The Research Of AYC Company For Indirect Purchasing Management

As brand new function, Indirect Purchasing has been embraced in daily operation in many more corporations than before. In fact, Indirect Purchasing related spending occupies more than 25% of total spending in an average corporation. However, individual indirect purchase order's value is very low; there are various categories of goods or services to purchase; the supplier database is bulky with different levels of suppliers; purchasing activity is usually ruleless and it has little relationship with main business…compared with Direct Purchasing, Indirect Purchasing has long been ignored, even a lot of corporations don't have independent Indirect Purchasing organization or sufficient dedicated Indirect Purchasing clerks. Non-Production goods and services'procurement may be out of control and audit, which will result in great damages to corporations'benefits. As a matter of fact, the set-up and enhancement of Indirect Purchasing function can make an outstanding contribution to cost down for any corporation, and the smooth daily operation as well. That's why more and more corporations have attached importance to this function. Influenced by internal and external factors, how to overcome difficulties to manage Indirect Purchasing well is a topic which must be focused on and figured out by any executive.Nowadays, the whole world is in economic crisis, most of corporations are eager to expand their revenues and control their spending; Indirect Purchasing is being regarded as a new resource of profit. Under this background, with the object of real condition in daily management in AYC Company's Indirect Purchasing, this thesis will focus on the improvement and enhancement of indirect purchasing management. There are totally five chapters in this article. In 1st chapter, the key problems in daily indirect purchasing operation are highlighted, and the importance of enhancement as well; in 2nd chapter, the current purchasing process is analyzed and a lot of defects as founded, then the solution to improve the process will be brought up; in 3rd chapter, vendor management is focused on the basis of study of different classification of indirect purchasing vendors, at the end of this chapter, the cooperation partnership with strategic vendors is discussed; in 4th chapter, two key performance index– Cost and Quality are researched respectively; in 5th chapter, the last one, risk management of indirect purchasing is a good reminder to all executives.Expect through the research in this thesis can provide definite reference to the enhancement and improvement of Indirect Purchasing Management.