What Is Value-Based Purchasing?

Traditional purchasing generally refers to a shallow discussion on the price or cost performance level.

Value purchase

Right!

Traditional purchasing generally refers to a shallow discussion on the price or cost performance level.

And "value procurement" includes the following three levels of meaning.

The first layer is the commonly known "price-performance ratio";

The second layer refers to the need for suppliers to be managed, classified and managed, and even certified, and the quality of purchased products must be guaranteed;

The third-tier value-purchasing cooperative suppliers need to have the ability to research and develop new products and technologies, and have the ability to continuously optimize costs.

Chinese name

Value purchase

Value procurement is a new type of procurement supply chain that combines the characteristics of the mobile Internet era and the problems encountered in the supply chain management process of traditional manufacturing procurement.

Purchasing Supply Chain Management Concept

In the Internet era, the manufacturing industry has completed ten principles of "value procurement":

1. Positioning of value procurement: Value procurement is not only for managing costs and realizing profits, but for achieving value creation. Such as: integrating global advanced technology, procurement resources, new products and new materials resources, etc., thereby bringing enterprise value, so that the procurement function has the height of undertaking the development strategy of the enterprise. Value procurement is one of the core competitiveness of enterprises under the new normal economy.

2. The value of value procurement: supply and demand are not a zero-sum game, but the pursuit of openness, win-win and symbiosis. The criterion for evaluating whether purchasing is professional is not that the lower the price, the better, but the higher the value creation based on fairness and fairness, the better.

3. Supply-demand relationship for value procurement: The supply and demand side is not a simple sales relationship, but a long-term strategic partnership. Integrity and contractual spirit are the foundation of cooperation.

4. The focus of value procurement: not only the first level of price negotiation, but also the second level of transaction cost reduction caused by process optimization, and the third level of VA / VE interaction through the application of new products and materials;

5. The communication method of value procurement: Internet interaction is used to change the traditional transmission method of layer-by-layer procurement. Instead, it is interconnected and integrated in parallel. Avoid the delay of information transmission and the bullwhip effect, and improve communication efficiency.

6. Means and tools of value procurement: Mobile Internet platforms have become one of the main means of procurement, changing the lemon market caused by incomplete, asymmetric and opaque information

7. Organization of value procurement: The procurement function is no longer a matter of a single department or a single enterprise, but a "U-disk joint office" model, and global professional procurement-related human resources can be used by enterprises.

8. The process of value procurement: Value procurement not only runs through the entire R & D, procurement, quality, production and other processes within the enterprise, but also runs between enterprises and is shared on the cloud platform.

9. Selection of value-purchasing suppliers: The list of qualified suppliers is no longer solidified, but dynamically optimized, and it is refined and classified for undertaking the strategic development goals of the enterprise.

10. The scope of resources for value procurement: The resources for value procurement are global, and have changed along with changes in the international economic situation, financial policies and exchange rates, the distribution and transfer of upstream and downstream industries, the establishment of regional cooperation organizations and the establishment of free trade zones Make adjustments.