Study On The Procurement Business Process Reengineering In S Mining Company Co.,Ltd.

The outbreak of COVID-19 has brought about a new digital revolution in enterprise production and management,which makes enterprises use new information technology to carry out business process reengineering.The research object of this paper,S Mining Company,is a state-owned mining group,with gold mining as its main business,involving a complete industrial chain of gold "exploration,mining,beneficiation,smelting and sales".This paper mainly discusses the research on procurement process reengineering in the stages of "mining,beneficiation,and smelting" of S Mining Company.This paper uses the theories of business process reengineering,value chain,value chain reengineering,centralized purchasing,lean production,supplier management and so on.Using questionnaire survey,expert interviews,flow chart method to conduct investigation and research on the current situation of S mining company’s procurement business process.Find out the problems and causes of problems in the procurement management process.It is concluded that the main problems of S mining company’s procurement business process include bloated procurement organization,high inventory,and excessive procurement cycle,poor supplier delivery quality,fragmented procurement information.After identifying the problem,we try to find the root cause of the problem through expert interviews.The root causes of the problem are having not established group-level centralized procurement,having not established group-level master data management,bullwhip effect amplifies inventory and purchasing cycles,the weak supplier management and the backward construction of information system.After finding the root cause of the problem,the reengineering the procurement business process is proposed to solve the problems that plague S mining company’s procurement management.Establish a group-level centralized procurement center,choose an advanced procurement management system to replace the old system.Then through the design and implementation two steps achieve the implementation of the business process reengineering program.We also have the supporting measures as department reorganization,employ training,the establishment of new systems,the establishment of new technologies and standards.The procurement business process reengineering solution studied in this paper has been partially implemented in S mining company and won the recognition from the leadership.The new procurement organization and new procurement management information system and the rebuild procurement process have brought a big change to the company’s procurement management,reduced procurement management costs,improved management efficiency,and improved and enhanced the company’s production and operation capabilities.