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Analysis of traditional purchasing mode and modern purchasing mode of printing business

Oct 18, 2018 Leave a message

Analysis of traditional purchasing mode and modern purchasing mode of printing business

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Enterprise procurement is the procurement of materials, equipment or engineering in the traditional sense. It is the enterprise that meets the needs of its production, operation or other aspects. Under the circumstances of fully understanding the market requirements, it applies appropriate according to the internal needs or operational capabilities of the enterprise. Procurement strategies and methods, through the equivalent exchange, to achieve the economic activities of logistics flow to the internal organization.


1. Traditional purchasing mode of printing business


Under the planned economic system and the initial stage of market economic reform, due to the shortage of materials, the procurement work is mainly to purchase the necessary materials, and the quality can be completed without regard to quality, regardless of price or cost. Enterprises eat the country's big pot rice, loss-making profits have no effect on individuals and businesses. The focus of corporate work is to complete production tasks as planned, ignoring the management of procurement work. With the deepening and development of the market economic system reform, the formation of the buyer's market, the enterprise faces the challenge of survival. Many enterprises have difficulties in operating, cost pressures, capital pressure, and competitive pressure. Under this circumstance, enterprises must implement a low-cost strategy in order to survive and develop. In the field of production, as much as possible to eliminate all waste and reduce the consumption of various materials, manpower and capital, this work has been better grasped from the current point of view. Due to the influence of the concept of planned economy, Chinese enterprises generally ignore the role of procurement management in enterprise management. This is a preconceived idea, because the various consumption of enterprises is the main factor that constitutes the cost, and the value of the materials consumed depends on the amount of goods. In terms of two factors, material consumption and unit price, it is usually achieved through technological advancement and improved management, and the price of purchasing is reduced depending on the market. Although after 20 years of reform and opening up, the importance of procurement management has not been raised to the level it should be, and it is heavily influenced by traditional purchasing management ideas.


Traditional enterprise procurement is only regarded as a transaction process with suppliers. In this process, the focus of procurement is on how to conduct business transactions with suppliers. The characteristic is that the price comparison of suppliers who pay more attention to the transaction process is adopted. The long-term competition of suppliers, from which the lowest price is chosen as a collaborator. The focus of the trading process is on price negotiations. Therefore, between the supplier and the procurement department, it is often necessary to negotiate the quotation, inquiry, counter-offer, etc., and carry out the long-term negotiation. Finally, the supplier with the lowest price is selected from a plurality of suppliers to sign the contract, and the order is decided. The main features of the traditional procurement model are as follows.


1 The traditional procurement process is a typical non-information symmetric game process. Choosing a printing company is a top priority in traditional procurement activities. In the procurement process, the purchasing party tends to retain private information in order to be able to select one of the best suppliers from multiple competitive suppliers, because the more information provided to the printing company, the more competitive the printing company will have. Big, so it is not good for the purchaser. Therefore, the purchasing party tries to retain private information, and the printing company also hides its information in competition with other printing companies. In this way, neither the procurement nor the supply side communicates effectively. This is the game process of non-information symmetry. Moreover, due to the objective existence of information asymmetry, the printing quality of each printing factory is not very clear, coupled with the subjective intention of the purchaser, there is often a situation of degraded procurement.


2 Acceptance inspection is an important post-mortem inspection of the procurement department. Quality control is difficult. Quality and delivery time are two other important factors to be considered by the purchasing party. However, in the traditional procurement mode, quality and quality should be effectively controlled. The delivery date can only be passed afterwards. Because the purchasing party is difficult to participate in the production organization process and related quality control activities of the printing enterprise, the mutual work is opaque. Therefore, it is necessary to conduct inspection and acceptance through various relevant standards such as international standards and national standards. Lack of cooperative quality control can lead to increased difficulty in the quality control of the procurement department.


3 The relationship between supply and demand is a temporary or short-term partnership, and competition is more than cooperation. In the traditional procurement model, the relationship between supply and demand is temporary, or short-term cooperation, and competition is more than cooperation. Due to lack of cooperation and coordination, there are many complaints and wranglings in the procurement process. Many times of time is spent on solving daily problems, there is no more time to do long-term forecasting and planning work, and the lack of cooperation between supply and demand. The atmosphere adds to the uncertainty of many operations.


4 inefficient business selection process. It is a time-consuming and laborious task in the choice of printing companies. Buyers need to check the print quality of products in the catalogues of many printing companies according to various information sources, including newspapers, TV, acquaintances, etc., and then Understanding the pricing information of each company requires a lot of manpower and material resources.


5 time-consuming manual ordering operations. After determining the printing company, the business side will also arrange the order, based on manual methods and paper documents. From the demand to the ordering process, it is sometimes necessary to meet with the supplier several times, as well as multiple faxes and telephone contacts. The order is placed, and it is very likely that the order execution process will be supervised after the order is placed.


