Study On Procurement Process Reengineering Of DAHUA Based On Customer Value System

Many SMEs are faced with customers' customized requirements, delivery period is shortened but still using the traditional mode of production, triggered downtime, the research and development cycle is long, the suppliers not cooperating, high cost, vicious price competition and etc, despite the efforts of companies to do training, accountability of specific duties, input system, but the results were minimal, while the customers'complaints are increasing. Worse still, reducing competitiveness leading to bankruptcy. The problem lies in these enterprises have no management system for customer value orientation.The phenomenon of critical issue facing SME is:"How to profit through a model." No matter what model must be based on customer value, process and operations reengineering are inextricably linked, process and create value and profit need a model, both are interrelated. In the face of fierce international competition, customer value-based business process reengineering, to small and medium enterprises, is no longer a distant matter, on the contrary is a burning issue at hand. SMEs has to respond quickly to market, shortening lead time, rapid procurement, customer value must be based on a "fast response to customer customization" mode of production, in this mode, the value of analytical tools used to implement business process reengineering. In this paper, a Zhejiang's foreign trade enterprise procurement process re-engineered the whole process, it is a good representation. Procurement costs are too high for this type of business, suppliers' delivery cycle is too long, the procurement function is not clear, the procurement process is unfair, missing procurement information, supplier selection and management is extensive, unclear inventory information, the external environment caused by excessively high inventory, isolated departments to appraise material procurement, bottleneck and ineffective way to research current situation, problem analysis, cause analysis. Specifically suited to the firm's profit model and procurement management processes re-engineered (including the concept of establishing the procurement process management, procurement plan process reengineering, product planning process reengineering, supplier management process reengineering, bottlenecks in procurement and inventory management, process reengineering, procurement organization re-engineering and process station standardization, procurement management process performance re-engineering.) The purpose of business process re-engineering is to build "sustainable profitability capabilities", by implementing "customer value" to gain social returns. In this paper, process re-engineering studies will help enterprises better understand their customers and examine their own management, provide new ideas and help for SMEs while they face competition and crisis.