What is JIT Procurement VMI Procurement MRP Procurement

JIT Procurement, also known as Just-In-Time (JIT) Procurement, is a method of procurement based solely on meeting demand. Demand side according to their own needs, to the supplier to order instructions, requiring the supplier at the specified time, the specified varieties, the specified number of delivery to the specified location.

The characteristics of JIT purchasing are mainly manifested in the following aspects:

①Unlike traditional purchasing which is inventory-oriented, just-in-time purchasing is a purchasing mode directly oriented to demand.

②Just-in-time purchasing delivery is directly to the point of demand.

③What kind, quality, how much, when, and where the user needs to be delivered are all in line with the customer's needs.

Expanded:

Note:

There are several steps in general procurement activities: resource investigation, supplier certification; inquiry and negotiation; generation of requisitions; issuance of purchase orders; purchase order tracking; acceptance of goods into the warehouse; settlement. The implementation of MRP procurement in addition to these steps, there must be certain basic conditions, the most important basic conditions are two:

One is the implementation of MRP management system,

Two is the enterprise has a good supplier management. If the enterprise does not implement MRP system, can not talk about MRP procurement, do not run the MRP system, the material demand plan is not possible by the relevance of the demand for conversion into independence of the demand, there is no MRP system generated by the planned order quantity, MRP procurement is lost, if the manual calculation, the calculation can be imagined.

For complex products, material correlation demand by hand is simply impossible. If the ordering point method of procurement, will inevitably result in parts with incomplete or a large inventory of raw materials, taking up a lot of working capital. Therefore, it can be said that the MRP system and MRP procurement is complementary.

If the enterprise adopts the MRP system, it is necessary to buy the material must be implemented MRP procurement management in order to make its MRP system to get a good run; and the enterprise if the implementation of the MRP procurement management, it is necessary to implement the enterprise MRP management, otherwise the MRP procurement is like a castle in the air, lost the foundation.

Baidu Encyclopedia-MRP Procurement