Improvement Study Of Procurement Management Of USI Electronics Shenzhen Company

Supply chain management as the unification of logistics,information stream,value flow,plays an extremely vital role to improve company’s development,emphasize cost minimization,optimize resource information match,and realize profit and benefit of enterprise maximization.Procurement management,is the most important segment of supply chain management,which has enormous influence to supply chain management and enterprise operation;It is not only the important shortcut to reduce company’s cost and increase profits,but also have great role whether have a foothold and keep competitiveness in the market competition.USI Electronics Shenzhen Co.Ltd.(hereinafter referred as “USI Shenzhen Company”)is a company of design and manufacturing services.According to the deep analysis of current situation of procurement management through different angels of company,procurement strategy and process,it is dug out there are some existing problems as below.The procurement strategy is too simple.The purchasing planning order management is not so accuracy and efficient.Material cost management is not so good.Supplier election and management are not reasonable.Next,through company’s internal and external environment we point out the root causes of the problems as follows: The important factors of purchasing planning order are not so accuracy and process arrangement is not so reasonable;Engineering change notice and end of life materials management are not so good;No establishment mechanism of prediction extra demand and VMI management;Ineffective order management.Lack management of early supplier choice and product cost analysis;insufficient management of price negotiation regularly and order allocation;Lack system of the vendor management and performance appraisal;Lack management of new vendor investigation and outstanding supplier election.Then,we design an improved solution on procurement management according to supply chain management and procurement management theory: Matching procurement management with the enterprise strategic target,it is analyzed procurement management key factors including procurement planning order management,materials cost management and supplier management;Improvement on procurement planning order management by combining the important elements of purchasing planning order and process arrangement,engineering change notice and end of life materials management,mechanism of prediction extra demand and VMI management,effective order management;Enhancement of material cost management by management of early supplier choice and product cost analysis,management of price negotiation regularly and reasonable order allocation;Enhancement of supplier election and management through new vendor investigation and outstanding supplier election.Finally,we summarize the effect evaluation,expectation and conclusion to the improved solution.Right now,most of the companies are still remaining at the past traditional procurement management stage,they are lack of brand new procurement management philosophy of contemporary enterprise.Therefore,the new proposal of procurement management research for USI Shenzhen Company which is based on the theory of supply chain management and procurement management,plays a positive role not only in increasing company’s profit,enhancing procurement management ability and competitiveness,but also provides a valuable attempt to long term development and global market exploit for Chinese manufacturing enterprises.