The Research Of Procurement Process Reengineering For KC APAC

In the 21st century, with the deepening of economic globalization, the world's political, cultural and economic environment has undergone tremendous changes, causing a global competition intensifies. Enterprises are faced with the challenges from the three forces (3C):Customer, Competition and Change. In order to survive and develop, enterprises must constantly change and adjust themselves based on the internal and external environment.Procurement process, as a starting point for production activities, includes the whole process of logistics, capital flow, information flow or business flow from supply to requirement, and has direct impact on business costs and profits, therefore, to reduce costs and increase profits through procurement process improvement is very important to the enterprises.By combining the external competitive circumstances which KC APAC is facing and the theories for procurement management and business process reengineering, this paper analyzed and diagnosed the present procurement process, discovered the existing problems, offered the reengineering plan consisted of procurement processes from procurement planning, supplier development and selection, order preparation and implementation, to goods receiving and payment, and finally, the implementation of the redesign was described and the effect of the new procurement process was evaluated with the ASME method.