Procurement Process Optimization In AS Pulp&Paper Company

Enterprises who want to be in an invincible position in the fierce competition, the most high-quality products and good after sale service are necessary to meet the user’s individual requirements. While product quality depends on the quality of purchasing raw materials and its internal management. However, purchasing department is responsible for the quality of raw materials, so then making the procurement activities is not only to satisfy the production requirements, but also to balance the five factors, namely, price, quality, quantity, time and place in the purchasing progress. Nowadays, high effective purchasing management has become the key competitive advantage for manufacturing enterprises, which is also a source of making profit for enterprises. Focusing on procurement management and strengthening procurement management have strategic significance for enterprise development.In the pulp and paper companies, the procurement cost takes the proportion of about70%in the total cost. It can be said that purchasing plays the most important part in the entire supply chain, also one key role for the enterprises to reduce cost.Firstly, according to the current situation of AS company’s procurement management, analyzed the status of procurement and supplier management, after dissecting the present situation, problems were discovered in the purchasing management and supplier management,Secondly, from the reality of procurement management happened in pulp industry, analyzed the problems occurred in the purchasing management and supplier management, tried to seek the scientific and effective solutions combined with the business development needs. By improving the procurement process, strengthened the procurement management functions, refined the requirements of the bid invitation&inquiry, bargaining, besides, got a detailed provisions for the key point in the procurement process, making the procurement process more transparent. At the same time, system of supplier management was established, in which supplier access and supplier performance evaluation were discussed in detail.