A Study Of EMS Purchasing Management And Cost Improvement Strategy In VT Company

With the economic globalization,international trade is developing rapidly.In order to reduce cost,improve profit space,Enterprises is gradually regarding sourcing as an important part of supply chain management.For a large multinational company,they are facing with two major procurement management situations: global sourcing development and the deepening of the supply chain competition.For supply chain procurement department,in front of many upstream suppliers,how to carry on the information sharing within the procurement organization,and the exchange of information with suppliers,and promote efficiency is one of the effective purchasing premise.At the same time,make suppliers classification management and reduce purchasing costs,has become the bottleneck of enterprises which need to be improved.It ‘s also important research topics of the industryThis article mainly focus on improving purchasing efficiency and achieve purchasing cost savings goals with effect confirmation from VT company's Electronic Manufacturing Service Supplier.With in-depth research and discussion,the main contents include:1.Analyze VT company incumbent situation of EMS sourcing organization,process,supply base and the purchasing cost control in order to find potential problem and identify the root cause.2.With regards to VT company purchasing organization and process,we made systemic analysis and make horizontal integration optimization and vertical integration of suppliers,use supplier segmentation model for supplier selection and define short-term management strategy.Along with the suppliers' Key Performance Indicator,we select potential alliance suppliers in the global scope and invite them to participate in the test of electronic bidding in order to achieve the initial purchase cost saving target.3.Based on the previous analysis,we confirm the improvement effect after the whole process of change.First of all,based on the bidding data,set up supply chain network optimization model to confirm purchasing total cost improvement effect and achieve the goal of procurement cost minimization.Secondly,we confirm the effect on purchasing department efficiency and cost after horizontal consolidation of internal purchasing organization and purchasing process.The conclusion from this study will be:(1)With the purchasing process optimization and organization adjustment is helpful to improve purchasing efficiency of communication.(2)Based on supplier segmentation model and supplier performance for bidding is a good way to rapidly reduced number of suppliers.(3)On the basis of bidding data and use the supplier chain network optimization model of cost,we can achieve optimal purchasing cost savings and provide a best portfolio for biding award.The contribution of thesis and innovation is following:1.Based on the purchasing problem that VT company is facing,we use of internal purchasing process optimization including the organization structure adjustment to improve purchasing communication efficiency,provide related materials for the industry when using the theory of process improvement.2.The supplier integration and segmentation model is based on conceptual – Kajac.In view of strategic match/capability and growth/value driver,we put forward the improved supplier segmentation model,make the scoring with the actual specific issues and identify suppliers classification.The improved model is practical,can be used as the supplier segmentation template for other similar enterprises3.On the basis of supplier segmentation,supplier performance and reverse auction,on the one hand,it can be the strategy to reduce supplier base rapidly,in addition,with the reverse bidding results and combination of supply chain network optimization model,can reduce the purchasing cost and propose out best portfolio for bidding award.The study can also provide guidance to other multinational companies when improving purchasing cost.