Study Of The Procurement Of Goods Performance Evaluation System

Basically material procurement costs take 30～70% of the product manufacturing costs in an enterprise. Considering that reducing the procurement costs will have an enormous impact on the improvement of profit margin, it is necessary to strengthen the management of material procurement and establish a set of effective procurement management system. As the evaluation to the procurement performance is one of the important methods for procurement management system, how to evaluate the procurement performance is an urgent issue worth studying therefore.This dissertation introduces the Balanced Scorecard into the performance evaluation system of material procurement management by summarizing the principles and advantages of the Balanced Scorecard. Combined the Balanced Scorecard theory with the author's working practice, this paper constructs the system from four dimensions of finance, client, internal processes, learning and innovation; it applies Analytic Hierarchy Process to quantitatively calculate the weight of index for each hierarchy. Furthermore, it analyzes the insufficiency of current procurement performance evaluation model of B Corporation and evaluates the performance in procurement. The text of this paper consists of four parts. The first division mainly introduces the basic theories of procurement, procurement management, performance and performance evaluation. The second part starts with summarizing the principles and advantages of the Balanced Scorecard, goes on with analyzing the precondition, the implementation procedure, and then introduces The Balanced Scorecard into the performance evaluation of material procurement management. Part three illustrates the programming for performance assessment of procurement management based on the Balanced Scorecard.By utilizing the Analytic Hierarchy Process in this part, weights of all indicators are allocated and the hierarchy is integrated. The last part briefly describes deficiencies of existing performance evaluation system of B Corporation. The author tries to appraise the operating performance of B Corporation by introducing the performance evaluation system of material procurement management based on the Balanced Scorecard.