| With the development of the economy, purchasing cost is a gradually increasing proportion of the total cost of the manufacturing companies. Coupled with the rising competitors, Hydratech Industries have to adjust and improve their global strategy, especially lowering the purchasing cost, rising product competitiveness in the market.In this thesis, we first introduce the purchasing process and the basic management concepts of Hydratech Industries Suzhou Office. Then, we discuss the present situation of the current purchasing management, analyze a series of problems in the processing management. Subsequently, we conduct concrete analyses on the difficulties of managing the MRO material, the difficulties of controlling and managing some suppliers, the complex material purchasing process, the high purchasing cost and the low communication efficiency. These problems lead me to study the approaches of optimizing and improving the purchasing process, such as introducing ERP system to manage the MRO material purchasing and output &input the warehouse management, employing the strategic thinking of procurement, introducing the third party procurement to manage some of suppliers, the redefining the procurement process, optimizing the organization structure of the purchasing department, applying the approaches of centralized purchasing and comprehensive supply of scattered material procurement mode to reduce procurement cost, strengthening the staff training, staff performance appraisal and applying the ways to improve the work coordination of staff members. Improving and optimizing the purchasing process is a continuous improvement project, subject to the economic development and the change of material supply and demand. Through OA procurement approval process and optimize the implementation of the procurement process, direct materials inventory turnover days has significantly decreased, and MRO procurement of materials cost ratio is reduced from about 15% to 10%. |
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