Research On The Optimization Of The Procurement Management Model In ZSRE Company

Abstract:The development of economic globalization witnesses profound transformations in the corporate procurement management pattern, which has gradually become a vital core competence for an enterprise’s participation in market competition.ZSRE is a Sino-foreign joint venture specializing in the manufacturing of railway vehicle equipments. With the intensified competition in the field, ZSRE is confronted with various challenges in relation to cost control and quality management, etc. Therefore, the company adopts a domestication strategy and introduces a project management scheme with a purpose to improve its current procurement management model.Adopting questionnaire survey, statistics and the integration of induction and analysis, the thesis investigates the existing problems in relation to quality management, cost control and process management within ZSRE’s current procurement management model. In accordance with the identified problems, the thesis proposes an optimization scheme to the current procurement management model. Analysis on the optimization effect is also concluded and presented in the thesis.The research reported in the thesis was conducted as follows:1, literature review on theories and studies relating to project management and procurement management;2, research methodology and process;3, case study on ZSRE:(1) existing problems within current procurement management model;(2) the construction of the new procurement management model;(3) performance analysis of the optimized model.The study indicates that the newly-constructed procurement model in ZSRE after its introduction of the project management method serves well its domestication strategy and has significant achievements in its cost reduction, trial production of domesticated products, quality management of the procured materials, and the local supplier development. The research can be used as a reference for those manufacturing enterprises intending to apply the project management scheme for better managerial efficiency in the changeable marketing environment.