Company L's Joint Procurement Innovation Process And Performance Evaluation For Packing Materials

The study object of this thesis is company L.It's a foreign invested company.It's headquarter is located in Korea.It product global No.1 LCD.Company L setup a General 8.5 LCD panel factory in China.Mainly productions of company L are large size LCD panel in China.There are some preferential policies carried out by China.Local display companies setup factories and increase capability rapidly.At the end of 2018,there were 32 display companies in China.And it will add 3 more in 2019.In this situation,display companies will be face with many challenges.It may issue over-capacity problem and price competition.Company L urgently needs to strengthen its core competitiveness,reduce procurement costs,improve procurement efficiency,and improve procurement effectiveness.Firstly,analysis procurement status of company L,including the relationship between production process and materials,the organizational structure of the procurement department,the annual purchase amount and the procurement processes.Secondly,analysis company L raw materials by ABC method and Kraljic Model.There were seven kinds of raw materials in company L.And then company L made a decision of joint procurement strategy for packing materials.Then select the purchasing agent,and assign the mission and role to purchasing agent.Finally,carry out performance evaluation for packing materials of company L.The performance evaluation is divided into two parts,one is the quantitative evaluation on the data,and the other is based on the Likert scale.Likert scale data were from procurement department and suppliers.As a result,suggestions for improvement after joint procurement strategy for company L packaging materials were proposed.This thesis is about company L's joint procurement strategy and performance evaluation for packing materials.As a result,company L's joint procurement strategy is good for reduce procurement costs,improve procurement efficiency,and improve procurement effectiveness.And there were many electronic companies were similar to company L.So the contribution and innovation of this thesis is that joint procurement strategy for packing materials is good for reduce procurement costs,improve procurement efficiency,and improve procurement effectiveness in electronic companies.This thesis demonstrates the relevant experience of joint procurement strategy through the combination of theory and practice.The same industry and academic research can be used as a reference.