Study On The Procurement Process Optimization Of Donghua Stock Company

With the harsh competition, quick economic activities and higher needs todelivery, quality and service of customers, every enterprise doesn’t satisfy withstandard-made products only, but tailored ones. And it brings difficulties to itsprocurement suppliers. At present, most of the domestic large and mid-scalestate-owned enterprises still operate in the traditional purchasing mode, which is notcompatible to the changing. The purpose of this study is to optimize procurementprocesses, deepen the supplier management, increase the proportion of strategicprocurement, reduce total procurement costs, hope of achieving the same industryleading position.This paper begins by describing the theory and its basic mode of procurementmanagement, clarify the strategic procurement concepts, principles, methods, andmajor basic steps. Second, shares of the Donghua group of procurement are analyzed,organizational structure including procurement, supply management and procurementprocess means suppliers and so on. Summary the problems in procurementmanagement of Donghua, for example, many intermediate links, the response is poor,both supply and demand relationship is not solid, more traditional procurementmethods, lack of strategic procurement management, then according to the concept oftoday’s advanced procurement planning Donghua out the proposed procurementprocess improvement strategies. Finally, designed the strategic procurement processof Donghua by the theory of strategic procurement, and proposed procurementmanagement business process reengineering program of Donghua, establishedprocurement systems business model, KPI target, procurement process and so on,pointed out that only under the idea of strategic procurement management, withsuppliers to establish a win-win strategic partnership to achieve the lowest overallcosts of JIT purchasing.