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Procure Strategy for Diverse Materials Applied in M Company

Author: YuNing
Tutor: ZhouBingHai; DingLongQi
School: Shanghai Jiaotong University
Course: Logistics Engineering
Keywords: Materiel Classification AHP procure strategy supplier performanceevaluation
CLC: F274
Type: Master's thesis
Year: 2012
Downloads: 68
Quote: 0
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Abstract


With the increasing percentage for M company in the market, managers should pay morestrategic attentions on procure strategy, storage strategy and sub-supplier strategy for diversematerials which are used for manufacturing, i.e. pay more attention on materials’ valueincrement potential and risk control for materials’ supply, in order to further improve company’son-time manufacturing and create more profits.Theoretical analysis was made for a big customer ordered single-part manufacturingcompany’s procure management process in this article, also pertinent analysis was made forcurrent method and principle for classifying materials from the strategic point of consideringoverall diverse materials. Current status for materials’ procure strategy, procure process andchoosing of sub-suppliers of this company was depicted, features for classifying multi-varietyand large amount materials were pointed out when using the procure logistics theory, evaluationsystem for material classification index was created when using hierarchy analysis method,material properties which were hard to decide during manufacturing were defined by quantifiedcalculation, materials’ procure strategy and procure/supply transition strategy were establishedby material allocating in the Kraljic matrix, theory and method for several projects parallelprocurement were proposed, featuring that it is advanced and scientific for the mode of diversematerials parallel procurement, evaluation and management.Finally, the paper briefs the entire process of procure strategy for diverse materials appliedin company and the supplier performance evaluation implemented in department, whichsignificantly improves the status for materials’ procure strategy.This paper can provide some references for other similar companies which care procurestrategy for diverse materials.

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