Research On Business Process Reengineering Of M Company Purchasing

Nowadays, the quality of the products being needed is higher and higher, the technical standards and requirements of the industry are higher and higher and the competition is more and more fierce. The companies need to change themselves. It’s all right to require companies to face their own, weaknesses, advancing with the times. In terms of cost, cost management requires scientific method, meticulous production, and the implementation of higher standards. It requires companies to undertake more corporate social responsibility. These changes in technology have changed the business of the original competition, and the companies had to pursue their own internal strengths instead of external advantages. Procurement chain is a weak link in the company, and it’s an important condition for the success of a business. Procurement Process Reengineering become necessary homework, and it’s necessary thing that company must do about how to use scientific management theory and the classical theory of management, combined with the company’s own individual circumstances, to create their own value in the new era.In this paper, take Company M for example, we have analysis of the full introduction of relevant theories. We give out the procurement business case of company M in the terms of the supplier selection situation and the company’s inventory management and so on. After diagnosis of the procurement process of Company M and found out several problems: procurement costs are too high, no order tracking, insufficient attention on procurement unscientific, and unwilling timely delivery because of financial payment is not timely and other issues. So the main purpose of the procurement process reengineering is to reduce procurement costs and improve the timeliness of delivery rate, we reengineered the procurement process, including supplier development processes and assessment processes and order approval process, etc., and we evaluated the effects of company’s procurement process, then the company M decreased procurement costs, improved inventory turns, improved the efficiency of communication between departments, and ultimately improved the efficiency of the entire procurement business goals.