Research On Centralized PROCUREMENT Management Organizational Structure And Business Model

GE General Electric, Jack Welch, former CEO said:"The purchase and sale of the company's only way to make money the department, any other departments in all administrative costs!"When the size of the business are growing, industry-based demand for more and more increasingly specialized division of labor, corporate strategic decision to organizational structure, of course, the realization of strategic objectives enterprises also need a flexible multi-dimensional structure of the centralized procurement organizations to ensure that, this article Through the organizational structure of centralized purchasing position in the company, purchasing organization in the form of, the internal organization of these three dimensions to analyze the research firm in the purchasing organization structure, but all three work together to build business strategy in line with the organizational structure of centralized purchasing.Centralized purchasing organization's business model is determined in the procurement planning and design, this article according to whether the corporate purchasing business uniform orders, whether acceptance of a unified storage, is a unified clearing three key business segments are divided into five kinds of concentration are consistent with Best Practices business model, which correspond to the three aspects of procurement operations concentrated flow of information, logistics and concentration, cash flow concentration, five kinds of applications of business models, application characteristics, organizational structure and procurement have any matches relations? This is also the purpose of this research. Final adoption cases, the use of this article, as well as the organizational structure of the procurement business model research methods, to illustrate the procurement organization and business model is the existence of matching relationship, and it is the application process centralized purchasing companies need to face and solve problems.In this paper, through centralized purchasing organizational structure and business model purpose of the study is that it gives the management group of the relatively extensive type, associated with industrial enterprises can be found to match with the actual business to adapt to the organizational structure of centralized purchasing and business model, improve procurement efficiency to achieve scale advantages, strict quality control, lower the average purchase cost, to enhance procurement performance appraisal to achieve the integration of financial services applications, enterprise applications, centralized purchasing for reference.