Research On The Risk Management Of International Procurement In Supply Chain

During the process of the world economic integration, the pattern of global procurement, global manufacturing and global sales has been formed gradually which is mainly operated by multinational corporations. For multinational companies and the domestic enterprises which are going global, international procurement becomes an important strategy for enterprises to cut costs and enhance competitiveness in the international market. As the international business environment is complex and changeable, the international procurement risk management is a key to business success.The risk of international procurement has comprehensive, systematic and dynamic features, only if general and scientific management system has been set up, the risk may have reduced to the tolerance levels. But the current theory and business practice have not formed a practical pattern for the risk management. This paper is using the international procurement operation of one enterprise and researching to develop a both strict and effective risk management system.This paper analyzes the globalization of multinational production patterns and purchasing patterns of transnational retail enterprises during the process of the world economic integration, and then propose a conceptual model of international procurement management as the basis of analyzing the risk management theory. And it divided the risk into systems risk, management risk and logistics risks.This paper established a comprehensive and multi-level control model for risk management by using WS's case, it conducted a deep analysis of the key issues of risk management, and analyzed the risk factors and develop risk evaluation methods; and it propose a risk evadable method for critical price risk management.The proposed theoretical model and the point of view in this paper can provide international procurement support and experience of relevant theoretical guidance for multinational corporations and the enterprises which are going to internationalization in our country...