The Centralized Procurement Study Of Flex

From the very beginning of the 21st century, features of the customers' demands have varied in many areas, accompanied with the further development of the economic globalization and the rapid progress made in the information technology, which lead to the demand for the diversity consuming and new products. On the other hand, these products are confronted with shorter and shorter lifecycles, more and more strict requirement on delivery date and higher and higher expectation on the quality and service from the party of the customers. Under these circumstances, the market competition is no more restricted within narrow limits of the individual corporations. It has been enlarged to the competition among the supply chains that are centralized on a core corporation. Based on the above, this thesis analyzes the procurement system of the Flex corporation, redesign the global procurement project, so that the Flex can optimize the supply chain management and dominate in the market competition.Firstly, this thesis summarizes the relative theories of the centralized procurement, the Bullwhip Effect's influence on the supply chain management and the solutions to it in theory. Secondly, through the analysis and investigation on the environment of the EMS industry and the current procurement system of Flex, it discovers the split existed between the global procurement system and the plants, then assesses the advantages of the centralized procurement. Thirdly, we choose the relevant materials according to the characters of the centralized procurement, redesign the process of the centralized procurement, establish a new information platform based on the current ERP system used in plants, frame a centralized procurement project on materials and put emphasis on the analysis and investigation on the redesigned centralized procurement project on materials and the inventory management. According to the theory of product lifecycle, we use the pertinence comparison and the Gathering Effect to direct the establishment of the main producing project and manage the inventory in ABC method。The suppliers are required to carry out the VMI and some warehouses are combined together in accordance with the actual logistic status of the corporation, so that the regional Hubs are established to lower the inventory. At the end of thesis, we put forward the requirements on the organization structure adjust and assesses on the procurement system in order to guarantee the procurement to put into practice. The execution strategy in centralized procurement is also given in the end.The investigation of this thesis will direct the developing way and improve the competence for the corporation. The investigation method used in this thesis is also believed to be referable on the establishment and execution of the centralized procurement project to the other EMS companies.