A Study On Procurement Management Problems And Solutions On Petrochemical Project Of S Co

In the recent years, the need on oil product in domestic market is steadily growing. The giant refineries in China begin to start the project of building new plant or updating the old ones in order to meet the need on the quality of the oil-product. As a part of project management, procurement management is playing an important role on reducing the cost, ensuring the quality and showing enterprise competitiveness. The effective procurement management will make full use of the money in the project and get the material in need, which would make a solid foundation for the project.This paper is going to analyze the procurement management of a vast refinery project owned by S cooperation by using the methods of researching, data collecting, trying to find the problems which exist in the whole project. Then some suggestions would be carried out to solve the problem, especially in the planning and executive section.In the planning making section, some adjustment should be done for the structure of organization in order to assure the duty of procurement of each department. It includes setting up procurement department and training procurement specialists. Simplifying the process of procurement to increase the work efficiency. Then, it’s quite necessary to make an extensive analyze on the whole project working plan for the future procurement. In the earlier stage of project, some work need to be done, such as making procurement plan, making the verification for all materials of project. After that, make plans according to the condition of procurement working, and some measures can be used for procurement, which include centralized procurement, early procurement, etc. These methods would guarantee the quality and cost for materials and services which are in need in project.During the executive of the procurement, pay attention to the bidding work and work of supplier management. For supplier management work, some methods can be used such as establishing supplier information data, making judging method to evaluate suppliers’job, to guarantee the quality of supplier. For the bidding work, make plan for bidding work and use a proper bidding method according to the condition of procurement to choose the proper supplier. Besides, a sample will be given to verify the feasibility of these idea. This paper would use the scientific researching method to combine the practice of the petrochemical project of S Co. and the theory of project management as well as procurement management, to give some suggestions on procurement work in the project. These would not only be helpful to ensure the progress of project, but also serve the reference to the other similar domestic projects.