Procurement Efficiency Research For Ulstein Marine Equipment (Ningbo) Co., Ltd

To all manufacturing enterprises, procurement of materials costs will undoubtedly occupy the largestproportion of the cost of products, normally the average level is60%or more, so controlling and reducingprocurement costs for each manufacturing enterprise has become one of the most important managementobjectives. Purchasing departments directly affect the implementation degree of this management goal: Do theprices that Purchasing negotiated with suppliers are competitive? Does the quality of the materials is appropriate?Does the arrival of the materials is appropriate enough so to able to maximize the use of capital? All of thesepurchases work can be fully carried out or not, or the extent of the carrying out and the results finally achievedreflects the level of the efficiency of an enterprise’s procurement, or another saying that the extent and result isaffected and decided by the efficiency of an enterprise’s procurement.Ulstein Ulstein Marine Equipment (Ningbo) Co., Ltd. is a wholly-owned subsidiary of Ulstein Group(Norway), who is one of the top3in the whole world in the development and construction of offshore vessels. Inthe period of economic prosperity, the cost of the ship designed and developed by Ulstein Group has never beenthe most important issues of concern by the ship-owner, but as the global economic downturn, when this harsheconomic environment begins from the end of2010, the market of offshore vessel’s construction is inevitablyaffected, the ship-owners concern about the cost more and more, so that Ulstein group has to pay more and moreattention to the cost of the ship accordingly.Through studying the work of the formers--procurement management literature, combining with the actualtheoretical knowledge of procurement, analyze the situation of the work in UME and its procurement efficiency,this dissertation describes the finding of the big space for UME to optimize its procurement efficiency not only tosave working time, but also to improve capital utilization and avoid dead materials’ stock. In this dissertation,there present2options to optimize the procurement efficiency. Option1: Centralize the projects established in aweek and then do procurement for all of them together; Option2: Centralized procurement in every weekaccording to the actual requirement of all materials (here the required date of the material is when the project starts.Then on the proposed program and its qualitative and quantitative risk analysis, the program one at a time withrespect to the efficiency of the existing program of work will be26.96percent increase, but at the cost of capitalefficiency and inventory costs relative to the current work program is mediocre; Option2relative to the timeefficiency of existing program of work will be5.96percent increase, and in the cost of capital efficiency andinventory costs relative to the current work program outstanding, it can not only avoid more than three months inadvance payment of moneys1500000to the supplier, but also avoid dead stock due to the cancellation of theproject. Considering the actual demands of UME at present, giving out the final solution the option2as the finalselected. Furthermore, this dissertation gives out the procedures of how to take option2into practice regarding thechances that exist and appeared in UME.