Research On Indirect Material Purchasing Management Optimization Of BH Company

At present, the global economy comes into a deep adjustment period of restructuring, the international trade slows, commodity prices tumble and the international financial market turmoil intensifies. In this environment, domestic enterprises must pay more attention to open competition and cooperation, recognizing the strong driving forces from Lean management and keeping up with the pace of information and intelligence. Companies should not only pay attention to changes in the external environment, but also focus on internal operations. Procurement is a key module of enterprise management, and always been focused by enterprise managers. Indirect materials, as a non-direct production material, its procurement management has long been neglected by domestic and foreign enterprises, many larger enterprises have gradually realized the importance of indirect materials purchasing management to improve operational efficiency and save costs. However, how to optimize the management of indirect materials procurement in a scientific and effective way is a focus issue for many scholars and entrepreneurs.For the study of indirect materials procurement management, scholars mainly have made some theoretical research such as the purchasing organization, vendor management, cost management, quality management, contract management, performance management, global sourcing, eprocurement, government procurement, etc. However, the articles combined with the actual operating conditions is less. This article tries to analyze the problems that occurring in the indirect materials procurement management based on the background of BH company, then giving corresponding solutions. The main contents of this paper are as follows:Firstly, this paper analyzes the background that current corporations are facing in the procurement management, and reviews the related literature about procurement management of indirect materials, vendor management and e-procurement.Secondly, specifically analyze the current situation and problems of BH indirect material procurement management, including supplier management, e-procurement and procurement management. Hoping that this is a starting point for indirect materials purchasing management optimization of BH company.Finally, this paper presents a personalized optimization program for the issues raised above. This paper proposes an indirect material supplier management optimization by normalizing indirect materials, reducing the number of existing indirect material suppliers, reclassifying the existing suppliers. At the same time, use the hybrid sourcing model and optimize the function of indirect materials e-procurement system to improve management level of electronic procurement. Then, optimizing the company’s current procurement processes by the method of ESIA. Lastly, form an integrated optimization program.This paper analyzes the procurement management of indirect Materials, and uses the theory and methods of logistics engineering, management science and engineering, business management, etc. Presenting some optimization programs in close connection with the actual business, which gives strong references to enhance indirect material purchasing management level for corporate.