Management Of The Company Based On HE Supply Chain Procurement

With the rapid development of the supply chain management concept and theaccelerated process of global economic integration, in21st century, the competition isgradually evolving into among different supply chains, rather than purely between theenterprises. On behalf of high-tech cutting-edge, aircraft manufacturing industry morerelies on supply chain environment due to its high value-added products and uniquedesign. As procurement cost occupies more than90%of the total cost, procurementmanagement under the theory of supply chain has always been considered as a strategiclevel, and its continuous improvement and cost-efficient operations is one of the keyfactors of long-term development of enterprises.With focus on the topic of procurement management under the theory of supplychain in HE company, as well as based on the theories of and supply chain managementand procurement management, this dissertation analyzed the current procurementmanagement of HE company in detail supplemented by the method of case studies,combining theory and practice, comparative analysis and summarization. Consequently,HE company needs to improve in the four aspects, such as procurement procedures,inventory management, supplier management, key indicators management during itslocalization process from the mature international supply chain of parent company.To procurement procedure under supply chain in HE company, the improvementis to identify the direct and indirect material and its procurement control methods, tosimplify the extra financial and quality control, and to optimize the procurementapproval procedure; To inventory management, the purpose is to forecast and controlthe material with safety stock, as well as to manage excess inventory and reducequarantine stock; To supplier management, it is suggested to evaluate supplierperformance and classify different supplier level, to reinforce the management of nonconformity material claim and sales campaign discounts, and to share the materialprocurement forecast; To key performance indicators, the aim is to keep regularfollow-up, to rationalize the target, and to set up the key indicators for in timeprocurement, on time delivery and production missing material control.As the research of this dissertation, it is can be the guidance to improve theprocurement management under supply chain in HE company and has established asolid foundation for its further localization, as well as the reference for domestic aircraftmanufacturing enterprises.