| dc.description.abstract | Recently, the competing environment for EMS (electronic manufacturing services) in Taiwan has been deteriorating for many reasons, including: global recession, cost competition due to economy of scale, shortening product life cycles, the rise of Chinese manufacturing capabilityies and so on. The EMS companies has consistenly taken the “cost down” strategy to face the situation. The first move tend to be squeezeing the direct material costs. In most of the cases, procurement costs for indirect materials have been overlooked, resulting in higher costs, offsetting the benefits brought by lowering direct material cost. The final result is an impact on company profit.
This study focuses on the IT product procurement department of Company A, carrying out a Business Process Reengineering analysis, attempting to propose an improved procurement process for its indirect materials. At the seme time, a set of indicators to evaluate its performance is also proposed. This study looks at three major issues in procurement, namely, procurement of indirect materials, procurement organizations and e-Procurement. The existing IT and networking infrastructure is used as a basis for the proposed process. The objectives are to increase the internal efficiency, in order to lower logistics costs, in turn contributes to the profit of Company A. In addition, we hope it will provide an example for other companies in purchasing indirect materials.
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