AB Corporation Procurement Management Research

Since 1980's the theory of the supply chain management (SCM) begin to be popular in the world .The core of the SCM is evaluating the operation of the enterprise with the total system cost, not optimizing the purchasing, manufacture and distribution respectively .The aim of the SCM is through coordinating the different part of the SCM to achieve the best performance. High efficiency of the SCM structure design ,the transparent information of the SCM partner ,the visible inventory management and excellent coordination of the production will low down the inventory ,improve the efficiency of the transportation , order performance and other key functions of the SCM. The function of the procurement: Any manufacturing enterprise will source the raw material from the outside to meet the production demand .In the aspect of the whole enterprise, the procurement is the start of the product increment and the beginning of the core business procedure. To make a deeper sense, procurement is not simply to purchase the raw material from the market, but to extend the manufacture ability to the outer resource –the suppliers. So we can consider the procurement as the "outside manufacture management. In the aspect of the SCM: Procurement is the junction of the enterprise and the suppliers. In the supply chain network, procurement links the raw material, semi product and the finished product and establishing a bridge between the production demand and the material supply . Procurement is the critical step to achieve the seamless supply chain system and synchronization. This is character of the procurement in the supply chain. The soul of AB company's SCM is coordination, integration, synchronization to improve the flexibility of the procurement and QR of the market, improve the information transparency and cooperation of the suppliers. The emphasis of the procurement is to effectively manage the outer side resource. This includes establishing stable, multilevel the suppliers network, the suppliers database, proving the training support to the suppliers, participating in the product design and quality control of the suppliers, designing the evaluation and inspirit speculation of the supply system. In this thesis, the author give detail introduction of the world leading beer company -AB company's procurement performances and method. In the end, due to the limitation of my time and knowledge, there must be a lot of mistake in the thesis .So thanks for the correction and criticism.