ContiTech AG Electronic Procurement Design

With the rapid growth of world economy and information technology, the developing countries like China and India are becoming a worldwide manufacturing center. According to the statistics from UN, less than 15% import value of developed countries was from developing coutries in 1970, however, such a ratio increased to 40% in recent years. The percentage will be up to 65% in 2030. The allocation of resouces inside/inter-companies is changed significantly. As one of the most important factor of improving companies'core competence, purchasing management will become a motive force of prompting its continuous development in the severely competition situation.Considering the more and more importance of purchasing management in the enterprise's business activities, through the comprehensive investigation and study on procurement management and procedure of CONTITECH AG, this dissertation brings forward a strategy for implementing electronic procurement management system and transfer minimium 15% purchase volume to low cost countries.by the end of 2010.This thesis introduces the concept of E-commerce and purchasing, and summarizes the following aspects, the content of global sourcing management, the comparison between traditional purchasing management and global sourcing management, international procurement organizations (IPOs) operations. The author also analyzes the problems during ContiTech's purchasing management practices. Aiming at ContiTech's global sourcing strategy and integrating with specialties of automotive industry, the writer intends to offer solutions for this company's global sourcing strategy, including purchasing organization re-structure, set up procurement center, functional departments of procurement center planning, design of electronic procurement strategy and solutions.