Research and application of procurement management

  • Detail

Research and application of procurement management under global supply chain

mainly studies the operation principle and technology of procurement management under global supply chain, puts forward the management mode of enterprise procurement under global supply chain management, and analyzes a specific example

1. Overview

with the global economic integration, especially after China's entry into WTO, enterprises are facing the severe situation of international and domestic market competition. Fierce market competition requires enterprises to comprehensively improve their T, Q, C and S levels. That is to say, only by continuously shortening product development time, improving product quality, reducing cost and improving service can we remain invincible in the fierce market competition

the B2B and B2C e-commerce applications of enterprises on the Internet are changing from a single sales and procurement behavior to the whole process of Collaborative Commerce (c-commerce) from consumers to producers, and from suppliers to producers. In the collaborative world of collaborative commerce, the competition among enterprises not only depends on their own management level and competitiveness, but also puts forward high requirements for information cooperation between enterprises and collaborative partners. Enterprise management has changed from internal resource management to supply chain management

procurement is a very important link in supply chain management. How to successfully conduct global procurement to reduce costs and improve the competitiveness of enterprises has been paid more and more attention by enterprises

2. Supply chain management idea

as an advanced management idea, the completion of its methods and tools can be applied to the whole social life. Supply chain management emphasizes collaboration, system function and overall effect. As a country with scarce resources, China has a strong ability of single management of resources, but it wastes a lot on the integration of overall resources, resulting in the ineffective allocation of resources. From the perspective of economics, supply chain management is a very important resource allocation idea and strategic method. It emphasizes the integration of related businesses into a chain, common operation and sharing of resources, so as to achieve the effect of 1 + 1>2

2.1 the development process of supply chain management ideas

supply chain is an objective thing. Since ancient times, as long as there are farmers or herdsmen, land cattle and sheep, producing agricultural, animal husbandry and mineral raw materials, craftsmen and workshops for processing, putting them in stores for sale, and buyers for consumption, these monomers are connected together, which is an original supply chain. In other words, as long as there is commodity exchange, the supply chain has already existed invisibly and objectively. It has been the companion of commodity circulation for thousands of years

although the supply chain has existed for a long time, the concept of supply chain was put forward in the 1980s. It is not a simple mechanical structure, but a complex, huge and complex network system. It is the visual expression of the system engineering of the supply-demand relationship of commodity production. The supplier of one enterprise may also be the supplier of another enterprise, and the customer of one enterprise may also be the customer of another enterprise. The whole social production is a long chain of supply and demand which is connected end to end and intersected

under the situation of economic globalization, both the demander and the supplier have expanded to the global scope, and the supply chain has new content and significance, so the ideological theory of "supply chain management" has been formed. Supply chain management is a management idea developed on the basis of logistics, but its connotation has greatly exceeded the scope of logistics. In the 1990s, with the rapid development of network communication technology, supply chain management theory has the possibility of practice and application with the support of Internet

2.2 definition and essence of supply chain management

supply chain refers to all activities, including information flow, from raw material stage to commodity circulation and delivery to end users. Materials and information run through the supply chain. Supply chain includes management system, operation and assembly, procurement, production planning, order processing, inventory management, transportation, warehousing and customer service. Supply chain is the basis for connecting suppliers and customers. Each customer is the supplier of its downstream enterprise in turn until the final product reaches the end user

supply chain management refers to the process of integrating all activities through improving the supply chain links, so as to obtain a stable competitive advantage

the essence of supply chain management is to give consideration to both demand and supply. Each link in the chain contains the meaning of "supply" and "demand". For example, the retailer is the supplier of customers and the demander of wholesalers; Wholesalers are the suppliers of retailers, but also the demanders of manufacturers; The Sales Department of the manufacturer is the supplier of the market and the demander of the purchasing department; The purchasing department is the supplier of the production department and the demander of the supplier

2.3 purpose of studying supply chain management

there are five basic "flows" in the supply chain. This is information flow, logistics, capital flow, value flow and workflow. The main purpose of studying supply chain management can be described from four aspects:

① grasp the real demand

grasp the exact demand through marketing strategy and information technology in the rapidly changing dynamic environment, so that the supply activities in the enterprise supply chain can be established on a reliable basis and maintain the balance between demand and supply. Grasping demand is always the first, which is why more than 90% of foreign entrepreneurs regard customer relationship management (CRM) as the most competitive archive element of enterprises, such as chemical plants and ferrous and non-ferrous metal smelting equipment. To find and retain customers, establish a good relationship with customers, listen to customers' suggestions and complaints to continuously improve the products and services of the enterprise, grasp the real needs, open up new markets and discover potential markets

