Online Procurement Management. Zy Study

Procurement activity is an important business activity. Efficiency and effectiveness of procurement activities in the enterprise cost management occupies an important position, and directly determines the price competitiveness of the company's products in the market. Procurement management company experienced the stage of early inventory-oriented procurement management to order-driven, and till the current supply chain procurement management. Supply chain procurement management pays more attention to supplier management, and emphasizes business collaboration in the supply chain and better meets the purpose of order-driven. With the development of information technology, online procurement system paves the way to achieve more efficient procurement management. Supported by online procurement system, enterprises can effectively reduce procurement costs under the traditional model, for example: a lot of travel, and communication costs between internal and external. Enterprises can use online communication to transact with the suppliers from long distance, and can bring in more vendors to enhance their bargaining power.In this paper, ZY company e-procurement management is ready for the study. ZY company is a large enterprise with a strong independent strength to establish the procurement system. It has established an initial e-procurement platform. With the establishment of e-procurement platform, the efficiency of enterprises in the procurement of materials has been significantly improved, but there have been some problems. Enterprises need systematic analysis of these issues and provide some improvements.The basic content of this article are as follows:1.It described the development stage of procurement management, and conceptual model of online procurement. We can get an overall understanding of the position of the system.2.It analyzed the company's procurement organization status through a large number of investigations on ZY, and ZY company's online procurement modules. The modules include demand planning module, project sourcing module, the project bidding module, contract approval and execution.3.It summarized the major problem emerged in the system, combined with the status of business and related theories. Including inadequate system settings that can not meet the actual needs of the system, the lack of effectively supplier management, and the lack of risk control measures.4.Some suggestions of the problems ZY company's online purchasing management faced were provide. The first is to constantly improve the function of the system. Secondly, we must implement TCO procurement management, cost management to improve procurement effectiveness. Thirdly, it is necessary to deepen supplier management mechanism. Finally, the risk control of the system should be strengthen.This study aimed ZY company's procurement management activities, however, the general business e-procurement management activities may learn and refer from it.