Looking At The Material Procurement Of Women'S Shoes Enterprises

Raw material purchase: how to acquire strong bargaining power

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How to get the materials that meet the requirements at the greatest cost effectiveness and distribute them to the production point at the right time is the focal point of the optimization of the procurement work.

First look at the raw material procurement of BELLE.

Wenzhou is a traditional leather material processing industry base.

Due to the high environmental pollution caused by leather making industry, Wenzhou tanning industry has been closely watched by environmental protection departments in recent years. Local tanneries have moved their production lines to lower cost areas and set up marketing points in some "industrial raw materials centers" to receive orders.

Because BELLE has mastered the production capacity of the main components in production, it is necessary to concentrate on purchasing several main raw materials in the procurement of materials.

In addition, it concentrates on the "leather shoes" products, reducing the number of purchases, facilitating its integration of procurement operations and suppliers, with its 5 largest suppliers accounting for 56% of its total purchases.

This has also increased the number of purchases of single raw materials, thereby enhancing bargaining power, reducing raw material prices and raising gross margins.

Daphne uses a large proportion of "non leather materials", greatly reducing the cost of materials, easy to launch products at a lower price.

After all, women's loyalty to shoes is low, and in low price markets, prices are often the first front.

Daphne's parent company has a large OEM production line and has three production bases, producing about 20000000 pairs of shoes a year.

In addition, there are eight factories producing different parts of shoes.

Most shoe related components can be fully self-contained.

It integrates all raw materials procurement and has strong bargaining power.

The top five suppliers accounted for more than 50% of total purchases.

Reduce production costs by purchasing varieties and purchasing quantities.

In addition, the concept of early purchase is also introduced, namely, Futures Purchasing: purchasing materials in the off-season, and then organizing some basic shoes.

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The main raw material for Saturday is leather made from animal skin.

Other raw materials and accessories include semi-finished products (shoe upper, heel, soles, etc.), nylon, rubber, glue, nails, etc.

Raw materials are mainly purchased from the mainland, mostly from Guangdong, and a small part comes from leather, such as Henan, Hebei and Anhui.

In addition, it also outsourced parts of production by outsourcing products to suppliers or purchasing semi-finished products.

Before 2008, suppliers purchased raw and semi-finished products from the suppliers themselves.

After 2008, part of the leather is changed to self purchase on Saturday, and then sent to the supplier for processing.

Unified procurement of leather materials can ensure consistency of product color and texture, and improve product quality.

At the same time, a large number of procurement can also reduce costs, but the corresponding cost is increasing the capital occupation of the company's production links.

Large purchases of semi-finished products make it difficult for procurement to reduce costs by quantifying.

A large number of procurement projects also increased the variables of purchasing work.

As a result, Saturday's procurement network is more extensive than BELLE and Daphne.

The five suppliers only account for about 35% of their total purchases, and their bargaining power is lower than that of BELLE and Daphne.

BELLE has integrated procurement suppliers and quantitative procurement in raw material procurement to reduce costs. The five suppliers have reached 56% of total purchases.

Daphne's five largest suppliers of raw materials account for more than 50% of total purchases and have high bargaining power.

Saturday due to the purchase of semi-finished products, resulting in higher costs, in this link than BELLE and Daphne.