② fast organization of supply

it is necessary to make the various flows of the enterprise supply chain faster, more and more economical than those of competitors, seize the market while improving labor productivity, and strive for the maximum benefits

③ optimization

the current market competition is no longer the competition between a single enterprise and a single enterprise. In a sense, there are only supply chains but no enterprises in the market. The competition in the 21st century is not between enterprises, but between supply chains. The enterprise should not only strengthen the internal resource management of a single enterprise, but also dig deeply through the ERP (Enterprise Resource Planning) system, but also establish the strategic concept of "supply chain competition", cooperate with upstream and downstream partners to "play together", form a symbiotic environment completely based on the interconnected SCM (Supply Chain Management) system, and establish a virtual enterprise with large manufacturing enterprises as the core and integrating upstream and downstream transaction processes, The pragmatic strategy of "becoming bigger and stronger" for enterprises in the 21st century is to increase efficiency and tap potential in the whole supply chain, maximize the interests of core enterprises and their partners, and minimize the total cost

④ reforming the cultural concept that does not adapt to the competition in the supply chain

enterprise informatization inevitably involves "concept renewal" and "management reform", while automobile and aviation enterprises are always looking for more durable or more stress-resistant materials. Cultural concept is an important content of "concept renewal"

it should be understood that in the global market competition, only by cooperating can we create a value far greater than the total value created by each individual, that is, the so-called 1+1>2 effect

3. Global procurement process

with the faster and faster updating of products, the product life cycle is continuously shortening, which brings trouble to production forecasting. The optimization of the supply chain from the procurement phase can just alleviate this contradiction

3.1 obstacles to global procurement

companies lacking international trade experience will encounter certain obstacles when conducting global procurement. The main obstacle is the lack of understanding of global procurement procedures. This includes not knowing potential global suppliers and not being familiar with the additional documents required in global procurement. International documents include: letter of credit, multimodal transport document, shipping receipt, import license, certificate of origin, commodity inspection certificate, insurance certificate, packing list and commercial invoice

refusal to change established routine procedures or to replace suppliers that have formed a long-term supply relationship is a major obstacle to global procurement. It is natural to reject this change, because it is a radical departure from the existing trading methods. Local market protectionism can sometimes become an obstacle. Sometimes, buyers are reluctant to give up local procurement and purchase from foreign suppliers they do not know. Although local conservation attention is not as popular as it was 15 or 20 years ago, it is still a problem. The protests and riots that took place during the annual meeting of the World Trade Organization in Seattle, the United States, in december1999 also reflected the resentment of some organizations against free trade and global procurement. When making procurement decisions about global procurement or local procurement, we should not be emotional, but should make decisions by weighing the advantages and disadvantages of the two types of procurement

3.2 global procurement mode

companies usually follow certain steps when conducting international procurement. Although there may be differences in the process sequence when companies conduct global procurement, these steps must be completed in order to successfully conduct global procurement

3.2.1 select the items to be purchased globally first

for those enterprises that are not familiar with global procurement, the first global procurement is a learning process. The initial goal of foreign purchases can affect the success of the entire global procurement process. Almost all products that can be purchased locally are obtained through global procurement, especially basic daily necessities. The company shall select goods with good quality, low cost, easy shipment and no risk for overseas procurement. First, select one or more commodities for evaluation. Here are some suggestions that should be used to search and refuel these products, for the reference of managers who conduct global procurement for the first time:

select products that are not important to existing operations. Such as daily necessities or products with multiple procurement sources. Once enough experience has been accumulated in purchasing these products, global procurement of other types of products can be carried out

select standardized products or products with easy to understand instructions

select products with large purchase volume to test the effect of global procurement

select products that enable the company to benefit from long-term procurement

select products that require more standardized equipment

identify products that are not competitive in terms of key performance criteria such as cost or quality

these criteria are important because if global procurement cannot meet the buyer's expectations, it must be purchased domestically. Another factor affecting the initial success of global procurement is to make other departments know what products are purchased globally. At the same time, potential suppliers should receive the expansion plan of quantity and delivery requirements in advance

3.2.2 obtain information about global procurement

after determining the items that need global procurement, the company will then collect and evaluate the information of potential suppliers or identify intermediaries who can undertake the task. If the company lacks experience in global procurement, has limited contact with the outside world or has limited information, it is necessary to obtain information about global procurement

Copyright © 2011 JIN SHI