Research On Procurement Management Of The R&D Center In Tianjin FAW

Enterprise are facing the global economization and more fierce market competition, so they have to improve their management mode, the potential enterprises don't fix their eyes on mere cost and benefits of enterprises any more, they pay much attention to the procurement, supply, manufacturing, logistics and sale, and they consider these factors as an integral value chain. Reducing procurement cost is a key link in the enterprise's value chain, and plays an important role in enhancing the core competition capability of enterprises. However the traditional procurement mode has been adopted for a long time in our country, procurement is still a weak link. How to learn and accept the procurement concept and experience of advanced countries, and how to improve procurement management is a key problem for many enterprises. Supply chain management-as a new management mode for the international enterprise's management, it is becoming one of the 21th century the most popularized management modes, it is also the trend of our enterprise's management development. Implementing supply chain management can fully play updated procurement potential, obtaining better products and service in quantity and quality with the lowest cost, it is benefit to make resource compensation with partners, realize strong-strong cooperation, therefore implementing supply chain management can make contributions to successfully production management and administration and promoting the enterprise's market competition.The traditional procurement has some shortcoming, such as low speed market information transformation, a large stock of goods, a large capital occupied, high risk goods stock etc, therefore supply and demand exists unbalance, directly affecting the enterprise's production; in additional a large stock of goods, high cost products, a lack of capital and poor quality all influence the enterprise benefits.The concept of supply chain management extend the scope of production activity forward and backward. The supplier activity is considered as one part of enterprise activities through extending forward and it is controlled and coordinated by the enterprise. At the same time the enterprise's activities is extended to connect with sale and service through extending backward. The basic mode of supply chain is to be"customer—supplier"from the view of procurement.The core of supply chain management concept features systematicness, integration, coordination and synchronization, dealing with the relative business operation between the internal of enterprise and each enterprise regarded as an integration, establishing the best strategic partner's cooperation between suppliers and distributors, instead of the old management mode from design and manufacture to marketing by themselves, establishing the best partner's cooperation between suppliers and distributors worldwide, building long term strategic alliance, forming benefit community. By controlling logistics, capital and information in the process, and optimizing each business link in the procurement process, optimization of total procurement cost and total efficiency can be both realized, in fact, it shows that supply chain management is a kind of process management. To promote agility of whole supply chain and capability of fast response for market demands, information transmitting should be enhanced between each link enterprise on a whole supply chain.This paper firstly introduce the contents of supplier management, it means management process in which the core enterprise focus on economic benefits to develop, choose, assess, accept, control and optimize the suppliers. Suppliers management is an important part of supply chain management. The aim of implementing supplier management is to form a long term and stable supplier team, set up better partner's cooperation with suppliers by implementing the effective measures, supply production resources on time, be sure to provide them in quantity and quality, cut down equipment and stock cost, get fast response market demands,, offer good quality, competitive products and service for the final customers, at last make customers satisfied.Supply chain management covers procurement, manufacturing, distribution, retail etc. from suppliers to final customers under the circumstances of supply chain management. Procurement management is an important link in supply chain management. Procurement management emphasizes coordination function in the internal enterprise, maintaining that procurement section and plan section should enhance to promote mutual understanding, in order to make suppliers obtain more correct and in-time demand message. Meanwhile procurement management stresses that the purpose of procurement is to buy for sale, to buy for satisfying the customers. It emphasizes that relation between the enterprise and supplier shows mutual beneficial, the traditional suppliers don't depend on the buyers any more. The aim of implementing procurement management is to ensure the commodities which the enterprise needs should be supplied on time and in good quality, establish a better long-term relationship with suppliers. Suppliers build a large stock of goods for buyers and administrate the stock together, ensure the commodities can be supplied on time and in good quality.The characteristics of supply chain management in modern procurement management are clearly illustrated by making comparison between supply chain management and traditional management mode. Combined with theory mentioned above, the current status of procurement management in R&D Center of Tianjin FAW is analyzed, we found that procurement management has some shortcoming, therefore we put forward improving measures by using the theory and method of supply chain management including procurement supplier management, promotion of procurement management efficiency and enhancement of stock management three aspects. The contents of three aspects cover establishment of supplier assessment and index selection, flow design; establishment of supplier selecting method; supplier performance assessment and countermeasures; suppliers relation management of R&D Center; procurement policy of goods and materials for R&D Center; procurement step flow of goods and materials and the key of procurement management; team training; and countermeasures for improving stock administration.We have already had a all-new understanding for procurement management concept based on analysis and design of procurement management, in order to seek a suitable mode for R&D Center, improve suppliers management, promote procurement efficiency. We make sure that goods and materials which is provide by the suppliers should be on time and in good quality. We also try to reduce cost of procurement and the whole supply chain, decrease the stock, improve research and development efficiency, and enhance research and development capability. Meanwhile we hope that the results can provide some reference for implementing the effective procurement and supplier management in our enterprisers.