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Research on Problems and Countermeasures of Procurement Management in Z Company

Author: YangHong
Tutor: LiQiaoXing
School: Lanzhou University
Course: Business Administration
Keywords: Procurement management Supplier management Process reengineering Analytic hierarchy process
CLC: F274
Type: Master's thesis
Year: 2011
Downloads: 820
Quote: 3
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Abstract


At present, with the intensive research of procurement management by domestic and foreign scholars, procurement has been changed from the traditional mode of simple transactions to the strategic management process. Reasonable and efficient procurement management for the enterprise can save procurement costs, increase efficiency in procurement, and improve the core competitiveness of enterprises. Therefore, study of enterprise purchasing management is of great practical significance.The procurement management of Z company is selected as the research object in this thesis. Through the field research of procurement management status and in-depth interviewing purchasing department staff, a large amount of relevant information is collected, which could be used to discover, analyze and solve the problems by systemic thinking. First of all, in this thesis, the procurement management status of Z company is described objectively, which includes the company organizational structure, responsibility and right of purchasing department, classification of goods, process of procurement management, employees’conditions, and the supplier’s certification and management. Secondly, based on the current situation, the existent problem of Z company procurement management has been analyzed and pointed out, including outdated procurement concept, single procurement strategy, dilatory and redundant procurement process, unreasonable procurement organization, unclear character of procurement service staff, low level of procurement information, no standard procedures for selecting primary suppliers procurement, no scientific methods and tools for selecting and evaluating suppliers, and no effective classification and management for suppliers. Subsequently, the thesis focuses on the problems found, and develop the appropriate solutions and improvements, which include changing concept, developing different of procurement policy, reengineering procurement process, setting up procurement organization institutions again, establishing specific program to strengthen the filter of supplier, setting up supplier evaluation and selection system, implementing classification and systematical management of supplier, taking different inspiriting method simultaneously, and improving existing information condition. Finally, the intensive research of index system for evaluating and selecting supplier of Z company is carried out, and the scientific and reasonable supplier evaluation model is set up using Analytic Hierarchy Process (AHP) as the tool besides providing examples. In this thesis, we try to solve the actual problem through the application of related research theory and combination of qualitative and quantitative analysis. Not only do measures and programs listed in the thesis have practical significance for improving and enhancing the Z company’s procurement management, but also provide a reference for other similar enterprises. At present, with the intensive research of procurement management by domestic and foreign scholars, procurement has been changed from the traditional mode of simple transactions to the strategic management process. Reasonable and efficient procurement management for the enterprise can save procurement costs, increase efficiency in procurement, and enhance the core competitiveness of enterprises. Therefore, study of enterprise purchasing management is of great practical significance.The procurement management of Z company is selected as the research object in this thesis. On the basis of the field research of procurement management status and in-depth interviewing purchasing department staff, a large amount of relevant information is collected, which could be used to discover, analyze and solve the problems by systematic thinking. First of all, in this thesis, the procurement management status of Z company are described objectively, which includes the company organizational structure, responsibility and right of purchasing department, classification of goods, process of procurement management, employees’conditions, and the supplier’s certification and management. Secondly, based on the current situation, the existing problem of Z company procurement management has been analyzed and pointed out, including outdated procurement concept, single procurement strategy, dilatory and redundant procurement process, unreasonable procurement organization, unclear character of procurement service staff, low level of procurement information, no standard procedures for selecting primary suppliers procurement, no scientific methods and tools for selecting and evaluating suppliers, and no effective classification and management for suppliers. Subsequently, the thesis focuses on the problems found, and develop the appropriate solutions and improvements, which include changing concept, developing different of procurement policy, reengineering procurement process, setting up procurement organization institutions again, establishing specific program to strengthen the first-round selection of suppliers, setting up supplier evaluation and selection system, implementing classification to manage suppliers systematically, taking different inspiriting method simultaneously, and improving existing information facilities. Finally, the intensive research of index system for evaluating and selecting supplier of Z company is carried out, and the scientific and reasonable supplier evaluation model is set up using Analytic Hierarchy Process as a tool by providing examples. In this thesis, we try to solve the actual problem through the application of related research theory and combination of qualitative and quantitative analysis. Not only do measures and programs listed in the thesis have practical significance for improving and enhancing the Z company’s procurement management, but also provide a reference for other similar enterprises.

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