The Research On Material Procurement Management Of Company Z From Multi Layers Suppliers Under ODM Model

Procurement is recognized as a very important part in the supply chain management, it plays as a bridge between the upstream and downstream of the businesses operation, the link between demand and suppliers. Procurement outsourcing is a new procurement model in supply chain management. With its advantages in cost and efficiency, it has become a new developing trend. Enterprises can reduce procurement costs, inventory holding risk through procurement outsourcing, and companies can focus its resources efficiently on their core business to improve productivity and service levels.Through the research on current procurement methods, I find that the decision making process is mainly focused on the cost factors, which neglects factors from perspectives of operation. In order to improve the accuracy of the decision-making process on procurement outsourcing, based on the researches on theories about supply chain management, procurement method and procurement outsourcing, together with the procurement problems in Company Z, the idea of this thesis is try to consider cost factors and supply chain factors in a comprehensive way, and to construct a model by using Analytical Hierarchy Process, to simplify the model by correlation analysis and to build a computer aid decision making system. The system combines the hard ware, software and network technology and increases the practical meaning in applying the procurement outsourcing decision making model. This thesis also proposes a new concept of partial procurement outsourcing from the degree of outsourcing function.