The Optimization And Study Of Procurement Models For Company S

Procurement management is an important part of product management for Company S, which has crucial influence for product. In traditional procurement process, purchase department usually focuses on the trade with supplier only. Both sides try to maximize their own profit, which causes the increase of stock cost and unnecessary trade cost, so does the waste of non-cooperation cost etc. The philosophy of Supply Chain Management provides one solution in systematic viewpoint for us. Therefore, procurement models which are based on supply chain management for company S have been raised in the following chapter.The application of the supply chain management theory in the procurement process for Company S is one major focus in this article. The research method is studying a mass of literature from the world in my first step, and then author made study for the relative procurement management models in the supply chain management from the analysis of concept to actually application.First on all, Company S has been settled as the core and one supply chain framework model has been raised after the analysis of the procurement management philosophy. And author analyzed the characters of procurement for Company S in the supply chain management.Secondly, author studied the components of supply chain cost and how does the procurement make influence to them. Such as the stock cost, production cost and trade cost should be included into the supply chain cost. And the general effect to supply chain cost was mentioned in the article.To build the partnership with suppliers is the precondition of supply chain management's execution. The main process should be like below: presents the benefit of partnership's building, defines the scope to make cooperation, issues the procedure of partnership's building with the AHP. At the same time, the information technology support is the precondition of the supply chain management for one enterprise. Here in this article, author would like to analyze the application of information technology in the daily procurement process, especially the information system which is based on the internet/intranet technology.Three types of procurement models were raised after above study, i.e. Pooled procurement, JIT procurement and Third Party Logistics service. By studying the application of each model, author got the effect to supply chain cost respectively. And the suggestion for operation also was raised by author. One detail procedure of procurement models in the supply chain management was done in the end.The actual application of procurement models in the supply chain management for Company S was described in the end of this chapter. Although it's really difficult for Company S to utilize fully the procurement models, it is possible to make one designed application for one special type of material firstly, and keep improving the information management degree continuously at same time, so that it can be achieved in the future to realize all the procurement application fully in Company S.It will be a big pride of this article if it can help Company S improve the procurement efficiency and the supply chain management performance.