Research On Material Procurement Management Of The Ramu Project In Papua New Guinea

With the development of industrial technology, the project EPC mode in China isdeveloping rapidly. However, because of its late start, compared with the maturity ofinternational project EPC business, China’ s EPC enterprises cannot meet therequirements of project EPC in many aspects, for example, their capability in terms ofphilosophy, methods, organization pattern, and talent structure of project management isvery weak. Especially, in the aspect of manpower, domestic EPC enterprises are lackingof inter-disciplinary management talents required by EPC project who need to beproficient in business, law, operation and management, and with real projectexperiences. For a large scale EPC project, having a talent who is familiar withengineering design, procurement and construction management, FIDIC contract terms,common rules of international EPC project, and modern project management skills, isvery critical. Procurement management, as part of EPC project management, plays animportant role in the success of EPC project. How to carry out procurementmanagement in a better way, and how to coordinate with engineering design,construction and commissioning, have practical significance for EPC project and projectmanagement.This article research experience of material procurement management in theRAMU project, an overseas EP project and combining cases encountered inprocurement work, analyzes the problems arsing out of human resources, vendormanagement, contract management, overseas logistics and transport, on-sitecommissioning and evaluation issues, and after a comprehensive analysis to identify thecore issues that exist in procurement management is the management of humanresources, Supplier management and contract management are also important aspect ofthe impact of RAMU project material procurement management, author start from thecore issue, summarize proposed improvement measures and programs, and has beentested in practical experience. Procurement is a professional job, it is necessary tostrengthen the building of procurement team, enhance the ability and professional skillof procurement staff, so as to cope with the impacts and challenges in the increasinglyfierce market competition. It is also necessary to intensify vendor management, strengthen vendor appraisal, establish classified vendor management system, so as tocombine vendor management with procurement to gradually enhance vendormanagement. Perfect the contract management system. At the same time, refine theprocurement process, strengthen overseas logistics and try and evaluation in sitemanagement, for example, the establishment of the packaging of goods reviewprocedures, regulating site box-opening and handing over procedure, establishing siteservice staff management system and establishing claiming system, in order to regulateprocurement management and guarantee the successful contract implementation.This article, explore in details various problems and situations encountered byoverseas project, and proposed corresponding solutions. The author wishes this articlecould provide reference to current research in procurement management.