H Company In-direct Procurement Management Analysis

The competition becomes even more furious since the2008economic crisis. Most companises are keen to expand their revenues and control on the spending. Raw materials have being taken more and more attention as always since they are most direct to cost control. Whilst in-direct procurement has been neglected for a long time, even many companies have not set up specific department and personnel for in-direct procurement. In fact buiding up and strengthening in-direct procurement function can not only contribute the cost saving of enterprises to a large extent, but also can ensure they operate in a stable manner. In-direct procurement has been paying attention in recent years by more and more enterprises and become the research subject as supply chain.This paper will study on the in-direct procurement process, supplier management processes, in-direct procurement performance appraisal process and process control of H company. By applying related theoretical on H company real situation and characteristic, the paper put forwards improvements measures such as optimize procurement procedure, build up new evaluation system on in-direct procurement value, improve in-direct procurement performance evaluation procedure etc. Studies show that combining the characteristics of the indirect materials procurement and H company itself condition, it will stimulate procurement performance and contribute organization development in long term by setting up comprehensive and effective performance appraisal system.