LT Company Indirect Procurement Management Analysis

Nowadays, the international financial market is turbulent sharply. Many enterprises are keen to control on the spending and expand their revenues in order to maintain production management and obtain more profit. Raw material procurement is the most direct sector for cost control and has been gained broad attention. Whilst indirect material procurement has been neglected for a long time, and even many companies have not set up a specific department and personnel for indirect procurement. In fact, establishing and strengthening of indirect procurement management functions can not only make a significant contribution for the company's cost savings, but also can ensure the company's daily operations smoothly through the effective operation of indirect procurement management. So now more and more companies start to focus on the indirect procurement management. Indirect material procurement management is one of the most important way to improve efficiency and enhance market competitiveness. It will ensure the enterprises' long-term and stable development.This paper will study on the indirect procurement process, supplier management, cost control management process and performance appraisal system of LT company. By applying related theoretical on LT company's real situation and characteristic, this paper put forwards effective and practical improvement measures such as optimize indirect procurement process, improve supplier management, build up cost control management and perfect performance evaluation system etc.In this paper, the author hopes this article will help LT company to perfect the indirect procurement management, improve the efficiency of indirect procurement management and achieve the purpose of controlling purchasing cost. Hope this article will provide certain references in indirect procurement management for other enterprises.