Design Of Material Procurement Process Optimization Of Yinguang Company

Purchase is an important part of business management, According to the research on the corporate cost constitutes by foreign research institute, the procurement cost takes up the biggest percentage in the total production cost, and it is accounted for about60%of the total sales, even higher, which is the highest of the costs. As the global economic integration, the competition between enterprises is increasingly fierce and complex, purchase becomes more and more important in the enterprise management. Traditional procurement is just a business work, while modern procurement is an important management through which can achieve the strategic objectives and improve the core competitiveness of the enterprise. Besides the production optimization and the product sales, purchase has become a key point of tapping efficiency and creating profit. It has become "the third profits source" of the enterprise.Yinguang Company is a key military enterprise and specialty chemicals enterprise which is one of the156key projects during the First Five-Year Plan period, as well as is one of four domestic polyurethane manufactures. However, since the economic crisis in2008, the enterprise profit growth is not so good facing the two markets extrusion although the enterprise sales revenue increasing year by year. As an important part of the corporate management, the company carried out the procurement process reengineering in2011, but there were still a series of problems seriously affected the material procurement management level, such as the unreasonable process, the unscientific management approach and so on. What’s more, these problems will have greatly effects in the long-term, healthy and steady development of the company if not be adjusted in time and develop the material purchasing of finer management.The author designs the prioritization scheme of the procurement management process from the overall procurement processes, strategic matrix material classification strategy, supplier management processes and inventory management processes based on the Modern procurement management theory, systematic study and the analysis of the existing problems of Yinguang Company’s procurement management. Then the relevant safeguard mechanisms are proposed aiming to improving the materials procurement management level and providing a specific way of thinking of the material purchasing of finer management.