Research Of Optimizing Purchase Management For ELT Company

Modern enterprise competition is not just among the single company, has been turned into the competition between enterprises formed by the upstream and downstream of the supply chain. The procurement is the essential activity took place between the upstream and downstream enterprises, strengthening the purchasing management is extremely important to reduce the total cost of the entire supply chain. Therefore, no matter what kind of enterprise, optimize procurement management on raw material and services will bring economic benefits for enterprises. We need to constantly optimize purchasing management, to achieve the value of the enterprise, create the value of supply chain system.ELT company is as a global leader in power and energy converters, which provide the energy conversion products for the telecommunications, rail transportation and other industries.As an industry benchmark. ELT company always do customers customized products to occupy the market, in order to service Asia Pacific markets more flexible. As it open branch in China, many processes created, but for purchasing management, needs to be improved in many ways.For ELT company purchasing management, having the problem like high purchasing cost; the conflict on material management for several buyers purchase 1 item; there are too much inventory and dull material, and no buyer is in charge of this; the delay on material delivery leads production waste and the delay for customer; high defective ratio on material and the longer solving schedule; the level of buyer and supplier keeping and no improvement accompany with the improvement of ELT company. The above problem leads to the complaint from customer and affects the occupy of order and lose the market share.Based on the problem above,analyze the cause. we found the main cause is like this: No price calculation system like process costing; The current inventory management can’t match division of labor that based on project purchasing;No completed purchase and sample confirmation process and so on;No standard supplier evaluation system; No training on internal purchasing and supplier. After analyze the procurement management system, we found the above aspects to be improved, and execute the solution base on these causes.Base on the cause on purchase management, this essay refer to the theory of modern purchasing management, with the company’s actual situation, issue the optimization on purchasing management: 1. Based on the process costing method, Build the cost calculation and checking system. Improve the power during the negotiation, reducing the purchasing cost.2. Optimize the inventory management base on the project management, analyze the inventory report monthly and dispose the dull material in time. 3. Setup the purchasing and related process. Improve the performance on delivery and quality, achieve the high customer’s satisfaction.4. Set up the supplier rating system. Set up the strategy cooperation with excellent supplier,and weed out the poor supplier.5. Perfect the purchasing and supplier training system, improve the purchasing management continuously.According to the optimization on purchase, the conflict between purchasing and other department is decreased, the cooperation is more comfortable, the satisfaction from customer become higher and higher. The supplier’s level is developed,not only the quality also the cost, so keep the ELT company keep the long term developing.