Research Of Procurement BPR In Lanzhou Petrochemical Company

Starting in the 1990s, marketing competition is becoming increasingly fierce and the trend of economic globalization is significantly clear. With quick development of information technology and web technology, the traditional management pattern can not meet the requirements of changing market. Consequently, firms need a fundamental management revolution using new management theory. Business Process Reengineeing (BPR), as a new management changing idea, meets the situation demands and is regarded as an important strategic method to improve firms' competitive advantages. Initially, BPR attracts firms' focus by its fundamental rethinking and radical redesign. And many successful reengineering cases have appeared. But there still exist a lot of firms which fail in their reengineering. People come to realize that it is not realistic to abandon the traditional management theory and utilize a completely new management theory and practice system replacing the existing pattern. The proper business process reengineering should be carried out by a gradual way on the basis of actual situation of a firm with practicability and operability. The previous radical reengineering idea should be given up.Purchasing plays an important role in business management. The purchasing cost of various materials accounts for 70% of sales cost in Chinese industrial enterprises. Improving purchasing management and reducing purchasing cost is publicly looked on as the third profit source except reducing raw materials consumption and increasing sales profit margin. Hence, it is remarkably meaningful for firms to reduce purchasing cost and improve market competitive using BPR theory to optimize purchasing process. The paper begins with the background of BPR, development status at home and abroad and description of BPR theory in terms of the principles and procedure, type and method. Then the purchasing process of Lanzhou Petrochemical Company is clearly analyzed and the main existing problems are presented. The stragety and objective for purchasing process optimiztion are stated. Accordingly a new purchasing organization is designed and measures on purchasing plan management, order management and vendor management are provided. The procedure ensuring successful implementation of purchasing process optimization, the solutions to possible problems and appraisal of optimization are also presented. The final conclusion is drawn that the possible successful business process reengineering can not come from mechanically adopting the experiences of other firms but only from the proper stragety integrating the firm's actual situation which is applied gradually and from the easy to difficult.