Procurement Strategy Study Of S Company

Procurement management, as an emerging business, has attracted the attention of the people along with the rapid development of the global economic integration and the S company is a company that mainly produces the automobile electronic products. It has seen a very fast development of itself since the establishment in2004. But further progress is restricted by the lack of the procurement management experience and the neglect of the management concept in this area; both the procurement cost and the stock pressure are facing problem and the untimely deliveries of the products become apparent. Therefore, in order to survive and win in the fierce market competition, it must rebuild and perfect its procurement management mode to lower the cost, control the stock, and at last maximize the profit.This thesis firstly analyzes the current situation of S company’s procurement management process, the stock control and the management of the suppliers to find out the main defects in procurement management, and then classifies the materials of S company with modern procurement management theories, ABC classification method and the material supply segmentation method. The analysis helps classify different materials according to different procurement strategies and control the suppliers with classification matrix in accordance with the segmentation result. In this way, the type of the suppliers can be better determined and a good relationship will be also established. This thesis also formulates a series of supplier management process and a supplier performance evaluation system and in the end, concludes the effects after the application of the strategies.It shows a practical significance and representation value to choose a middle or small developing company like S company to conduct the research concerning procurement strategy. Also, the research is, to some extent, conduction to studying the experience for the similar companies.