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The Research of Purchasing Process Improvement of WZZ Company

Author: ZhangXiaoDa
Tutor: GuSuiShan
School: Jilin University
Course:
Keywords: Process Improvement Process Management Procurement Processes
CLC: F274
Type: Master's thesis
Year: 2013
Downloads: 67
Quote: 0
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Abstract


With the development of global economy, the social division of labor hasincreasingly presented the characteristics of detailed, professional and independent. Thelink between the separate division of labor has become more closed, and gradually formedan industrial chain, which has woven into an invisible net covering the global economy.The global economic crisis has affected the various chains to different degrees. Both thenation and the company have had to face the cruel reality.In this crisis, the enterprises of circulation have been under great pressure, whichboth from the upstream industry chain by rising raw material prices increased purchasecosts and the downstream demanded low due to the low price of the goods. The situationhas led to the profit suppressed constantly, along with the yearly rising labor costs and thecurrent financial environment as a result of increasing in financial costs. All these mixedfactors have caused the circulation enterprises more difficult.Facing to the turmoil of the global economy, the economists have been exploring theunderlying causes and solutions to these problems."The Reengineering",which werewritten in collaboration by Han Mo,the former MIT professor of business and enterprisemanagement theory guru and Qian Pi,the business operations consulting experts,whichhas widely influenced the theory of enterprise business process. With a few businessprocess of international companies getting more success, and bringing about BPR moreand more enterprises, the industry has taken this phenomenon as a revolution in the historyof corporate management. And this revolution has affected the domestic enterprises up tonow.At the same time, technology has also progressed and the humanity has entered theinformation age which changing the world into a global village. It is this power oftechnology that makes remote management, information management and immediatemanagement realized. It also makes the companies getting more means and options when facing the economic crisis.Facing to the new market environment, the new theoretical support and the newtechnical support, many companies are seeking solutions to achieve internal cost reduction,increase of external services and enhance the competitiveness of the enterprises by theinternal transformation. In particular source of business processes–the improvement ofprocurement process, which has been taken as the first part of the internal upgrades bymany companies. For this reason, taking WZZ companies for example, we have paid moreattention to the improvement of the procurement process.I use the survey method, numerical analysis method, comparative method,observation, literature research, case studies and other methods in this essay. By analyzingthe purchasing process of the WZZ Company and the existing problems and difficulties,we reuse the theory of domestic and foreign processes and combine with the actualbuilding materials distribution business. By re-selecting market position of the company,re-sorting procurement procedures, re-assembling various resources, we improve thedesign of the procurement process and make reformist attempts from the microscopiclevel to the macroscopic level.As the improvement of WZZ procurement process, I believe the processimprovement must be an ongoing and lasting change, which requires us to change andmake the appropriate adjustments as the requirements of markets and customers. Theadjustment is not limited to a change in form. It is effective way according to actual needswhich makes the adjustments aiming to the company’s internal irritation and unable toadapt to the local market and customer demanding.

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