Procurement And Supplier Management, IBM China Procurement Company

Based on the successful case study of IBM China Procurement, this paper discusses how enterprise innovates Procurement and Supplier Management model strategically, with the development of global business environment.Beginning with the study of how IBM transfers its business model from Manufacture Company to Service Company while environment changed, the paper analyzes how IBM launched the transformation and innovation on management structure, program and informationization with Business Process Reengineering. And then, the paper analyzes Procurement contribution during Supply Chain progress, IBM China Procurement's competition superior inferiority, resources, ability and core competence. According to the analysis, it is clear about how IBM found solution to solve the procurement problem during globalization.Different from traditional procurement program, CPC imported strategic management into procurement program includes client requirement, technology roadmap and market analysis. Based on reasonable source selection value, CPC begins the work on supplier assessment, application, audit, etc. In order to improve the communication between CPC and Suppliers, CPC also utilize information technology, such as Internet, Electronic Data Interchange to implement Electronic Procurement. Meanwhile, CPC makes strategic partners relationship with Suppliers, via Statement of Work, Products Procurement Contract, Purchase Order Management, Supplier Performance Evaluating, Cost Management, JIT and Vendor Hub management. Such partner relationship not only helps IBM purchase aggressive products, but also protect Suppliers' profile, ensure the cooperation could be long term and unremitting.To study the new management model of CPC Procurement Process and Supplier Relationship Management, it can help company introduce and develop such management system to improve business competitive ability.