Research On Procurement Logistics Of Mechanical And Electrical Enterprises

Traditional electromechanical industry is encountering great marketing challenges during the economic restructure and downturn of China.How to develop the operation performance and maintain the profits at a stable level is one of the urgent problems that needs to be solved by traditional mechanical industry.The actual supply-chain cost is becoming the major part of the whole enterprises' operation costs according to statistics.Besides cost reduction from each function,process improvement under the guidance of lean management with principle of 'efficiency improvement and waste elimination' should be the effective development orientation to achieve high performance.This thesis takes procurement logistic process of electromechanical industrial leading enterprise-S company as the study sample.Starting from mapping value stream to identify core activities of the operation and to analyze problems through the whole process from raw material procurement,warehouse management to internal material milk-run distribution by using lean philosophy.Sorting out all series of non-value added activities from process quality perspective eg:repeated waste,low efficiency of manual operation,delay of information flow etc.On the basis of the problem identification,root causes are outlined and proper solution plans are made accordingly including new localized PES system,factory material milk-run logistic etc.The improvement plan covers processes like procurement,inspection,ware house and factory material distribution;in addition,whole employee training included with a view to encourage employees' active roles in process improvement with their professional skills.IT information and data exchange system also contribute greatly to the standardization of process.The improvement plan is verified by relative KPI statistics and performance achievements via data collection,calculation and performance comparison etc.This thesis demonstrates with great facts that the operational excellence of the company essentially should turn to the direction of improving efficiency,decreasing waste to achieve profits maximization which testifies the effectiveness,practicability and sustainability of lean management to improve procurement logistic process in S company.The strategic procurement logistic process on the basis of efficiency and quality results in waste reduction of procurement logistic,the improvement of inventory turnover rate and internal shipping rate of S company,meanwhile speeds the cash flow of company operation,as well as decrease of the holding capital and liquidity investment in the procurement logistic which finally leads to the decrease of total operation cost and achieve the maximization of both efficiency and profits of S company.