Supplier Management Of Indirect Material In Parker

Purchasing management is one of the most important parts of the whole supply chain management, supplier management is of crucial important among the entire purchasing management. Thus, whether the supplier of operation is smooth and efficient are correlated that how to manage suppliers. But most of the companies will focus on direct-material suppliers rather than indirect-material supplier. Nevertheless, the cost and quality of indirect material, no matter tangible or intangible product quality, indirect material supplier service level will be resulted in the final product cost, quality, delivery time and service and so on. Hence, indirect-material suppliers’management can significantly enhance the core competitiveness of enterprises is as equal important as direct material supply management. Therefore, through efficient indirect-material suppliers’ management to reduce costs, labor cost, shorten delivery time, and improve the company’s competitive advantage in the industry. Parker Co. Ltd., located in Shanghai Jinqiao Development Zone, is an American company that of100years history which majors in hydraulic product. Meanwhile, Shanghai Jinqiao office is Great China headquarter, that responsible for all sales throughout China, HK and TW. Since there is very small amounts of production in great China headquarter, the main cost the company mainly comes from two aspects, final product that imported from all other Parker’s factory over the world and huge amount of the indirect-material purchasing in a large scale.The content of Parker’s indirect material is quite complex. Except for some tangible products, such as equipment, packaging materials, office stationary supplies, computers and so on. The rest are consisted of intangible products, for example, as like staff training, factory building, warehousing, logistics and transportation, international freight etc. wide scope, high expense, and the intimate relationship to final product are not difficult to figure out the importance of indirect material suppliers’ management. So the method of indirect material supplier management company is worthy of study.In this thesis, the study start from the analysis of current situation and problems of indirect-material suppliers’management, incorporate to related theory, combined with the characteristics of indirect material sourcing company put forward a series of solutions based upon two aspects:process management and strategic management to optimize procurement mode and entire flow to establish management scheme and constructive indirect material suppliers’ management system. In the end, the new management scheme and system will be beneficial to the company. Hope this thesis can inspire suck kind of corporate management with some new ideas.