better. Once we successfully apply these measures, we will change the purchasing behavior from passive to initiative, and lay the core competitive position in the enterprise.

So how to complete the pformation of procurement to supply and establish an effective enterprise supply system? Many enterprises have made a useful attempt to increase their supply capability through the adjustment of supply organization and supply status; and through the introduction of talent, trying to improve the exchange rate (there is no shortage of millions of annual salary to recruit the director of procurement), however, these measures are not ideal.

The strategy is: enterprise supply management is essentially the management of supplier supplier relationship model, including procurement strategy, procurement process, supplier management, organization, system, information, assessment, culture and so on. (Fig. 1: supply management model), these aspects are interrelated and interrelated, which determine the satisfaction of purchasing needs.

Therefore, the construction of enterprise supply system must be based on the supply management model of the whole supply mechanism.

The first step in building an enterprise's supply system is to establish its own purchasing strategy according to the characteristics of the industry and the situation of the enterprise itself.

Only by clarifying the procurement strategy can the procurement work have a judgement standard, and which kind of procurement strategy can be discernment, which is reasonable and unreasonable.

Generally speaking, there are 4 purchasing strategies for enterprises to choose, one is to ensure the supply strategy, the other is to emphasize the satisfaction of the timeliness and quantity in the procurement needs of enterprises; the first is to reduce the cost strategy; the most important factor is the cost factor in meeting all the factors of procurement demand; the first is to support the supply strategy, the main emphasis is on the support of suppliers, the central satellite supply mode is the strategic direction; the last is the competitive advantage strategy, and the supply chain is the core competition of enterprises, and the dominant position of the market is gained.

On the choice of purchasing strategy, the difference between different enterprises is large. Fundamentally speaking, this difference depends on the industry environment, the scale of the enterprise itself and the characteristics of the enterprise.

For example, a well-known automobile company in China often suffers from minor failures which do not affect the main functions in the process of using the consumer. These minor failures greatly raise the final consumer's cost. The reason for this difficulty is that the enterprises are facing the exclusive supply constraints of competitors. Therefore, the supply strategy is the only choice on the choice of purchasing strategy.

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The enterprise's purchasing strategy is determined, and the key control elements supporting the strategy are established. The key elements are the key elements, and then the standard pparent and efficient procurement process is designed.

Research on different objects, such as supplier process, procurement process and material management process, will help to achieve meticulous supply management.

For example, in the supply consultancy project of a well-known food enterprise in China, the strategic consulting company is relying on the management flow of dynamic supplier database, the value analysis process of product material, and the detailed process research of purchasing behavior of each subsidiary company (split into direct purchase, adjustment purchase and new procurement behavior), and has obtained good standardization and standardization effect.

Although the process plays a decisive role in supply management, it is not ideal in the practice of enterprise application. The main reason is that the abuse of the process concept has been lost in the management field, and the process has become a document in the ISO9000 series. The process only means the number of signatures and the order of signing, but ignores the most essential standardization services, rules and requirements of the process.

To make the process really play a role, we must improve in these areas. Taking rule requirements as an example, the main function of the process is to display the trigger rules hidden in the various positions of enterprises, which are invisible to us everyday. These rules are the key driving force to ensure the normal operation of enterprises. The pace of enterprise procurement and the size of procurement lot are determined by these rules.

If we understand the rules of the supply of enterprises, the supply flow of enterprises will become apparent or easy to be modeled by computers, providing a great space for further improvement.

Of course, the process only tells people when, where, and what resources to do certain work. In fact, the completion of a job requires the right authorized person to operate, which requires the procurement of the organizational structure design.

No matter what kind of supply organization design is adopted, once the organizational structure is established, it represents a procurement authorization system. All kinds of jobs will be allocated to each post of the organization according to the purchasing process and purchasing objectives of the company. Fundamentally speaking, the completion of the process objectives and the execution of the process are basically determined at the moment when the organization is determined.

It is precisely because of this that companies often adjust their organizational structure. A study on organization procurement in the United States shows that over the past 7 years, 41% of the companies have adjusted their procurement institutions.

The design of purchasing agencies in medium sized enterprises has great variability.

For example, "the example of procurement organization in an enterprise of equal size" in Figure 2 is a kind of organization that combines vertical and horizontal features. The design of the process manager fully draws on the characteristics of team composition, process business structure and multi capability professionals in the process management, and it embodies the characteristics of specialization, personal responsibility and personal empowerment in the design of commodity manager.

At the same time, the development of information technology has provided an unprecedented opportunity for enterprise supply management, and has also brought new features of enterprise supply management.

In terms of building information platform for supply and demand, information technology can be used to build B2B business platform with massive data. Suppliers and enterprises can communicate across regions and time. The number of suppliers that can be managed will show exponential growth, making it possible for most of the purchasing strategy of enterprises to pform into competitive bidding.

In terms of purchasing daily business, information technology can solidify standardized and standardized standard processes, and even automate the procurement process, minimizing human interference.

Scientific assessment and reasonable incentives are the guarantee for the normal operation of the supply mechanism.

Examination management includes not only deciding what is the scientific assessment index, but also deciding who to carry out the assessment of relevant indicators (that is, the target of assessment). The assessment index has quantified indicators for the supply of enterprises.

A well-known enterprise in the country on the assessment of the average stock days of a material, first identified the assessment object as the procurement personnel, and thought that the procurement personnel was ultimately responsible for the index. However, the effect has not been ideal. After analysis, the purchase quantity and purchase instructions were actually issued by the birth control personnel. Later, the average inventory days were adjusted to the birth control personnel, and the average stock days decreased from 30 days to 8 days in half a year.

Incentive management is divided into external supplier incentives and internal staff incentives. Reasonable incentives enable suppliers or employees to take the initiative to achieve the supply goal, and further improve their behavior according to the enterprise supply concept.

For example, in supplier management, if we conduct a series of encouragement and commendation, such as rating, exemption, payment and so on, we will play a good example role for other suppliers, so as to stimulate the good intentions of the whole supplier system.

There are two different opinions on the cultural construction of enterprise supply. One is that it is impossible to establish departmental culture from the whole enterprise, and that the departmental culture will have an impact on the whole culture of the enterprise. It should not be advocated. Another view is that, in view of the uniqueness of the Department's business, sectoral culture has its own distinctive characteristics, and it is necessary and feasible to create some specific characteristics on the basis of the overall culture.

According to the strategy, sector culture is the specific way to realize the overall culture. If we can increase the pparency factors in the supply department's process, standards and examination, pparency will become the core factor of the supply culture of the enterprise, and will become a part of our corporate culture.

At this point, we have established a complete set of enterprise supply mechanism, which can not only ensure the timely delivery, quality stability and cost reasonableness of the supply, but also more importantly, the mechanism can make the supply of enterprises have the ability of self improvement. Once the supply management of enterprises has this ability, the enterprise will surpass its rivals far away from the starting line.