What is the significance of implementing lean and punctual procurement management in enterprise supply chain? What benefits will be gained?

Significance of JIT procurement in supply chain:

In traditional procurement mode, the purpose of procurement is to replenish inventory, that is, inventory procurement. With the formation of the global economy, the market competition is more intense, and the competition mode has changed from the original competition between enterprises. Into the competition between supply chain and supply chain. Therefore, in the supply chain environment, procurement will be carried out by order-driven mode from inventory procurement. This JIT procurement mode can make the supply chain system respond to users' needs on time, and at the same time, it can also greatly reduce inventory costs.

procurement is located at the initial position within the enterprise, and it is also the key link of the whole supply chain. It is the link between the enterprise and external suppliers and the driving force of the enterprise's own operation. In the product cost structure of an enterprise, the procurement cost accounts for about 5%-7% of the total cost of the enterprise. Because purchasing takes up a lot of funds of enterprises, in today's increasingly fierce competition in supply chain, purchasing operations have risen to the strategic level and attracted more attention from enterprises.

Just-in-time purchasing can reduce the inventory of raw materials and purchased parts by 4% ~ 85%, which is conducive to reducing the occupation of working capital. Accelerate the turnover of working capital; For production enterprises, zero inventory can be realized by connecting just-in-time procurement, production and sales. At the same time, the implementation of JIT procurement can not only improve the quality of raw materials and purchased parts, but also reduce the quality cost; Carrying out just-in-time procurement can reduce the quality cost of enterprises by more than 25%. In addition, due to the close cooperation of suppliers and economies of scale, and the elimination of some wastes in the procurement process (such as ordering procedures, loading and unloading links, inspection procedures, etc.), the procurement price has been reduced.