Research Of Non-productive Purchasing Process Reconstruction For S Company

Nowadays, in order to fulfill the requirements of the automobile industry, thecompetition in automotive components industry has become fierce. The automotivecomponents companies have to enhance their self-expression to share more market andbecome the strategic suppliers. Therefore, the price, quality, technology and even themarketing respond speed becoming quite urgent and important to help the company to havethe competitive advantage. It makes the purchase changing from a simply trading businessto the main support of company performance, and become the outstanding contributor inproduct development, technology innovation, quality assurance in the whole supply chainof the automotive components companies.According to statistics, the product cost accounted for approximately two-thirds intraditional manufacture industry, and achieve70%-80%in the automotive componentsindustry. By this trend, the purchasing departments have obtained more attention andsupport from leadership in automotive components companies. Besides the raw materialpurchasing, the goods and service which indirect to the final products have received theattention gradually. The new issue is non-production material purchasing, such asmarketing, administration, delivery, customs application, MRO, business conference,maintenance service and etc. The expenditure in non-production purchasing is quite highand not well-controlled by lack of systemic management. In the pursuit of best value andreduce cost pressures, the non-production material purchasing becomes a new focus.S Company in this case was a German-owned automotive components companywhich founded in1998, and has supplied goods and services for the FAW-Volkswagen,Shanghai Volkswagen, Shanghai GM and other famous automobile companies. From2003,S Company started to open up the market of commercial vehicles and railway rolling stock.With the advanced technology from Germany and explosive growth in China Market, SCompany has the rapid development. However, the global economic crisis in2008broughtthe economic conditions decline in domestic, and the entire automotive industry suffered aserious shock. Facing the rapidly changing competitive market, high-quality products was insufficient to satisfy the needs of enterprise development in post-crisis era. In order toenhance the core competitiveness of the company, continue to reduce the cost and ensurethe quality is indispensable. Compared with the production material, the non-productionmaterial purchasing didn’t have a systemic process, made a “gray zone” which notcontrolled in S Company’s manage.The thesis has use the theories of non-production purchasing, business processreengineering (BPR), cost control and analysis as the core content for research. Thencombined with actual case S Company, made a detail description about the difficulties innon-production operation, and introduce the methods of non-production purchasingbusiness process reengineering. I hope the thesis can not only help S Company tooptimization the non-production purchasing process but also can provide some usefulreferences for the other companies.