Study On The Improvement Of Purchasing Process At FEV

In recent years,the competition of automobile manufacturers has become more and more perfervid.Not only customers come up with much higher request,but also the technology update interruptedly.This intense competition affected the engine development and testing companies consequentially.In order to meet the requirement of customers and become their long-term supplier,the enterprise have to improve its overall competitiveness.At this moment,the price,quality and even delivery time of the service become a substantial whether the enterprise have competitive advantage or not.With the integrated demands for services increased,purchasing plays an important role in organizational performance.According to statistics,the material cost account for about 70% in the manufacturing enterprises generally,including automobile service enterprise.Thus,procurement is increasingly attracting the attention in the automobile service enterprises.Besides the direct materials purchasing,indirect materials are also gradually receiving attention.That requires purchasers not only focus on direct materials,but also apply cost control to all operations of the company.In the process of optimal value,cost reducing,it pays equal attention to both direct materials and indirect materials.Based on the procurement business process of FEV as the research object,it analyzes the existing process and finds some problems,such as the lack of difference in the approval quota and approval authority of the current procurement business process of the company;unseparated responsibilities of each position;no complete supply chain system;suppliers cannot manage centrally;low procurement efficiency;lack of process and process chaos etc..The causes of the above problems are the imperfect procurement process of the company;unclear division of responsibility;no clear annual plan etc..Therefore,the procurement process should improve accordingly.Such as purchase process reengineering;redefining purchasing approval authority;separate responsibilities independently;signing frame contracts;Outsourcing of non-core procurement.Finally,this paper proposes theimplementation plan of the reengineering scheme and establishes the suitable procurement process which meet the requirement of FEV's current situation and future development.Through the procurement process reengineering of FEV,reduce the fussy even useless processes,set up efficient purchasing process,unified strategic target of the purchasing department and improve the purchasing management efficiency.