With the rapid development of China’s economy, the valve industry plays an increasingly important role in national industrial production. China valve procurement management as an important part of the production and operation of enterprises, its efficiency and effect directly affect the production cost of enterprises, product quality and enterprise competitiveness. However, in the process of China valve procurement management, enterprises are facing many challenges. This paper will analyze the challenges in the China valve procurement management, and put forward the corresponding countermeasures, in order to provide beneficial reference for our valve enterprises.
First, the challenge of China valve procurement management
1. Market competition is fierce
With the in-depth development of market economy, the valve market competition is becoming increasingly fierce. The number of valve enterprises is large, product homogenization is serious, and price competition has become the main means of market competition. In such a competitive market environment, how to reasonably reduce procurement costs and improve product quality has become a major challenge for China valve procurement management.
2. Unstable supply chain
Valve production involves a wide variety of raw materials and parts, and a large number of suppliers. However, some suppliers have limited technical capacity and poor production stability, resulting in valve companies often encounter supply disruptions and quality problems in the procurement process. The instability of the supply chain makes the procurement risk of valve enterprises increase, and puts forward higher requirements for procurement management.
3. Information asymmetry
In the process of China valve procurement management, there is often a problem of information asymmetry between enterprises and suppliers. Enterprises have insufficient understanding of suppliers’ technical capabilities, production conditions, price levels and other information, resulting in a lack of scientific basis for purchasing decisions. In addition, due to information asymmetry, enterprises may also face supplier moral hazard, such as false quotation, shoddy and other phenomena.
4. The quality of procurement personnel is not high
China valve procurement management involves a lot of professional knowledge and skills, such as material science, production process, quality control and so on. However, at present, the quality of procurement personnel in China’s valve enterprises is generally not high, and the lack of professional knowledge and skills. The low quality of procurement personnel makes enterprises prone to problems in the procurement process, affecting the procurement effect.
Second, the China valve procurement management strategy
1. Establish supplier evaluation system
In response to the challenges of fierce market competition, valve enterprises should establish a perfect supplier evaluation system, comprehensive evaluation of suppliers, and choose suppliers with strong technical ability, stable production and reasonable prices as partners. At the same time, enterprises should regularly evaluate suppliers to ensure that suppliers always meet the requirements of enterprises.
2. Implement supply chain management
In order to solve the problem of supply chain instability, valve enterprises should implement supply chain management and establish long-term stable cooperative relations with suppliers. Enterprises should help suppliers improve technical capabilities and production processes to ensure the stable operation of supply chains. In addition, enterprises should also establish an emergency procurement mechanism to deal with supply disruptions caused by emergencies.
3. Improve the level of procurement informatization
In response to the problem of information asymmetry, valve enterprises should improve the level of procurement information, establish a procurement information platform, and realize the sharing and transmission of procurement information. Enterprises should establish an information communication mechanism with suppliers to timely understand the production status of suppliers, price fluctuations and other information to provide a basis for procurement decisions.
4. Strengthen procurement personnel training
In order to improve the quality of procurement personnel, valve enterprises should strengthen the training of procurement personnel and improve the professional knowledge and skills of procurement personnel. Enterprises should develop training plans and regularly organize procurement personnel for training to ensure that procurement personnel have sufficient professional capabilities. In addition, enterprises should also establish incentive mechanisms to encourage procurement personnel to improve their own quality.
In short, China valve procurement management as an important part of the production and operation of enterprises, its efficiency and effect directly affect the production cost of enterprises, product quality and enterprise competitiveness. In the face of fierce market competition, supply chain instability, information asymmetry, procurement personnel quality is not high challenges, valve enterprises should take the establishment of supplier evaluation system, the implementation of supply chain management, improve the level of procurement information, strengthen procurement personnel training and other measures to improve the level of China valve procurement management, for enterprises to create greater competitive advantage.
Post time: Sep-27-2023
