Study On Procurement Contract Execution Process Optimization Of H Company

Purchasing is the beginning of business operations in an enterprise. It is a combination oflogistics, cash flow, information flow and work flow from supply and demand, whichinfluences an enterprise’s cost and profit. According to statistics, most enterprises spend60-80%of total cost on purchasing, meanwhile,50%product quality problems are related topurchasing. Hence, improving purchasing process is significant in increasing competitivestrength to a company.H Corporation is a high-tech listed company doing business mainly on R&D, producingand marketing aquatic product, livestock and poultry mash. Facing the trend of globaleconomic, H Corporation launched an ERP project with SAP, tending to increase competitivestrength with information technology by combining information and industry. The implementof ERP leads to BPR, which means that it is necessary for H Corporation to improvepurchasing with advanced management ideas, methods and tools.In this thesis, we would study on business process optimization of purchasing contractexecution based on the ERP project of H Corporation. Firstly, theories about purchasingmanagement and business process optimization would be introduced. Secondly, we will get toknow the company’s present situation by interview and analyze the business process withASME and value flow chart. Thirdly, some optimization suggestions could be broughtforward by analysis with BPR, ESIA and flow chart. Finally, we would illustrate how to carryout the new scheme and pre-evaluate the achievement.This study emphasizes the way to promote the company’s value, decreasing waiting timeand optimizing the process when people are doing purchasing. With the help of improving,the company could formulate a better plan, supplying material to departments at the right time,which brings high benefits to H Corporation and is significant to the whole industry.