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Five trends of international procurement
Five trends of international procurement

If you want to enter the international procurement system, you must first understand the characteristics and trends of international procurement, so as to make the best use of the situation and enter the international procurement market. Let me introduce some international purchasing trends to you, hoping to help you!

Trend 1: from inventory purchase to order purchase.

In the state of commodity shortage, it is inevitable to purchase for inventory in order to ensure production, but in the state of oversupply now, purchasing for order has become an iron law. Under the condition of market economy, a large amount of inventory is the root of all evils in enterprises, and zero inventory or less inventory has become an inevitable choice for enterprises. The production of manufacturing orders is driven by user demand orders. Then, the production order drives the purchase order, which in turn drives the supplier. This just-in-time order-driven mode can respond to users' needs on time, thus reducing inventory costs and improving logistics speed and inventory turnover rate.

JIT (just-in-time production system) is a new production management system initiated by Japanese enterprises in recent forty years. The world-famous Toyota Motor Corporation is the first company to use this system. JIT system refers to an advanced production system in which enterprises rationally plan and greatly simplify the procurement, production and sales processes under the conditions of production automation and computerization, so that raw materials can be closely connected with finished products leaving the factory and entering the market, and inventory can be reduced as much as possible, thus achieving the purposes of reducing product costs, comprehensively improving product quality, improving labor productivity and comprehensive economic benefits.

JIT procurement is an important part of JIT system, an important content of JIT system running smoothly, and the starting point of JIT system cycle. Implementing JIT procurement is an inevitable requirement and prerequisite for implementing JIT production and operation. According to the principle of JIT procurement, enterprises only purchase needed materials where they need them, which makes JIT procurement a cost-effective procurement mode.

The seven characteristics of JIT procurement are: reasonably selecting suppliers, establishing strategic partnership with them, and requiring suppliers to enter the production process of manufacturers; Buy in small quantities; Realize zero inventory or less inventory; On-time delivery and standard packaging; Enjoy information * * *; Attach importance to education and training; Strict quality control and international product certification.

The advantages of JIT procurement are:

1. It can greatly reduce the inventory of raw materials and other materials. 1 year later, the inventory of the famous American Hewlett-Packard Company decreased by 40%, but according to the calculation of foreign professional institutions, the decline of 40% was only average, and some enterprises even reached 85%. Reducing the inventory of production enterprises is conducive to reducing the occupation of working capital, speeding up the turnover of working capital and saving the space occupied by raw materials and other inventory materials, thus reducing the inventory cost.

2. Improve the quality of purchased goods. It is estimated that the implementation of JIT procurement strategy can reduce the quality cost by 26%-63%.

3. Reduce the purchase price of raw materials and other materials. For example, Xerox, an American company that produces photocopiers, has reduced the price of materials purchased by the company by 40%-50% by implementing JIT procurement strategy.

4. Implementing JIT purchasing strategy not only saves resources (including manpower, funds, equipment, etc.). ) needed in the procurement process, but also improved the labor productivity of enterprises, and enhanced the adaptability of enterprises. For example, HP's labor productivity after JIT procurement is 2% higher than before.

Trend 2: The management of purchased goods turns to the management of external resources of suppliers.

Because the supply and demand sides have established a long-term mutually beneficial strategic partnership, they can enjoy information such as production, quality, service and trading cycle in time, so that suppliers can provide products and services in strict accordance with requirements, and coordinate suppliers' plans according to production requirements to realize on-time procurement. Finally, suppliers can enter the production process and sales process to achieve a win-win situation.

Zero-defect supplier strategy is the same strategy in the procurement and supply chain management of multinational companies at present, which refers to the pursuit of perfect suppliers, either manufacturers or distributors. When selecting suppliers, we should also evaluate the environment in which suppliers are located, that is, the four basic elements of transnational procurement, namely, value flow, service flow, information flow and capital flow.

? Value stream? Represents the value-added process of products and services from the resource base to the final consumer, including value-added activities such as modification, packaging, personalized customization and service support of products and services by multi-level suppliers.

? Service process? Mainly refers to the logistics service and after-sales service system based on customer demand, that is, the high-speed and effective flow of products and services between multi-level suppliers, core enterprises and customers and the reverse flow of products, such as return, maintenance, recycling and product recall.

? Information flow? It refers to establishing a trading information platform to ensure the two-way flow of trading data, inventory dynamics and other information among supply chain members.

? Capital flow? Mainly the speed of cash flow and the utilization rate of logistics assets.

Trend 3: From traditional procurement to e-commerce procurement

The traditional procurement mode focuses on how to conduct business transactions with suppliers, which is characterized by paying more attention to the price comparison of suppliers in the transaction process, and choosing the lowest price as a partner through the multi-head competition of suppliers. The traditional purchasing process is a typical asymmetric game process. Its characteristics are: acceptance is an important post-inspection work of purchasing department, and quality control is difficult; The relationship between supply and demand is a temporary or short-term cooperative relationship, and competition is more than cooperation; The ability to respond to user needs is slow.

At present, e-commerce procurement system mainly includes online market information release and procurement system, electronic bank settlement and payment system, import and export trade customs clearance system and modern logistics system.

When multinational groups purchase goods online, there are mainly the following types to start the online electronic market:

British reverse auction (English auction): the earliest auction originated in Britain; In English auction, the seller decides to reserve the price and start the market. As the market continues, many buyers keep raising their own purchase prices until there is no higher purchase price, the market closes and the highest bidder wins the market.

