SMEE Company Purchasing Strategy Optimization And Practice

Shanghai SMEE Company is a high-tech company dedicated to the R&D and Manufacturing of the Optical Lithography Equipment. Optical Lithography is the most complex tool among various Semiconductor manufacturing equipment. Shanghai SMEE Compnay is facing the chanlleges and difficulties in its purchasing activities e.g. product material system is extremely complicated; the material timeliness and quanlity level cannot meet the company's production and growth, the supply chian is too big and there performance are intermingled which is difficlut to manager. Therefore, the Purchasing Strategy optimization becomes the most exigent task for SMEE Company'rapidgrowth.This paper takes SMEE as an example and deeply analysize the status and problem of its supply chain system. A methodology based on the "ABC categorizing" and "Kraljic Matrix" method has been described in order to categorize the huge number of supplier system resonabely. Furthermore, based on the effective classification of product material and supplier system, this paper goes further on how SMEE formulate the new supplier selection & replacement strategies including "Seven Factors Method" and the "Improved Kraljic Matrix" where the coefficients of "realteive power" and "total interdependence power" are introduced. At the end, this paper will describe the benefits of the supply chain management, the remaining issues, and next development orientation.SMEE Company is engaged in the manufacturing of the most complex equipment for the Semiconductor industry i.e. the Optical Lithography Equipment. Its experiences, lessens, and gains during the implementation of the supply chain management will absolute benefit other equipment manufacturers in Semiconductor industry of hina.