E-Procurement System Designed Based On BPR For Automotive Manufacturer

It is very important for the automotive OEMs ( automotive manufacturers) to continuously lower the cost and gain efficiency, as well as to assure the quick response of the whole supply chain. More and more automotive OEMs have recognized that one of the best ways to create profit is better controlling the purchasing cost. But with the role change of purchasing, traditional purchasing model become more and more unsuitable. Today, the whole value chain of automotive industry is looking for a better solution to make the whole supply chain link close to customer requirement, and the improved information flow together with the more effective purchasing business model could satisfy the final customer's requirement.Using the tool of BPR (Business Process Reengineering) and value chain analysis, with the implementation of SGM"E-procurement"program, this paper analyzed SGM current purchasing process, and studied how to re-build SGM purchasing process under the E-purchasing model. The future development trend of purchasing is illustrated after analyzing its history and evolution. That is, in the future,the strategic meaning of purchasing and supply chain management will be strengthened, with internet & web as the main carrier of purchasing activities. E-Purchasing systems based on information technology will be widely used in purchasing.BPR (Business Process Reengineering) theory is introduced. The key points of business process reengineering are illustrated after analyzing value chain. In order to add the total value of the whole process, the value of every part of the business process should be analyzed first. Find out the waste points, and then improve with the help of information technology. This paper illustrates the steps of business process reengineering.According to the steps of BPR, after analyzing SGM current process and problems of APM (Advance Purchasing & Program Management), Production Purchasing and SQ&D (Supplier Quality & Development), we reengineer the business process of SGM purchasing. This paper provides a detailed introduction of the improved SGM purchasing processes, and tries to rebuild an electronic purchasing management system based on these improved processes and with the help of IT, so as to achieve distinct improvement in cost, quality and speed of raw material purchasing. The research results of this paper can be utilized as a reference by other automotive OEMs when setting up their own electronic purchasing management systems, through which local automotive manufacturers could continuously lower the vehicle cost, enhance their market competitiveness and expand their margin.