A Study Of Procurement Management Improvement About Medium And Small Enterprises In Lighting Industry

Thomas Alva Edison invented electric light100years ago, however, even now, there arestill lots of challenges and opportunities in this traditional industry. Fulham has grown upover40years in lighting industry, now, Fulham is aim to become a world class company,the most effective way to achieve this aim is to enhance Fulham’s competitive advantage.This thesis discusses and analyzes from the angle of procurement management andimplementation.Firstly, this thesis introduces lighting industry and develop situation about medium andsmall enterprise, then, this thesis introduces Fulham’s product and history. In chapter3,this thesis starts to analyze the corporate environment of Fulham, corporate environmentcan divided into external and internal environment. External environment also can dividedinto macro and micro environment. This thesis uses PEST model to analyze macroenvironment and uses Michael Porter’s five forces model to analyze micro environment.This thesis analyzes internal environment from the angel of resource, value chain,capability. Through this kind of analyze can help manager to find the original reason ofweakness, find the risk of enterprise, improve the development of enterprise.In chapter4, this thesis introduces procurement situation from the angel oforganization chart, supplier management, flow chart, cost, and performance evaluation.After theory analyze in chapter3and practice analyze in chapter4, we can see clearlyabout Fulham and how to improve. So, in chapter5, this thesis states the improvement ofprocurement management including organization chart, supplier management, flow chart,cost, and performance evaluation.Through2years study in SISU MBA. I submit my analyze about Fulham to mysuperior. We reached a consensus in many aspect. I was authorized to draft the new flowchart of many Fulham’s management regulations. Organizational change, the evaluationsystem of the supply chain has undergone a change, so that the relevant departments of thesupply chain with the common goal; through organizational change, the status of the procurement management department to enhance the concept of the supply chain to bestrengthened in full. Procurement management issues, the use of futures to buycommodities to avoid the impact of the volatility of commodity procurement cost. And usethe monthly savings and annual savings in the cost of performance appraisal methods youcan visually see the trend of the material procurement costs by this trend for the purchasingdepartment in a timely manner to adjust the overall pricing of the procurement strategy andthe company’s products to provide a basis for decision making. Set up supplier content tofacilitate R&D staff to select the appropriate suppliers, and also to avoid the excessiveintroduction of new suppliers. Actively coordinate the cooperation of suppliers and R&Dpersonnel in the design, to accelerate the progress of the research and development of newproducts by new drawing templates and electronic materials library. Supplier managementthrough monthly rated to allocate orders to make sense of competition between suppliers toenhance the enthusiasm of suppliers. Finally, by way of consignment stock in the inventorymanagement problem, not only for the company increased cash flow, while supplier’sflexibility to arrange their own production.Above improvements to solve the problems of the existing procurement operation, alsodeepened the understanding of the staff for the procurement management advantages forthe company to further reduce costs, also enhancing the competitiveness of our products.