Purchasing Management Optimization For KMC Company

At its Standing Committee meeting in 2020,the Political Bureau of the Central Committee of the Communist Party of China calls for accelerating the development of new infrastructure,including 5G network and data center.Diesel engine Genset is always the prior choice for emergency backup power at the data center due to easy for use and high reliability.KMC company is the domestic leading manufacturer of the diesel engine Genset for data center,procurement process optimize was implemented to improve enterprise competitiveness.Through the investigation of the KMC company current purchasing management status,identified that the company procurement process is too “rough” and lack of “process”management method,which led to the deficiencies in the parts procurement cost management,supplier quality management and process execution.As for the issues identified,team learn the knowledge of purchasing management and discuss within the company,serials of optimization actions were taken.By change the organization structure,improved the team’s professional ability.Introduced the TCO cost management method,components standardized design,decreased the component costs and improved the stability of supply chain,and reduced the component purchasing management cost.As for the supplier quality management,by development supplier early engagement process,introduce supplier risk identify theories and methods to reduce the supplier production quality risk and improve supplier quality performance.And through the fit-for-application development of APQP,develop SOR for key components and change organization structure,improve the SQI team professional capability and continue reduce supplier quality risks.And for the process implementation,by update the purchasing management IT system and supplier quality management IT system,manage the process implement by IT system automatically instead of labor management to ensure the process implementation and improved company purchasing management level.