TK Company's Production Materials Centralized Procurement Proposal

With the tough competition happened in automotive industry increasingly,whether the auto parts company can optimize its procurement management,reduce the purchasing cost,to a large extent it determines the company's competitive position and existence in the entire automotive supply chain.The centralized procurement mode is beneficial for the optimization of limited resource and the attainment of scale effect.Nowadays more and more auto parts companies are converting into the centralized procurement.Taking major producer of coil spring and stabilizer-TK company as a research example,this essay analyzes the procurement management status of production materials,pointing out the existing problems of high purchasing cost,questioning material quality,slow response time and poor management efficiency in the current management,and further analyzes the reason source,and proposes the centralized procurement concept in TK company.The essay designs the centralized procurement in TK company,and it mainly contains:setting up the centralized procurement organization and defining the purchasing category and purchasing threshold;sorting the centralized procurement process and optimizing the supplier selection through the reverse auction;strengthening the procurement risk management from cost,price,source etc.;implementing the procurement performance evaluation for the mode from three dimensions:cost saving,quality improvement and on-time delivery.Besides,it also highlights the construction of personnel qualification and data platform.The adoption of centralized procurement in TK company proved:In auto parts company,for the reason of scale effect,it can implement the centralized procurement mode for the bulk production materials.It can reduce the purchasing cost,improve the material quality,optimize the supplier management,and promote the realization of procurement function.From the view of strategy,the centralized procurement can integrate company resources,contribute the net margin,and finally realize the company overall targets.