Research On K Co. Procurement Supply Chain Management

From nineteen nineties, two main directions of procurement are supply chainmanagement processes and non-core business outsourcing. From the strategically point ofview, procurement should cooperate with the enterprises to divided non-core business intooutsourcing and subcontracting. To manage well the suppliers who undertake the outsourcingand urging them to provide better service can be helpful for the enterprises’ core business. Theindustrial development of recent years shows that, in fact, as a new economic mode,outsourcing has become a hot spot for the development of supply chain. All this indicates that,procurement should change from the traditional meaning of passive mode to an active one forthe modern management of external resources. Moreover, the primary mission for the externalresource management is to establish a long-term, both sides win partnership. In the mode ofsupply chain management, the procurement’s first job is to search for the sources of suppliersand manage them well.K Co. is a branch of global company in Zibo, mainly produce and sale bathroomproducts. With a100years’ development, nowadays K Co. has become a world-renownedbrand on bathroom products, having their own branches and production bases all over theworld. The present paper mainly research on the new factory of K Co. in Shandong, Ziboopened in2011. In this paper, by analyzing of the present situation of K Co. at the presentstage of SCM and purchasing management, combined with the global supply chainmanagement, developing trend of purchasing management, and status of development ofSCM in China, we found that K Co. has a problem in their SCM and purchasingmanagement that the procurement quality cannot meet the demands of supply chainenvironment requirements, poor cooperation with suppliers, as well as antagonistic relationsbetween suppliers and the company, and analyses the formative reasons of these problems.Then making a depth analyzes of the current situation about the SCM of K Co. At the sametime, by means of comparing with other procurement management mode adopted by otherdomestic enterprises and foreign enterprises, analysis of the advantages and disadvantages of the enterprise, we come up with the improvement direction for the supply chain procurementmanagement of K Co. Through the pointed suggestions, hoping to improve the operatingenvironment of supply chain in K Co., and realize the purposes of reducing procurement costs,making purchasing efficiency in the procurement management and create more benefits for KCo.