JIT-based packaging materials and container procurement

As competition intensifies, companies are seeking better ways to reduce corporate costs in order to maximize profits. Many product manufacturers are increasingly aware of the role of packaging materials and container procurement in saving costs and enhancing the competitiveness of companies in the process of “improving production processes, reducing raw material consumption” and “increasing sales volume and increasing sales profits”. The traditional procurement model is far from meeting the requirements. "Using modern procurement models, reducing procurement costs, and pursuing benefits for procurement" are becoming the goals pursued by packaging users. The modern procurement model is gradually being adopted by a large number of packaging users.

Purchasing is the material basis for modern enterprises to engage in production and business activities. It contains two meanings: "Picking" means selecting one or more from a number of alternative objects; "Purchasing" refers to buying, which is through commodity trading. The way to transfer a selected object from the other person's hands to an activity in their own hands. Modern procurement refers to the use of scientific procurement techniques and methods, through the computer network to achieve information from the information collection, supplier selection, procurement, transportation, inventory to use the entire process of information, networking, to maximize the production needs, reduce procurement Cost to achieve procurement goals.

Just-in-time (JT) procurement, or just-in-time procurement, is a type of modern procurement technology that refers to providing the right items at the right time, at the right place, at the right amount, and at the right quality. JIT purchases are driven by order-driven procurement. Order-driven users and packaging materials and container suppliers all operate around orders to achieve timely and synchronized operations. Purchasing is carried out in parallel, that is, when the user's purchasing department produces a packaging material and container order, the packaging materials and container suppliers begin to prepare for the materials and containers, and then follow the user's requirements for variety, quantity, etc. Send to the designated place.

The basic principle of JIT procurement model

(1) Directly deliver the goods to the user's production line.

(2) What types and quality of packaging materials and containers are required by the user. What kinds of products suppliers provide, the variety, specifications and quality must fully meet the needs of users.

(3) The supplier shall strictly comply with the user's provisions on the quantity, delivery time and place of the packaging materials and containers, and shall not make any changes.

The above procurement methods not only enable the packaging to meet the user's production needs, but also enable the user to achieve zero inventory. As shown in Figure 1, the JIT procurement model omits the “inventory” link in the traditional procurement model. Zero inventory allows users to create warehouse storage packaging materials and containers, which undoubtedly saves users a fee. At the same time, the losses caused to the enterprise due to deterioration, breakage and loss during the storage process of the packaging materials and containers are avoided, and the turnover of the working capital is also facilitated and the competitiveness of the enterprise is enhanced.

Characteristics of implementing JIT procurement model

(1) Single source supply for the purchase of packaging materials and containers

Single source supply means that certain packaging materials and containers are only purchased from one supplier. In the Ding purchase model, the ideal situation is that there is only one supplier for each packaging material and container. Moreover, since packaging materials and containers are relatively special commodities, their procurement must meet the requirements of the currently established standards for packaging materials and container quality assurance systems (GB/T 12121), which also require single-source supply to ensure that packaging materials and containers The stability of quality makes the quality difference between the same kind of packaging materials and containers small. Single source supply can facilitate the user's management of suppliers, and it can also enable suppliers to obtain internal scale benefits and long-term orders, and reduce procurement costs. The single source supply can also strengthen the dependence relationship between users and suppliers, and facilitate the establishment of long-term cooperation between supply and demand, and also ensure the quality of packaging materials and containers.

(2) Purchase of packaging materials and containers in small quantities

JIT procurement model is zero inventory, in order to ensure that the packaging materials and containers on time, quality, quantity and supply, procurement must be carried out in small quantities, and the number of purchases will increase.

(3) Changes in user selection criteria for suppliers

In the previous procurement model, the price was the main criterion for the user to select the supplier. Whoever had the low price would determine who was the supplier. Other factors, such as the credibility of the company, production capacity, etc., were often ignored.

After implementing the JIT purchasing model, the users have a strong influence on the production of the users due to the single source supply. For example, if the supplier cannot deliver the packaging materials and containers to the user's production line on time, the user will be forced to stop production ( Because JIT procurement is zero inventory, it will seriously affect the economic benefits of the company. Therefore, the selection criteria for suppliers are more stringent, prices are no longer a decisive factor, and suppliers' creditworthiness, production capacity, technical capabilities, and adaptability will become the factors that users consider comprehensively. Moreover, suppliers with strong comprehensive capabilities often have low purchase prices.

(4) The quality of packaging materials and containers is guaranteed at the supplier

The JIT procurement model requires suppliers to send packaging materials and containers to users where they need them, even on the production line. This means that users do not have time to inspect the quality of packaging materials and containers. The quality of packaging materials and containers must be The supplier is responsible and guaranteed. GB/T12121 strictly stipulates the quality of packaging materials and containers, and suppliers must produce according to national standards so as to ensure that the product quality meets the requirements of users, without the need for users to re-inspect the quality of packaging materials and containers (to achieve exemption). At the same time, it also saves users a quality inspection fee. On the other hand, users should also promptly provide suppliers with requests for product quality, and have the responsibility and obligation to help suppliers ensure and improve the quality of packaging materials and containers to ensure the smooth implementation of the company's own production, reaching users and suppliers. Business win-win.

(5) To strengthen information exchange between users and suppliers

In order to ensure timely and accurate delivery of packaging materials and containers, users must provide suppliers with accurate and timely information on demand. As the two parties establish a strategic partnership, users can communicate with suppliers on production planning, inventory, quality requirements and other information in a timely manner so that they can be dealt with promptly when problems arise. Only by providing reliable and rapid two-way information exchange between the supplier and the buyer can the JIT procurement model be smoothly implemented and functioned.

The advantages of implementing JIT procurement model

(1) Improve the quality of packaging materials and containers

Packaging materials and containers have a certain impact on product quality and even personal safety. Therefore, strict quality management must be performed on packaging materials and containers. The quality of packaging materials and containers provided by suppliers must meet the requirements of GB/T 12121. This is The most basic requirements for it. Moreover, with the development of the commodity economy, users have increasingly higher requirements for packaging materials and containers, and are no longer confined to the single-requirements for the protection of contents, but also comprehensively consider factors such as aesthetic application and ease of processing. After users implement the Sichuan procurement model, not only can the packaging materials and containers meet the requirements of national standards, but also the quality can be increased on this basis by 2-3 times. At the same time, the improvement of the quality of packaging materials and containers will also reduce the cost of quality of users linked to them and reduce the overall cost of the company.

(2) Reduce the purchase price of packaging materials and containers

Due to the adoption of the JIT procurement model, the scale of the selected suppliers is large, and long-term orders are made. The procurement process is relatively simple, which will reduce the purchase prices of packaging materials and containers.

(3) Promote enterprise development

The implementation of the “purchase mode” of the user not only shortens the delivery time, saves the resources (manpower, material resources, funds, etc.) needed in the procurement process, but also increases labor productivity and enhances the ability of the company to adapt to market competition. The company's rapid development.

In short, implementing a modern procurement model will bring boundless vitality to the enterprise. Enterprises that have adopted this model should further study the JIT procurement model to better serve the enterprise; enterprises that have not yet adopted JIT This type of modern and scientific procurement model should be vigorously promoted and implemented in order to improve the economic interests of enterprises and enhance their competitiveness.

(Author / Wu Min Liang Dongmei Guangxi University and Food Engineering College)

"Printing Technology"