6 irregular purchases. In the procurement process, there are many irregular behaviors, the procurement power is concentrated, the black-box operation, and the individual's decision-making. This decision-making method makes the focus of the company's distribution on the procurement personnel, such as the purchaser taking the rebate, not in accordance with the normal Purchasing process procurement, many purchases are unlicensed purchases without contracts, which makes it impossible for the purchasing company to take advantage of the benefits brought by the negotiation of the procurement contract, which will bring losses to the enterprise. These corruptions in procurement have spurred the struggle of employees and exacerbated the difficulties of enterprises.


7 expensive procurement costs. Because the purchaser's comparison and selection of printers is inadequate, the price of print jobs and services is likely to be high, coupled with the potential cost of purchases, making print jobs and service costs more than expected. Sometimes the quality of printed jobs is high, resulting in an increase in corporate costs.


8 lengthy procurement cycle. From the above characteristics, the long procurement cycle is inevitable, and the excessive procurement and ordering cycle caused by the complicated manual approval and procurement process weakens the competitive advantage of the enterprise in this “time is money” business society.


2. Analysis of modern procurement mode of printing business


Modern procurement management comes from the condensing and innovation of traditional procurement management theory to adapt to the evolving market environment and economic background. Traditional purchasing management theory generally pays more attention to the purchasing behavior itself, because under the conditions at that time, enterprises generally pay more attention to the benefits, while ignoring the attention to cost. With the changes in the market environment, business operations are facing increasingly fierce market competition, and the difficulty of market sales is increasing. At this time, reducing costs has become the most direct and effective means for enterprises to increase profits, and adopts effective and reasonable procurement activities. It can reduce the procurement cost of enterprises, so it has been paid more and more attention. There are mainly three ways to purchase China's printing business. One is the traditional opaque procurement method; the other is the open bidding procurement method; the third is the e-commerce procurement method. Moreover, many printing businesses are moving from traditional extensive procurement to bidding procurement and e-commerce procurement, especially to e-commerce procurement.


With the continuous deepening of the market economy and the continuous development of Internet technology, e-commerce procurement has the incomparable advantages of traditional procurement:


1 can expand the supplier price range, improve procurement efficiency and reduce procurement costs. Breaking through the limitations of the traditional procurement model, from the three goods to the goods to more than 100, thousands, significantly reduce procurement costs, reduce procurement costs, and greatly improve the efficiency of procurement.


2 to achieve the openness of the procurement process. It is conducive to further publicizing the procurement process and achieving timely monitoring to make procurement more transparent and more standardized.


3 to achieve procurement operations operational procedures. It must be carried out in accordance with the software-defined process, greatly reducing the arbitrariness of the procurement process.


4 Promote quantitative and scientific procurement management. Realize the large capacity and fast transmission of information, provide more, more accurate and timely information for decision-making, and make more decision-making basis.


5 Realize the company to purchase for inventory and purchase for the order. In the e-commerce model, the procurement activities of the printing business are carried out in an order-driven manner. The production order is generated by the user's demand order. Then, the order-driven purchase order is created, and the purchase order drives the printer. This just-in-time order-driven model responds to users' needs on time, reducing inventory costs and increasing logistics speed and inventory turnover.


6 Realize the transformation of procurement management to external resource management. Because of the long-term and mutually beneficial cooperation relationship between the supply and demand sides, the purchaser can timely transmit the information of quality, service and transaction period to the supplier, so that the supplier can provide products and services in strict accordance with the requirements, and coordinate according to production requirements. The supplier's plan to achieve on-time procurement. Therefore, on the basis of the principle of maximizing benefits and rational cooperation, the two parties have enhanced the competitiveness of their markets, enabling both parties to obtain more benefits and achieve win-win and even win-win goals. In particular, the use of e-commerce procurement provides an all-weather, time-consuming procurement environment for procurement, which is a 365-day × 24-hour procurement environment. Reduced procurement costs, simplified the procurement process, and formed a strategic partnership between the buyers and sellers.


7 In the case that the competitive environment of printing enterprises is constantly changing and customer needs are becoming more and more personalized, printing enterprises can expand the marketing business scope of enterprises through e-commerce, adjust and integrate the internal resources of enterprises in time, and improve enterprises. Management efficiency and product quality are a series of competitive strategic measures that are conducive to enterprise development. With the online business bidding, the market for business procurement is further regulated, which reduces the competition between prices, enabling printing companies to focus on the strategic development within the company, the improvement of product quality and the expansion of the business market. The integration of the industrial chain and the bidding of the printing business will really drive the common development of the printing company and the business side, achieving a win-win situation.

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