Study On VMI Evaluation And Business Process Reengineering Based On Electronic Producer

The past30years could be marked as “the golden period” for Chinese economic development.The electronic industry is the fast developed industry in national economy. The product price hasbecome one of the most important factors for business competition. In recent years, several price fightshas been put on stage in electronic market due to several un-favourable factors, which means theelectronic industry in China has already entered into a period of tiny interests. Those un-favourablefactors including the national economy inflation, higher cost of labor, higher price of raw material,appreciation of RMB and slowly recovery of world economy etc.Company A is a Well-known international enterprise which with several years developments.However, company A still facing the same serious pressure on cost and tiny profit. A company shouldfirstly dig into study, Then A company could meticulously carry out reformation projects on full-scale,finally optimize the whole management mode. For the past decades, many issues related to procurementmanagement were found in company A, so this study will also focus on optimizing procurementstrategy.Firstly, there is a rough introduction on company products, meanwhile analyze the company’sopportunities and challenges which are getting through currently. Especially hackle procurementstrategy, procurement process and procurement responsibility. Depend on this analysis, the paper createa model of evaluation on VMI suppliers. By fully understanding the method of analytic hierarchyprocess, a model of hierarchical structure and comparison matrix is established accordingly. Bycollecting the data from questionnaire, monolayer ordering, consistency test and overall consistencychecking could be done. Meanwhile, the case analysis on company A could be started. Secondly, studyon the procurement process optimization by analysing the process of purchasing ratio setting, theprocess of inventory management, and the process of supplier relationship management. Based on theanalysis, the weakness on the business process could be pointed out. After wards, the study on how toimprove all those business process could be done, and proposal on the solution of all those issues couldbe studied. Finally, business process reengineering was found as the solution. Meanwhile, it can help toimprove the efficiency of work and the satisfaction of customer. Also hope that the thesis could provideguidance and reference for the same industry to implement VMI.