Research On Procurement Management Improvement Of Y Company

In the process of global economic integration,due to the increasingly fierce competition in international trade and rising costs of production raw materials and labor,the survival environment of enterprises is deteriorating and their profitability is declining.Under such market conditions,the advantages of good procurement management mode in enterprise competition begin to emerge gradually,especially in the manufacturing industry,procurement cost occupies more than 60% of the company’s operating cost,and the reduction of procurement cost will make the company’s profit increase geometrically.Therefore,in the current market competition,how to continuously strengthen and improve the procurement management is crucial.Y company is a manufacturer in the wiring industry.The purpose of this paper is to seek and explore ways and methods to improve its procurement management by analyzing and discussing the current situation and problems.In this paper,based on the theoretical basis of procurement management,the three perspectives of procurement process management,procurement material requirement management and supplier management are elaborated,and with industry comparison,the problems in the procurement management of Y Company are identified and analyzed.The following improvement solutions are proposed,namely,the reorganization of procurement organization structure,the simplification and improvement of procurement process by applying ESIA process reorganization theory,the combination of ABCXYZ classification method and supply segmentation method to re-categorize the current procurement material requirements management and the enhancement of supplier management.Through the study on the improvement of procurement management of Y Company,it also provides some reference to improve the procurement management of other manufacturing enterprises in China.