The Research Of A Company For Indirect Materials Purchasing Perfermance Appraisal And Its Improvements

With the coming of economic globalization and market integration, more and more companies are facing the pressure and the challenge that they have never met before. Compared with direct materials purchasing, good management for indirect materials purchasing is also very important for these companies.The thesis takes the example of the young established Indirect Material Purchasing Department of A company, introduces its indirect materials purchasing characteristic and the differences with direct materials purchasing, describes the current indirect materials purchasing management situation of A company. Based on which, 5 major indirect materials purchasing management problems that are seriously impacting the overall indirect materials purchasing performance of A company are identified, concluded and analyzed by the author, they are: lopsided performance appraisal approach for indirect material purchasing personnel, unreasonable personnel placement for indirect material purchasing, fossilized purchasing approval procedure, planning issue and suppliers management problem.In view of the problems lying with the indirect material purchasing department of A company and their ill effects on the indirect material purchasing performance, by applying the learnt MBA knowledge & theory, and grasping the indirect materials purchasing characteristic, the author proposes her ideas for improvement and trouble-shooting as below:Regarding purchasing management, performance comes first. Currently, the simple and one-sided performance index for indirect materials purchasing appraisal has been a serious obstacle for purchasing performance improvement, it is not only the reason for purchasing personnel to lose their way for further improvement, but also the reason for them not being able to act proactively in their job. Therefore, establishing a set of comprehensive performance evaluation index suitable for indirect materials purchasing is an urgent affair, which will be used an orientation for purchasing performance improvement. Then, the author seeks the corresponding three major solutions for the other four remaining major problems with deep analyzing so as to achieve overall indirect materials purchasing improvement, they are: making better use of current indirect materials purchasing human resource, supply optimization and strengthening important indirect materials supplier management.It is hoped that the ideas and views proposed in the thesis regarding indirect materials purchasing management improvement can be valuable for indirect materials purchasing management of A company, and can also be a reference for the indirect materials purchasing of the other companies.