Study On Purchasing Management Process Optimization Of DW Company

With the requirement of business globalization development and lean manufacturing requirement of China auto industry,it becomes common that automotive components suppliers set branches around auto-makers.At the same time,customer requirements become much higher in an increasingly competitive market.It becomes a fact that all components suppliers have to face that they should learn international advance management concept to be more competitive.DW Company is a foreign invested auto components supplier with the research center in Europe.Parts are totally designed by Europe team.When DW Company gets project,Europe team cannot completely understand China customer requirement due to variances from raw material between China and abroad,from supplier and distance.As a result,even the parts designed out are in good quality,the price is still too high compared with its competitors.Sometimes,the parts are over-designed.Sometimes,raw material difference leads to repeated tests which have bad influence in project schedule.With more and more projects from customers whose requirements are also increasing accordingly,the operation of DW Company need to be optimized to optimize cost of existing projects,to win new projects with competitive cost,to build good supplier base and to control material purchase lead time.All of above have significate influence in project success and performance to customer,and then they will decide company future business development.A suitable purchasing management process will ensure project flawless launch with good cost,quality and delivery.It will also provide parts with right time,right quality and quantity,at right time without any waste.The biggest customer of DW Company used to ask for better customer service by improving process.The management team of DW realized the importance of a good purchasing process and the necessity to optimize the purchasing management process.Then they set up project team,trained all departments and held regular process optimize meetings,and provided support to company whole process optimize.The article analysis the Purchasing management process optimization of DW Companyand the existing problems in process,as well as the improvement actions.First of all,the article state the study significant and theory base with research on the worldwide theory for purchasing management.Next,it analysis the current status of purchasing management process optimization of DW Company,from quotation phase of project,purchasing management during project phase,and cost reduction,reduce waste of existing project.Further,it delivers improvement actions with theory and data analysis to optimizing process.Finally,follow up actions are stated for continuous improvement and optimization to reach expectation.Purchasing management process optimization of DW Company has active influence in optimizing cost and supplier base,as well as material control.In the end,it will play a big role in improving customer satisfaction and win more projects to support company development.