Research On The Application Of Project - Type Enterprise 's Procurement Scheme And Its Information System

With the rapid development of China’s economy, high-end customers often require the main automation supplier (MAV) to provide a package of turnkey services, supported by an automation control system project contracting business. This is especially applicable under the scenario of large petrochemical or chemical plant construction. The project should be responsible for automated "turnkey" project control professional. Consen DCS is a company founded in2009specializing in automated distributed control system (referred to as the DCS system) integrators. The Consen DCS focuses on high-end projects in the petrochemical, natural gas, coalchemical markets, providing customers with a total solution of factory automation systems based on DCS.This paper discusses about the major problem faced by Consen DCS as a project-oriented enterprise in the procurement process:poor transmission of information, high inventory and the lack of control in the potential risks. By studying procurement information management examples of Consen DCS applied8th Manger software system, this paper explores how project-oriented corporation mayemploy IT technology to solve the problems in the procurement process, to achieve the procurement’s strategic objectives of "security of supply and reduce costs," andto ensurea rational, balanced and efficient position of the project managers and purchasing managers.Firstly, when Consen DCS applied of new procurement information management system, adjustments in the original organizational structure and rebuilding in the corresponding business process are applied. In order to enhance the management capacity of the various operational departments, the barriers between sales, business contracts, engineering, finance and procurement departments are completely broken, resolving a long-standing retardation in terms of internal data transfer.Secondly, Consen DCS altered the originial single procurement performance evaluation method and paid more attention tothelateralperformance evaluationoftherelevant departments involved in theprocurement process. This fosters communal interests among procurementteams, and by suchresolvedthelong-standing problem of highinventory. In addition, through applying of8th Manger software system, the problem of lack balance between the supply cycle and procurement costs is resolved. This reduces the inventory levels and their costs of management, and hence improvesthe procurement efficiency and genuinely achieves the purchasing strategic objectives:"security of supply, reducing costs ".Finally, thanks to the close cooperation among the purchasing department, the project managers, warehouse managements, finance and other departments involved, the efficiency in procurement management, VMI (Vendor Managed Inventory) framework agreement, inventory management and risk assessment is improved, enabling the stock safety levels and procurement risk to be controlled within a reasonable and affordable range.In short, through the applications of the8th Manage procurement information management system, Consen DCSrevolutionized their managementefficiency, accelerated their procurement cycle, improved the inventory turns, significantly reduced the procurement costs, and hence attaining the objective of effective avoidance and procurement risk control. On the other hand, through organizational restructuring and business process reengineering, they managed to reshape their corporate culture of execution, and improved the overall capability of their staff and their management approaches. All these havepaved a solid foundation for the enterprise’ssustainable long-term development.Operation forms of the project-oriented enterprises are various. And hence the procurement information management system should always be tuned to adapt to the mode of operation, the competitive environment, corporate culture, and other related factors of different enterprises for further improvements.With the social progression and thepublic qualityimprovementin China, project-oriented enterprises must continuously improve their organizational structures and business processes in order to allow their procurement of information management systems toperfectly adapt to the local market and maximize economic benefits in such process.