A Comparative Study On The Procurement Mode Of A Real Estate Development Group

Under the background of the rapid development of Chinese real estate and increasingcompetition in the market, the real estate industry is from dispersed to centralized, and by theimpact of significant increase in development costs, the industry profit levels are showing aclear downward trend, so, in order to better survival and development, the real estateenterprises must change management mechanism effectively, use the advanced managementphilosophy and management model, and strengthen cost control and management vigorously,especially the purchasing cost management. For the growing large real estate enterprise, thetraditional dispersed procurement model has been difficult to adapt to the needs ofdevelopment, as compared to the dispersed procurement, the centralized procurement caneffectively avoid duplication of effort, inefficiency, not shared of resources andexperience, difficult to control purchasing cost and so on, so it is widely used by large realestate enterprises. However, when the large real estate enterprises are no longer content to asingle regional development, and develop nationally, the centralizedprocurement model may not respond in time, inflexibility and so on. Therefore, it needsexplored the purchasing management mode which more applicable to trans-regionaldevelopment of the real estate enterprises group.YX Group is just in the starting phase of the trans-regional development, as the case, thispaper will analyses its existing procurement model, procurement procedure, and managementof supplier, identifies the existing problems, and studies on the reasonable solutions, in orderto establish a operability, scientific and specific procurement management system whichsuitable to the develop of YX Enterprises.Firstly, the paper describes the background of the real estate industry development and theresearch state of the real estate enterprises procurement management; then expounds the basictheory of supply chain and procurement management; on this basis, introduces the backgroundof YX Group and its present procurement management, in-depth analyses and points out that theproblems of the procurement model, and then classifies the purchasing materials of YX Groupand optimizes its procurement procedure combined with the theories, therefore, establishes theintegrated procurement model and the specific supplier management system which suitable tothe trans-regional rapidly develop of YX Enterprises. Although the paper studies on the case ofYX Enterprises’ procurement management, it also have a very good reference and reference significance in the currently rapid expansion of other real estate companies.