Improving Purchasing Management to Reduce Costs in Supply Company Encoservice E.I.R.L.

Abstract

This research study was conducted in an engineering company, it had intended to propose a model of purchasing management to reduce the cost of provisioning in the company ENCOSERVICE EIRL. The tool used in this research is a computer tool (Excel). The problem is that the company does not have a management process of well structured and specified purchases, generating excessive costs of supply. An analysis of the current situation of the company was conducted, then an ABC classification of its suppliers was conducted after provisioning costs incurred march 2014 to march 2015 was calculated, and then propose a model for improved management and procurement Finally calculate the cost of supply after the proposed improvement. It was possible to improve the cost of procurement by 13% in addition to significant savings equivalent to S / 41,997.38 between the proposed model and the current.