Inquiry: The online inquiry market is similar to the reverse auction market in Britain, but the market competition rules are more relaxed. In addition to the quotation (and quantity), the seller can also submit other additional conditions (such as some requirements and commitments for after-sales service). These additional conditions are usually submitted to the buyer in encrypted form and kept secret from other bidders. Before the inquiry market closes, a silent period is specially set up for buyers to consider and evaluate the seller's additional conditions (therefore, it is not necessarily the buyer with the lowest bid who wins the market).

Open market and closed market: In (British) auction, due to the high openness of market operation, the behavior of market competitors lacks independence to a certain extent, that is, the quotation and quantity information of one buyer are immediately known to all bidders. In order to strengthen the independence of bidders' market behavior and avoid malicious quarrels, a closed auction (auction) market has emerged, and each participant's quotation and bid information are confidential to other participants (such as these information can be sent by encrypted mail). The organizers of this closed market must judge the winners in strict accordance with the market competition plan. In the electronic market, such organizers are often undertaken by computers (network servers), running software compiled according to the market competition rules, automatically starting the market, continuing the market competition until the market is cleared, and finally deciding the winner and eliminating the violators.

Single reverse auction and packaged reverse auction: when online international trade involves only one commodity, it is called single (commodity) trade. When an international trade involves a variety of commodities, it is called (commodity) packaging trade. Compared with single online trade, online packaged international trade has the following characteristics:

Buyers can save time, improve efficiency and reduce costs. Packaging a variety of goods to buy, you only need to start the online market at one time and complete the transaction in a unified way. Compared with buying various goods alone, you can start the online market many times and seek multiple suppliers (sellers), which saves buyers a lot of time and energy and improves the purchase efficiency.

Sellers have more room for competition. In packaging trade, the buyer only sets the packaging price (the purchase price of the whole package) and the purchase quantity of various commodities, and the seller can make various combinations in the unit price of various commodities according to his own advantages and bid online. This greater competitive space makes buyers more willing to participate in online bidding.

The market competition is more intense. The essence of the market lies in competition, and the intensity of market competition can be expressed by the quotient of the total number of quotations per unit time (such as one hour) and the number of market participants.

Trend 4: The simplification of procurement methods is developing towards diversification.

Traditional procurement methods and channels are relatively simple, but now they are developing rapidly in the direction of diversification, first of all in the combination of global procurement and local procurement.

The regional layout of multinational companies' production activities is more in line with the regional comparative advantages of countries, and their procurement activities also have the characteristics of global procurement, that is, enterprises take the global market as the scope of choice to find the most suitable suppliers, rather than being limited to a certain region.

Secondly, it is manifested in the combination of centralized procurement and decentralized procurement. Whether to adopt centralized procurement or decentralized procurement depends on the actual situation and cannot be generalized. At present, the general trend is: the procurement function tends to be centralized to a greater extent; Service enterprises adopt centralized procurement more than manufacturing enterprises; Small enterprises use centralized procurement more than large enterprises; With the large-scale transnational mergers and acquisitions of companies, more companies adopt centralized and decentralized procurement methods; The flattening of organizational structure will inevitably lead to the dispersion of enterprise control rights, so the localized market procurement rights will be dispersed to a certain extent; Centralized procurement is adopted for the same daily needs and services.

The third is the combination of multi-suppliers and single suppliers. In general, multinational companies adopt the strategy of multi-source supply, that is, multi-suppliers. The purchase order from one supplier will not exceed 25% of the total demand, mainly to prevent risks, but not the more suppliers, the better.

Fourth, the combination of vendor procurement and dealer procurement. Due to the large demand, large enterprises often purchase directly from manufacturers, while the contract for supply or JIT procurement (that is, just-in-time procurement mode) often relies on powerful distributors to centrally handle a large number of small orders.

The last way is the combination of self-operated procurement and outsourcing procurement.

Trend 5: generally pay attention to the social responsibility environment of purchasing goods.

According to statistics, more than 200 multinational companies around the world have formulated and implemented the code of corporate social responsibility, requiring suppliers and contract workers to abide by labor standards, arranging company employees or entrusting independent audit institutions to conduct regular on-site evaluation of their contract factories, which is often called factory certification or factory inspection. Among them, more than 50 enterprises such as Carrefour, Nike, Reebok, Adidas, Disney, Mattel, Avon and General Electric have carried out social responsibility audits in China, and some enterprises have set up labor and social responsibility departments in China. According to experts' estimation, more than 8,000 enterprises in China's coastal areas have accepted such audits, and more than 50,000 enterprises will be inspected at any time.

Some export enterprises also deeply feel that it is impossible to do business with large companies without improving labor standards (including workers' age, wages, overtime hours, canteen and dormitory conditions, etc.). At present, products such as clothing, toys, shoes, furniture, sports equipment and daily hardware exported from China to Europe and the United States are all restricted by labor standards.

The United States, French, Italian and other traditional trade organizations that import products from China's light industrial countries are discussing an agreement, which requires all enterprises in China's textile, clothing, toys, shoes and other products to pass the SA8000 standard in advance, or they will boycott the import. SA8000 social responsibility standard certification is the first international standard on corporate ethics in the world, and it is also a new non-tariff trade barrier set by developed countries after the green barrier. Its purpose is to make it clear that the products provided by manufacturers and suppliers meet the requirements of social responsibility standards, at the same time increase the production cost of products in developing countries and reverse the unfavorable situation that some products in developed countries are not competitive because of high labor prices. In addition, environmental protection is also a necessary condition for international procurement.

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