Study On Purchasing Process Re-engineering Of Lingyang Machinery Company

In a closely entwined global economy,the competition in the market place has become more and more fierce.Businesses have to not only increase the sales revenue,but also reduce operating cost in order to survive the competition.How to reduce operating cost and improve efficiency has become a big concern for all businesses.As the starting point of operating activities,purchasing plays a huge role in the generation and transfer of logistics,cash flow and information flow.As an important part of business operating process,purchasing accounts for 40%-60%of the overall sales revenue.Purchasing process optimization is of paramount importance for manufacturing business.Based on the BPR theory,the dissertation made a profound analysis of the current purchasing process of the company.Presents the various problems with the process and come up with an optimization scheme on the basis of process reengineering theory.from purchasing requirement,supplier identification and assessment,order implement to payment.Finally,comparison is made between the process before and after the optimization and great efficiency improvement can be seen in the optimized purchasing process.The optimization scheme presented in the article is also applicable to other companies in the similar industry.A continuous optimization and improvement is necessary in practical use.