the led the modern procurement focus of the led tube light industry

by:Leimove     2020-02-07
Whether it is a manufacturer, trader, wholesaler or retailer, purchasing is an important business activity of an organization.So is this industry.An organization usually purchases the required materials, supplies and services from its suppliers to support its day-to-day organization activities.It relies heavily on procurement.Back decades ago, the process of acquiring raw materials and services for a company was considered a burden.The management team did not notice the importance of it.At the very least, they think this is less important than other activities within the company.Procurement is considered a lowLevel activities, usually granted to non-Management team for execution and processing.Therefore, purchase orders are usually generated in unimportant departments and there are very few tracking activities.Modern procurement is very different from the old procurement methods, especially inTechnology industries, such as industry.In the past, the goal of procurement was to find suppliers who could provide the required resources at the lowest price.This out-of-In the past 20 years, especially in the LED bulb industry, the business philosophy of the date of purchase has changed significantly.For LED light manufacturers, sourcing is no longer a simple business activity to get the resources needed.Procurement is first and foremost considered an important part of supply chain management, with its modern focus on highlighting the partnership between buyers and suppliers.At a strategic level, procurement is an important business activity.The emergence of term procurement is an important symbol of procurement development.The strategic role differs from the old purchasing concept, although in the day-to-day business one can swap the two terms.For manufacturers, purchasing is becoming more and more important due to some factors.The basis of these factors is gradually established on the basis of identification.First, the amount of LED lamp suppliers is very large;Another is the potential dollar savings that business activities at the strategic level bring to manage procurement activities.The fact is that the services and materials purchased have become one of the main parts of the cost of the LED tube supplier.Take the LED lighting industry as an example.Goods and Services purchased accounted for about 55% of sales.In contrast, direct labor costs in LED tube production account for only 10% of sales.According to the analysis of these figures, it is clear that the strategic management of procurement is very important for the success of procurement, because it can save potential costs.The idea of outsourcing has dominated many industries over the past 20 years, especially LED bulb suppliers.Outsourcing emphasizes the cost of goods and services purchased.An interesting result of outsourcing is that the company now spends more money on procurement, and the amount has increased significantly.Basically, the goal of purchasing at the strategic level is to pursue potential savings.The increase in outsourcing costs seems contradictory.This is because LED lamp manufacturers not only buy the raw materials and basic services needed for production.In the LED light bulb industry, these companies have spent a lot of money to buy a very high value --added content.They introduced the concept of working with suppliers to focus their resources on their core competencies.At present, the practice of outsourcing has promoted procurement activities from a single task to a collaborative level.Pay more attention to the management of supply bases.This management covers activities that work effectively with suppliers.For example, the LED light supplier uses the firstComplete points for tier suppliersComponents and rely on logistics providers to implement-Delivery time of finished parts of the next assembly line.These activities were handled and completed by manufacturers themselves in the past.Developing and coordinating relationships in the supply base is now a key aspect of an effective and efficient procurement strategy.
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