The Study On The Procurement Process Of CITIC Accessories

As an important part of industrial enterprise production and business operation, procurement plays a significant role in the survival and development of an enterprise, and the funds used in procurement business often accounts for 20% to 40% of the whole sales. Procurement process is the most important business process. Therefore, improving the procurement process would improve procurement efficiency and reduce costs, which may make the company more efficient. The heavy machinery industry is facing the external environment of economic globalization, information technology and customer demanding, meanwhile experiencing the transformation of traditional production and management process. Every company is experiencing an increasingly complex external and internal environment. Therefore, in order to maintain the survival and development, the enterprise must carry out reform and innovation promptly to adapt to the changing of business environment.This paper does research on the procurement process of CITIC accessories. Firstly we introduce the procurement process reengineering, the implications, process reengineering method, process diagnostic methods and the principles and steps of process reengineering. Then we use relevant theories of business process reengineering and procurement to analyze and diagnose the procurement organization, parts procurement process, demand planning process, vendor selection process, contract signing process, parts distribution process and payment process of CITIC respectively, and we also adopt an integrated process reengineering method to design CITIC accessories procurement process. Finally, the specific process reengineering programs as well as implementation steps are proposed.The procurement process status of CITIC essentially represents the problems faced by domestic heavy machinery industry, thus our research results would also give enlightenment on other similar enterprises.