Research For Centralized Purchasing Management In D Company

In recent years,the global economy has been in the doldrums,which comes to be a strike to the business condition of domestic companies.At the same time,the policy of opening the country makes the competition between domestic and foreign companies increasingly intensified.In this environment,companies have to enhance profitability to keep their competitiveness.D company mainly provides control systems for the turbine,whose purchasing cost accounts for more than 50% of annual sales.Procurement cost is an important factor in determining the company's profit and market competitiveness.So,for D company,how to reduce the cost of purchasing should be considered firstly in order to improve profitability.In view of this,the company adopts centralized procurement to improve its negotiating capacity when bargaining with suppliers,to reduce procurement costs and to improve the core competitiveness.In the process of actively promoting centralized procurement,D company has exposed some problems in the internal purchasing management.For example,materials often fail to arrive on time,the product quality drops,the stock backlogs and so on.In view of this,this paper adopts the method of associating theory with practice and analyzes the existing purchasing management problems of D company according to the procurement management theory and supplier management theory.This paper refines the internal data of the company and makes a detailed study of problems in five aspects: purchasing personnel,procurement process,purchasing strategy,information coordination and suppliers by using questionnaire and scenario analysis.Then the paper finds out the fundamental reasons for the obstacles in carrying centralized procurement management out effectively and optimizes the way of formulating the scheme.To the problems in purchasing personnel,the company rebuilds the organization of the department to make the distribution of personnel more reasonable.Evaluation method of key performance index is adopted for solving purchasing personnel problems for the first time.Pareto principle is adopted to classify materials in response to problems of purchasing strategy.Different purchasing strategies are applied to different materials.In view of the problems in purchasing process,demand planning and procurement planning are main aspects to be optimized.The annual framework agreement is introduced to reduce redundant procurement planning.To the problems in information coordination,the company enhances communication and coordination between departments by holding meetings at regular intervals,at the same time,ensures effectiveness and timeliness by introducing new office software.In response of suppliers' problems,the following measures are used.Firstly,materials are classified according to the ABC law.Secondly,supplier access is paid attention to.Then the supplier management is optimized using Deming cycle.Finally,the aim of this paper is to improve the overall performance of the company by putting the optimization of the company's centralized procurement scheme and relevant guarantee measures forward in a targeted manner.This paper has a realistic effect on the procurement cost control and procurement optimization and upgrading of D company.It also can be a reference for other similar companies to improve procurement management.